6 Questions To Ask Yourself Before Closing Your Business

As an indie author who has published books for a decade, I understand that your journey to success is arduous.

Just like the saying: “Life is a marathon, not a sprint.” It may take forever before we see our business take off. And the months or even years to get there will be difficult.

There may come a time when you start asking yourself, “Should I give up on this business?”

It is heartbreaking to close down your business after all the effort you’ve invested. But when your company isn’t doing well, you need to harden your heart and cut your losses.

Here are 6 questions to ask yourself before deciding whether to give up on your business.

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1. How Much Money Have You Invested In Your Business?

Think back on the capital you used to start your business. Now, think about the money you invested over the years.

Hopefully, you have some document or software like Google Sheets to track your expenses.

Examine the total amount of money you invested in your business from the beginning to today. Is it a huge amount? Bear in mind that the definition of “huge” is relative to each person.

Your net worth is one factor. You can compare the amount you invested and your net worth. If it’s a huge percentage, that means you invested a lot in this business. On the other hand, a small percentage means you can easily wind down your business and take it as a lesson learned.

Your family’s financial status and situation are another factor. If you belong to an affluent family, the amount you invested in your business may be peanuts. Therefore, it’s okay to continue your business since you can afford it (though that’s an unwise move).

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2. How Much Time Do You Spend On Your Business Every Day?

Do you spend 10 minutes on your business every day? Or 5 hours daily?

If you spend very little time on your business, it’s okay to continue.

On the contrary, if working on your business is eating into your sleeping or family time (with no profits too!), it’s better to rethink whether this business is worth it.

Personally, I feel that spending time with your family and friends is more important than working on your business. Work will never end. But once you miss these moments with your friends and family, you’ll never get them back. For example, missing out on your baby’s first steps or your baby calling you “mom” or “dad” because you’re working. These are moments that you’ll never get back.

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3. Are You The Only Employee?

If you’re the sole employee (meaning that it’s a one-man business), you have the say since shutting down the company only affects you.

But if your company has other employees, closing down your business means you’re robbing them of their livelihood.

If you intend to shut down your company, I highly recommend that you give your employees a heads-up so they can start searching for a new job first. You can also write recommendations and reference letters or even connect them to potential employers in the industry.

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4. Do You Have Any Dependents?

Are you the breadwinner of the family? Do you have a spouse or children that depend on you?

If your entire family relies on you and your business isn’t doing well, I recommend that you find another job. One solution to solve this pressing issue is to get another stable job that gives you the necessary money needed to take care of your family. You can then consider changing your business to a side hustle instead. This way, you have a full-time job that sustains your livelihood and feeds your family while having a side hustle that you’re passionate about.

There are other solutions like your spouse working to support the family too. Having two incomes from both parents will alleviate the financial burden. In fact, a dual-income family is now the norm amid rising cost of living. But note that if your spouse has a stable job while you still work for your business (which isn’t generating much profits yet), it is still a risk to your family finances and may even be a cause of stress during economic downturns.

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5. Do You Have A Strong Passion For This Business?

Are you passionate about your business?

If it’s just a business idea that you thought would be lucrative, you can consider shutting down the company if it’s still in the red after years.

On the other hand, you may choose to persist no matter what if this is your lifelong dream.

In my case, I’ve always liked writing. I wrote fanfiction before deciding to publish my own stories. Although I do hope to make a living with my books, it’s still a long way from where I am currently. I’m just happy to receive reviews from readers who enjoyed my books. And of course, I embrace honest criticism too.

As you can see from my example, passion gives you the momentum to keep going even when times are hard. It also builds your business higher when times are good. Passion inspires vision which in turn ignites the leadership spirit to advance the vision. It’s the one that leads business owners to accomplish many lofty goals. This passion, this love for what you do and who you serve, is both the fuel and drive of your business.

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6. Do You Believe In Your Business?

Do you have strong belief and confidence in your business?

More than anything, I strongly believe in the power of belief.

Believing in something is a state of mind. It shapes our thoughts and influences our actions.

Here are 4 reasons why belief is powerful:

Belief Creates Vision
Belief sees the invisible goal and the path to achieve this goal. It ignores distractions and doubters. With this laser-like vision, people who believe win in their mind first.

Belief Creates Strength Of Will
Extraordinary strength of will is the powerful combination of uncommon commitment, relentless perseverance and consistent discipline. This commitment to continue when the journey gets difficult, tedious and painful is key. It’s the belief of “I will” when it gets hard.

Belief Creates Resilience
Resilience is the ability to respond and bounce back from adversity. Belief empowers people by giving them unshakable resolve and focus on what needs to be done. It sustains your vision and strengthens your will when you encounter challenges, difficulties and setbacks. It’s about the never quit, never give in, never give up mindset.

Belief Ignites and Activates
Belief unleashes you. It is the ignition that activates your ability to operate at max capacity. It gives you full access to your talent and ability. Belief is the trigger that empowers you to perform at the highest level.

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Now It’s Your Turn

After asking yourself these questions, you should have a better idea of your situation. Everyone’s situation will be different. It all boils down to one thing—you. As the CEO of your company, the business is in your hands. You have the final say on whether to shut down the company. So do consider all these questions when making this big decision.