The concept of giving up or stepping away from a business is filled with shame, pride, and complex decisions. It's never easy, but it's an essential aspect of entrepreneurship that often gets ignored and rarely discussed. Here is how I have decided when, how, and why to step away or close my business.
My Journey of Quitting Too Soon
In 2017, I embarked on an entrepreneurial journey by launching a law firm. I started with a practice area I did not love and quickly burned out. I wanted to expand into business law, but I felt so unsure that I could not learn this new practice area fast enough to survive. Feeling overwhelmed, I decided to step away and recalibrate.
Retaking the leap took me three years, but timing is everything. I saw an opportunity in business and compliance, a need that met at the intersection of my expertise and passion and took off. I relaunched my firm in 2020 with a fresh perspective and focus, but looking back, I wish I had kept learning and taking on clients to avoid the bumps I experienced over the last few years.
Releasing what was easy and accessible and going after what I wanted taught me that stepping away doesn't necessarily mean giving up; sometimes, it means slowing down and learning while you revise your plans. But how do you know when it's the right time to step away or shut the business down altogether?
Key Indicators to Step Away or Close Your Business
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Lack of Passion
If you wake up daily dreading what you do, it might be a solid indicator to reevaluate your business. In my case, a lack of passion was one of the primary triggers for my initial exit. Your business should excite you and drive you to achieve great things. Without passion, sustaining a business in the long run becomes an uphill task.
Financial Strain
Persistent financial troubles are a red flag that should not be ignored. If your business is draining your finances, raising debt, or not generating a sustainable income, it may be time to reconsider its future. My mantra is SUSTAINABLE and PROFITABLE or not at all.
Quality of Life
Entrepreneurship shouldn't cost you your health, relationships, or personal well-being. If the business becomes too stressful and impacts your quality of life, take a step back to assess whether it's worth continuing. I have lost a few friends but realized those relationships were dead anyway. I gained new friendships that have helped fulfill me and carry me through some tough times in entrepreneurship.
Market Signals
If the market for your product or service is shrinking, or competition has become too intense, it could be a sign that you should consider exiting. Failing to adapt to market conditions can have long-term repercussions for your business.
Unaligned Goals
Businesses evolve, and so do your personal goals. If there's a growing rift between what you aim to achieve personally and what your business offers, it might be time for a change.
The Art of Stepping Away Gracefully
Exiting a business is a complex process that requires careful planning and execution. There's much to manage, from financial audits to winding down your affairs. The decision to step away from my initial practice area allowed me to refocus, gather new skills, and come back stronger. I never closed the business down, which helped me financially when I went to apply for credit.
In business, as in life, 'never giving up' is not about clinging to a path that isn't working. It's about knowing when to detour, recharge, and choose a better path that aligns with your passions and skills.
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Irnise is a healthcare and regulatory compliance lawyer with a nursing background, which gives her a deeper understanding of healthcare practices and patient care. This unique legal and nursing knowledge combination allows her to provide comprehensive legal services to healthcare providers, facilities, and organizations. You can learn more about her and her practice here.
