Topic: How Long in Years Should I Wait Before I Close Down an Unprofitable Business - page 5. (Read 1267 times)
July 14, 2023, 04:29:56 PM
I guess even 3 years is already long enough. Once I’ve never seen the positive impact of my business and it never shown any sign of progress in just a year or two, then leaving it could be the best thing to do than to prolong my business while there is no sufficient amount of income that is getting in. Otherwise, I might be triggered to take loans and might end up regretting.
July 14, 2023, 04:20:37 PM
The way I see it is this, it depends on the kind of profit you get. While it may be physical cash returns for some, for others, it might just be for fulfilment of a purpose.
Let's forget what O'Neil said, and be more pragmatic. A business with an original idea may take longer than 7years most times to gain the kind of profit that is required, at most, longer periods have been recorded.
Most times it has to do with the persistent effort of the person doing the business. If your idea of how the profit should flow is not depicted in a business you start after 3years, it depends on you though to pull the plug on it, but good advice from those who witnessed the business from the beginning is like a second eye. It is valuable as it can help create a better perspective and initiative on how to improvise for optimum benefits.
One advice I got from a book I read, I can't remember the name now, but it says, to fix what is not broken is how to best manage an idea/business/startup.
Let's forget what O'Neil said, and be more pragmatic. A business with an original idea may take longer than 7years most times to gain the kind of profit that is required, at most, longer periods have been recorded.
Most times it has to do with the persistent effort of the person doing the business. If your idea of how the profit should flow is not depicted in a business you start after 3years, it depends on you though to pull the plug on it, but good advice from those who witnessed the business from the beginning is like a second eye. It is valuable as it can help create a better perspective and initiative on how to improvise for optimum benefits.
One advice I got from a book I read, I can't remember the name now, but it says, to fix what is not broken is how to best manage an idea/business/startup.
July 14, 2023, 01:11:26 PM
3 years is a long time. If your business is not working and you have tried everything, then it is wise to stop that and move on to something new. If you were unable to fix the problem in 3 years time, what can you do in the upcoming years? Sometimes it is better to let go of something rather than hold on to it. If the business is not making profits, then what's the point? Your assets are stuck there and doing nothing. You could also make losses instead of just keeping the same amount. The sudden kick-off could happen but is it really going to happen to everything? It totally depends on your choice of business.
Some products follow trends and take time to get into the light. But it does not happen all the time. So to think that one day it might start booming is a foolish decision. Go try out something new that will ensure somewhat profit rather than this one without any profit. Something is always better than nothing.
So I totally agree with the statement. But I am not sure about the time of 3 years. It depends on your observation and skills to understand what business you are doing and how is it going to play out. But if you think that the time has been so long and it's not doing that great, then it is better to just leave that and try something new.
Some products follow trends and take time to get into the light. But it does not happen all the time. So to think that one day it might start booming is a foolish decision. Go try out something new that will ensure somewhat profit rather than this one without any profit. Something is always better than nothing.
So I totally agree with the statement. But I am not sure about the time of 3 years. It depends on your observation and skills to understand what business you are doing and how is it going to play out. But if you think that the time has been so long and it's not doing that great, then it is better to just leave that and try something new.
July 13, 2023, 06:59:30 PM
reread the issue again. Many questions and thoughts:
1. He agrees with the 36-month term. If you do not have the means to maintain and support the business for more than 12 months - then this term is 12 months. Perhaps he means that if you have not made a profit in 36 months and have not taken your place - just bury the business, it will never be of any use.
2. Why are the options not considered - freezing/conservation ?
3. Why is not considered the option c attracting investors and SPECIALISTS who will help find the "thin places" and help to restructure the business, to improve its efficiency.
4. Why is not considered the option of selling the business ?
1. He agrees with the 36-month term. If you do not have the means to maintain and support the business for more than 12 months - then this term is 12 months. Perhaps he means that if you have not made a profit in 36 months and have not taken your place - just bury the business, it will never be of any use.
2. Why are the options not considered - freezing/conservation ?
3. Why is not considered the option c attracting investors and SPECIALISTS who will help find the "thin places" and help to restructure the business, to improve its efficiency.
4. Why is not considered the option of selling the business ?
in my opinion, the OP should consider selling the business if he is not seeing any light down the road. it is better to get something rather than totally losing the business without getting anything from it.
some questions are left unanswered as we don't know more details about the real financial situation of the OP. also, he knows for sure the chance of his business in his area, if the business can be revive or not.
Instead on making profits or making income, you do rather lose instead. There's a specific time that you should set for you to consider on closing it down and on the time that you dont see any progress then it would be the best time on doing so. You would really be just basically be wasting up your time and your resources if you do keep on pursuing on standing but its not actually a bad behavior or quality of a person on not to give up but just like i said that there are things in life on which you cant really be able to solve out no matter how hard you do try. You should really set out border line because if you dont
then you would definitely being wrecked up that much in the end of the line or making things more worst. THere's no point on pursuing on something which it isnt really meant for you.
Its impossible that you wouldn't really be having those kind of thoughts on the time that you do experience hardships and failures.
July 13, 2023, 06:54:58 PM
reread the issue again. Many questions and thoughts:
1. He agrees with the 36-month term. If you do not have the means to maintain and support the business for more than 12 months - then this term is 12 months. Perhaps he means that if you have not made a profit in 36 months and have not taken your place - just bury the business, it will never be of any use.
2. Why are the options not considered - freezing/conservation ?
3. Why is not considered the option c attracting investors and SPECIALISTS who will help find the "thin places" and help to restructure the business, to improve its efficiency.
4. Why is not considered the option of selling the business ?
1. He agrees with the 36-month term. If you do not have the means to maintain and support the business for more than 12 months - then this term is 12 months. Perhaps he means that if you have not made a profit in 36 months and have not taken your place - just bury the business, it will never be of any use.
2. Why are the options not considered - freezing/conservation ?
3. Why is not considered the option c attracting investors and SPECIALISTS who will help find the "thin places" and help to restructure the business, to improve its efficiency.
4. Why is not considered the option of selling the business ?
in my opinion, the OP should consider selling the business if he is not seeing any light down the road. it is better to get something rather than totally losing the business without getting anything from it.
some questions are left unanswered as we don't know more details about the real financial situation of the OP. also, he knows for sure the chance of his business in his area, if the business can be revive or not.
July 13, 2023, 12:34:04 PM
If you cant pay the rent and employees salary then that is the time you should close down the business. Sometimes thinking that if we keep continuing the business even if you are losing thinking that it be recognised and youll earn eventually but you'll just making things worse. It is really best if you have financial advisor on that so that you can calculate when is the best time to close it down and still able to repay those employees, rent and etc
If a person is not able to make profit but instead he is giving income to the workers as well as rent to the owner then it is necessary to stop that business because it will tend you to take loan as workers will not understand your necessitates.
One should continue that business in which he have some profit because settlement of business is only good for the purpose of earning money. One more thing is that if businessman speaks politely with each and everyone then his business will be more successful as behavior play a very crucial role in one's success.
Always remember that if in one area there is already same business then you should avoid your business in that area because it will reduces the percentage of your success.
July 13, 2023, 08:14:23 AM
reread the issue again. Many questions and thoughts:
1. He agrees with the 36-month term. If you do not have the means to maintain and support the business for more than 12 months - then this term is 12 months. Perhaps he means that if you have not made a profit in 36 months and have not taken your place - just bury the business, it will never be of any use.
2. Why are the options not considered - freezing/conservation ?
3. Why is not considered the option c attracting investors and SPECIALISTS who will help find the "thin places" and help to restructure the business, to improve its efficiency.
4. Why is not considered the option of selling the business ?
1. He agrees with the 36-month term. If you do not have the means to maintain and support the business for more than 12 months - then this term is 12 months. Perhaps he means that if you have not made a profit in 36 months and have not taken your place - just bury the business, it will never be of any use.
2. Why are the options not considered - freezing/conservation ?
3. Why is not considered the option c attracting investors and SPECIALISTS who will help find the "thin places" and help to restructure the business, to improve its efficiency.
4. Why is not considered the option of selling the business ?
July 13, 2023, 12:58:20 AM
How long in years should I go before I give up and close down a business that is unprofitable?
I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
In an average years a start up business could be profitable in 2 to 3 years time. That is right if your business is not earning within 36 months you probably shut it down or if you still want to revive it you have to change your marketing plan and assess what is wrong with you current strategy why you are not able to generate profit. That it is possible that your business is not profitable in the first 3 years then it would boom on the 4th year. That is why businessmen has a high risk tolerance in creating his own business. To be able to have a profitable business you should have a lot of patience, capital, a good marketing strategy, and also you do know your specific goal, know your customer as well.
May 04, 2023, 02:16:40 PM
~~~
pjc50
The point is that you're wrong.
It's not a business. It's an investment in time and money.
~~~
dangrossman
That's true, but it's not the end of the world.
------
mikestewerks
I'm in the middle of a project that has no money at all. My goal is to build a
startup that's 100% self-sustaining in terms of revenue.
I've been doing this for a while and it's a lot of work, but I'm trying to figure
out how to monetize it.
What I want to do is get for a service that they can use to
recover a portion of their income. This is something that I've been working on
myself, but I haven't had time to go through it yet.
The problem is that there's so much competition out there for people to sign up
for something that they want to be able to use for free.
I don't want to be a burden to the company, but I want to be part of the
marketing
pjc50
The point is that you're wrong.
It's not a business. It's an investment in time and money.
~~~
dangrossman
That's true, but it's not the end of the world.
------
mikestewerks
I'm in the middle of a project that has no money at all. My goal is to build a
startup that's 100% self-sustaining in terms of revenue.
I've been doing this for a while and it's a lot of work, but I'm trying to figure
out how to monetize it.
What I want to do is get for a service that they can use to
recover a portion of their income. This is something that I've been working on
myself, but I haven't had time to go through it yet.
The problem is that there's so much competition out there for people to sign up
for something that they want to be able to use for free.
I don't want to be a burden to the company, but I want to be part of the
marketing
April 20, 2023, 08:18:01 AM
How long in years should I go before I give up and close down a business that is unprofitable?
I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
OP I did had such experience years back. Then I was in the university as that was part of my side hustle you know. I do import some goods then from one of the Asian county, I did my very best with much efforts to make sure that I was successful in the business which happened so. I sold alot of goods then but a lots happened though. I had to employ a staff as it was the only thing I could do as to help me out but the unfortunate happened. While I was doing my University final year I became so my occupied that I do not pay attention to my business anymore leaving it to the care of my employee. I became
furious as to what was happening that I do not see any return after much efforts. So I did not hesitate to shot down.
April 19, 2023, 11:37:43 AM
Initiation of some project seems to be little more difficult but as the time passes a person learn more things about it so time is necessary for getting profit. It never happens that you will get huge revenue from the starting point but you will work hard and eventually a time comes when you get good sum of money.
I think that if a person is interested in something then he will definitely get success one day but the main thing is about interest, knowledge and abilities to manage the risk. If instead of these things you don't get any profit in 2 or 3 years then leave that business because that is not for you.
I think that if a person is interested in something then he will definitely get success one day but the main thing is about interest, knowledge and abilities to manage the risk. If instead of these things you don't get any profit in 2 or 3 years then leave that business because that is not for you.
April 19, 2023, 09:42:48 AM
Honestly it is a better idea but I would say that quitting totally will not help rather it is better to change the business terrain for you to get what you want most times the reason why our business isn't moving like we expected is because of the location we are if we are in a local territory where people demandsare very lower than your expectations then you'll see that the level of sale will be lower and it is as if you are not getting what you should have gotten as your income
April 08, 2023, 11:42:09 AM
How long in years should I go before I give up and close down a business that is unprofitable?
I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
Kelvin O'Neal is straight up savage, right? I get that he's all about cutting through the BS, but I ain't vibin' with his idea that if a biz ain't making bank in three years, it should be dunzo.I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
Let's keep it 100: launching a biz is mad risky, ain't no guarantees that it'll pop off. But don't bounce just cause things don't jump off straight outta the gate. Maybe it's time to flip the script and be optimistic and doubtful. Who knows what's gonna go down in the future, right?
Don't forget the key to all of this, humor, homie. Starting a business can be hella stressful and crazy challenging, but it's also a wild ride, filled with more plot twists than an M. Night Shyamalan movie. So, why not just kick back and laugh at yourself and your slip-ups along the way? I mean, what else are you gonna do? Cry like a baby? Nah, that's weak sauce, bro.
April 08, 2023, 09:54:50 AM
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
The problem is that starting a business requires significant funds, and in order to recoup the invested funds, the business must be profitable, otherwise if it is unprofitable, then the invested amount will only increase. But we start a business so that they bring us profit, and not so that over the years it takes money from us. Therefore, I believe that the longer we delay with this, the worse it will be for us in the end, three years is too much.
April 08, 2023, 07:41:50 AM
If you cant pay the rent and employees salary then that is the time you should close down the business.
...
...
I saw multiple businesses which didn't do so, they reduced staff, moved to a cheaper location, took loans, but no one of them didn't rectify the situation. Now all of them are closed. If business started going down it is better not to wait untill everything will become worse. Financial advisor can be a good idea, maybe there could be started a new business with his help or at least there will be less losses.
The main mistake here is to succumb to pity for something in which a lot of your own efforts have been invested and try to prolong business which is should be closed.
April 08, 2023, 06:25:45 AM
~snipped~
I agree with you, there's no way I will keep investing in a business when am not making profit from the business even after three years that's crazy you know? April 08, 2023, 04:58:50 AM
In business, of course we have to have accurate calculations, when all the maximum effort has been made and the business is still losing money, it's time for us to make changes, for example changing the market or business location, or replacing it with another product or service, and I think a year's loss is a measure for business instead of continuing to lose money.
If you cant pay the rent and employees salary then that is the time you should close down the business. Sometimes thinking that if we keep continuing the business even if you are losing thinking that it be recognised and youll earn eventually but you'll just making things worse. It is really best if you have financial advisor on that so that you can calculate when is the best time to close it down and still able to repay those employees, rent and etc
April 08, 2023, 04:53:59 AM
36 months would be long enough for you to determine whether a business is running well or not. You can easily determine if your business is profitable in just a span of a year because if not, you might probably be losing even your capital. It is normal to encounter problems in the beginning but if you notice that you are not recovering your losses and the cycle is continuously running, you better check your mistakes, the strategies that you have to polish, and your target market as well. If things still aren't working for you, you don't have to stop trying but rather switch to another location, product, or target market.
Location does play a vital role in the success or failure of a business no matter how big or small. Product(s) can always be changed or modified based on the public interest but only if you determine that your business is set up at a location that usually gets you customers but they are not totally satisfied may be due to the product or the service itself.That is when you need to have some upgrades or changes around your product and overall service. But if you find the location very dull, with no customers showing up, it is probably best to first shift your business from that place to another, better location and then evaluate other aspects.
April 08, 2023, 02:26:15 AM
How long in years should I go before I give up and close down a business that is unprofitable?
I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
Damn 3 years? This is coming from a layman though but a year of business where it didn't provide any profits whatsoever would be enough reason for me to close it down. I mean if it was making barely enough to continue then maybe up to 1 1/2, but anything past that just doesn't seem worth it, especially in the current economy where prices just keep on increasing, imagine in cases where profits wouldn't be enough to keep the business afloat, they'd be lucky to last a year. I was listening to a podcast where Kelvin O'Neal1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=
I wouldn't say I've had a business so can't answer Jack for the 2nd question though. Will keep this in mind if I ever do start though.
April 08, 2023, 01:19:06 AM
In business, of course we have to have accurate calculations, when all the maximum effort has been made and the business is still losing money, it's time for us to make changes, for example changing the market or business location, or replacing it with another product or service, and I think a year's loss is a measure for business instead of continuing to lose money.
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