I am very excited to consider the possibilities Campfire may hold for the future, but I also don't think this will be a necessity when the next trend comes along. If I were able to gain substantial momentum at the beginning and become a respected name in the technology field, I would be very pleased. Becoming a helpful tool in homes and workplaces. But the ideal situation would be that another company would want to come and buy the idea, product, concept, patents, or whatever from me and then provide me with a royalty check for the rest of my life. I am not looking for some life-changing buyout, but a nice security blanket to fall back on in case of a "rainy day."
I have chosen this exit strategy because I believe the technology field is extremely competitive, expensive, and constantly upgrading. Staying up with the latest trends and software almost seems impossible. You have to strike while it's hot and knows when to get out. I don't want to miss my window and end up putting myself in a financial hole that hurts my family in the long run.
I believe this exit strategy impacts my plans with the company. As I hope it to be a one hit wonder, I think this puts a creativity block on the potential the product may possess. As some may be looking to add accessories or branch out, I wish to maximize what I have and then get out. I firmly believe the opportunity is there and there are so many families, schools, and businesses that could immediately use this product, but I don't see much expansion from there.
I am glad to see that you set yourself realistic expectations for the lifespan of your business. The thing is that with most technological innovations, they seem to be a fad because it is constantly being updated over the years. Having a royalty will definitely be incredibly beneficial for you, and it will allow you to look towards new potential opportunities in the future.
ReplyDeleteIn consideration to the concepts behind your exit strategy, I think your philsopgy of striking while the iron is hot is perfect for the inevitability of the technology commerce sector, and to be at the height of the business secures your position as both a worthy businessmen and innovator, but simultaneously ensures that the royalties remain good when leaving at the correct time.
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