should i continue my business?

Question

I have my business for more about 8 years. But I don't make any profit for about a year already. I still have about 80 customers coming. Now, I have the debt from my credit card. I don't know should I continue the business or just close it down?

Answer 1

A business must make a profit to be viable. If I understand your question, you were profitable for 7 years and unprofitable for the last year? I would first look to see what I did during those 7 years to make a profit and what changed a year ago. If it is something you can change or turn around where you can make a profit, then I would try to make it work. If not, there is no reason to continue pumping money into a bottomless pit. You can't live off of credit forever.

Answer 2

Generally any business not turning a profit within three years is not doing well. Even with eighty customers for any business that really is not that many. You really need hundreds to survive. Also if the business or you are more than 15,000 in debt also try to revaluate things. Have you considered selling your business or customer base? It may help buy down some of the debt. Most likely I would look into shutting things down however, if you are in a commercial lease with a personal guarantee be prepared. The landlord will most likely come after you for the remainder. This will probally be the biggest financial blow in closing things down.

Answer 3

You need to examine the business and your finances and determine whether or not you can make it work. Find out why you haven't made a profit for a year. If it's because of lack of customers, remember that while your new customers may help, you may also need to focus on marketing to constantly bring new customers. If it's because of something else (cash flow, service, etc.), you may need to seriously consider whether you can actually run this business, or if you need to move onto something else. All in all, you're the only one who knows how much you can stomach when it comes to your business. It takes guts to be an entrepreneur, but the rewards are well worth the risks!

Answer 4

Have you any idea why your business isn't doing well? You need a sound plan to bring the business back to profit since you don't have to start from scratch with 80 customers in the waiting. With the credit card debts, you need some form of income thus its feasible that you rethink your business strategy.

Answer 5

Well that depends on how important it is for you.

From what I read, I think it might mean something to you.

8 years is a long time to be investing money and energy towards something. Maybe you should consider using the help of a consultant. It could be difficult to save up for those services, but it may be worth borrowing for.

Marketing also could be the key. Review your product/service and your target market. Maybe you can expand or branch out.

There are lots of things you can do if you really want to stay in business and become profitable.

I am not sure if anyone here can help you though...

Good luck.

Answer 6

hard to answer sensibly with so little info.
if you made profits for 7 years and this year you are making a loss,then the obvious question is why?
only you know that and if it is worthwhile to persevere.

Answer 7

Have you tried to sell the business? Do you own the building? What kind of business is it?

Answer 8

If you dont know where to go....ask the customers whats wrong and what do they want!

Answer 9

You know what has to be done. Cut your losses. "Ya gotta know when to hold 'em and when to fold 'em".

See if you can service your remaining customers without the store.