How long is it worth fighting to make a business work?
Posted: Wed Dec 18, 2024 4:06 am
Setting up a business project is a unique experience, which every entrepreneur faces with the hope that things will turn out well and that he or she will be able to make money. However, statistics confirm that the majority of companies that start up do not come to fruition.
There are many that fall by the wayside, some of which leave the owners with a big problem, while in others the blood does not reach the river. The failure of a business project is a major blow, but not knowing how to stop in time is even worse. Do you know how long it is worth fighting to make a business work?
How long is it worth fighting to make a business work?
Each business project is unique and there is small business email list no single, general rule to be set for deciding when to stop the business in all of them. However, there is a very basic rule that can be put on the table that works everywhere: use common sense. It is one of the best "weapons" to use in case a business is not going well.
Just as important as making a business plan is considering the exit plan for the partners if things do not go as expected. Human relations are complicated under pressure and even more so when tensions arise because the company is not doing well, there is no income and there are salaries and various expenses to pay.
For this reason, it is important to define a series of control milestones at the time of launching the company to measure the company's results and to consider making the decision as to whether it is worth continuing or not, based on objective information , such as the income statement to date, and subjective information , such as the projection of future results.
If only subjective information is used to make a decision, or if one prefers to look elsewhere than at the data, as often happens, then an unnecessary and possibly unjustified risk is being taken, which will end up being paid dearly if the company is finally forced to close down.
There are many that fall by the wayside, some of which leave the owners with a big problem, while in others the blood does not reach the river. The failure of a business project is a major blow, but not knowing how to stop in time is even worse. Do you know how long it is worth fighting to make a business work?
How long is it worth fighting to make a business work?
Each business project is unique and there is small business email list no single, general rule to be set for deciding when to stop the business in all of them. However, there is a very basic rule that can be put on the table that works everywhere: use common sense. It is one of the best "weapons" to use in case a business is not going well.
Just as important as making a business plan is considering the exit plan for the partners if things do not go as expected. Human relations are complicated under pressure and even more so when tensions arise because the company is not doing well, there is no income and there are salaries and various expenses to pay.
For this reason, it is important to define a series of control milestones at the time of launching the company to measure the company's results and to consider making the decision as to whether it is worth continuing or not, based on objective information , such as the income statement to date, and subjective information , such as the projection of future results.
If only subjective information is used to make a decision, or if one prefers to look elsewhere than at the data, as often happens, then an unnecessary and possibly unjustified risk is being taken, which will end up being paid dearly if the company is finally forced to close down.