Failure: the dreaded word, especially in entrepreneurship. It is hated, denied, concealed… but almost unavoidable. Still, entrepreneurs can use it to their advantage! To do so, two steps are necessary: OWN failure it when it happens, and USE it as a lesson to go forward. Today’s post will mainly be about that first step.
When is it time to admit that a business is not going to make it, and dedicate precious resources to other projects? According to Chris Snook (entrepreneur and Washington Post contributor), a few things should be considered:
- Yourself: in all honesty, how do you feel about the success of your business? Estimate your other opportunities, and be realistic about where you are headed.
- Your reasons to keep going: Are you still involved with a business because of the money you invested in it? If sunk cost is your sole reason to soldier on, you may stop right now. Ask yourself if any money you will spend will get you closer to your goal; if not, switch gears! Also, do not forget to get advice from other entrepreneurs (who, for sure, have been in your shoes before).
- Your actual interests: If you are staying in a business just because of the potential income, ask yourself if this is really the way you would like to spend your dollars. It is okay to go for something that interests you more; you will be able to use your failures to your advantages, and will invest your heart and soul into your activities (cheesy but true!).
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These few points are not universal, and we would love to hear from you! How do you know a business is spiraling downwards? Any cues? Please post your comments below!
Thank you for reading, and until next week , stay WISE!