Bootstrapped or just trapped – how to tell if your new business is failing
Starting a new business can be a really exciting time. Provided you have the necessary start-up capital and a few good contacts to help you get started, it can be a really rewarding experience in your life.
However, there does have to be a limit to the amount of time you allow yourself before you admit that things aren’t working. But how can you judge it? Should you hold out for as long as possible before you admit defeat? There are a few key factors which will guide you in this sphere:
Existing finances
At any stage of operating a business, once the money runs out then your hands are essentially tied. However, this golden rule of business is particularly true at the very outset of a new venture. Hopefully you will start to see a return on your hard work at a reasonable stage of proceedings, even if a little restructuring is required. However, if this is not the case then pulling the plug and moving onto something else may be necessary.
Communication with contacts
After making the initial contact with clients it is crucial to try and maintain the lines of communication. There are no excuses for failing to do this from your end, but if it is more a case that clients (and potential clients) are failing to get back to you quickly enough then alarm bells should be ringing. There could be a number of different reasons for this but whatever way you spin it, it’s not a good sign.
Personal enthusiasm
One of the best ways to tell if your new business is failing may involve looking close to home. The start of a new business can be a very exciting time as you step out on your own in the big, wide world of business. However, long days (potentially straying into long nights) and demanding clients may quickly lead to your initial enthusiasm waning to some degree. If this is the case then it could be fair to say that failure is not all that far away as small problems become bigger and your desire to deal with them disappears.