We come to love our businesses as our children and that’s why we pour our souls into them and try to keep them alive even when they are beyond hope. It’s never easy to make the decision to shut down your business but remember that just because you need to close the doors to one business, that doesn’t mean you can’t open a new business. In fact, if you have the heart for it and the experience to go with it a new business can be more successful than your old one ever was.
But how do you decide that it’s time to shut down your business? How do you decide not to give it another chance and how do you decide not to make another desperate attempt to revive it? It sure is a difficult decision and when you are emotionally and financially invested in it, you may not be able to see clearly what needs to be done. So, in order to help you out we’ve searched high and low for the best advice that will help you shut down your business and start a new one.
1. The Market Has No Use for Your Products or Services
We always say that in order to start a successful business you need to find a gap in the market and try to fill that gap, the problem however is that the market keeps shifting so it couldn’t be long before your business became obsolete. You may try to save your business with adding new products or services, but unless they are relevant and cohesive to your business profile, there aren’t many chances that this strategy will succeed.
So, if you find that your products and services have become out-dated, it may be time to move on. It’s wise to shut down your business sooner rather than later because you don’t want to start bleeding money. In fact, the money you could have used to rescue your business could be invested in a new business which would have more chances to succeed. Start all anew, find the gap in the market, find a product or service you feel strongly about and put together a business plan.
2. You Haven’t Made Profit in the Last 5 Years
The reason why it’s so hard to shut down a business is because owning a business it’s unfortunately not about constantly making profit. In fact, your profitability goes so up and down that it’s often impossible to predict when things are going to turn around. However if you have an inkling that things are not going well financially do some research into your finances. Has your business merely being sustaining itself in the past five years or has it actually made you profit? The whole idea of owning a business is so that you can make profit and if your business has steadily stopped making profit then you need to shut it down before it’s too late.
Of course, this factor shouldn’t be seen individually since as we’ve already discussed it might be that it’s just one of its low points and your business may start making you profit again at some point. But if your business hasn’t made you profit in the past five years AND the market has no need for your products then you need to accept that things will not turn around and your business will not make you profit ever again.
3. You Are Bored
When starting a business there’s always a certain thrill factor that goes into all the decisions that you make businesswise. And it’s essential that you are excited and enthusiastic about any new business you start because how else are you going to dedicate the time required and the effort needed? If, however, you’ve stopped feeling that thrill factor and if you are bored with your business then this might be an indication that you need to shut it down and move on. A business owner should be committed to his or her business because there’s always a lot of work that needs to be done and if you no longer feel inclined to do the work and find new strategies to promote your business then your business is going to start going downhill sooner rather than later. Consider if the reason why you are bored is because you’ve moved on to a new passion and you’d much rather work with what you are currently passionate about and this might help you decide if it’s time to shut your old business down.
As an entrepreneur you need to be excited about your business because if you are not, how is anyone else going to be? If your business, however, has begun making you tired and it’s not yielding any profit then it might be time to shut it down and start a new business.