All businesses start off losing money with all of the high start up costs involved and the marketing that has to be done in order to get the business out to the public. Due to the fact that all businesses start off losing money it is sometimes hard for a business owner to understand when it is time to give up and close the business down. I was in this situation before and it was difficult to determine what to do. I did not know whether to keep the business going or give up and move on to a more promising venture. Their were several things that decision to close down an easy and smart choice. One of the first things that helped me decide to close the business was a lack of financing. I had the good credit to obtain financing if I would have like to but one of my goals was to self finance the venture. In addition I would have needed around $20,000 which is more than I would have like to receive at the time. Another issue was the fact that I had several ideas that were less expensive to do and had shorter break even points. |
