Famed football coach Vince Lombardi made this quote famous about when to quit. However, when it comes to small business, this simply is not true. It does not actually help achieve long term success. A better quote that teaches us a similar lesson comes from cowboy Will Rogers:
“When you find yourself in a whole, the first thing you need to do is stop digging”.
For many small business owners, the right decision is to close down their business and start something else. I value hard work, but having the blind commitment to drive on no matter what the circumstances are is not a trait that will always mean success. Two simple factors should determine whether an owner should quit:
- Passion. Do they still have the passion to continue in their business? Do they still look forward to going to work each day? Lose this drive on a daily basis and it’s time to quit.
- Cash flow. Is cash flow steady or is it shrinking? Is there enough cash in the bank to keep going and get through the current stage or is the company running out? Does a capital infusion need to be made from the owner or borrowed from the bank? Negative cash flow means a decision whether to keep going needs to be made soon.
A lack of either of these means that it may be the right time to quit. Quitting is not a surrender and it does not mean that you are a failure.
The winners world, actually know when to stop.
By quitting, the small business owner can stop doing what is not successful and start along a path that changes their trajectory.
I always advise people when they fail, mourn the loss. Have a pity party for 24 hours if needed. Then let go of that failure and make a new decision that give another chance at succeeding.
