28A – Your Exit Strategy
1. I would intend to sell my business in 5 years to a bigger distributer. I would keep it running until I grew big enough where I had a big majority in the sale of restaurant equipment, and expanded past straws to include things like environmentally friendly cups and utensils. A big distributor could buy my company and keep the local name and vision, so people would continue to do business, but be more profitable that I would be due to their larger network.
2. I have selected this because I feel if I grew my business enough I could get a corporate distributer to pay a good price for it, and I would be able to make a lot of money, and invest that into other start up ideas that I have.
3. It influenced my other decisions, because it showed me that I would have to build a strong company reputation, so that I will have loyal customers that would be profitable if another distributer bought me out. It also made me think about keeping my assets low, because another distributer may already have them, and not want to buy them off of me with the sale of the business.
2. I have selected this because I feel if I grew my business enough I could get a corporate distributer to pay a good price for it, and I would be able to make a lot of money, and invest that into other start up ideas that I have.
3. It influenced my other decisions, because it showed me that I would have to build a strong company reputation, so that I will have loyal customers that would be profitable if another distributer bought me out. It also made me think about keeping my assets low, because another distributer may already have them, and not want to buy them off of me with the sale of the business.
Hi Matthew,
ReplyDeleteI have also chosen this exit strategy. I think at our ages and level of experiences many of us would prefer selling our businesses as we would like to focus on other goals and like you said other start up ideas. Great post!
Dear Matthew,
ReplyDeleteI think you have an interesting exit strategy. I think selling the business in 5 years to a bigger distributor could be a good idea. This would be a good strategy, especially if you do not feel this business would be a long term investment for you. I, too, want to grow my business until I think I can sell it for a good value.
Hey Matthew!
ReplyDeleteI think it’s very financially savvy for you to sell your business after five years. I believe if you were to create this business and sustain it for long enough to become big that having a large distributor buy it off of you could lead to a nice paycheck for you. I would say only to do this if you don’t see much going forward in the company and/or you don’t have any attachments to the company like passion for example. With my company, I am choosing to stick with it for the sole reason that I’m passionate about it and want to be apart of it. Everyone has their own strategies and reasons. Good job!
-Jenna