An exit strategy is like having a roadmap to know how you’ll finish or move on from a business venture. Just as you might save money for a rainy day, having an exit strategy helps ensure your financial security and the legacy of a company. There are different exit strategies you can choose from: You might decide to sell your business to someone else, or you could close it down. Some choose to hand over the business to a family member, while others might decide to take the business public onto the stock exchange. If you plan to pass your business to family members or others, not having an exit strategy can create complications. It might lead to misunderstandings, disagreements, and difficulties in the transition process. Without an exit strategy, you might not have a plan for how to get your money out of the business. This could leave you financially vulnerable when you want to retire, begin a new venture or deal with unexpected financial needs. In simple terms, not having an exit strategy is a bit like not having a life jacket on a boat. It’s okay when things are calm, but if you encounter rough waters, you may find yourself in a risky situation.