When Do You Throw In The Towel?

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In This Episode

Chances are if you’ve been in business for yourself for a little while at some point you’ve wrestled with the thought of throwing in the towel.  Many things could trigger this thought.  Anything from losing a big customer or key employee or it could just be that you’re tired and worn out.  Whatever your situation, understand you’re not alone.

One of the things Jack did after leaving his corporate career was he started buying troubled little companies.  These companies had been losing money for a while and the owners were ready to throw in the towel.  In fact the owners were being forced to throw in the towel by either the IRS or the bank.  Given Jack’s business background along with his unemotional attachment to these businesses, he was able to not only purchase these companies right, but he was also able to get them quickly turned around and earning profit.

So how do you know if it’s time for you to throw in the towel or not?  It starts with getting clear on the following:

  • Why: why do you feel now is the time to throw in the towel? How long have you been thinking about this?  What have you tried to do differently to get you out of this mindset?
  • What: what will you do if you throw in the towel? What happens to your business, customers and employees if you step away?  What have you tried to change your current situation?  What are you planning to do after you step away from this business?
  • Who: who is helping you work through your options? Perhaps you have a CPA, attorney, or business coach helping you through this.  Whoever your trusted advisor is, be sure to have one because this is not a decision you want to go through alone.

Closing up and walking away from your business is not an easy decision nor is it one that should be rushed or taken lightly.  At the same time, if your business is struggling, you have to make some decisions in the near future, otherwise you might put the fate of you and your business in the hands of an outsider.

People, Companies and Resources We Mentioned in the Show

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