exit-strategy

Vocabulary Word

Definition

An 'exit strategy' in business or investment is the way you plan to leave, or 'exit', your investment or business venture when it reaches your set goals or if it isn't working.

Examples in Different Contexts

In venture capital, an 'exit strategy' involves planning how to sell the investment in a startup to get the highest possible return. A venture capitalist might explain, 'A clear exit strategy is crucial for us to decide on investing in a startup, as it outlines the path to profitability.'

Practice Scenarios

Business

Scenario:

The market seems to be fluctuating wildly. We might need to reconsider our investment portfolio.

Response:

I agree, keeping the current market conditions in mind, we should consider following our exit strategy.

Creative

Scenario:

The industry seems to be entering a new phase, with prevailing trends towards more digital and virtual technologies.

Response:

Our focus seems to be more aligned with a digital strategy. It might be time to pursue our exit route and pivot.