Since I have pitched the idea to a large company in return
for a percentage of profit share, after a few years of gaining income from the
product, if it wasn’t as lucrative as I thought then I would probably go ahead
and sell out to General Mills for a lump sum of money. If I was getting large
amounts of money from the company every month then I would probably hold out on
selling out unless General Mills offered a very large amount of money to give
up my rights to the product. Hopefully by the time I have sold these rights out
I will be able to retire and never have to work another day again.
I chose this strategy because I would just be trying to make
a large amount of money with this product and don’t have any emotional
connections to it that I feel as binding so if I could get rid of it for a lot
more than what I have in it then I would definitely sell out my rights.
I think it has influenced the rest of the venture because it
was solely just to make money off of the product. During the course of the
venture I didn’t really put many emotions into the whole concept of the product
because it wasn’t something that I wanted or needed. I just felt that it could
satisfy needs of many other people and could be very profitable.
I think that it is fair to opt out of staying with your idea if you have no strong ties or connections to it. I would want to get out of my venture as soon as possible because I, kind of like how your idea can be done by General Mills, would want to sell my idea to someone who can do it better and reap some benefits off of that.
ReplyDeleteI also agree in order to stick with a product for long, you must truly love it and have a passion for it. I also agree that in business it is important to not remain emotional to a product or venture that many or may not succeed. It is important to not be romantic.
ReplyDeleteYour ideas with the next few years are consistent for what I would decide to do if I was in your shoes. I think that if your business plates off in terms of providing a lucrative profit, selling to a larger company is the best route. This means that your business has grown to the point where it needs to be taken to the next level. If it stays on the same scale owner and investor level right now then it may not progress. This would be a smart business decision because without it the venture may end up failing.
ReplyDeleteLike you, I also hoped for a buyout or selling the company in order to pursue future ventures. As college students, most of us have a plethora of plans for the future and are not ready to commit to one thing. For this reason, I'd be surprised if anyone truly planned to stick with their venture for the long haul.
ReplyDelete