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When is it time to close the doors to your small business? Very few of us open a business because we must have the money right away. We open a business because we want to be in business for ourselves. Are there signals that tell us perhaps we should stop and come back to “play another day”?
If the business continues to lose or fails to make money, cut your losses.
This is so hard to measure in one way and easy in another. That is why this aspect should be “measured” before you start the business. You should decide before you start your business how long you will give it to reach a certain point. Let’s say that you have capital to go through six months. If, at the end of four months you don’t see any growth whatsoever, you should close the doors.
If you hate going to work everyday, dismantle the operation.
You thought that you would like cooking pizza everyday but you are tired of oven heat. And it turns out the people you attract aren’t a lot of fun for someone your age to be around. Frankly it doesn’t matter if you’re making money or not if you are miserable. The facts are you never know how you are going to like something until you do it everyday.
The industry you are in requires major updating.
Let’s say you are in a printing business and other businesses have upgraded to machinery that gives them the decided advantage over you. In order to upgrade you will have to go into major debt. That is a good time to shut the doors unless it is a business you plan on spending many more years in.
Your business grows to the point that you have to hire people.
If your business gets to the point where you have to hire people then you will have to pay Social Security taxes and Unemployment. It can get scary. That may be the time to close the doors.
The Government changes laws that hurt your business.
This speaks for itself. The government can change the ground rules at any time, and the field of insurance is one that is the news every day. I recall in a transportation business I had to deal with changes by the city with respect to fares that made it impossible to keep up with fuel charges so I closed-the city lost taxes on that.
It is wonderful to be in business for yourself. It is exciting to see an idea take off. However many successful business people tried several times before they were successful. Don’t hang with a failing business too long or you may ruin your chances of trying again, this time successfully.
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