2006-10-01 01:25:43 · 8 answers · asked by funandyx 1 in Business & Finance ➔ Small Business
Analyse the reason. Most good ideas take time to mature. The courage of conviction is sometimes needed to pull through.
2006-10-01 01:28:36 · answer #1 · answered by Tom Cat 4 · 0⤊ 0⤋
I would think about selling it before simply shutting it down.
The production plant might have some asset value which could be appealing to a new owner.
Plus the reason why you might not be breaking even/making a profit could be because you have a stale plan for the business and or just dont have very good ideas about how to increase productivity and sales.
Also note most businesses dont start making a profit until their 3rd year. And make sure you have your business plan and most importantly sales FIGURES as accurately produced/projected as possible.
I hope this helps.
2006-10-01 08:29:23 · answer #2 · answered by bobby t 3 · 0⤊ 0⤋
Better to shut it down if it has not reached the breakeven point despite your best efforts.
2006-10-01 08:29:55 · answer #3 · answered by Seagull 6 · 0⤊ 0⤋
When you set up the plant you must have gone by a project report.Also you have spent time and energy to set it up. you should first examine why are you not breaking even? List all costs and do A,B,C analysis to determine those which are causing your operations to be costing more than original estimates. Critical analysis will reveal action plan to cut costs. You will then break even and eventually make profits.
2006-10-01 08:34:42 · answer #4 · answered by openpsychy 6 · 0⤊ 0⤋
Not always. You have to consider your fixed costs (the costs you would have to pay even if you shut down). It might be better to keep some income coming in to pay the fixed costs (rather than have no income & have to pay the fixed costs).
You also have to consider how to get rid of your assets (the cost of getting rid of them, and how much you would get).
Think long term before shutting down...short term thinking is often short sighted.
2006-10-01 10:37:55 · answer #5 · answered by Dee 4 · 0⤊ 0⤋
Many businesses don't break even in the beginning.
How long have you been operating?
Do you not sell enough of the product?
Is production streamlined, or do have too many employees?
2006-10-01 08:28:29 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Rationalise the process. Work at optimazation and look at the market you are selling to. Who are your competition, what profits are you/they making. Can you offer a better service.
2006-10-01 08:30:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It depends,sometimes you have problems and their are many things to consider.
2006-10-01 08:27:06 · answer #8 · answered by porkchophaynes0206 3 · 0⤊ 0⤋