One of the hardest choices to make with a business is to close the doors. Many of us have the “winners never quit” quote floating around in our head. That quote keeps us from ending things when that may be the best step to take. It also is likely a prime factor in the sunk-cost fallacy. In fact, knowing when to quit is almost as important as finding a window of opportunity. That idea that we have spent too much time and money on something to give up now.
Success or Failure Can Tell You When To Quit
Quitting is not always about failure. Sometimes we need to consider getting out while we are on top. This concept is regularly discussed with professional athletes, but also a key to success in gambling. The business reasons for quitting while on a successful run are more than avoiding “pressing your luck.” There are trends and cycles that can be key indicators that a success is about to tank or at least be less successful.
Ways To Get Out Safely
There are many ways to get out of a product, service, or business without declaring failure. Yes, sometimes we need to get out immediately to stop losses. On the other hand, there are times when we have some breathing room to find a graceful exit. It is these times we focus on in this episode. Shutting the doors is quick, maybe painful, but like ripping off a band-aid. A graceful exit from a market takes planning and can be done in a way that leaves your customers asking for more.
