28A – Your Exit Strategy

My exit strategy is to sell the business 3-5 years after the software goes live.  I expect that initial research and development will take about a year and will focus solely on a single practice area in law.  In the first 6-9 months after the software is introduced to the market, the company will actively solicit customer feedback and focus on improvement, as well as growth.  The following few years will be focused on research and development of the software to make it specific to areas of law other than the first one.  In 3-5 years the company should be very profitable and have demonstrated its ability to grow and develop into new markets.

I have selected this particular exit strategy for a few reasons.  First of all, this company will be a project for me, not a career.  Secondly, I believe that while engaged in this project, I will inevitably discover new opportunities and come up with new ideas.  Selling the business will provide the resources necessary to invest into a new venture.  Third of all, I suspect that after years on working on the same type of project cycle, it will become repetitive and not challenging, and it will be a good time to make a change.  Lastly, feedback that I received from some of my previous posts showed me the potential that my idea has beyond law firms, and that it can be applied to other types of businesses.  I believe this, along with profits, will make the company easier to market and sell.

My exit strategy has influenced my growth intentions.  My goal is to have between five and ten software variations, each specific to its own area of law practiced by solo and small law firms.  After reaching my goal, there will be enough stability in the company and sill enough opportunities for a new owner to expand into new practice areas and new types of businesses with the software, making my company a safe, yet an exciting investment for an entrepreneurial and business-minded buyer.