The 12 Steps to Entrepreneurial Success: A Sure Way to Fail: Quit too Soon!

By Dr Paul E Adams | January 31, 2002

"Never give up, for that is just the place and time that the tide will turn." - Harriet Beecher Stowe

Quitting too soon is a prime cause of failure. If you are ever tempted to call it quits because of losses and a negative cash flow, when do you put the key in the door? Or, do you?

There are two critical moments when you must have faith in yourself and your business. When you start it and when it is in trouble. It is easy to be optimistic at the launch, but not so when you are pressed in all directions with demands you cannot meet. Facing and overcoming business and financial adversity is not pleasant, and not easy. There is no magic formula or painless shortcut except more money, which is unlikely. Instead, you must believe you will succeed. Do not let the possibility of defeat-defeat you.

To turn your thoughts away from the fear of failing, ask why you started your business. List your reasons; are they still valid? Ask yourself about your original expectations; are they still possible? If you feel overwhelmed with all your problems, try and deal with the pressures, the fears, and the demands of others, one day at a time. Big problems broken into small pieces look different. Without more money, you know your problems cannot be instantly dismissed, accept them, and realize that as your business gradually got into trouble, it may gradually get out of trouble. To do so it requires your faith in your abilities to overcome your problems and push your troubled business to survival-one problem and one day at a time.

If your business has deteriorated into insolvency, you may be saying to yourself; "Anything is better than these angry phone calls and legal threats." You may be asking yourself "Why did I ever start this nightmare?" In comparison, your past life style may seem calm and comfortable. Your family and friends may be telling you to give up and get a job. Most likely you are feeling pressure from everyone; family, friends, creditors, employees, partners and tax collectors. It may be the worst time of your life.

Bankruptcy may look attractive to you. But, be careful, if you are stressed out, you may not be thinking clearly. Unless your creditors are putting your business into involuntary bankruptcy, don't be quick to volunteer it! Yes, a chapter 11 voluntary bankruptcy re-organization is a way out for some firms, however, many who ask for legal protection from their creditors never emerge with an independent and healthy business. When you ask a judge to protect you- you have submitted your business to the will of a creditor's committee.

You may be the CEO, but the committee is your new "board of directors." You no longer have sole discretion over the matters of your business. You will be required to submit a financial plan outlining how you are going to run the business and pay your bills. You will find yourself with little control. If you fail to meet your "new" obligations the committee can recommend to the judge that your business be declared bankrupt and its' assets liquidated. I caution you about any eagerness to seek the court's protection- you will give up control and your business may never be yours again.

No one wants your business to fail. You don't, your investors or associates don't, your employees don't, your customers don't, and your creditors definitely do not. A failed business brings losses to all, yet few lose in the end if it stays alive. Your inner strengths, your talents, and your determination may determine if it makes it. The miracle must come from you.

I have a rule of thumb that may help you to decide when and if to move on. When that time arrives, if it does, the decision has been made for you. In addition, if you are not forced to shut your doors, you will have survived.

The next section will have a recap of our 12 Steps to a Successful Business.