It is true that business is not always as successful as you imagine. There are times that failures are greater than successes. You will even experience more disappointments than satisfaction if it’s your first time venturing into the business industry. The level of difficulty is not the same and usually depends on the type of enterprise you’re running and the skills you have as an entrepreneur. If the business doesn’t fit you, expect that things will get harder and harder until you decided to just close the business or switch to another type. But, how do you know when it’s time to close your business? How do you know when to give up? How do you know when to keep up to recover and profit from what you invested?
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Net profit is not a constant factor when we talk about business. You don’t always get a profit monthly. You don’t always recover the cost of your goods in a month. There are days, weeks, or even months that you will suffer from losses. When your cost is higher than what you’re earning and getting net loss is becoming a regular event of your business, it’s time you assess your enterprise and considering closing it instead. Try to evaluate if the business you chose is really working for you. If you think you can’t maintain the operation anymore because you just keep on losing money, you might want to look for other ways to double or triple down your money. Remember, a business doesn’t always work for everyone.
It’s not a good strategy to rent an expensive commercial space knowing that it will eat up most of what you get from your business. Locations in malls and other crowded lands will cost higher than any other areas. If you’re currently renting in a mall and your rent is more than your earnings and it’s causing you net losses, that’s another indication that something should be done in relation to your business. If you know you’re doing everything–marketing, ads, promotions, discounts, etc., to increase the sales of your business but you can’t keep up with the rent, you might want to consider closing your business or take other alternatives if you think you can still work things out.
Keeping your overhead low is one great tactic if you want your business to continue for the long haul. You will know when it’s time to close your business when you’re trying hard for years but there’s just more cash outflows than cash inflows. You will know when to stop it when the business is still unstable even after years of studying the market, earning experiences, and putting in more money that your actual plan. But closing your business doesn’t mean you have to stop investing and looking for more channels of income. It means that you should quit what keeps on bringing you losses and find the right one that will work for you. If a business doesn’t work, try other investments lie stocks, mutual funds, and bonds.