Tuesday, 5 November 2013

Law 27: Know your exit strategy: when to back out of a business before it sinks you.

Sign up to my email campaigns here



Do you check for the exit on getting into a crowded room? If not, where are you going to head in case of emergency? As with life so with business and wealth. They are full of force majeure (act of God). So go into any investment, business or career with a clear idea of how you can back out and liquidate efficiently and cost effectively when need be.

Therefore if buying property know when, where, how and how much to sell it. Know the total costs of buying and selling assets. Know lead times as they can mount up quicker than lightning. Don’t ignore your contingencies.

If you are refurbishing property over 9 months how will the extra mortgage payments affect your cash flow?

Never sign anything you don’t absolutely master, and without knowing how you can exit safely and cost effectively.

If you’ve had a bull run in your investments for a certain number of years, think about moving your profits to a safe place. Like every good thing, bull runs are not forever so know when to get in and when to back out.

What this law all boils down to is diligence, planning and foresight.

No comments:

Post a Comment

The Rapid African Plan To Liberation/ African American & Ghanaian Owned ...

The Rapid African Plan To Liberation/ African American & Ghanaian Owned ...