Topic: How Long in Years Should I Wait Before I Close Down an Unprofitable Business - page 3. (Read 1291 times)

If you are doing business and you see that it is not moving forward, you should think and observe what is going on with it, that you are not making profit, but there is no business that brings profit easily, before you start a business, you should know about what you are trying to establish in business, you should think about what customers prefer to buy that increase the customer happiness and service.so that you can sell to them and advertise it, because it is sometimes difficult to get profit when starting new business. Is not advisable you should stay for 3years if business is not going smoothly, is better you should change it and go for new one.

Atleast 3 years time, if one I able to continue it for another two more years it'll be better. Any business needs atleast three years time to make it profitable. When one finds it loss, he should have the alternate plan to move on to something else keeping the first business active. Because to make it established is not an easy thing. Everything doesn't start with profit, we need to add value to the product in an unique way. Maybe while giving regular try something will be catchy and reach the people in a better way and create good business.

3 years?, is an ample amount of time for an unprofitable business. Being very optimistic, I would bet on two years of extension at most, if you can dedicate more time and money to a "business" after that, in effect, it is nothing more than just a hobby, because it is not productive and every time it only depletes more resources that probably will not have an effective return and also cannot be used later in more fruitful projects, extending the time of something due to lack of resignation is a fact that is highly detrimental in the long term, it is better to know when to say "no longer" to something that no longer has a case... Of course, there are a wide variety of variables to consider, but whenever the results of a venture are negative, in my opinion after one year and a maximum of two, it is the best option to opt for possible new scenarios.

Before thinking of a closing down an unprofitable business, you have to check alot about the business. These include:

👉👉How are you running the business?
👉👉Are you running the business in the right way?
👉👉Are you running the business in the right location?

After all this try to analyse the cause of your losses. You can sometimes work on this to make a unprofitable business to became profitable.

It’s a really tough call to make, a painful one too if it’s your own business. It's crucial to evaluate the financial health, market conditions, and potential for improvement. If the business consistently fails to generate profit despite efforts to turn it around, a realistic timeframe could be maybe 1-2 years. However, seeking professional advice and considering the long-term viability of the business is essential before making a final decision.

Having confidence in your business model also plays a great role in that, someone who knows they have started a business that can run if they keep working on it and keep making changes as per the market conditions and demands, should give it time and it will surely succeed one day. If you have started a business without proper planning and everything and you see it going down constantly, maybe you should go ahead and stop taking more losses.

One should also see how much money they can afford to spend on their business if it doesn't turn profitable within a few years if they know they have enough money to keep it running and they know it will generate the money back for them, they should do it, but if it's the other way around, they should just quit.

We have to be observant in reading the market situation, when the business we are running is not in accordance with market demand, of course we have to get out of it so as not to lose a lot of things, especially time or to be able to look for other business opportunities.
How long or not we last depends on the market opportunity that is visible, if indeed the market opportunity is not there then leave but if the market opportunity is still there then develop the business to be better so that it can attract many people, it all depends on the type of business we are running.

This is true. If you know that you're already losing more than what you first invested then it's a big sign to stop. Knowing where things go wrong and if you'll be able to counter it may lead to at least you salvaging some of the money you invested. We should know when to stop and when to continue taking risks in situation such as this as it cost a lot for us.

For me then i would really be in 6 months time and a maximum of 1 year on which if i dont see any progress or increase of revenue or you are still on losses then it would really be just that wise that you should stop and cut everything.Dont pursue on things which arent that effective or profitable anymore because instead of earning you would rather be having losses. Its hard to accept the truth or reality but there are really things in life
which we do really need to accept and move on. There are really things which arent really meant for us on which it is really just that wise that we should really be moving forward rather than on completely stopped.

It might really that hard to move on but there's nothing we can do.Its up to us whether we do have some take a break or would really be pursuing other business on which we could really put our focus on. This is really just that reality of this life on which problems are inevitable specially on investment or business because not everyone would really be that successful when it comes to his manner. This is why its never ending chase
on different methods and ways for us to have that successful path but since everything is unpredictable or the future isnt something that could be known then result or situations is something totally random.

Same with my timeline. If I don’t see any progress and improvement after a year or two, then I’ll be force to stop my current business and just study the market more while i’m still earning for my funds so I can start a new business. While business location is also very important, but I also think that a manager’s business strategy or skills are also very important so might as well change my strategy so I’ll be successful in my next business.

Five years is a period that is too long as most people would go homeless with just a few months without any kind of income, in my opinion someone opening a business should prepare themselves to go one year without profits, but if after that year it does not seem as if the business is going to breakeven anytime soon then it is time to simply accept the reality and move on, as if there is one thing we do not get more on this life is time.

It seems to me that pulling a business for 5 years, which for all 5 years does not bring profit, is ...well entertainment rather or a costly hobby ....
You spend money on its maintenance, time, effort, and return 5 years no ! I think you have to objectively assess the situation and make a strong-willed decision:
- or tell everyone that it's a hobby, an activity for the soul, not a profitable venture.
- or admit that the BUSINESS did not work out ... And then make a decision - to close, freeze, sell, give as a gift ... Because you can definitely have a more profitable idea, which can really be a business, a business that brings you profit and satisfaction.

I personally might not be able to survive in a business that doesn't even bring me much profit within 3 years. Because we do business is to make more profit.

But it will be different if the situation is that we see the potential for our business to slowly develop because we see market trends that seem to be in favor of the field of business that we are currently doing.

I will decide to keep my business if there are 4 things:
✓ I can still get profits even though the amount is minimal
✓ Seeing potential market trends that will help our business going forward
✓ I am in comfortable living conditions and am in no hurry to catch up with success as soon as possible
✓ Still see the potential for our business to grow more rapidly if it continues.

And I will switch to another business if the 4 things above don't exist.

Note: Looking at potential I mean conclusions that have been made based on in-depth analysis and hands-on research on the market and also based on more considerations for the future.

It's a strong assertion and always a strong one to leave that which you already know or have ideas about to seek the unknown because, you ain't getting profits on the first.

The thing is, you don't get to place some years on it. Like traders, trading loses, its often about when you just can't bear the lose your enquiring and that be the sign to leave.
I'm take the same step towards business and investments. You never can tell what decision you would be taking to bring you good luck or hard luck.

Which ever it is, its much more better than being in a bad business where you've got no foresight to forecast what is up ahead and the means to archiving it.

I definitely agree. Before we decide to close our own business just because it doesn't generate incomes for a couple of months now, let's make sure first that we have done everything we could like enhancing what is needed for our business and giving it a new look while only costing us a low price, and setting up a new attraction for the people. Now if all of these doesn't work, it's either the business is not for you or you got the wrong venue, and by that time, it's time for you to close the place and proceed to the next chapter.

There are a lot of questions that need to be asked before the decision that it was a "bad idea" should be concluded. I think some are:
- Did you have the resources needed to grow from the beginning?
- Was the work put into the business always efficient and done to your idea of optimal?
- Did you or those who were in the business truly care about it, or just about the money?

These are just three questions that can help determine whether closing down and doing something else is the right way.

If resources weren't a problem, efficiency of work was near optimal, and care was put into the creation and operation of the business, maybe it wasn't a great idea after all....or maybe some adjustments are needed.

I would say that most of the time, things can be adjusted to work rather than calling deeming failure straight away.

Maybe a year or two. After that, when there are no substantial profits that are entering, then maybe I will consider for a change of business idea that I think will fit more on my current location. Although some have still manage to recover after years of not profiting, but know that not all businesses have the same fate. Some are just there to teach you some lessons so that you will discover in yourself on what type of business you will most likely to succeed to.

Yes, it's understandable as a business owner when you are believing to your business and of course to yourself. Then, you'll do everything even up to taking loans just to push it through because you see that there's still a chance.

But there is going to be a point of time that you will realize that every effort and money you've exerted on it will come to an end. The lessons are there and you'll still be able to use that in your next business venture.

However, the pain that you'll feel by letting it go is going to remain in your heart.

I have been in business now for 5 years and not making profit from it yet, it depends on the business and if you think you are heading in the right direction. Business is a tough environment especially if it is a one man show but you need perseverance. I will advise you to wait for minimum of 3 years if you still have cash to spend on the business before quitting, I am not making profit from my business yet but the property has increased which is something that is keeping me going because if I decided to cash out, I will leave with good return on my asset.

Your business plan must be pretty weak and you don't know how to bring changes in your business as per the market demand and conditions or customer demand, otherwise, businesses do take a few years to set up and start running properly, and you don't start getting fruits the next day after planting a tree, it takes time, so one needs to be patient and hard-working and should have enough confidence about what they are doing in order to succeed.

So giving only 2 years to a business and then closing it down because it's not running is not the way. Even if you have to spend money from your pocket or take business loans, that shouldn't be an issue as long as you know that your business can become profitable in the future if you work on it.