28A – Your Exit Strategy

1) Identify the exit strategy you plan to make.
Following the five year success of my product my plan is to sell the company. Investors who I think would be interested in the product include Amazon or Walmart due to the fact that my product synergizes with their online business model. This product would prompt consumers to use their online marketing service more and for higher priced goods. This is due to the confidence boost my product would provide in securing their product. I don't see this product as a family business because their will likely be many competitors in the near future if the product does see success and I feel it would be smarter to move on to the next opportunity.

2.Why have you chosen this particular exit strategy?
This exit strategy would provide capital which could be immediately invested in the next opportunity following this product's sellout. This product is not patented and I believe that if it sees commercial success, competitors will emerge with very similar products and price points. The main advantage of my product would be the fact it is first on the market which would give it a stronger presence. This may entice large online retailers to simply buyout the company rather than compete with it.

3) How do you think your exit strategy has influenced the other decisions you've made in your concept?
This exit strategy has influenced how the product will ultimately be made. The product will be constructed by a third party to reduce initial upfront costs of opening up a manufacturing plant. By having less capital invested in the infrastructure of the company, selling the rights of the product and leaving the company will be made much easier. In the meantime, I plan to grow the company as big as possible before selling off the rights to another company.