Throughout the years, you keep hearing that 90% of all startups fail. Yet, you still went along with your idea and decided to weather the storm. And one of the worst feelings that you could experience is watching your company sink.
However, just because your company is failing, it does not mean that you have. And one of the signs of a good entrepreneur is that they know when to throw in the towel and walk away. So instead of staying on a sinking ship, you should look out for the following signs and walk away from the business.
When running a business, cash flow troubles are verytypical. Being a little late on your rent or delaying payment to vendors by aweek or two is no big deal. However, when cash flow problems become so severethat you start getting eviction notices and vendors begin making noise, it istime to pack up.
The first rule of running a business is having a positivecash flow, which means you are making just enough to stay afloat. In addition,when that positive cash flow goes down, it may be time to leave.
When the company starts to struggle, employees are the first to feel the tremors. Whether it is because of the fewer clients coming through the door, frustrated management, or even something as obvious as not being paid, they can see through it. Moreover, when they see it all fall apart, theywill start looking for the door.
This problem can be severe, especially when you do not havethe money to hire new staff. Just remember, it is much cheaper to retain employees than to hire new ones.
This point ties into the cash flows problem. If the sales are so small that you have to start reaching into your capital to keep itrunning, then there are severe problems at play. If the sales are getting too low, then it might be time to leave it behind.
This realization is possibly the worst blow that you can get when running your business, especially when you have been doing it for a longtime. Over saturation of the market is a real problem, and if you cannot find anything unique about your company, then it is best to walk away.
While it is good to question your motives from time to timeif you are continually thinking more about why you are here rather than, well,“here,” you need to move on. Now even if the company is not doing as bad as itwould, it is still taking a toll on your mental health, which means that the business will follow soon.
Learning when to back down is one of the essential traits of a good businessperson, and is one that can take you a long way. However, prematurely walking away will also lead to you losing an opportunity of a lifetime. Therefore, with these tips and signs, you have a better idea of when to walk away. Lucky for you, we – at conquer ninja – have taken all of these things into account. To learn more about franchising, or how you can make the most of your business, visit Conquerninja.com