An Exit Strategy, broadly, is a conscious plan to dispose of an investment in a business venture or financial asset. The idea is to have a clear path out before you enter, so that you know what you'll do if things go south. For example, if you're investing in a startup, you might want to have an agreement with the founders that allows you to sell your shares back at a predetermined price if they don't meet certain milestones. Or if you're buying property, you might want to have a backup plan for getting rid of it quickly if the market takes a turn for the worse.There are all sorts of reasons why having an exit strategy is important. Maybe your goals have changed and now you need the money from your investment back sooner than expected. Maybe there's been a crisis in the industry sector your investment is tied to and it's no longer safe to pull out. Or maybe something has just gone wrong with the company or property and selling it off quickly is your best option now.No matter what the reason may be, having an exit strategy gives you peace of mind by knowing that there's always another way out should things go wrong. So before making any big investments, take some time to under stand all your options and come up with a plan B (and C and D) incase things don't work out as planned.
