10 signs it’s time to shut down your business and start something new By Priyanka - October 25, 2019 Last Updated at: Nov 08, 2019 0 1162 10 signs it's time to shut down your business and start something new Introduction To run a business is no easy cakewalk. It comes with its own sets of challenges and setbacks. As an entrepreneur, it is up to the individual to be clear in thought, aware of their business functioning and take the right decision at the right time. If the circumstances are not favourable, one of the most challenging decisions an entrepreneur has to face is whether or not to shut down their business. An insight on some of the 10 signs to know it’s time to shut down your business and venture into something new. You don’t see any growth in the business There seems to be a steady push in the development but if there isn’t any growth or advancement in the overall business; then something is not right and it’s time to pause and look over the process again. If things are not working out then its best to take the right step down. Your business doesn’t churn out profits When business is moving at a full swing but you realize that you are not making enough money to keep the functioning rolling despite the best efforts to implement systems and processes to improve operations, then it should come at a stop. Matching the market standard becomes difficult If an entrepreneur offers something absolutely new to the customers, then the main challenge he/she faces is to captivate the target audience that would want to buy the product. But if you are coming up with a product/service which already exists in the market in the beginning; it is important for it to be better and more efficient. You lose the joy of working As an entrepreneur, it is very important for an individual to feel motivated, positive and enjoy running a business. There are situations sometimes where there are insane work hours and pressure to deliver the best to customers. But if it doesn’t work then you should understand it’s time to wind up. As Henry Ford truly said, “Whether you think you can, or think you can’t – you’re right.” Start Your Business Taking the right decision To decide to quit your business is not at all an easy one. But it is important to understand that it is for the best when it is not working the way it is expected to. There are endless opportunities in the market today and you can always venture into something new that excites you. You face too many management issues A business setup requires many individuals who as a team can plan strategies, manage day-to-day projects, market business and handle finances. The whole process of managing a business can be overwhelming. As an owner, it is not possible to do everything by yourself and it shouldn’t be done either. If this is the case, then it could end up to be a complete disaster and shutting down the company would be the best suitable option. Emotional attachment Starting a business from scratch develops an emotional attachment for an individual. To be initiating and running the business is one thing but it is critical to also be practical and do what is right for the business at that point in time. A lot of startups fail but it is necessary to understand the odds they are against from day one and should be better decision-makers when it comes to close down. Financial troubles Finance is the main fuel that runs the business. Without finances, nothing functions in a business. Lack of finances and mismanagement are the top reasons why businesses end up shutting down. It is important to look at the break-even point as the base value for a successful business run. If this is not achievable, then there is some serious rethinking to be done. “Beware of little expenses. A small leak will sink a great ship.” ~ Benjamin Franklin Market trends The market is continuously evolving. It is vital to be aware of the current trends and be a part of it. For example, despite being a market leader Nokia failed as they were complacent. This could be a situation any business could be in if proper measures are not taken at the right time. So either you make significant changes to your business or be ready to quit. Lower pay scale No one likes to be paid less than their worth. In the initial phases of business, you might not be taking a fat paycheck but you should properly document every expense so that you can start taking after the company achieves a proper breakpoint. With proper time given, if it doesn’t work as planned, then it’s one of the top signs to know that the business needs to be closed. It is next to impossible to foresee the fate of a business and therefore it becomes a must to note signs and take a proper decision of closing the business if it is not functioning the way it was planned or supposed to. Whatever it is and just because your business closes down, you have to up entrepreneurship altogether. You can always come up and venture into another sector or start with an innovative product. We can give you complete guidance on closing up the company legally and on starting a new one that best suits your requirements.