10 questions to ask if your biz is in trouble

Is it time to shut down? Here's a test.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

lost_maze_problem.ce.03.jpg
Stress test
If you're tempted to throw in the towel, you're not alone. But drastic measures may not be necessary.
Photos
SOS: Send loans now
With bank lending to small businesses nearly frozen, these 8 entrepreneurs are among the thousands fighting for the credit lines and loans they need to keep their companies alive.

(Fortune Small Business) -- Entrepreneur Jay Goltz's 10 questions that will help you decide if it makes sense to stay in business. Says Goltz: "You don't need to have the 'right' answers to all these questions to forge ahead. But some 'wrong' answers should give you pause."

1. Is your problem cash flow, dwindling profits or both?

2. Has the problem been fixed? For example, if you tried new marketing ideas that didn't work, have you dropped them?

3. Are you in an industry that's going bad, making it hard to profit? Or is it some aspect of your execution that's to blame, be it pricing, service or location? Is your model flawed?

4. If you can fix the business, how much money can you make in the future? Is there potential? How long will it take to get there?

5. If you decide to quit, what will the consequences be? When is your lease up? Do you have outstanding loans? Are they personally secured? Will you lose your home? Will you have to file for business and/or personal bankruptcy? How many employees will lose their jobs? Are they loyal, long-term workers?

6. Could you make more money or be happier doing something else? Is entrepreneurship in your bones, or at this point would you be better off working for somebody else?

7. Do you have any fight left? Being strapped for cash and dealing with all the other difficulties of running a small business can wear you down.

8. How are you holding up physically? Hard work might not kill you, but stress certainly can.

9. Do you just feel alone, or are you really alone? Do you have a spouse or partner? Do you have kids? Are you ever home?

10. Are you having fun? Do you still have that passion that everyone talks about? When most people go into business, it's not about the money. Has that changed for you? To top of page

To write a note to the editor about this article, click here.




QMy dream is to launch my own business someday. Now that it's time to choose a major, I'm debating if I should major in entrepreneurial studies or major in engineering to acquire a set of skills first. Is majoring in entrepreneurship a good choice? More
Get Answer
- Spate, Orange, Calif.

More Galleries
10 most expensive cars sold at Pebble Beach These multi-million-dollar cars sold for top dollar at this year's Pebble Beach collector car auctions. More
The world's most popular beer is ... Few people outside China have ever tasted the top-selling brew in the world. More
Transformations on the street On his days off, stylist Mark Bustos gives free haircuts to the homeless. Here are some of the transformations. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.