Walking away from a business for any reason is always a difficult thing to do. With so many startups closing up in the first two years, it’s very common for entrepreneurs to go through this. It doesn’t mean that you can’t ever have a successful business. Most entrepreneurs go through a couple of business that don’t work out.
Knowing when to walk away is important. So here are a few examples of reasons to walk away from a business. These are only ideas to think on. The decision is down to you but you can ask others for advice, like mentors, other entrepreneurs or an accountant.
You don’t love it
Passion in your business is fundamental to its success. If you don’t love what you do or feel strongly about what you provide then you’re going to struggle to sell it to your customers.
You need something that makes you eager to get to work because if you’re not feeling it, it’s harder to come up with new innovative ideas and work tirelessly on your business.
There’s no market need
Ideally you should have researched this beforehand but sometimes the unexpected happens and you end up with no real market to sell to.
If whatever you’re selling goes out of fashion you might need to shut up shop. Alternatively, you could rebrand and take a different route. Whatever you do, take this as a lesson for the future to do more market research or pick something more sustainable to go into.
You’ve ran out of money again
If business is so tough that you can’t pay your staff, this is probably a sign to move on. Not having the money, not only to expand but also retain your workforce, is going to get you into trouble.
If you’re already operating on loan after loan and can’t get any more investment, you may have exhausted all options. If there’s really no way out of it or any way you can transform your business, then closing the business might end up being your only option.
The business life isn’t what you expected
A lot of people have a romantic idea of what it means to be an entrepreneur. It usually involves a bit of hard work at the start and then kicking back on a beach while your team do your work for you. This is simply not the case and won’t be for a long time if at all.
Becoming an entrepreneur is not a relaxing way to spend your time. You may have more freedom or a lot less of it. Most entrepreneurs find that they can’t just go home at 5pm and relax. Business can eat into personal and family time and can become a lot to handle. You need to be committed to working hard.
It’s affecting your health
Being an entrepreneur is extremely stressful and while that’s normal, there’s only so much you can take. Everyone responds to stress differently, but if you notice your business is negatively affecting your physical or mental health, it may be time to walk away.
If you can hand the reigns to someone else in your company or sell it, this will be a better option, particularly if the business has lots of staff and customers.
Are you thinking about stepping away from a business? What are your reasons? Please share your thoughts or any tips you have others in a similar position in the comments.
