Knowing When to Cut Your Losses
Hi, reader’s. I was working with a client the other day who has a number of small businesses, but this one business in particular wasn’t doing very well. In fact, it had lost money every year since virtually it started ten years ago. I said to them: “Let’s end this one. Let’s cut our losses and move on from this one. There’s just no way that it’s going to work.”
It was just a poor business concept. They said to me, as they say each year, ” one more time, one more year. I think we can do better.” I looked them in the eye and said, “You really believe that this business can be successful this year, that it can turn a profit?” They looked me in the eye and said, “No, probably not.”
There’s an old Turkish proverb that applies: no matter how far you’ve gone down the wrong road, turn back. That’s great advice. Did they? No. Will we have the conversation again next year? Yes. Don’t let that be your business.