I’ve decided to write a book on my system so I have a tool that better explains different elements. It makes it much easier to show someone how the different elements are connected and how the system is repeatable as well as self-sustaining. It use the example of a circle, and the active example of an electric train. One of the most important aspects of any system, and the one that makes it a repeatable and self-sustaining system, is the development and use of exit strategies. Exit strategies are critical since they are the element of any system that makes the system work. If you don’t have an exit strategy, all you are doing is spinning your wheels, accomplishing nothing, and usually costing you a lot of money. Without a well thought out exit strategy (or two, or more) the only repeatable part of your system are the costs.
So with that said, I thought I would give you a taste of what I’m writing about by posting part of the chapter on “Exit Strategies“.
(Where you End, should be where you Start)
Remember the circle? It was the perfect system we mentioned in an earlier chapter. Self-sustaining and repeatable, each cycle of the circle ends where it began, and starts where the previous “cycle” ends. So, the best way to design the system is to start with the end…what is referred to as the “exit strategy”. The more exit strategies you have, the more options you have, and the more opportunities you will be able to take advantage of.
Now, we will discuss a number of different exit strategies in this book. There are many more exit strategies, and systems for them, that have yet to be designed. As long as you start with the exit strategy, and work your way backwards…to the start, you will have a system where there will be very little left to chance. This is another form of risk control. In a way, you are treating the exit strategy in question much like a college degree. In order to get the degree, the exit strategy of school in this example, you have to pass a series of pre-requisites. Each pre-requisite has its own pre-requisite, and so on…until you get back to the beginning, which in this case would be enrollment.
So, after you start with your exit strategy, move backward through the series of pre-requisites, arrived at the beginning, you will have laid out your plan/system, in reverse. Now that you’re at the beginning of your system, just turn around and “follow the bread crumbs” back to the exit strategy. Works like a charm.
The repeatable part comes when you arrive at the exit strategy; part of the exit strategy must involve providing the first step in the system you just went through. Thus, the system is self-sustaining, and that makes it repeatable. It becomes the circle…the perfect system. In the case of real estate investing, the last step before almost any exit strategy would be….
Sorry, but you’ll need to read the book for more. The next part is based on parts before this chapter, so I chose to stop right here. You can take a look at the Table of Contents to see what else I discuss.