Hilary Devey of Dragon’s Den fame has some useful tips in identifying when to walk away from your business if it continues to flounder on.
Does your business have a future?
- See if your rivals are also struggling or what they are doing differently to survive.
- Check to see if investors are still interested in your industry
Is your business salvageable?
- Check to see what parts of your business is working/salvageable to potentially pivot to
- Look to get brutally honest feedback – particularly from staff
What are the warning signs?
- Your staff retention levels are dropping
- Be aware of the vicious cycle of losing staff, low moral and a sense of fear for their jobs
Failure is part and parcel of running a business (and indeed any part of self-improvement) so don’t be afraid to cut your losses. It might be hard to know when to do this but don’t ignore the warning signs if they do come along.
If you do eventually decide to cut your losses, take the time to reflect and analyse what went wrong and learn from your mistakes. Your next big venture will benefit from this simple action.
Source: Calling it quits: when to walk away from a struggling business | Guardian