An exit strategy is a contingency plan for a person to exit a business in the event that it meets a substantial profit or it becomes no longer profitable. Investors, business owners, traders, or venture capitalists may plan exit strategies when they become involved with a business. The purpose of an exit strategy is to limit losses or maximize personal profit when the exit occurs.
This type of business planning is perfect for companies of all sizes, from small family businesses to massive corporations. They generally have two goals in mind throughout the process: to either maximize profits or avoid tremendous loss in an unforeseen situation, such as a market crash or an unprofitable fiscal year.