As much as going into business is lionized these days, sometimes things just don’t work out. Ideas don’t gain traction, people have personal issues, and folks get burnt out all the time in entrepreneurship. We all know the effort and the money we have put in the business. So, it is advisable that we determine one last time before finally learning to shut down a business.
Even John Kleinheinz has had to take a step back and admit defeat in the past. Back in 2012, he was no longer enjoying the hedge fund business, so instead of continuing to beat his head against a brick wall, he opted to return his investor’s money and begin the process of folding his business.
For example, Nokia was so overwhelming with the thought of success that they had completely forgotten about the changing patterns of the mobile needs. By the time Android came. Nokia was in a desperate mood to look for survival, but also maintain its authenticity, so it launched Blueberry. However, that not came out so well and finally, Nokia gave up.
If you have lost your mojo and it isn’t coming back, it might be time to consider closing up shop. Below, we’ll discuss the top signs that it might be time to call it quits.
3 Tips to Know When to Shut Down a Business:
1. You repeatedly fail to hit revenue targets:
The numbers don’t lie. While it is totally standard for businesses to lose money in their opening months, quarters, or even years, at some point, you may have to face the fact that the market just doesn’t want your product or service. Say suppose you were investing in one of the biggest projects of yours and you were confident that the project would succeed.
However, you lose all the money and the project fails. You have no backup. There are only two things you can do at that time. Either you sell the business or shut down a business completely. Selling the business does give you some funds to make a new investment and start again. IF you have nothing in your business then shutting it down is feasible.
Don’t get us wrong: make every effort to pour over the aspect of your business, as it is likely you aren’t marketing or selling your wares effectively, especially in the beginning. However, it can be a lack of planning or other reasons that you tend to miss the target. People actually who do not know how to overcome those are the ones to shut down a business.
But if you are limping along despite being crystal clear about what you have to offer, it may be time to cut your losses and move on to more profitable ideas. So here are some of the tips regarding when to shut down a business, which you will find helpful. Also, remember that a business is not so easy to shut, several employees will be depending on you. So you better have that much fund to afford them.
2. Your health takes a turn for the worse:
Sometimes, our bodies have the nasty habit of betraying us at the worst possible time. We have absolutely no control over when they decide to develop a chronic illness, but when they do, running a business will be the least of your concerns. If you build up a successful business, you will be able to leave it to your kid.
But, the legacy thing only works, if your son or daughter has the same interest. If they are not able to run a business as you are doing, then your business may come to ruins someday. You will need all the resources you can muster to win a fight against a life-threatening illness like cancer.
In fact, if you get handed this dreaded diagnosis, drop what you are doing and liquidate your enterprise if it isn’t at the point where it could run flawlessly without you.
You can always pick up where you left off once you are healthy again, plus you will have the perspective to succeed where others quit.
3. The business starts to feel too much like a job:
Do you remember what it was like to have a J-O-B? Terrible, wasn’t it? We all got into the game of building businesses because we didn’t like the idea of some guy monopolizing our time while paying us the bare minimum to prevent us from quitting. In business, there should be an urge to make it grow rather than to make it survive.
It feels like almost we are trying to save our jobs. That is when you should know About shutting down a small business. Despite our best intentions, some entrepreneurs end up constructing themselves a J-O-B that sucks up their time and their love of life in the way their past career did.
Employees are as equal to you as your business is. It is because these employees give their full effort and energy to your company for your business growth. If you do not treat employees properly, or if you do not give them their righteous income and incentives. They will leave you one day. If you cannot keep up with your employees, then there would be no need to hire one and then lose him too. So, shutting down a small business would be better.
If your business has become a soulless grind, it’s time to either take steps to once again make it into a vehicle that can secure your freedom, or disassemble it. If the second option is what ends up happening, it isn’t a failure, it’s liberation from a mode of existence that isn’t the way you were meant to live your life.
However, do not give up trying to make it work. You have got to have a strong ground and an even stronger ground in the funds to manage the first hiccups of your brand. Do leave a comment in the comment section and let us know whether this article on when to shut down a business was helpful to you or not.
Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights and experiences in this blog. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you. Follow him on Instagram, Twitter & LinkedIn