Why Do Most Entrepreneurs Quit?
For some business owners, the decision to build a business wasn’t the right one. Thus, they may begin to explore options for quitting their business. This can often come with negative stigmas, however, sometimes it might be the best decision for that individual. Here are some of the leading reasons why entrepreneurs get sick of running their business and turn to leaving a business as a solution:
- Personal Sacrifices: For some entrepreneurs, the personal sacrifices to make the business succeed may not be worth it. In the beginning, you might be forced to work long hours, spend time away from your family, or miss out on other aspects of life. Often, this is a trade-off many entrepreneurs make.
- Wrong Team: Many business owners need to build a team around them to grow the businesses, especially if they lack all the necessary skills and knowledge. However, building the wrong team can be detrimental to the business, especially when conflict arises, and is a major reason entrepreneurs quit.
- Financial Difficulties: Businesses need money to succeed and grow, without it, a business will slowly suffocate. For businesses that do not bring in enough money, owners often need to make personal financial investments. This can strain many entrepreneurs and be a force that drives them to quit.
- Mental Health: Many entrepreneurs find that their mental health suffers because of the stress that business ownership places on them. Rather than deal with the high stress of their jobs, some entrepreneurs would rather quit to improve the quality of their lives.
Why is Running a Business So Hard?
Running a business is incredibly difficult. There is no simple checklist you can follow to ensure you become successful. Instead, it requires careful planning, dedication, and passion. This is where some entrepreneurs fall short.
At the same time, business owners need to understand that they will make mistakes. Unfortunately, this can be discouraging for many, ultimately leading to stress and burnout. From the beginning, entrepreneurs need to be prepared to face obstacles and be motivated to overcome them, rather than letting the obstacle stand in their way.
Unfortunately, many business owners find the difficulty of running a business to be one of the signs it’s time to close your business.
How Much Money Should You Save Before Quitting?
If you’ve decided that giving up entrepreneurship is right for you, you’ll want to ensure that you’re fully prepared before you quit your business. If you don’t have a job lined up, you’ll want to ensure you’ve saved enough money to cover this transitionary period.
The general rule of thumb is to save at least three months of living expenses. This includes rent or mortgage payments, groceries, and other bills you’ll need to pay before you embark on your next professional journey. However, the more you’re able to save, the better. This will give you greater protection against unexpected expenses while you search for a new career.
Is it Hard to Get a Job After Being Self-Employed?
Once you’ve been the employer, finding a new job can be challenging. One of the most important things to consider is that new potential employers will develop their own ideas about you and your business. This could include harboring the assumption that your business was unsuccessful or that you are not fully committed to the new job. It can also be challenging because as the boss, you likely have fewer people who can provide references to new employers.
However, before you ultimately decide to pull the plug on your business, try exploring signs of entrepreneur burnout. These could be influencing the way you feel. Working to overcome burnout can instead give your business a new lease on life.