Go backwards, and initially reach way out (7)
I believe the answer is:
regress
'go backwards' is the definition.
'initially reach way out' is the wordplay.
'initially' says to take the initial letters.
'way out' becomes 'egress' (I've seen this before).
The initial letter of 'reach' is 'r'.
'r'+'egress'='REGRESS'
'and' acts as a link.
(Other definitions for regress that I've seen before include "Return to a former or less developed state" , "Go back to more primitive state" , "Go back to earlier state, perhaps of health" , "Return to former life" , "Return or revert" .)