Tips for Deciding When to Fold Your Business
If the writing is on the wall for your business, then you owe it to yourself to shoulder the responsibility of preparing to fold before the situation gets any worse. The earlier you take this responsibility, the better you look when you finally have to make the announcement to your investors, your family, and your employees.
Below are just a few of the tips to decide when it is time to stop fighting and start preparing to respectfully retreat.
1. Assess the Overall Market
Perhaps the business was simply unsuited for the times. If a business is not making money despite the best efforts of a qualified team, it is time to look outside for solutions. If these circumstances create too large of a problem, it may be time to hang it up.
2. Assess the Competition
Sometimes the competition simply has too much of a head start or it has proprietary information crushing all competitors. Determine if the business is able to compete with the products and services your competition offers. If not, is there any way the company can improve itself within a sustainable budget? If there is no way to take a company to a competitive viability, then it may be time to start preparing the announcements.
3. Assess Your Financial Situation
Your business may have the ability to make a comeback, but this may rest on the morale of your investors and staff. The main players may suffer from burnout, if you have stayed in the red for too long. These attitudes must be assessed along with the actual financial potential of your business in order to determine the company’s chances of survival. Be honest about the bottom line and make the best long-term business decision for the company.