The Walk of Shame

Every entrepreneur has thousands of ideas. Some we follow through on, most we toss aside as an interesting feature but not a real business. The ideas we do follow through on become our life for a period of time, often a long period. We develop an idea, build a plan and future around that idea and spend thousands of hours creating a business. So the business is up and running, but what if the market has changed and your idea or the current execution of your idea is no longer viable? What if you missed your window? The hardest thing for an entrepreneur to do is accept that they may have to start all over and go in a new direction or close shop. You nurture this idea from its' infancy, bring it to life and now you must watch it die a slow death. Even more challenging is that the market now shifts at the speed of light. What was a viable idea 3 months ago is not today due to a new technology, a major competitor or a shift in economic conditions. So how do you know when and if it is time to move on or close up? Well, here are a couple of basic questions I ask myself every week,

1. How have my business metrics changed over the last 3, 6, 12 and 18 months?
2. What new technologies are out, in use or in the pipeline that could significantly change value fulfillment in my marketplace?
3. Where is the puck moving?
4. Are there any solutions in the marketplace or on the way that could drop the revenue bottom out of my current business model?
5. How can the assets we have be leveraged in new ways to adjust to the changing marketplace?
6. What type of business shift does our balance sheet allow us to make?

In short, what is happening, how can you react and can you afford to react effectively. To be a successful entrepreneur you must combine the ability to adjust quickly with proper planning. Quick adjustments poorly researched can result in a one-way trip to the dead pool. A method for consistently analyzing your business, your market and your go-forward strategy will give you the best chance for success. Some last words of advice. NEVER make a decision based upon pride. RECOGNIZE when you are in a losing battle. REMEMBER that there is no shame in a business not succeeding. Learning from failures prepares you for success.