When should the business end

business, often easy to fall into a chicken ribs feeling, do not return then feel lost, but unfortunately. If this is the case, the business should end. However, after all, not every entrepreneur can be ready to grasp the end of the business time. So, the business should end?

the readers should be the business for three to five years, still struggling to survive, on account of always enough to send two to three months salary in cash, but there is absolutely no time to the end of hills and rivers. At this point, in the face of the growth of the fog, it is difficult to gather together the effectiveness of the strategy, the loss of the backbone, you should have been tired. If you start comparing business opportunity cost, how to begin to imagine if you give up employees, customers, partners, so you often suffer from insomnia, cold sweat.

finally you start to admit that you are asking yourself this question: should I end this business?

it’s really a tough question. In between give and take, you never know which one to quit and persist in the end is the correct decision. All the public opinion to the "brave venture, clinging to adhere to, no one to tell you what time should end happily, even your most intimate friends, will never be in your most difficult time to persuade you to give up.

they may find it immoral to do so. However, business can not only the beginning, not the end, if so, all businesses will become unbearable in the Red Sea, the launch of enterprise and business are neutral behavior, emotions, are objective. The question is, how should we make an objective analysis of the difficult decisions, and in what circumstances should you let go?.

1 (permanent) can not enhance the gross margin

is the first big low margin business, fixed costs are not high enough profit margin would not be diluted more and more high. But not all low margin is so terrible. In order to get the cost advantage as quickly as possible, it is possible to take a larger market share with low gross profit, in this case, the negative gross profit (subsidy customers) is even acceptable.

When should

end a business?

in the process of market share, will gradually force competitors to exit, so that the gross profit to a reasonable level. Rising margin does not necessarily need to be increased by increasing the cost of production and sales to reduce unit costs is a more common means.

, however, most businesses are not able to successfully build the cost advantage. Low margin was stuck for a long time, can not be promoted. Common causes include upstream persistent bargaining power, no >

Leave a Reply

Your email address will not be published. Required fields are marked *