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  • An exit strategy describes how an organization or alliance will end its campaign, or withdraw from a campaign alliance that may continue with a different leadership.

  • It answers such questions as: Will the campaign end as soon as the campaign goal has been reached, or will it continue, e.g. on new, related goals? If the goal is not attained, is it reasonable and responsible to stop campaigning? How can any possible damage caused by ending a campaign be minimized

  • When Are Exit Strategies Used?

  • An exit plan may be used to:Close a non-profitable business

  • Execute an investment or business venture when profit objectives are metClose a business in the event of a significant change in market condition

  • Sell an investment or a company

  • Importance of an Exit Plan:

  • It may seem counter-intuitive for a business owner to develop exit strategies. For example, if you are an e-commerce business owner with increasing revenue, why would you want to exit your company?

  • In fact, it is important to consider an exit plan even if you do not intend to sell your company immediately. For example:

  • Personal health issues may affect Personal health issues or a family crisis or experience a family crisis. These issues can take away your focus on running the company. An exit plan would help ensure it will run smoothly the company.

  • An economic recession: Economic recessions can have a significant effect on your company and you may want your company to avoid assuming the impact of a recession

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