You don’t have to be a business genius to know when a company is failing. The signs are always there, from the profit warnings to the high staff turnover to the failure to invest in the future. If you’re a business owner, you’re likely well-aware of the warning signs of business failure, and try to do all that you can to keep your business afloat.
Yet for some businesses, they reach the end stage, the point of no return. There’s no doubt that this point is discouraging and disheartening; the death of an entrepreneurial dream. When a business owner finally reaches that stage of admitting something isn’t working, it can be a dark time; all that’s left is to try and salvage some cash by selling machinery through Equify and minimizing the financial losses.
Yet some businesses refuse to fail
Perhaps, for some business owners, the idea of going through the failure process is so bleak that they fail to engage with it. Instead, they are ostrich-like; they stick their heads into the sand and insist that all will be well. They also tell themselves a careful set of lies to convince themselves it’s safe to keep going.
Identifying these lies is key for an entrepreneur. You have to know when it’s time to move on, hopefully to greener pastures, before you and your employees sustain more damage. If you ever find yourself thinking or saying the following things, then it might be time to call it a day:
“It’s the economy.”
It’s always the economy; there will never be a point in time when the economy is completely healthy for every business. A robust company that has a secure future will always be able to ride the waves of economic disturbance, so it’s vital not to use economic circumstances as an excuse for low productivity or turnover.
“I just need to…”
The first time you tell yourself this, it’s fine: you may indeed “just need to” implement a new policy that will change the company’s fortunes. However, if you’re on your fifth “just need to”, then there’s a chance you’re just trying to plug holes in a sinking ship. There are only so many changes you can make before you realize that nothing is going to work.
“I’ll figure this out.”
Trusting your instinct is good; trusting your instinct to the point of self-delusion is not good. If you can’t put together a plan to figure things out right now, then pinning your hopes on being able to do so in the future is not a sound plan. If you’re out of ideas, then it might be time to admit you’ve done all you can, and walk away.
Calling time on a business is never going to be easy, but deceiving yourself is even more difficult. Entrepreneurial spirit isn’t crushed by a failure; in fact, you can use one collapsed business to propel you to greater success in the future. Plenty of people have managed to do just that, so there’s no reason you can’t join their number with your next great enterprise. You just have to be sure you recognize the signs above and know when to move on, rather than saying a long goodbye that will do far more harm than good. Ending a business can actually be a healthy, beneficial process, so embrace the change, learn the lessons, and move on to brighter things.