Learning to Let Go
“Only those who dare to fail greatly can ever achieve greatly.” — Robert F. Kennedy
Failure. Something most people are preeeeeeetty uncomfortable with. None of us like to think that we’ve failed, especially not someone who’s starting a business. But it is good to be aware that 20% of businesses fail in their first year of operations, and 50% within the first five years of operations. These numbers shouldn’t discourage you from starting your own business; it should just give you a bit of perspective that starting your own business isn’t easy. Anyone who’s done so can tell you that a lot of sweat and tears go into starting and running your own business and it’s not a decision that should be taken lightly. But what are you supposed to do when your business is seriously struggling? How do you know if it’s the right time to move on to another project?
1. You’re no longer happy
Anyone who’s had an idea knows the rush that comes with taking the first steps to making that idea a reality. In the beginning, opening your business, taking with customers, developing your product are all tasks in which we relish. Every milestone in your business is a new achievement to celebrate and every day is exciting. While there are rough times (usually about money especially in the early days), it’s easy to remind yourself of the light at the end of the tunnel. You’re optimistic and excited about your project. This doesn’t mean that the moment you feel down about your business or have a bad day that it’s time to shut down your business. However, if you notice that your business no longer makes you happy, and this feeling doesn’t pass, then it may be time to re-think the status of your business. This is a very personal decision, but if you’re unhappy at a position it may be time to look at other career options.
2. No longer financially viable
Businesses go through their ups and downs. Especially at the beginning there may be moments when you’re losing more money than you’re making, but there should always be a very clear view of when you should be breaking even. It’s this point on which you have to focus. If that date gets pushed back a month of two, you should be careful. However it doesn’t mean you should shut down. Shit happens; deadlines get pushed; give yourself a bit of leeway as well. But if you were supposed to start breaking even 6 months ago and you’re not even close to that point still, then it’s time to reconsider options.
3. You’re losing employees
In startups, your employees tend to be your product’s biggest fans. Most startup employees could be working at larger companies with better salaries, yet they choose to work with you because they truly believe in the product or the mission of the startup. Startup teams put in long hours with less reward than they should receive because they think what they’re selling rocks. While employee turnover is pretty normal, especially in the startup world where people tend to spend a couple years building up their resumes and getting their hands dirty, if large numbers of your employees begin to leave it might be a sign of trouble. There’s always the possibility that it’s a management style problem, which is an easier fix. If it’s that they’ve lost faith in what you’re producing or in their CEO’s ability to take the project forward, then the problem is serious. So if you’re suddenly having employees leave, investigate. Find out if it’s something that’s a bit easier to fix, like a bad office culture or bad management, or if it’s a bit more serious and you’re blind to large problems in your product.
Deciding when it’s time to move on from your business can be an extremely difficult and extremely personal decision to make. We see our businesses as our babies and it’s hard to admit that they’re not going the way we want them to go. But putting one idea behind you doesn’t necessarily mean you have to shut down your business. It might just mean you have to pivot, or change your product in order to better fit your market. Sadly sometimes it does mean that you have to close up shop and move on to another project. While it can be tough, what you have to remember is how valuable your journey as a business owner has been. You learn so much along the way when you open a business, and if you decide to do it again you won’t be starting from scratch! You’ll already have all this background knowledge you learned from your first attempt on which to build your second project. It’s all a learning process. You can’t succeed without taking risks.
If you want to lower those risks, check us out at Bridge for Billions, we can help ensure that you’re on the right path, or change course if you’re not! Apply to our program today!
