One of the most insightfully insightful insights I picked up from RJ Ledesma‘s brilliant mind was the need to develop mental toughness in making major decisions, like when to pull the plug on a losing business.
He drew from his experience in co-running Soderno (a sister project of Mercato Centrale), which didn’t take off the way he and his partners expected.
It took them 18 months to finally decide to shut it down, and he said they should have done it a year sooner.
The intricacies of such a decision lie in the financial metrics, plus a predetermined set of numbers and conditions to determine when to quit.
The most difficult part is the sentimentality. One can’t just let go of his “baby”, especially if he has lofty ambitions for it.
My questions for you are:
- Do you know when it is time to shut down your business?
- When that time comes, will you be mentally prepared to do what must be done?