2) I decided this exit strategy because I feel like mobile apps are very volatile and I think that every app can only last for so long. For example, some of the top apps from 5 years ago were Angry Birds, Doodle Jump, Around Me, Google Earth, Epicurious, Zipcar, Mixology, Shop Savvy, Mog, and many others that may sound vaguely familiar but you most likely don't even have on your phone. So when I get an amazing offer I will sell, maybe after 2 or 3 years though so I can make money from the app transactions, hopefully which are plentiful.
3) I do believe this exit strategy is reflected on other decisions. Of course the app has room to grow, but I can only grow so much. I think after a few years most improvements will be very small and that will cause a stagnation which will eventually lead to a decline.
Collin, I think you have developed a very realistic exit strategy for your app. I really like that you pointed out how many apps that were popular five years ago are no longer used today. If you continue to be innovative and create many new apps or products as you develop your entrepreneurial ventures, I think it is a great idea to sell this app and use the funds to finance your next project. Good luck! Feel free to check out my exit strategy: http://emilysentblog.blogspot.com/2016/03/my-exit-strategy.html
ReplyDeleteHi Collin,
ReplyDeleteI like your exit strategy. I think that you were very honest and realistic when considering how much an app can grow over a span of 5 years. I think you should be able to modify your app over time to suit the new market, but sometimes that can be tricky. I also have a similar plan to sell my company in the next 5 years. Hopefully, I will be able to make enough money over the next 5 years and be able to sell my company for a profit.
Check out my blog post if you want!
http://lilliegilmoreent3003.blogspot.com/2016/04/my-exit-strategy.html
I like that your exit strategy is planned to sell your application within a given amount of time. As you said, creating an app and maintaining popularity can only last so long unless it grew into a large corporation as Facebook/Instagram has. Although your exit strategy is simple, is it smart. I think the life span of an app is about 2-3 years TOPS. As a consumer, I go through different apps as new ones come along within 6 months to a year and a half.
ReplyDeleteIf you're interested, here is my exit strategy: http://niblaidoc.blogspot.com/2016/04/my-exit-strategy.html