In military strategy an exit strategy is used to minimize blood and treasure (lives and material). In business it’s not that much different. Having an exit strategy allows you to:
- get out of an unfavorable situation with a pre-crafted plan
- achieve an objective worth more than the cost of continuing the organization
When you start a business, determining a long-term plan should near the top of your to-do list.
The most common exit strategy is the sale of your business based on the valuation of your company. However, there are many other strategies and planning a back up strategy is not a bad idea. For examples of other exit strategies, see what Yahoo Small Business says.