Business Failure: When In A Hole, Stop Digging

By May 28, 2020Grow Business

store closing and business failureIf your company is struggling, it’s time to re-evaluate why you own it in the first place. Sometimes you have to admit business failure.

The optimists that preach hopes and dreams are ignorant (or lying) when it comes to business failure rates.

Most business ventures flop. Almost all restaurants and bars close their doors.

Let’s face it. What you do may be simple. But it’s not easy to turn a profit long term.

Bad stuff happens to even the most successful ventures. For example, after the COVID-19 coronavirus shutdowns ordered by government, 47% of small business owners surveyed said they expected close down permanently. And struggling large companies decided to file Chapter 11, knowing they didn’t have the means to continue operating. Some even liquidated in Chapter 7.

Does this mean give up? No.

It does mean you should regroup, check your backup plan, and assess your path back to growth and profitability.

And if there isn’t a solution, it’s time to close your doors. Because there’s no sense in pouring money down a rathole.

Of course, it’s important to note that business failure doesn’t mean you failed. More often than not, something changed that made the company no longer viable. And that’s okay…no matter how painful it might seem.

Because you are not your company. And there will be other opportunities out there for you. Save your time and money for them if your current business has kicked the bucket.

Mike Young

Author Mike Young

Best-Selling Author | Business Coach | Attorney | Husband | Father | Dog Owner

More posts by Mike Young