Assignment
28A – Your Exit Strategy
Identify the exit
strategy you plan to make. Do you intend to sell your business in the next 5
years for a large return? Do you intend to stay with the business for several
decades and retire? Do you intend to protect the venture as a family business,
and pass it down to your children?
- I plan to remain with
Hyperspeed until I could realize a large enough return to be able to start
a new venture. After the $5 million revenue mark, I would want to be
acquired by a large music company like Spotify who understand what I was
trying to do.
Why have you selected
this particular exit strategy?
- I believe that once you start
something, you should see it through, and the $5 million revenue mark for
me would be achieving that goal, and I could begin to work on something
else that is useful to consumers. I
will grow Hyperspeed until that point, it’s my company and original
idea. I don’t intend on having a family
business though, just my own personal ventures.
How do you think your
exit strategy has influenced the other decisions you've made in your concept?
For instance, has it influenced how you have identified an opportunity? Has it
influenced your growth intentions or how you plan to acquire and use resources?
- Planning to leave the business
someday, depending on how much revenue I can make and how quickly, has
influenced me because I’m trying to build more of a generalized network,
to help me now in the specific industry and in my future ventures. If I only end up staying with the company
for a short time, I won’t have to concern myself with long term growth
prospects of the company or deal with new problems as they arise. This business would essentially be for
turning me a profit and providing the capital to create my next
opportunity.
I would imagine then, considering the fact that you are entertaining other opportunities, that there may be some overlap in business ventures. That appeals to my multipotentialite (yes, that's a real thing!) tendencies. This creates the scenario where you can spread the entrepreneurial risk over more than one pursuit yet requires that you spread your energy as well. No doubt about it, entrepreneurship requires immense quantities of resources and energy, whether creative or manual, but if one is cut out for this lifestyle, the payoff can justify the investment.
ReplyDeleteHi Ulysses,
ReplyDeleteI said the same thing in regards to getting enough money to start another venture. I would want to be involved in my business as much as possible until it was financially better for me to sell it. I see your entrepreneurial side in that you would want to immediately create another product and I completely understand. Hopefully you will be able to sell your business for 5 million one day, that would be nice!
Hi Ulysses. I was surprised to read that you would be willing to sell your company to a giant like Spotify. With it taking so much time and effort in your early work years I would think that you would want to stay with it for longer than the point at which it reaches a dollar amount in revenue. Queue the Darius Rucker song, You’re Gonna Miss This! I imagine your next dream would still be within the.music industry? I would highly recommend to continue to work with people in the DAC club and even try to volunteer your time at a local studio that does similar work at higher prices. This will allow you to get inside knowledge and start Hyperspeed ASAP.
ReplyDeleteHi Ulysses, I agree with your thinking to sell the company. I think most entrepreneurs do this on the first few ventures because they don't have the means to continue to grow the company while still maintaining a high enough profit margin. If you didn't sell you would most likely have to outsource too many projects, especially if you want the company to be technologically advanced. I am curious to know what other kinds of ventures your interested in. Would they be music related as well?
ReplyDelete