How huge should your losses be before you quit a business?

[Etini]

Some people say that you should know when to cut your losses so that you won't keep on losing. Well, that is true. It is good to know when something is not going to work and you stop putting in resources of funds, time and energy into it. We call that being sensitive.

But my opinion in business is that there is no business that is not destined to work out. It is just that you made mistakes and you didn't do it in the proper way. No matter how huge your failure is in business, if you sit and figure out where the mistake was done, you can always come back stronger and better while achieving success. My verdict? You don't quit in business. You only go back to the drawing board and restrategize, then you come back. As long as you have the conviction that it is the business you want to do, no quitting. Like my fellow Nigerians would say, "We die there".

 

[Ithedicious]

I believe that if you allowed your losses to be so much in a business you have established then you are not doing anything as a business man or woman . Before the business start declining in nature you should be able to find out and understand the reason why the business is not successful and from there if possible you can correct the mistake. If it's a location issues you can consider changing the location of the business before things runs out of hand

Personally I believe that business should be quitted when business owners do not have any solution to the continuous declination of their business.

My advice is that business owners should be alert too to know when the business is not moving perfectly as it should so that they can be able to take the Right action at the right time to avoid having a serious loss.

 

[Augusta]

I agree with you there is time for everything and if you are a business owner then you should look at your business basically to know when to throw in the towel. there's no need investing more money into a business that you well know that you will not be able to get or gain more from it doesn't make sense so it is better to look at the account books or maybe bring in an expert to examine then and give you the feedback on whether to continue or to quit.

I know it can be very painful to lose a business that you felt you have something going but the thing is that sometimes life happens this does not means you are a failure is just that you need to give that area of your life up and pick up another area that you might do well at it.

So my advice is that one should quit when everything has been done to salvage a business and it is not still working then such business should be quitted.

 

[TOZZIBLINKZ]

The goal is never to make him two losses in business but rather make no losses but increase more profit. Even with that, it is absolutely possible for most businesses to accumulate huge amount of losses and one of the key reasons why this usually occur is because they failed to put into proper consideration their activity plans leading to the performance and achieving of their business goals and objectives. It is absolutely true that losses in business can totally make a business owner of the business manager to quit the business so that he or she can use the remaining small available capital to start up some other business. But there is absolutely no specified amount of losses that a business should make before it is considered okay to quit such a business because business dealings and doings differs from each other.

Hence, what is speculated is that when a business losses accumulates towards the extent that money meant for financial facilitating processes like repayment of debts and banks borrowed loans is being plunged back into the business, then it is okay to quit such a business so as not to bring to yourself being the business manager or owner unnecessary uncalled suffering and the consequences some of which might end up devastatingly tragic.

 

[Carpon]

I think when we talk about this issue that has huge effect on a business, it should be given huge amount of consideration as it affects not only the state of the business but also the stability of the finance of an individual.

When you begin a business, you should never have the feeling or aim of quitting because you went bankrupt. The mindset with which you begin a business is very very crucial and therefore you must have the right mindset before starting a business.

And when paradventure things do not work out and the business shows sign of not working again then the best time that you should take the decision to quit should be when the business capital has gone below half of what was used to start the business.

At this point, it will be safer to quit and escape with the little which you will have remaining as part of the capital.

 

[Shaf]

It takes great courage to keep on pushing, but it takes even greater courage to quit a business that is failing, especially if you really love it and you've spent a long time on it. People get attached to their business emotionally too, so telling them to quit might be a waste of time.

I have tried the same business model four times and failed at each for at least a year. I do understand what it's like. What can help you quit is when you truly understand that the business itself is not likely to succeed ever, or it's just not meant for you.

If a business has been running at a loss for more than a year consistently, then it may be time to start considering quitting, because by that time, you would have lost a significant amount of your capital. If you have staff to pay or you rely on the business as your major source of income, it would be hard to continue as you used to.

 

[Richee84]

There is no particular business that will operate successfully without running into a loss. It is normal for challenges to come up in the course of the business and when such challenges come up, businesses are bound to make some losses.

It is very important for every entrepreneur to defined or have their own acceptable level of losses that the business can take or must not go beyond. In economics it is expected for business to still be in operations if and only if the business is still breaking even in the course of it production or business.

Losses is not what we should tolerate for too long more especially when the cost of production is higher than the total profit we are making in the business. If we are unable to control the cost of production to the extent that the cost of producing a particular goods or products is higher than the selling price, for such products it is better to discontinue their line of production and focus on other things.

When we also discover that our profit is not enough to cover our fixed cost it is also a signal that the earlier we discontinue the better for us.

 

[Kennysplash]

A business person must know when to stop admit loss, move on and try something else. Losses are inevitable in business so if you want to start your own business you should be able to leave space for setbacks. This way it will not meet you by surprise when the setbacks come. Being a successful business person includes knowing the time to quit. If you don't know this then you might actually end up wrecking yourself financially and emotionally which is not easy to deal with. So it is important to know when to stop, admit your losses and move on. Over that time you have experience and the necessary knowledge already and you be able to avoid what can cause the same setback in your subsequent business. I want you notice that things are not working, out stop for a moment and then re-strategize. Don't lose more than is necessary.