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Signs to Close Your Business

When the business is at its critical stage, there are two things that business men do: cost cutting or loss cutting. I have explained in the previous article about the cost cutting and there are many ways to actually do it. However, if you think that the business can’t sustain itself anymore, then it’s best to cut your losses by closing your business. Here are some questions to help you weigh up your decision of possible business closure.

1. Surviving or Suffering? If the gross income that the business generates is just breakeven, then the business is not surviving but suffering. You may also adjust your price but if you are having a very limited resources, it will not promise a total business turn around. In this case, it’s best to consider of closing your business than to waste time, energy and money trying to revive it. Unless you see a business potential and you figure out a way on how to utilize that, then you may also give the business one more try. 

2. Expectation or Status Quo? The only time to loan for a business is when there is an upcoming project. For example, when my uncle won the deal of being the main supplier of water all over the town, he knew that his resources will not be enough. He needed business expansion so he applied for a loan. This is the only time when getting a loan for business is advisable. However, if there is no expectation or the loan is meant to keep the business running, you might be setting yourself for trouble.

3.  Pros & Cons. This is the classic way of weighing up decision and it always works. Just write down the pros and cons of the business and if the disadvantages weigh more, then it’s best to just close the business, take note of the lessons, and start anew. 

Your business may close but it doesn’t mean it’s the end of the road for you. In fact, you are way ahead already among the new business men out there because you already have an idea on how business actually works. The most successful business men today, in fact, the world’s multi-millionaires are the ones who once failed a number of businesses before hitting it big. Don’t be discouraged because of one or two business failures. Just think that the whole experience taught and prepared you to be wiser and successful business man in the future.  -M.D.


We’d also love to hear from you. Feel free to comment below to share your business experience. You may also email us at mybusinessgrowsbigger@gmail.com for free business consultation. You may also follow us on twitter https://twitter.com/BusinessSavvy2

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