The news of business losses will heartbreak even those people who have the heart of a lion. Personally, it is the last thing I want to hear, as far as my business is concerned. However, the question that many of us struggle with is whether we should close down our business when things don’t seem to be working. After thorough research, I’m glad that I have managed to compile this article to help any business owner out there when it comes to addressing that big question. Of course, a slight scare should not be the reason for me to wind up my business. So, what signs say yes?
When the Business is Unable to Meet Its Debt Obligations
Many businesses (most businesses, as a matter of fact) operate on debts; call them loans if you like. I say this because I have been a player in the business world for close to two decades, and my taxi business would not have blossomed to what it is today were it not for loans. However, any business that operates on debts should be able to repay its debts. Of course, I don’t have to go into my pocket to settle my loans, lest such funding loses meaning. So, if any business loses the ability to service its debts, then it is a telltale sign that it should be closed down. I once closed down my hotel business on these grounds.
Constant Losses
Any business is about profit making, and it pains me a lot when I see businesses making losses. In some instances, a business may be able to continue by making redundancies in the company although you should read this redundancy advice for employers first if this is something your thinking of because you don’t always get the option to reverse this decision. And while losses are part of business, continuous losses, year in year out, mean that I have to wind up my business pronto. This is just common sense. Imagine how my taxi business would be if I were to make losses for three consecutive years. That would mean wasted efforts and resources, and I would have every reason to wind up.
Nevertheless, let me be categorical that there are people who make losses consistently but they still soldier on until their businesses flourish. Truth be told, besides indomitable courage and willpower, such people also start learning about the shortcomings of their business, what their target customers want, and how they can achieve that. For instance, if a restaurant business fails to do well, perhaps the owners need to think about the food menu, the ambience of the restaurant, or maybe they need to come up with new ideas to reach new customers. Oftentimes, such entrepreneurs use techniques to advertise their business with the help of
Atmosphere and its likes. By getting national exposure on Atmosphere’s platforms, such entrepreneurs often avert the crisis of running out of business.
However, such cases are rare, and not many people may be able to withstand the situation, given that they may have to turn to their own savings or seek money from elsewhere to fund the business operation. This could be preventable though, especially if the business owner considered using a subscription revenue model from the start. This ensures that customers come back repeatedly, and it helps the business to predict revenue for the year. To learn more about a subscription service, it might be worth visiting Salesforce.com to see if it would work for some businesses. That might save a business from constant losses.
Constant Loss of Key Employees and Customers
Most businesses have what I call key employees; these constitute the most important workforce in the business fraternity, and losing such people is considered a big blow. In my case, for instance, there are taxi drivers that I simply can’t afford to lose. Out of 50 drivers I have employed, 10 of these have stayed with me for more than 10 years now, and I can’t fathom losing them. They have become the face of my business, and there are clients who can’t book unless they are sure to be driven by these particular drivers. Thus, losing this key workforce would amount to losing a huge chunk of clients. Of course, they are more than likely to move with some clients when they decide to join another employer. Besides, let me admit that key employees are not easy to replace, thanks to the fact that the labor market is awash with fresh graduates who are yet to gain experience. And who wants to hire freshers?
Secondly, if you are unable to deliver exceptional hospitality to your clients, you may lose some of them. Any firm that thrives puts a lot of work into how it presents itself to its consumers. And that can only be beneficial if you have worked hard for it. For instance, a hotel can only thrive if it gives its guests clean rooms, prompt service, and other amenities. Hotels have the opportunity to invest in dependable hospitality services; however, those who do not do so suffer losses and finally close down. This (hospitality) might potentially be one of the reasons for my company’s demise.
If My Interests Changes
A story is told in my local town of a famous bishop who was once a business mogul in business. The guy used to run one of the most successful supermarkets (back then) in town before he became the Man of God. When the news of winding up his business came up, it was a shocker to many people as no one had ever imagined that such a thing would happen. The guy claimed that he had been called by God and had no option but to close down his otherwise flourishing business empire. While this may have been a bitter pill to swallow, it is clear that the man’s interests had shifted from business to the gospel. So, it was only proper to quit the business world since his heart was elsewhere, and he may not have given his business and customers the attention they deserved.
