No one ever thinks their business may shut down when they’re starting it. While it’s good to have a positive mindset and focus on the good, entrepreneurship is unpredictable and sometimes it’s important to know when to call it quits. Here are a few indicators that it may be time to close shop.
You’re not making a profit
Running a business means having something that makes money. If you have to dip into your personal finances repeatedly to keep your business afloat and there’s no prospect of ever breaking even, then it might be time to consider your other options. You may be in need of a cash injection, better marketing or complete revamp. If you’ve tried all of this, however, then it could be time to close the business or downscale for a while.
You’ve exhausted every option
Starting and running a business isn’t easy. There are going to be challenges and costs, and you will find yourself having to get people and resources for assistance. If you’ve exhausted everything from loans, business advice etc then it might be time to take a step back and think about whether this business has a chance of surviving or not. You don’t want to keep putting time, money and effort into a business that’s not working, when you could be focusing on a new, improved model.
You love your product/service more than your customers do
If your business has been struggling for months or even years to generate a clientele and you’re getting complaints about your service either being subpar or completely redundant, then it might be time to go back to the drawing board. Customers buy products and services they feel they need or want, and if there isn’t any real market for your business, it’s better to think about what your options are. Try not to think of it as a failure, but as more of a lesson learnt. Take the skills and lessons from that business and start focusing on creating another, that’s stronger and has a better chance at success.
There’s no easy way to accept closing down a business you’ve worked really hard to build. However, it can be necessary sometimes. It’s important weigh your options and think about whether the business is worth keeping and if it’ll eventually be a return on investment. There’s so much to learn from failure and for most successful entrepreneurs, a few failed attempts become huge drivers of their success.