A decision to quit, giving up on a business that consumed both time and monetary resources is often made in one of two situations. The first is simply when the money runs out; all avenues of finance have been explored and exhausted and the business can no longer pay it bills.
The second decision to quit can come following the realisation that we are not cut out for the kind of lifestyle that being in business demands; or put bluntly, that we are no good at it.
Bad Luck or Bad Business
The view of whether or not to continue in business may largely depend on a person’s perception of the events that has led to the current decision. Was it bad luck or was it bad business? Did a first and only time monumental event occur that could not possibly have been anticipated happen which spun the business sideways?
If the answer to this question is yes, then go to confession because you have just told a lie. Sound planning should have at least considered the possibility of earth quake and tornado and produced some kind of contingency plan.
If the answer is really yes, then it must be said that the real answer as to whether you can succeed in business is currently unknown and given the right opportunities and circumstances, you should perhaps try again.
Whilst an act of god might back up a claim that “it wasn’t my fault”, failure under normal business conditions certainly suggests that it may be time to return to employment at least for a time to reflect and evaluate what went wrong.
What to do When Quitting Business
Quitting a business usually involves taking some steps to officially cease trading and these are not at all dissimilar to the opposite end of the spectrum; that of starting a business.
The actual tasks which need to be undertaken depend on the type of business entity which was used to trade. Limited companies require dissolution which in turn mandates that statutory accounts are drawn up and creditors notified of the impending disappearance.
In cases where a sole trader business or other unincorporated entity is operated it is predominantly Revenue and Customs which require notification.
There are things that individuals are good at and others which are no so. Recognizing individual strengths and weaknesses is an important skill in itself and can lead to self improvement and a realistic appraisal of our chances of success in business in the first instance.
If the initial assessment of our abilities was wrong, then a reconciliation of our particular fortes after we have started in business is better than continuing knowing what the inevitable conclusion will be.