How long in years should I go before I give up and close down a business that is unprofitable?
I was listening to a podcast where Kelvin O'Neal
1 was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."
According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."
- To what extent do you agree or disagree with this assertion ?
-Have you had a business that even though it wasn't profitable in the first three (3) years, then it kicked off to bring in good returns in the fourth (4th) year?
1
https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=When it comes to businesses, there ain't no one-size-fits-all solution to determine when it's time to give up on an unprofitable venture. Kelvin O'Neal might say to shut it down after three years, but that's just a rough guideline. It's up to the boss to decide when enough is enough. But check it, every business needs to have a game plan and tactics in place to tackle any obstacles standing in their way. If after three years, there's still no progress, then it might be time to rethink the whole shebang or close up shop.
On the flip side, some companies take longer than three years to start making it rain. Why, you ask? Well, it's all about the competition, the ups and downs of the economy, and the damn red tape. They can all be major factors in determining if you're swimming in dough or drowning in debt. So, don't lose your hustle, stay strong, and get some wisdom from the bigwigs in the biz.
To sum it up, every business is unique, and three years ain't the magic number to throw in the towel. The boss needs to look at their goals, resources, and progress to decide whether to keep going or to pack it in. What do you think about this? Have you ever had a biz that took longer than three years to make bank?