Are you frustrated, overworked and not achieving the results you need to continue your small business? Not sure if it’s time to quit, overcome or pivot? Here is how you can know.
First things first, don’t make this decision by yourself. Even if you’re a one woman or one man operation, get some outside opinions. It can be a coach, mentor, business consultant, parent or a friend. It’s helpful to have the opinions of those who care about you as well as the opinions of those who are impartial observers. Get at least 2 people. More than 5 people is probably overkill.
Make sure your books are up to date. You’ll need the data for the decision making. Share the financials with your advisors.
Now write down the problems. Is there financial instability? Are there continual, recurring customer complaints? Have market conditions changed?
It’s time to quit.
This is a drastic measure. But it might be the right decision. The sooner you realize it the better. You can save a ton of money, time and frustration.
Are the problems chronic?
If they are constantly a heavy burden for you then this suggests that big changes need to happen?
Are there operational inefficiencies? Do people have overlapping jobs or is there too much waste in the manufacturing process? If these can’t be fixed by standardizing your processes or automating certain tasks. Then again, big changes need to happen.
Have market conditions shifted? Are customer preferences changing? In this case you need to adapt or die. So the question here is “Are you able to adapt?”
Do you (still) have passion for the business?
It’s easy to be passionate when things are going well. But do you still love it now that things are hard? Don’t jump ship at the first sign of lost passion. But don’t let too many seasons pass while living in that drudgery. Life is too short.
Is there a lack of fit?
For small businesses, the business’s core competencies are largely driven by your unique skill. If you no longer believe that your skillset is what is needed for the business to overcome challenges or take advantage of opportunities then it might be time to hang it up.
There are at least two choices here. Maybe you can sell the business or maybe you need to dissolve the business.
It’s Time to Overcome
If the problems you identified above are temporary, isolated or can be fixed. Then it might be best to buckle down and meet the challenge head on.
Jobs and tasks can be standardized.Putting together well defined orders of operation for each task in the business can help fix operational inefficiencies. This will minimize job overlap.
Maybe some jobs can be automated. This leaves resources available for other tasks.
You decide that you are able to adapt to changing market conditions, even if it’s painful.
Despite the current frustration you still do have an overarching passion for the project or industry.
Your skills do fit the needs which the business is now in. Or maybe you’re willing and able to develop the necessary skills.
It’s Time to Pivot
Time to pivot can look alot like time to quit. One key difference would be that you feel you have good resources in place to run a profitable business, just not in the market or industry you are currently in.
Good resources would include your current team of people, or a subset of them. It could also include your building, assembly line, name & reputation or any other asset that you have.
Whether you choose to Quit, Overcome or Pivot, understand that failure isn’t Failure. And success is a never ending process not a destination point. Your hard earned experience and insight that you’ve gained to this point in your business career will be like gold in your next season of business.