I once read a statistic that said most entrepreneurs failed three to five times before they actually started a successful business. While I find it freightening in some respects, I also have to admire the true entrepreneurial spirit of people who are able to pick themselves up, brush themselves off, and try it again.
Knowing when it may be time to call it quits isn’t always an easy thing to figure out, but sometimes it does become necessary. How can you decide whether or not you’ve just hit a dark patch or if you business is actually sinking into the great business abyss?
Start by asking yourself these three questions:
- Was my idea worthy?
- Why is the company failing?
(Do a thorough investigation of your company’s strengths, weaknesses, opportunities, and threats. Also take a look at company sales levels, operating capital, and any and all factors that have changed since you started the company.)
- Is there life after work?
(Does running your business leave you much time to spend with family and friends? Are you able to financial support your family? More importantly, do you still enjoy what you are doing?)
If you do find that it is time to throw in the towel. There is no shame in do so. Another new and better opportunity may be waiting for you. Maybe Virgin Enterprises founder, Richard Branson, had right when he said, “Business opportunities are like buses, there’s always another one coming.”
Yours may be arriving soon.