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?
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.
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. However, let me be categorical that there are people who make losses consistently but they still soldier on until their businesses flourish. Such cases are rare though, 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.
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?
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.