Out of Capital? Running Below the Break-Even Point? Not Taking a Check? Admit It, It’s Dead. Bury It.

There are many factors that can kill a business. Once initiated, the downturn is very difficult to reverse. One thing leads to another and soon you are operating below the break-even point, getting by juggling payable with receivables, exhausting lines of credit and credit cards, being put on COD terms, defaulting on bank loans and leases… and it becomes impossible to break the cycle. It’s impossible to emerge, escape, grow out of it; there’s no cash for sales expansion, marketing or introducing new items. No gasoline for the engine. You’re stuck below the break even point, resources exhausted, ripe for the vultures.

Your business will sputter to a standstill and perish––another statistic. Another business that ceased operations with its owners losing everything and being forced to declare bankruptcy, adding insult to injury.

Not taking a check? That doesn’t work. It is not even a noble idea. The point is simple: if the business cannot pay its way, kill the business. It does not deserve to exist and waste valuable resources and time. Why would you continue if the business isn’t able to provide you with a reasonable paycheck aside from retained earnings?

And yet, small business owners––be they men or women––hold on to their failing businesses way too long waiting for something to happen, staying loyal to the end, protecting jobs for one more minute, wasting precious resources and the time and effort of many people.

Make good business decisions. If the business is not working––if you are unable to provide what is needed to support its success––then the business model is wrong and it must be stopped before more valuable resources are wasted.

Out of capital? Running below the break-even point? Not taking a check? Kill it––it is dead already, you are just unwilling to admit it.

Too many people are depending upon you to make good business decisions. Do not let them down.