When you first start a new business the idea of giving up on it is out of the question. You love the idea and you’ll carry on until you fail or you succeed. But that’s not the way to look at it. If a business idea isn’t viable and you just carry on regardless, you’re just burning money.
Failing at one business doesn’t mean you’ll never be a success, most of the biggest business people in the world had multiple failures before they’ve found the success that they have now.
They only managed to do that because they understood when to cut their losses so they didn’t lose everything. Then they still had money left to put into their next venture. If your business is struggling and you’re not sure if you can turn it around, here’s how to tell whether it’s time to give up on it and move on.
Is the product incredible?
Obviously, you think the product is great, that’s why you started the business after all. But the real question is, does anybody else?
Just because you like a product and you think it’s useful, that doesn’t mean that anybody else agrees. If you’re not selling anything it might just be because your product doesn’t meet a real need. Or someone else meet’s it better, as we’ll talk about.
Test the product on a wide audience and get some feedback to see whether the product is worth selling in the first place, if it isn’t, stop trying.
Do you have funding options?
The biggest reason a business closes down is that it can’t afford to continue running when it’s not bringing in any revenue. At this stage, you need to look into your funding options.
If you’ve got nothing of your own money left and you’ve tried the bank and private investors, you might think that you’re out of options. But there are small business funding operations like the one you can find at smallbusinessloans.co which offer loans to people in your situation.
Before you decide to pack up completely, exhaust all funding options first. If there’s nobody else that will loan you money, it’s time to call it a day.
How passionate are you about it?
Passion is the key to success in business. If you don’t even enjoy running the company, how can you expect people to enjoy your products?
It might be that you were passionate when you started the company, but now every day is a chore. That’s a good sign that this wasn’t the right business decision for you and you should think about leaving it behind and pursuing something else.
Are other companies doing it better?
It’s difficult to admit that your rivals are better than you but sometimes you’ve just got to face facts.
If you start a business in an already saturated industry, you might be struggling because somebody is already offering what you are, and they’re already established. For example, if you opened an online auction website, you’d struggle to get anywhere with it because eBay already does it better than you.
Unless you’ve got something unique you won’t get anywhere.
If your product is mediocre, money’s run out, your passion has dried up and other people already have a handle on your idea, it’s time to hang up your gloves.