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How long in years should I go before I give up and close down a business that is unprofitable?

I was listening to a podcast where Kelvin O'Neal¹ was featured. He said, "If you are not making money after 36months(3 years), you've gotta take a behind the barn and shoot it. It's just a hobby. It's not a business."

According to him, "people can get so stuck on a bad idea that they just keep thinking that if I keep working on it, it's going to fix itself. It doesn't fix itself. It was put on your journey to teach you, what not to do."

- To what extent do you agree or disagree with this assertion ?

-Have you had a business that even though it wasn't profitable in the first three (3) years, then it  kicked off to bring in good returns in the fourth (4th) year?

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1 https://www.instagram.com/reel/CqVbhNCt0yF/?igshid=YmMyMTA2M2Y=

I agree with his statement, imagine operating your business for three years without improvement, you should let go of it. Because if you're really into that business you would do something that will help for your business to boom. If its no progress then it would be consider as a hobby. However, there's a scenario where some businesses are not meant for you, therefore you can connect your hobbies to your business for example, you really like collecting shoes and you've decided to resell as a business. Then it would be easier for you to have an idea on how to run your businesses since you have a good background on how to handle shoes.

According to experts the average period for a business to start yielding profit is 2 to 3years. But it all depends on the kind of business. A small scale business can be profitable in short time span because of the low start up cost whereas a larger would take time before it begins to yield profits. Competition from other businesses marketing similar products could hinder the person growths and at such the business might have to do away with profit first and build the brand.

Before considering a business to be unprofitable one most have to look at the potential of his products. Say Electric motors, they have been in the market for long but since the world hasn’t evolved fully to that area and still live in fossil fuel then this kind of business can be given future benefits of doubt. But for business in which people are moving away from its maybe because they seem traditional and the profit isn’t coming anymore then such business should be stopped.

Moreover if one has a business and it is in Tenth year or more and there’s no sign of profit and people aren’t looking to move towards that business probably due to government restrictions or policies then it is best to work away from such business

In the market there are cycles where the activity is flourishing for a commodity and it dims. For example, in times of holidays it is easy to sell sweets, decorative tools, etc. If you fail to achieve profits that cover your losses during two market cycles, it is better to think carefully about what project you are undertaking.

The market cycle varies from one person to another and from one country to another, some of which are several times a year, some annually, and others every several years. Therefore, according to those cycles, you will determine whether you will continue or not.

No, I cannot wait for 3 years to finally decide to close a losing business. That's just way too long for me. Although I haven't had a business with a capital of over $20k. A few years ago, I tried to open a business with that amount as its capital, after a few months of processing the papers and attending meetings where sometimes politics are involved in a local place, I gave up before it even started.

So maybe a big capital like those rich people are starting, they just cannot simply give it up and lose all the investment. But for smaller businesses, 3 years is just way too long to suffer and the capital loss is a bit tolerable.

For me, a unprofitable business only means that it is too common, no solid business plan, or in a wrong place. Starting a business need those in order to succeed, and you need to continuously adapt into your environment, because if not, you're probably gonna lose your profits and will end up shutting down your business. You also need to know what's wrong with your business, you don't need to shut it down after a year of being unprofitable, you just need to think that there's something wrong.

But if you think there's nothing wrong with your business, just shut it down because it won't work that way. Also think if you're suited for starting any business first, because it might not be your field of expertise.

The question is rhetorical!
Situations are different. It all depends on the real reasons for the unprofitability of the business, and a real assessment of the prospects.

A business can be really "calculated" incorrectly, all the nuances, market conditions, purchasing power, etc. are not taken into account. Here it is necessary to make a willful decision, and simply close the business, or sell it to someone.
 
Maybe - the business is really good, but its time has not yet come. Then - "freeze" and wait for "your time".

There may be a situation when the business is good, and "for its time", but the situation in your country is not the most suitable - for example, as in my country - an external terrorist large-scale aggression of a neighboring country, as a result of which many were forced to either close the business, or sell it or just lose it...
In this situation, business migration to more comfortable conditions (city/region/country) is possible.

And to sit and wait is only to increase your costs ....

Doing business is not as easy as we imagine, and even though the business we run is the same as a hobby because a hobby business like ours needs consumers, not consumers who need us, and that doesn't guarantee it will be successful.
and what you have to do before doing business is find out what is needed or what is not available in the location and also try it with good management, and try small things to see how it goes.

and if your business has been unprofitable for a long time, there are times when we are too fed up with our stagnant business. And it never hurts to seek and try other opportunities. The way to do business is not always the same, there are times when by changing business fields, it turns out that that is where fortune awaits.

One business coach told me the following - you do not need to register a legal entity before you receive the first income from this type of entrepreneurial activity. 

Only the first money you receive from a client indicates that you have organized a successful business. 

This is due to the fact that business is exclusively an activity aimed at making a profit.  Ideally, when you receive an advance payment from a client.  This is evidence that you are trusted. 

Trust is a very important factor.  If your business has been unprofitable for three years (this is a very long time), in my opinion, it needs to be liquidated urgently.

I don't know if fortune will come to him in the next business but perhaps what many don't know is that the average business time exists (close) and it doesn't mean failure if not that it simply wasn't established or worked.

 The OP's question is something you only know when it happens.  It's like asking: when they throw me the life preserver, when am I drowning or after?

I wouldn’t allow my business to become unprofitable for a year because it will just continue declining when I continue that phase. If ever it comes that way, I will give it another year for improvement on marketing sales then see if business can be recovered. I think 3 years is too long to wait for a business to close down due to the increasing operating cost that will put you on a huge debt.

2 years max I guess for me.

If it's not profitable after 6 months I would already quit and concludes the feasibility study was incorrect.
I was in the same situation back in 2016 when I set up a business which I thought because there is foot traffic in the commercial area the business will not fail. I didn't count that the mall manager will also allow business competitors to come rent closer to my business.

Even if I its a hobby that I enjoy dealing with the stuff I sell, I need funds to survive. 3 years will be too long.

It will depend on the scale of the business, the smaller the business scale will shorten the evaluation period, it can be monthly, weekly or just daily. Consideration will require some evaluation results, and it's best when choosing to maintain a business for a certain time also think about the capital that you can afford to spend even more. Because after all it will be a waste of money if it fails in the end.

I agree with what he said. You cannot expect much profits in the first year of starting a new business because you’re still building your reputation and growing your customer base. If you work hard, make the mistakes and find solutions to them in the first year, it’s expected that the sales will increase in the second year. Personally I would give my business three years before shutting it down.


It’s crazy that the comments on the post are all about crypto investments.

I agree with the statement about quitting after 3 years of not making any money and maybe the sooner you stop, the better because you can reduce the amount you lose. Usually, someone starting a business will evaluate his business in the first 3 months and check which ones need improvement so he can think about continuing his business, increasing his capital, or even stopping business. During the first 3 to 6 months or the first 1 year, he should understand how his business develops and think about what to do. And before the business is not running at all or even unprofitable, he can close it to avoid losses that could be even greater if he continues. The biggest loss is usually the daily operational costs, so the business cannot generate the profit it wants.

If, in the first year, he can see the development of his business, he can add capital to spread his business and develop it to be bigger so that the profits are also increasing. But if during that 1 year, he suffered more losses and didn't make any significant changes after the first 6 months, he could think about closing his business.

The information that these motivational speakers or economists give are not 100% true. Some businesses need more than 3 years to become profitable. Profit-making might not be the only indicator that a business is doing well. It takes a long time for businesses to outsmart competitors and grab more market share. So if you observe that your business is gradually and consistently controlling more markets, it's not a good time to quit because in a few years, profit will start flowing in.

A business could also serve as a foundation for a future enterprise. I can start a rubber plantation because I want to invest in plastic household materials in the future. So even when I am not making any gain from my rubber business,  I might make my profit when I establish my future plastic industry. We understand that different type of businesses has their maturity stage.

You can't do the same thing you are doing all over again and just wait for years to have return. A small business that continuously improves its business process is less likely to get bankrupt than the one who started huge and just keeps on doing the same thing. Ideally, if you had a lost in your initial year of operation, you can continue up to three years provided, that you still have the working capital to continue. But there is no such timeframe for closing down an unprofitable business, as long as you have faith in what you are doing, you can continue.

Personally, I will start the business related to book publishing if I have the money. Regardless of how unprofitable it will be in the next years, I'll continue doing it because I love it and because I have the money. But practically speaking, people start business to earn profit, so if it no longer earns profit, you have to close it.

3 years is not a short time to do business, but in the business world 3 years will be a short time. We can't conclude that in those 3 years we really don't have the expertise or we run a bad idea, because we have to see what's wrong with all of that so that our business doesn't go well.
There are some businesses that may be difficult to develop and take longer than what happened. And there are also some businesses that only take a short time to grow bigger. So we can generalize all types of businesses because there are fundamental differences.

Each type of business and in what sector it relies upon makes a difference about how long should you shut it down. Three years is a rough number, he does not even mention what type of business or maybe you did not put up detailed context about what he is saying.

Ideally, the one who decides and knows how the business operates should be able to forecast the longevity and profitability of their own business. When things do not hit the target, many many times, it clearly shows that something is wrong. Each time it did not hit a target, it is assumed that each take should have a different execution or goals, and three years is a long time to realize where the problem is.

The answer to this can vary wildly and also depends on the personal circumstances of the founders of the company. For example, if it is a fairly low cost exercise and the owner is the son of some rich millionaire, then they might be able to keep it going - just under making a profit each year out of sheer perseverance or having it as a sort of side project.  However if you are an owner that relies on it to make an income in order to pay your personal bills, then you have a much shorter runway to use. You should be able to tell within the first couple years whether it has a long term future, because you can see peaks and troughs in that time. However Amazon went for a long time as an "unprofitable" business as it sought to claim market share and is now one of the biggest companies in the world.

I still don't get why I would have to keep doing a business for many months and I will not think of fixing it 5o adding some tips that would make it work. If we keep doing a business and we are not getting any profits at all and in the future we don't know what Will be our fate then we need to think twice of the possible way that will make it work or better still we look for something else we can do that will make bring profits to us. We can collaborate with people in business to minimize our expenses and maximize our profits. This is business and the sole reason why we are into businesses is to make profits.

It depends on your situation as a business may not be profitable (temporarily) for many different reasons: like for example, you have to pay off loans or investor money, or maybe you're paying exit money to your partner who decided to quit... in all these cases, a business may be profitable after you pay your dues.  8)

Depending on the kind of business.

- If it is a business around a skill that has the potential to be useful in the future, you have to hang in there and be a bit more patient for the skilled service your business needs to be in demand.

- If your business is based on a skill in demand but the business is still very unprofitable for you, you can stop that business and find something else that will be profitable to you. Maybe it is not the business, but you. Not everyone is cut out to be able to handle the difficulties that come with business. Some people are better being employed than being the employers.

- If your business is based on no sort of skill or a skill that is no longer in demand, and with the time you have put into it, there is still no profit, you should just quit.

I would agree with O'Neal on this one. A lot of times sunk cost fallacy plays its part and fucks with the people's head with notions like "this has been a part of my life for X years, I just can't drop it that easily can it?" or "I've invested so much of my time and energy on this business" which is just sad. Although I would really look at it this way for the most part: You keep two things in your life. If it makes you money/lets you grow as a person, or if it makes you happy. In the case of setting up a business only to one day make it your hobby, if it makes you happy serving customers and all that then by all means go for it! But if it's just weighing your finances down, stresses the hairs out of your body, and leaves you empty as hell, then drop it. It's a toxic relationship at that point.

I tried remembering where precisely I read about this but couldn't but I read where an author was talking about 5 years before deciding if a business is profitable or not and I also see no reason why one should hold onto a business for years when it's not giving him any returns especially when money, effort and time it's been put into it.
I know most people might reference the cases with ancient inventors who took years to invest things but that was then and now if a business isn't giving you any profitable return after one years, then that business should be reconsidered and the 5 years I mentioned earlier was time to consider if one is successful in a business or not but I think one shouldn't continue a particular business after even just a year if there isn't any profitable returns.

Probably, if the business never works from the start, then it’s hard to expect that it will still be profitable in the next months or years. However, if you change your strategy on handling the business, might as well that it may start working. This has happened to some businesses, at first there was seen no progress, but when there was a change of management, it started to work and prosper. But there might be some exception too. Like in business that was never in demand, or it’s not position wherein consumers are highly accessible, then mostly business like that will never make any chance to be profitable.

which means, you need to listen to your instincts regarding this matter. because you alone, would know if there is indeed the potential to make it thru in your chosen business. but if your instincts is saying you need to stop, then follow it. instead of losing more money and being stressed about it, cut it off while the damage is not too deep.
you need to assess if the situation is doing more trouble in your life or not, swallow your ego that you can't continue your business anymore. maybe, it is high time to change your chosen business. check out your community which you think would give you more potential to succeed.

I have not been to any kind of business like that before, but if I observe any business after a year without no profit, I need to quit and find another alternative thing to do. I don't think there is anytime to waste with any business that is not bring profit between a year. But in some cases I may change the business strategy if truly I believe much in the business but despite this reason of change the business strategy, I can't still be waiting for four years to think that the business may turn around.

36 months of not taking a profit are too long for me.  Often I give it 24 months to see whether the business for me or not.  Besides, maintaining a business cost money, and if we are unable to sustain the business even after a year, it is wise to shut it down than applying for a loan to make it survive.  After all, I believe that if something is for us, it will work out no matter what challenges are put in our faces, and if it is not for us, it will always fail no matter how hard we try to sustain it.

Better to determine whether the business is for us or not to avoid unnecessary losses of money, effort, and time.  The sooner the better.

3 years is enough to use up all your money, that might be the less theoretical point to this balance in any business.  IF you want the full time scale then 6 years is the full amount of time before some business will become profitable hence why so many start ups have alot of debt.   To operate some mines for example can require ten years of investment, there is a strong bias to large business in that way which is fairly inevitable.

First you need to understand why the business is unprofitable. If a niche or place of doing business is unsuccessfully chosen, then it must be hidden immediately, despite the initial costs and illusory hopes. To continue the business only because of ambition or because it is a pity for the supposed invested money is stupid enough

This is stressful to think honestly and we will never truly understand the real pressure on those businessmen who actually experienced that kind of situation.

It now depends on those set of reasons we see on "why we keep operating despite being unprofitable".

But one thing is for sure, "there is no certain exact period".

As said we can't have an exact time period on the closure of a business and move towards a new one, because we've invested everything into it. Switching to a new business costs us even more. Most of the time it is good to try until the business doesn't cost us to pay from our pocket. When the business turns completely into loss, then it is time to get out of it. In recent years COVID have caused a big blow and for that reason we should consider to keep things positive and move forward. It takes time to get better business.

I agree with you. Big business with big capital may take time before you begin to yield profit but even at that, I feel three years is too much for a business with a big capital to start yielding profits, if it's not, then it may be time to cut your losses and move on. If you are to continue with that kind of business then maybe you have a different approach. If you properly evaluate your business, you should be able to estimate how much your business should make at the end of the year.
Realistically, there may be no exact period to shut down any business partly because the industries differ but it will also help to know when to cut our losses.

A business of $20k as a start-up capital is relatively a big business. I'm sorry it didn't work out.

Certainly I have not experienced like that. But maybe if there is a change of strategy or management, that would be possible. Like in big shopping malls, at first it was gaining less profits due to poor management but when management has changed, it came out that it’s getting maximum profits every year. But maybe in a small business, I don’t think if it’s gonna work again if it has already fall from the start.

I did not understand how he reached the conclusion of "3 years", when most investments in most sectors cannot withstand all those years without making profits. In my opinion, this measurement varies from business to business. Agricultural projects, for example, may take longer years before trees grow and bring profits.
It may be possible to determine an approximate time for business in a specific sector, but it is not an average rate for all business in all sectors.

The new ideas proposed by startups can struggle for years before they find a catch. There are many examples, including the best applications that we use today. Of course, it is not possible to define a criterion that we can adopt to measure time distances before we say whether the project was successful or just for fun.

Depends on how hard of a hit you can take. Most small-time business owners will probably close theirs in a few months and sell everything, whereas medium to large ones can wait a year or so before deciding that they should jump ship. I say, no definite time-frame can be given in regards to this matter. If you can operate at a loss for a while and strike some opportunities then hold on to it for a while. If not, better sell it or close it in order to avoid more losses.

Minor correction, his name is Kevin O'Leary, not O'Neill, and he was also an FTX cheerleader and called for regulation after the exchanged collapse.

Not all of his takes are great, setting some aside, I don't disagree with him here. He's a successful investor despite his crypto related venture failures and is correct -- after a certain period, whether it be 36 months or not, businesses that are not profitable should on longer continue to operate. The institutional guys understand this. A lot of the Silicon Valley tech start ups torch money for the first years until profitability, or until they get bought out by a larger firm. After a few years, if it's not profitable the VC money stops coming in. Seemingly people that might be new entrepreneurs and get personally vested into their ventures could benefit from his advice.

During the pandemic, I had a small business delivering infant and children's clothing door to door to their homes. When business slowed because people could now go outside, I immediately closed it down because I was spending money that would not be returned to me. I think 3 years is very long, and for sure you lose huge money on that. You could shorten it if you analyze more why you are not getting any profit.

I am still a supporter of the approach in which a businessman should receive income from his business as early as possible.

Even in venture investment, according to statistics, it is precisely those companies that have already demonstrated successful financial results before the start of receiving investment funds that survive.

 If we talk about business in the form of a public-private partnership, then the situation there is a little different, but in this case, the new business has support and guarantees from the state.  If you are not connected with the state in any way, then your clients are the sources of your income. 

If you have not been able to attract customers and get paid from them over a long period of time, then it is very unlikely that in the future the situation will improve in some miraculous way.

For me i think 3 years is a perfect time to close unprofitable business because if you don't close your unprofitable business it will surely make your capital loss because there is always a big expenses on making business specially eatery business, you need to pay electricity, water bill, etc., So in 3 years if business doesn't work we need to close it.

If the business doesn't generate profit for less than 2 years, we can't run it anymore because the capital used has run out. Especially if the business is on a farm or plantation which is a living creature whose food intake cannot be delayed. Maybe if the business is in property, the longer it will be the more profitable it will be because it will be more expensive. For goods or electronics business, while it hasn't expired I think 1-2 years waiting to get profit is normal.

Depends on how long you can take the situation of not gaining from your business. Ask yourself if you already did your best? Maybe you're lacking something. Because before we decided to closed down, usually we're coming up first for a plan to gain the trust of our customers again, improve the business and be more competitive.

I also have a business and just like others, we've been through as well the struggles of losing our customers due to many competitors. For me, I think a year would be enough to say if you're going to continue running your business or stop it. Because if it's not profitable anymore, there's no reason already to continue the business.

If a business is unsuccessfully, then you should check where you have gotten it wrong, if other people running the same business are making money, then you should check where you have gotten it wrong and fix yourself. I don't believe their is anything like failed business or unprofitable business, if you are not making money in a business, then you should check your business strategy, your marketing and your location. Some people locate their business in a location that there service is not needed, and some people don't do proper marketing in a business.

3 years of waiting is a bit long. I think it will only cause more problems to you so I think the advice isn't really good to follow. For me I think the ideal time of waiting is a month or two. This must be long enough already to know if there is still a sign that your business is going to survive or not. Not only money that we can waste if we wait longer if there is no improvement but also time. If only we can move on to other fields, maybe we can find our luck there and we can recover our previous losses in no time.

I think I can both disagree and agree. Disagree because, the idea of trying is also correct but if the situation is still the same, that is how the statement becomes right. Maybe it was really put there for us to avoid.

You don't need to wait for years; you'd know for a few months whether you should continue or not. If most of the time no profit is being generated and worse, losses, are the only outcome; try making a change with your plans or business itself to somehow aid the situation and if it still does not work, then that would be the time to somehow calibrate what you are doing. In a business, there are many factors to consider such as the season, target audience, costing and more. Try atleast managing each of this factors to somehow cope up with downward performance. But unfortunately, there are really businesses which do not work as expected and times wherein trying other business would be better. This is what's ideal but reality check; not all business owner has the capability to extend that much to save a business, financially. Pushing it through won't do you good but if your really believe that things may still work for a long run, you are free to continue just be cautious of the worse possible scenario to happen to prepare yourself and to save you afterwards.

From the business perspective, five years is stipulated to gave up a business that is not productive. Any business that survive well after five years will not die again. Because the sustainability duration of a business is five years. Within this five years period you are to check and balance the weaknesses and the strength of the business. Three years are short to know the weaknesses and strength of a business, the first is for advertisement of the business then the second year is for customers awareness services where you also make some promo to lure customers to come and the third year is for expansion of the business then the fourth year is to cross check your progression then the fifth year is to know whether you are progressing or not if you are progressing then you have to close down the business because you have spent five good years in the business and no improvement then you have to diversify you capital to start up another business that would give you profit.

There are different factors that you have to check before you start a business. One of the factors is the encouragement, which is comprises of the population of the area then another thing you to look into is the number of people that doing that the same business in the place and their price differences. Note these before starting up a business.

I've run a business for four years and I decided to shut it all down, the biggest decision I've made so far when it comes to business, sales were very bad and I couldn't cope anymore, I got frustrated and I decide to go for fashion designer, all this while I was already eyeing Bitcoin investment, doing research whenever I am less busy, I made the right choice leaving the old business and I've never regretted leaving,  some times you have to find your path and if you are not scared of any challenges you will find your way in the end, there is no way to tell that you are going for a bad business experience until you do it, striving is the smoothest way to success, you will only know what is waiting for you at the end of a tunnel if you try.

I disagree with him on the three years wait. I would shoot the business down if it went on a year without being productive. The only way I would leave it to that point of three years would be if the business started and then went on lock and key, only to be reopened again on the third year. Otherwise, why would I be feeding a business that isn't making me any profit for three years. Doing that isn't a good business strategy.

I've never had to run a business in my life. I'm not a business oriented person. Having a business requires so much more effort and good social skills.
I completely agree with Kevin O'Neal. Some businesses become profitable in the first year, while others take several years before they start making a profit. It depends on the industry and the market niche. Trying to keep a losing business for way too long is wrong move. It will get the business owner into more debt and more trouble.
There's a theory called the ""sunk cost fallacy", which explain why many people don't want to give up on certain activities in their life, mostly because they have invested so much time, efforts and money. Giving up would mean that all the efforts and money invested were simply wasted and that's why so many people don't want to give up and move on.

3 years is too long for me but that would be enough to think about what you're doing. I think a year is already fine to determine whether to pursue a business that's not profitable. But I could also be wrong because we've got our own timelines. Some may be good seeing them fail within 6 months and they're already out. And that range is also undeniable enough to say to give up a business because if you're the sole financier and you own it, you'll have to think about expenses and no cash flow getting into you. If you think that you can have that no cash flow and all you've been spending for the operation is coming from your pocket, that's okay as long as you can sustain and you believe on what you does.

Well i never run a business but maybe i understand a little bit about business. I never seen someone who run a business for the first time and succeded. So, if your business not giving you profit maybe you need to analyze it. Find the problem then take a good approach to solve it. Or, maybe you try new one.

I agree with you, there's no way I will keep investing in a business when am not making profit from the business even after three years that's crazy you know?  Six months is ok to be patient with unproductive business because this time, you will have gained more knowledge on how to push the business going and as someone who may be new in the business, you can take this time to advertise and gather more customers but keeping a business that isn't bringing profit for you for three years is a waste of time and resources and locking up and reopening the business in that same shop and location means you took time off to change the items you sell otherwise you aren't doing the business any good by reopening it again.

The main aim of setting up a business is to maximize profit and if the goal is not been achieved I would suggest that you shoot down the business and invest in something else unless you aren't ready to get returns as the case may be.

Yes it's true that if a person don't get what he wants in business for long time then stopping such business will be better because if you are facing losses regularly then a time comes when you want to get rid of such business.

At start you will face problems and losses because of little experience but after two or three years your chances of losing money become reduce. When talking about crypto investment then there is no guarantee about its better outcomes so tolerating during down price will be profitable but you should invest in that coin which has lower chances of losing money.

The duration of tolerating losses depend on the sort of business like that of cryptocurrency in which you will face losses but you can recover all you losses when the market goes pump again.

Optimal business longevity is five years. Who would have guessed? But what if we extended this reasoning to other spheres? Things like couples or diet plans. Would we still be together after five years if we stopped drinking kale smoothies? Most likely, no.

Let's get down to business, though. Population and encouragement are two considerations when launching a company. Should we thus just take a headcount and cross our fingers? Alternatively, we may enter a market with only one other rival and set our prices three times as high. Genius!

However, the five-year guideline must not be forgotten. If we are not turning a profit by the fifth year, we should abandon the project and move on. Who needs grit and effort when you've got a magic square root?

Trying a new one is the same as changing an old business to a new one and it requires more capital and time. I agree more if someone who is already running a business makes an analysis and finds the problem if the business he is running is not progressing, because usually these businessmen always start the business they are most good at first before trying a new business at a later stage if the first business is not progressing.

I don't think anyone can or should decide when to shut down an unprofitable business. It's yours and the decision lies solely with the entrepreneur. It you think your business isn't profitable, try a different approach, a different strategy, a different product or service. Do it until you discover what works and what doesn't. Besides there are a lot of reasons why businesses fail. Unfavorable government policies towards businesses may cause a business to fail, will you tend in turn say it is your hobby? No. So, nobody should be pressured by Kelvin. He doesn't know it all.

Three to four years of business without profiting is already long enough. You should have decided that time whether to pursue it or just stop right there. For me, I would rather stop the business and just accept the reality that it’s not going to work anymore. But this does not mean that I’m not going to do business anymore. I will just take a break for a while and then come back to the market with a new in demand business, and certainly with a different working strategy.

I've seen some. It's quite rare but it does happens that someone who's new to the business and it's not luck that made these people successful with their very first try.

On those businessmen that are not profiting within years and thinking of quiting, that's a good reasoning that there should be something they're must accept to keep going and that is to think that they're doing a hobby instead of a business.

Just set a period of time but 3 years is too much commitment and if that's the actual commitment a businessman can give to his failing business, he sees something that we can't see and that's totally fine.

I totally agree, in the end it is up to you to decide the best option to do. Plus, there is no need to keep an unprofitable  business for years. That’s waste of time without benefits. Furthermore, I see a lot of entrepreneurs who don’t give a value to digital marketing. It is really important and necessary nowadays, without it your business will never grow. Your main goal is to build attention, it helps to attract clients , partners sponsors and companies. Nobody will notice your business , if it does not show up in social media.

In fact, it is essential to make different strategies and plans. The more you have, the more solutions you will find. Also the added value is important. What makes your business better and more unique than the others? These are the keys to make your project successful.

If you see your finances are all used up and yet your business is not making any progress, i think there’s no reason for you to continue your business. Accept the fact that not everyone succeed in business, some might have been lucky enough while others become unfortunate and failed. But never blame yourself for that, maybe you just have entered a wrong business that does not fit your personality and skills. Maybe in the near future, you can think of another business that will have bigger chances to prosper and become profitable, that’s when you have enough funds again to serve as a capital.

There are times you need to let go on something unprofitable for you if it didn't give you a good result for years, maybe you are not doing good upon running the operation so maybe its good to stop it for a while and plan this for next time around like studying the market and how you can advertise your product very well then maybe from that when you launch your product again you gain good result. We have social media now which can maximize everything so feasible study is just really need to see our target markets.

3 years period is to much and imagine how many losses he get before he earn a success but still kudos to that person who didn't give up since it end up well to him even if he struggle for so many years.

It's quite easy and this is almost the same as the Chinese principle, if the business you manage doesn't produce anything then leave it and think about starting a new business that makes you more calm. But sometimes calm is needed to see the business going according to plan and not be too hasty to take action.

There is such a concept in business - "to sit a place". Although you can usually draw some conclusions in the first few months after starting a business about the success of the business, people will persist in an unsuccessful business for years, investing more and more money in nowhere. One reason for this behavior is that people don't want to admit that their original plan was unsuccessful.

Of course we see the prospects for the business, if the business doesn't show improvement of course closing is better than surviving but continuing to lose money, but if the trend shows good but because we are still not known then the best thing is to increase marketing costs, and I think big business will started with a loss.

I really agree with what Kelvin O'Neal said, it's true that we must dare to leave unprofitable business because it will only be a waste of time.
I once found someone who did business because that field was his hobby and because of excessive love so he continued to run his business even though he didn't get the profit there, everything he did was just a hobby and in my opinion that was a mistake.

in doing business, courage is very important, courage when opening or starting a business and courage to leave the business.

It's up to you, if you don't have the capital to maintain, you don't need to borrow more, and when you've tried your best, using all means still can't revive the business. It's time to give it up. It will be a tough decision to give up on your dreams, but sometimes life doesn't turn out the way you expected. We need to accept reality and start over with another chance.

I also had to close my small business because it wasn't making a profit, which was desperate, but it wasn't the end. Thanks to those failures, I now have a stable job with a higher income. When one door closes, another door opens.

I think 3 years is fairly enough time for one can understand whether the ship is sailing or ship is sinking. In the long run, we have to keep track of our savings, investments, and expenses that were done in the business. The sole purpose of business is to grow what you have invested, and with some luck have business branding in the long run and get entered into the riches club.

For one reason, he stated the truth. If you are just going on and on without profits then the business isn't going in the right direction. Moreover, you should also focus on the fact that you have to survive! You can't just end up spending more than what you can afford in life. Also, if the business is being failure again and again then that person definitely needs a proper manager.

I think it's too painful, doing business three years but not having a profit, I doubt that it is doing business. If the calculation is half a year or six months of not getting a profit from the business that is being carried out, I think many of us have experienced it because it is a marketing, adaptation, expedition and other step in doing business.
Doing business in the first three years and not profit, I personally have never felt it.


Yes, adjusting it to a hobby is indeed quite ideal, just like you like luxury cars so you understand and you are able to open a business related to luxury cars, or anything that suits your hobby. But if it is based too much on a hobby, then it is not a business but a hobby, which is profitable or not profitable, it will still be carried out even if it suffers a loss.
The most important thing in business is that in my opinion it doesn't have to be according to your hobby, but the most important thing is that you understand the business sector that you are running and secondly you have to be able to adapt to changing times so that your product or service sells well in the market.

An unprofitable business will fold up on its own after a couple of years due to lack of profits to keep it going. The only way that business survives is if you somehow keep putting money into it, that is money that you get from another source of income. If that is the situation, stop that's business when you are tired of funding the business from another source, when a business should be able to run itself financially. If you decide to keep the unprofitable business running, you will be dragged into more losses because of your refusal to let the business go.

Yeah, it's like a chain that you have to let go so that you'll be freed and set free.

And in that case that some really are setting up to years, they're people that have a huge patience to what they're doing. Instead of giving up and doing something else, maybe that's truly their passion are.

I've read success stories of people like Jack Ma, it's not even just 3 years of failure for him but I think that's 10 years. So, being persistent and believing to what you do is the key of determination but if you think you have to let go, let go.

I would say it depends on the personal budget you have invested in the business and the risk/profit ratio one is dealing with. I mostly agree that if one project is not profitable then it must be abandoned and tried something different, the time though seems rather longer from that I would go for.

I would only try for 1 or 2 years, since I doubt I could operate at lost for 3 entire years.

Also, these cases where companies keep going even if they lost money in a stubborn way does not only happen in small projects, but also in multi billionaire ones:
If you have time, you should check the case of Wework, and how they have managed to survive by burning investors money with no profit in sight.

https://www.youtube.com/watch?v=QHQTzeve7OM

It is almost a legal scam.  ::)

Some companies want expansion/growth first and would want to focus on that part despite making losses or being unprofitable, for this they should be having resources which help them sustain such periods. Look at Paytm, company that revolutionized payment system in India, it was started in 2010, made losses year after year but it's thriving.

His statement has a very broad meaning, because everything must be considered first, starting from the type of business, where to open a business, business capital and whether you have maximized in terms of promotion.
because all the factors that I wrote determine how strong the potential is to advance the business.

That statement is not wrong, but sometimes there are times when you keep trying and going through something continuously, in the future it will definitely produce results.
three years without any progress in business is not a short time, but if you have been determined from the start to want to progress through the business you are currently in, it is better to just live it, to the point where you are sure to continue or just stop.

Three years is enough for someone to use to study his or her business, if it's profitable or not before moving ahead or quit the business and try another one that will be profitable in future. That is why is good to carry out a personal research before starting a business in any location, because it will help you to understand Many things that will make you to further your business when profits is coming the way you want it which is part of some of the things every business men and women want to experience on the time. I will not remain in a business that is not profitable more than two years before I will change the business to try another for me not to waste energy, effort and money at the moment

Well, I think OP, waiting for 3 years before deciding to stop continuing our business is dumb. I believe a year of running our business we know already the status of our business and whether it was profitable or not, even just 6 months we can feel bad about it seeing how much is coming in versus how much is coming out. I shouldn't have to wait that long, so I disagree unless you really have a huge amount of money backing up so you still survive. And this is not really happening, businessmen can't sacrifice their pockets to save their business from closing down but rather move on and open another business.

Waiting for years just to know if your business is good will make you bankrupt. If you keep investing at the business even it doesn't give good feedback then you'll have to let it go. I agree the fact even in months you can determine the results of your business whether its good or not. Is unnecessary to wait 3 years unless this business is hard for you to shut it down. Some businesses is not for you especially in the environment of your business. Know what people would like to have, for you to open a business that people would buy. What's your target customer? Is it good to build this kind of business close to a park? You should know if its good first to establish a business to avoid losing a lot of money. But its part of your experience hope the OP would learn from this

3 years is a long period of time to analyze the business we live in. here it takes firmness from an owner to stop or believe in his business one day it will be successful, but of course it requires a very hard struggle for the next. henceforth there is nothing wrong because it is a choice, and of course every choice we already know the consequences. from that it is ourselves who should be committed regardless of other people to take a stand

Kelvin O'Neal's assertion that an unprofitable business should close after 36 months (3 years) is a wise approach. This period is sufficient time to evaluate business continuity and make necessary adjustments.

I think there may be exceptions where the business has a solid foundation and potential for future success, in which case it might be worth continuing. Nonetheless, entrepreneurs should regularly assess their business performance to avoid wasting resources on failed ventures. As a language model, I have no personal experience running a business.

Imagine paying bills or rent within 3 years if your business is not profitable. You'll go broke that time, and instead of transitioning to another business, you'll get into debt because of your current business that is not profitable. That is why, for example, if you don't make a profit for a year (consecutive months) despite making some improvements to increase profits, it isn't working, and it is time to start another business. 

Yeah, it's crazy. I believe keeping such a non-profit yielding business for that long is hoping against hope. It's the same thing a sore trader would do to a losing trade. Instead of closing it, they would rather allow the loss run deep in the hope that the trade would revert to profit. I don't think any seriously minded businessman would want to keep a business that's not making them any profit to run that long as three years. Except that person is a money-miss-road and that's certainly not business.

Some businesses can take long before they start bringing income. For instance agriculture business can take years before you'll get any revenue. And there can be other criteria to decide if it is developing right during early period. And yes, for such types of business you should have an initial capital not to become bancrupt earlier that business will go on.

But right you are, if there is no positive trends in income and business doesn't show that it can be interesting to clients then it is not a good idea to take loans not to lose such business: if something is already going down it will just burn your funds to ashes. I saw several businesses which faced with troubles with finding clients, they borrowed not to close immediately, and after all they were in debt and their businesses didn't survive anyway. Loan can be good when everything is growing to grow even faster and it is bad when everything is shrinking.

Every business has a principle before you could start making profits from the business, if you don't gradually follow up those rules you may not see any profits from it.
It takes 5 good years to start making good profits from any business, jumping from one business to another without you knowing the secret will results you losing money on the regular basis. Normally every secret of a business are being revealed at the 5th year so you have to endure after the 6th year you may decide to quit or close it down.

Those who are not patient enough may result in closing the business in just within a year or two, every business needs to be nurtured properly to grow in a better way. You can't expect to jump into business today and starts making profits without nurturing and it takes 5 years for the nurturing /growing period to elapse.

Once a business is not bringing profits, then there is a very big issue, because the number one purpose of going into business is to make profits so when that is not happening, then problem has started, and when you see the business is not bringing profits, and you have tried many other methods to see if things will change and still yet nothing has changed, and you have waited for some couples of years to see if with time things will get better but that is not happening, then the best thing to do is to close the business before you run into debt.

I would not be so quick to put a number or a limit on the amount of time you should wait until you close down a bad business. It is really a subjective matter. Why is the business failing and can it be fixed? Are you willing to invest more time to bring the business up again? How dedicated are you to this venture? There are a lot of questions you need to ask yourself before deciding to break away from something that took you years to build up.

I think that if you truly feel there is no longer a point, and that feeling is not just a split second emotional decision, then you should quit that business and cut your losses.

But putting a time limit on things will not give you clarity on whether or not the business has any chance left to make it.

Well I would tell your the harsh truth, and that’s one of the main reason people give up on their businesses and that’s expectations. Many small and medium scale businesses owners have the narrative that they should be earning big time form their businesses.

The competition in any business now is huge and this factor you must consider when trying to grade how successful your business has been. I think you should not close your business just yet and weigh in factors like are you getting less than you putting in, how competitive is your business, have you found a better alternative and so on.

I agree with his point of view, any business that one venture into and for the first year it wasn't profitable, you try other tactics in the same business for the second year and still no result, you push harder to the third year stand still my advice at the end of the third year is to move on to another kind of business.

The option of moving to another business also requires one to think about a different strategy for starting that other business. Indeed, this is a solution because previously you have tried to run a business which in the end did not make any progress, but by starting another business, of course everything has to be prepared from scratch and you also have to use new capital to start it.

And actually there are also other suggestions that can be taken for this where someone who has run a business before to move the business to another place so they can see how the sales response that occurs in that business. Because usually the environment in which we do business is also very influential on business progress, so this one suggestion can also be tried to see whether the results will be better or worse than the previous one.

I think it's about the finances of the business as well. If you have a million dollars, and you lose 100k a year, then 10th year makes sense, if you have 100k and losing 200k, then six months. Basically it's about how much money one has and that changes everything.

I personally believe that the best thing to do in this case would be making sure that you do not go beyond your budget and do not force yourself to be poor after you bankrupt. Leave it as you still have some money aside. I once owned one business, my only attempt at life, and I had a small budget and tried it and when I was done and failed, I still had 150 bucks left, I know it's tiny amount but it means I wasn't at negative and that's how everyone should stop, "not negative".

3 years is a long time of waiting and trying out to make yourself get convinced whether your business is profitable or not,In my case then i would definitely be stopping out my business in 1 year time if ever i do see that
it is pointless on trying out to sustain that business for too long on which you are just simply throwing or shelling out your money for nothing and this is something that we dont really like to happen.
Well, its up to someones or businessowners decisions on when they would be stopping.You are building a business to make revenue or profits and not to run in out for just trying out to make it as a hobby
or something that you are trying to figure out something or whats wrong.

When a business is not profitable, there are factors that need to be rechecked if they are working well and follow the timeline of the business you are doing, if for example you are into sales of wears and shoes and you decided to sell your product online on e-commerce, if after some months and you didn't have enough sales, you can increase the level of outreach to people by doing advertisement on the lowest level that it wouldn't affect your profits or offer digital marketing to companies that offer them, you can also increase your products to social platforms without spamming and also sharing to friends, if they don't work well, you can change the product but if that doesn't work, then call it a quit and take your losses.

agree with that statement, where 3 years is enough time to see the direction of our business, but for me personally for 3 years it is very long to go through it, whether I don't have a business soul or am not lucky, in 1 year I can try 1- 2 businesses and which one produces more, I will focus on the one that produces, but with business competition, sometimes the business that I have has to close early, I can't hold back rivals who have large capital

We will see what business situation we are developing first, if we are doing a business that is currently a hit then we can see its development in 1 year,
but if we pursue the food business, agriculture, I think it takes quite a long time to see our success, remember that a large business / business takes more than 3 years of effort, in my opinion, by looking at the people who are in business

It really make sense to stop, but it could be at the early years. Like at second year without getting enough profit is enough to convince you that the business is not working as it should be for whatever reasons, either its in high competition, bad location, products, management, crew or people, etc.

36 months would be long enough for you to determine whether a business is running well or not. You can easily determine if your business is profitable in just a span of a year because if not, you might probably be losing even your capital. It is normal to encounter problems in the beginning but if you notice that you are not recovering your losses and the cycle is continuously running, you better check your mistakes, the strategies that you have to polish, and your target market as well. If things still aren't working for you, you don't have to stop trying but rather switch to another location, product, or target market.

Depends on the business. Do like this business? Do you know it well? Why do you think it is not generating profits? Is it because you can’t find any customers? Is it because the customers don’t like your services/products? Is it because the margins are too slim? Depending on your answers to these questions I can easily tell if you should quit. My first question is the most important question though… If you don’t like this business you don’t even have to think about the rest of the questions… no like? Instant sell.

When it comes to businesses, there ain't no one-size-fits-all solution to determine when it's time to give up on an unprofitable venture. Kelvin O'Neal might say to shut it down after three years, but that's just a rough guideline. It's up to the boss to decide when enough is enough. But check it, every business needs to have a game plan and tactics in place to tackle any obstacles standing in their way. If after three years, there's still no progress, then it might be time to rethink the whole shebang or close up shop.

On the flip side, some companies take longer than three years to start making it rain. Why, you ask? Well, it's all about the competition, the ups and downs of the economy, and the damn red tape. They can all be major factors in determining if you're swimming in dough or drowning in debt. So, don't lose your hustle, stay strong, and get some wisdom from the bigwigs in the biz.

To sum it up, every business is unique, and three years ain't the magic number to throw in the towel. The boss needs to look at their goals, resources, and progress to decide whether to keep going or to pack it in. What do you think about this? Have you ever had a biz that took longer than three years to make bank?

It's not easy to maintain the current business, even though the environment and target consumers are adequate, even though business competition will corner us, even more, to keep dropping prices as much as possible. Online competition erodes offline-based businesses, and based on facts in the field, an online business also has tougher competition. Everyone must survive and when the OP starts to feel that the sector he is in is not producing results or in other words the profits generated are not in accordance with the target then there are 2 possibilities to survive and be able to bear all the losses in the long term or switch to a new business sector.

Businesses can take a long or short period begin profiting depending on the kind of business and your location of the buainess and also inclusive of your approach and strategy you applied.
Any business' that takes a period of 2 to 3 years to be profitable must be a big business investment. A business with a good location and well planned strategy involved should at least take 2years to be profitable and if after the second year you are not still profiting you can change strategy then if it does not still profits you, you can go ahead and shut it down. Because if you continue the business hoping it will be profitable in the 4th or 5th year you may end up loosing your capital. Remember, during this period of building the business, you as a person will be spending from whatever money you have left with you.
So to be on a safer side, after the 3rd year of starting the business and its not yet profitable, don't wait any longer to avoid much looses.

This is tough question to answer because it's completely subjective on one's business and drive. How badly do you want success, are you willing to do whatever it takes? If this business isn't a passion and you aren't completely obsessed with it and convinced that you can't make money on it, even after the 3rd year of trying with all of your might then I would say throw in the towel cut your losses and move on to find the next business that will be successful. Sometimes calling it quits too early though also takes away the chance for success if done so too early. Just a super tough call. Can you elaborate more on the business?

A business that is run for a year or two, after all, the marketing and promotion, there is no progress in it, needs to shut down. There is something that is missing or the owner of the business is not doing correctly. perhaps from the location where the business is

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Any business's ability to succeed depends on the market and location it is most suited for. Hence, while picking or operating a business, you should first take into account the location and understand the type of enterprise that will be successful there (Whether it will work or not). After considering the location, launch the firm and see whether you will turn a profit within a few months of doing so.

In business, of course we have to have accurate calculations, when all the maximum effort has been made and the business is still losing money, it's time for us to make changes, for example changing the market or business location, or replacing it with another product or service, and I think a year's loss is a measure for business instead of continuing to lose money.

Damn 3 years? This is coming from a layman though but a year of business where it didn't provide any profits whatsoever would be enough reason for me to close it down. I mean if it was making barely enough to continue then maybe up to 1 1/2, but anything past that just doesn't seem worth it, especially in the current economy where prices just keep on increasing, imagine in cases where profits wouldn't be enough to keep the business afloat, they'd be lucky to last a year.

I wouldn't say I've had a business so can't answer Jack for the 2nd question though. Will keep this in mind if I ever do start though.

Location does play a vital role in the success or failure of a business no matter how big or small. Product(s) can always be changed or modified based on the public interest but only if you determine that your business is set up at a location that usually gets you customers but they are not totally satisfied may be due to the product or the service itself.

That is when you need to have some upgrades or changes around your product and overall service. But if you find the location very dull, with no customers showing up, it is probably best to first shift your business from that place to another, better location and then evaluate other aspects.

If you cant pay the rent and employees salary then that is the time you should close down the business. Sometimes thinking that if we keep continuing the business even if you are losing thinking that it be recognised and youll earn eventually but you'll just making things worse. It is really best if you have financial advisor on that so that you can calculate when is the best time to close it down and still able to repay those employees, rent and etc

I guess if your mindset is like that, you are not molding yourself to become a good businessman but certainly a loser in the end. That is why if you are seeing your business not productive anymore, even if you apply all your skills and strategies to make a business prosper, then it’s better to accept the reality that you’ll never be profitable anymore and closing your business would be the best option. Otherwise, the longer you decide to keep the operation, the bigger the losses you will incur, and definitely if you’re a good businessman, you’re not going to like it.

I saw multiple businesses which didn't do so, they reduced staff, moved to a cheaper location, took loans, but no one of them didn't rectify the situation. Now all of them are closed. If business started going down it is better not to wait untill everything will become worse. Financial advisor can be a good idea, maybe there could be started a new business with his help or at least there will be less losses.

The main mistake here is to succumb to pity for something in which a lot of your own efforts have been invested and try to prolong business which is should be closed.

If the business has been unprofitable for several years, then in order for something to change for the better, you need to introduce significant changes in the business. But I do not know among my friends and acquaintances who would have survived more than one year with a loss-making business.

The problem is that starting a business requires significant funds, and in order to recoup the invested funds, the business must be profitable, otherwise if it is unprofitable, then the invested amount will only increase. But we start a business so that they bring us profit, and not so that over the years it takes money from us. Therefore, I believe that the longer we delay with this, the worse it will be for us in the end, three years is too much.

Kelvin O'Neal is straight up savage, right? I get that he's all about cutting through the BS, but I ain't vibin' with his idea that if a biz ain't making bank in three years, it should be dunzo.

Let's keep it 100: launching a biz is mad risky, ain't no guarantees that it'll pop off. But don't bounce just cause things don't jump off straight outta the gate. Maybe it's time to flip the script and be optimistic and doubtful. Who knows what's gonna go down in the future, right?

Don't forget the key to all of this, humor, homie. Starting a business can be hella stressful and crazy challenging, but it's also a wild ride, filled with more plot twists than an M. Night Shyamalan movie. So, why not just kick back and laugh at yourself and your slip-ups along the way? I mean, what else are you gonna do? Cry like a baby? Nah, that's weak sauce, bro.

Honestly it is a better idea but I would say that quitting totally will not help rather it is better to change the business terrain for you to get what you want most times the reason why our business isn't moving like we expected is because of the location we are if we are in a local territory where people demandsare very lower than your expectations then you'll see that the level of sale will be lower and it is as if you are not getting what you should have gotten as your income

Initiation of some project seems to be little more difficult but as the time passes a person learn more things about it so time is necessary for getting profit. It never happens that you will get huge revenue from the starting point but you will work hard and eventually a time comes when you get good sum of money.

I think that if a person is interested in something then he will definitely get success one day but the main thing is about interest, knowledge and abilities to manage the risk. If instead of these things you don't get any profit in 2 or 3 years then leave that business because that is not for you.

OP I did had such experience years back. Then I was in the university as that was part of my side hustle you know. I do import some goods then from one of the Asian county, I did my very best with much efforts to make sure that I was successful in the business which happened so. I sold alot of goods then but a lots happened though. I had to employ a staff as it was the only thing I could do as to help me out but the unfortunate happened. While I was doing my University final year I became so my occupied that I do not pay attention to my business anymore leaving it to the care of my employee. I became
furious as to what was happening that I do not see any return after much efforts. So I did not hesitate to shot down.

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pjc50
The point is that you're wrong.

It's not a business. It's an investment in time and money.

~~~
dangrossman
That's true, but it's not the end of the world.

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mikestewerks
I'm in the middle of a project that has no money at all. My goal is to build a
startup that's 100% self-sustaining in terms of revenue.

I've been doing this for a while and it's a lot of work, but I'm trying to figure
out how to monetize it.

What I want to do is get for a service that they can use to
recover a portion of their income. This is something that I've been working on
myself, but I haven't had time to go through it yet.

The problem is that there's so much competition out there for people to sign up
for something that they want to be able to use for free.

I don't want to be a burden to the company, but I want to be part of the
marketing

In an average years a start up business could be profitable in 2 to 3 years time. That is right if your business is not earning within 36 months you probably shut it down or if you still want to revive it you have to change your marketing plan and assess what is wrong with you current strategy why you are not able to generate profit. That it is possible that your business is not profitable in the first 3 years then it would boom on the 4th year. That is why businessmen has a high risk tolerance in creating his own business. To be able to have a profitable business you should have a lot of patience, capital, a good marketing strategy, and also you do know your specific goal, know your customer as well.

reread the issue again. Many questions and thoughts:
1. He agrees with the 36-month term. If you do not have the means to maintain and support the business for more than 12 months - then this term is 12 months. Perhaps he means that if you have not made a profit in 36 months and have not taken your place - just bury the business, it will never be of any use.
2. Why are the options not considered - freezing/conservation ?
3. Why is not considered the option c attracting investors and SPECIALISTS who will help find the "thin places" and help to restructure the business, to improve its efficiency.
4. Why is not considered the option of selling the business ?

If a person is not able to make profit but instead he is giving income to the workers as well as rent to the owner then it is necessary to stop that business because it will tend you to take loan as workers will not understand your necessitates.

One should continue that business in which he have some profit because settlement of business is only good for the purpose of earning money. One more thing is that if businessman speaks politely with each and everyone then his business will be more successful as behavior play a very crucial role in one's success.

Always remember that if in one area there is already same business then you should avoid your business in that area because it will reduces the percentage of your success.

in my opinion, the OP should consider selling the business if he is not seeing any light down the road. it is better to get something rather than totally losing the business without getting anything from it.
some questions are left unanswered as we don't know more details about the real financial situation of the OP. also, he knows for sure the chance of his business in his area, if the business can be revive or not.

There are really things in life which arent really for us on which it would really be just that right that we should really close it down rather than on continuing even if we do see that it isnt feasible anymore.
Instead on making profits or making income, you do rather lose instead. There's a specific time that you should set for you to consider on closing it down and on the time that you dont see any progress then it would be the best time on doing so. You would really be just basically be wasting up your time and your resources if you do keep on pursuing on standing but its not actually a bad behavior or quality of a person on not to give up but just like i said that there are things in life on which you cant really be able to solve out no matter how hard you do try. You should really set out border line because if you dont
then you would definitely being wrecked up that much in the end of the line or making things more worst. THere's no point on pursuing on something which it isnt really meant for you.
Its impossible that you wouldn't really be having those kind of thoughts on the time that you do experience hardships and failures.

3 years is a long time. If your business is not working and you have tried everything, then it is wise to stop that and move on to something new. If you were unable to fix the problem in 3 years time, what can you do in the upcoming years? Sometimes it is better to let go of something rather than hold on to it. If the business is not making profits, then what's the point? Your assets are stuck there and doing nothing. You could also make losses instead of just keeping the same amount. The sudden kick-off could happen but is it really going to happen to everything? It totally depends on your choice of business.

Some products follow trends and take time to get into the light. But it does not happen all the time. So to think that one day it might start booming is a foolish decision. Go try out something new that will ensure somewhat profit rather than this one without any profit. Something is always better than nothing.

So I totally agree with the statement. But I am not sure about the time of 3 years. It depends on your observation and skills to understand what business you are doing and how is it going to play out. But if you think that the time has been so long and it's not doing that great, then it is better to just leave that and try something new.

The way I see it is this, it depends on the kind of profit you get. While it may be physical cash returns for some, for others, it might just be for fulfilment of a purpose.

Let's forget what O'Neil said, and be more pragmatic. A business with an original idea may take longer than 7years most times to gain the kind of profit that is required, at most, longer periods have been recorded.

Most times it has to do with the persistent effort of the person doing the business. If your idea of how the profit should flow is not depicted in a business you start after 3years, it depends on you though to pull the plug on it, but good advice from those who witnessed the business from the beginning is like a second eye. It is valuable as it can help create a better perspective and initiative on how to improvise for optimum benefits.

One advice I got from a book I read, I can't remember the name now, but it says, to fix what is not broken is how to best manage an idea/business/startup.

I guess even 3 years is already long enough. Once I’ve never seen the positive impact of my business and it never shown any sign of progress in just a year or two, then leaving it could be the best thing to do than to prolong my business while there is no sufficient amount of income that is getting in. Otherwise, I might be triggered to take loans and might end up regretting.

I'll be honest - maintaining a loss-making business for 3 years is not a smart move. Perhaps there are businesses that were born before the public came to understand this business, and it takes 3 years to build a loyal audience. But this is the exception rather than the rule. If you take the example of an ordinary grocery store, which for 3 years does not bring profit but only losses - then there are good reasons - audience, location, assortment, .....  Sell to someone who knows how to fix and improve it.  Any other steps will only increase costs, and irreversible

Bro even in just few months you could already see the progress of your business, you could see them by your number of customer everyday, reviews and orders from your business. If you think there's already lacking in your business in just few months then for sure you would so something to improve your business. But after years there's no changes, then the business is not for you literally. you could still explore other options that could suit you. Cuz you've already tried to revive it despite of many months of running. If you're still planning to run a business, just make a well made business plan before establishing one so you it wouldn't be a hassle once you've finish building your business.

I don't think it's a wise decision for you to stay in a losing business for a long time. It takes 3 years to build a loyal audience, which can happen for some experienced people. For a regular grocery store, if within three years there is no profit but only loss, there can be many objective reasons such as customer target, location, product type, etc. In this case, it may be necessary to consider selling the store to someone with the knowledge and skills to repair and improve the store, as continuing to open the store may only increase costs without guaranteeing the repair extension guarantee.

Two good years is even too long in my opinion. How will one survive during that two years without any improvement? I consider one year at highest because that's quite enough time to see the development of the business and detect either it will prosper or collapse. A progressing business should be known between one to six months and for the benefit of doubt I increase it to one year which is enough time to assess the situation and map out another plan. Although business nature and environment determine how successful a business can be but nevertheless, unprofitable business should be abandon without a second thought no matter how short or long the period might be.

Setting up a business required certain plans which influence it prosperity or otherwise. If you stick to the plan and it seems not to work, kindly desist.

Of course, maintaining a business for a long time without achieving profitability is difficult and may lead to the decision to close.

In today's uncertain economic environment, soaring prices and numerous challenges, ensuring a profitable business is an important factor. If a business cannot make enough profits to survive, the decision to close is justified.

It's important to think carefully about continuing to run your business or finding new ways to increase profitability. Sometimes developing another business plan or seeking professional help is the way to change things.

Very interesting discussion, but I would also pose a slightly different question: should I start my own business?

Data from the BLS (Bureau of Labor Statistics (https://www.investopedia.com/terms/b/bls.asp)) shows that, approximately:

• 20% of new businesses fail during the first two years of being open.
• 45% during the first five years.
• 65% during the first 10 years.

Only 25% of new businesses make it to 15 years or more. Of course, longevity is not the only factor that denotes success: if your business can make you rich in the first two years, you might want to close it, although in these cases it is more usual to sell it to a new owner so they wouldn't be considered as failed.

Reasons:
https://www.investopedia.com/thmb/DcyP_dtTsYmTbMT3QFp5DY7B3so=/750x0/filters:no_upscale():max_bytes(150000):strip_icc()/top-6-reasons-new-businesses-fail.aspx_final-a6c9c5400448431c80dd8df79e4a7b16.png

So, if you detect that your business has serious problems with any of the factors above, you should think about solving it asap, if it has an easy solution, or don't wait before closing it down so you can better focus in new opportunities for the future.

Source: Investopedia (https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx#:~:text=Data%20from%20the%20BLS%20shows,to%2015%20years%20or%20more.)

Other sources (https://www.infobae.com/opinion/2022/06/08/el-90-de-las-empresas-cierran-en-los-primeros-3-anos-de-su-creacion/#:~:text=El%2090%25%20de%20las%20empresas,años%20de%20su%20creación%20%2D%20Infobae) are much more pessimistic, and I don't know whether that pessimism is based on the country or other data, but they declare that 90% of businesses close in the first 3 years.

If it's not making any profit, then what is the point of keeping the business? If the profit you're making from it only caters all the business expenses, then it's just being break even so it means that there is a problem with the business. The main goal of every businesses is to gain profit. So if you're not gaining, you're not achieving the goal. But it doesn't mean you can just close down the business. You can have another option, which is to redevelop your business, either in terms of your product/service or how you market your brand. But if that's still your problem even after years of operating a business, then it's better to close it. Try another business idea if you still want to have a business.

I think assuming like that is a failure that can be seen, as usual, surely building a business in a few years will experience losses due to several factors, one of which you mentioned, if because the problem is the company's increased spending costs but minimal sales, there needs to be evaluation and looking for the main problem is why a company or business always suffers losses, this must be thoroughly studied before actually closing the business, because in business it is not only about sales, profits and losses, of course the management of the business must also pay attention to both management production or something else, what is certain in my opinion is that the problem is about financial deficits because production costs need to be innovated and reduce quality so that prices are not too expensive, as well as other problems.

That is why every businessman must have sufficient experience to be able to take his business forward, because not everyone can face difficult conditions and survive in situations that are not easy now. So besides having to have capital, you also have to have experience in managing that capital so that you can get more through this business.

I would agree more if the pattern and direction were changed so that it would be more advanced, not even closed immediately. Because when a business is not progressing as desired, of course there is a cause that makes certain businesses not go according to plan. Well, in this case of course the business owner must know about it so he can change everything that is a barrier to the progress of the business.

I agree more on the point of looking for new ways to make a business grow, because closing an existing business is not a very wise solution because building a business from the ground up also requires struggles that are not easy so when a business is already running, it must be able to really grow. properly maintained so that the business can survive in the long term.

Many people experience difficulties when they are just starting a business, according to experts if the business can last at least 3 years then the opportunity for profit is very large, because 3 years is enough time to know the market situation, competitors, and what consumers prefer when want to use the products or services we sell.

I think it highly depend on the industry of the business, I only have experienced two business failure. I will only tell the first one which is a culinary business, everything went bad in the first year, and the business didn't make any profit after the 9th month, and it ran out of money after 1 year (or 14 month, I forget the details) so I decided to take a loan, this culinary business is not getting better and I officially give up after 2 years and 3 months. I think the loan is a mistake and I should be just give up after 1 year and the business ran out of money. And after I was asking around to some of my colleague who has a lot more experiences in culinary business, they said that most culinary business will either last long and succeeded, or died about the first year.

Currently, the world of business competition has its own technique to survive. Not a few efforts that are only 1 or 2 years old go to waste. For example, I myself have failed many times to start a clothing, screen printing, food and beverage business. If calculated only 40% of the return on capital budget does not even cover administrative and transformation costs. In cases like this the lesson I get is that management is lacking, promotion and marketing don't just go offline by posting pamphlets. Offline businesses must be able to enter the online world by using TikTok social media channels, Facebook Ads, and various types of online shops. That way there will be a significant increase in the target market that can be achieved in a balanced way.

It's not really advisable to take a loan to help a business that's trying to survive. It's only good to take a loan when you're into expansion and your business is already profitable. But I do understand why many owners are doing that, it's because they're believing in what they do and the business that they're establishing.

But then, if it's already too long like a year or two and then the business is still not making a profit and you're already in debt. That's the time to acknowledge everything that it's not going to work if you have done already a lot of things like trying to change the process, upscaling, changing location and other things.

Yeah, 3 years does sound fine to me as long as there is still "market" for your business. There might be months where your business might not do well like before. You won't be making any considerable profit due to economic situation. If you believe that the conditions are going to improve and change later, then yes, keep trying before letting it go. During those time, you can look for space where you can develop your lacking in the business. But if you think it is because the "market" is mainly dead or you have competitors that you can no longer compete with, then yes, you should stop and start focusing on something else. It would be just a waste of time and like you said, it would just become a "hobby".

A business need to be check before launching it, the factors and the enviroment if it is going to succeed in that enviroment or not, how will a business be alive for 3 years without a profit, its like one is running a business and with loss and still paying for the loss because you will have to pay for the rent, the electricity bill, and taxes, whether you are making profit or not, it is a must and it must have to be paid.
What I think any business person should when a business is not profitable after a proper business plan should make some changes after six month and if there is no any changes after another six month, then I think the owner need to dismantle the business and face the next way out, at most 2 years is enough to finalize the decision of the business profitability.

Success stories with delayed profitability exist, but they are not the norm. While some businesses may indeed struggle in their initial years before eventually becoming successful, there is no guarantee that a profitable outcome will be achieved in the fourth year or beyond. The timeline for determining when to give up an unprofitable business depends on factors such as industry, market conditions, type of business, and efforts made to turn it around. For me, I won’t spend over three years in a non profitable business.

Yep, lesson learned, I shouldn't have taken that loan, after I know that the business is not profitable again. But I think the main reason why I took that loan is because I still want to keep up the hope, since I already invest my money my time and my effort into the business. I don't think I could accept that all those time, money and effort will be wasted if I close the business at that time. It turn out, those loan make me waste more money, more time and more effort.

So, I want to ask this before continuing, have you reviewed where the mistakes and shortcomings are for each closing book at the end of the year? If there is, I think it's easy to read and immediately revise where the error lies and minimize it. If it's taken for granted, the weak point will grow and eventually jam the business you've been running. Income does not match expenses where the fixed costs you have to pay each month.

I think that was long. Maybe if the business is slow and then other things are not that great but that's better, at least the efforts are not wasted and maybe after these periods, earning will now be easy because the business is already well known to the public and they already have improved. If we want to revive a dead business, we need to change our approach as a whole and not just in the marketing side.

Even if you become successful about it but your product is still lousy, do you think the hype will stay? No, it won't. The last thing that you said which is know your customer, reminds me of KYC online lol but yes it's important and the KYC offline is different. It is knowing what their need is and then you need to be friendly about them so that they will keep on coming back.

If we're noticing that we're not earning for months then we should enhance our business plan and create a more effective business strategy. We must figure out our business's mistakes and weaknesses and try to find ways to do better.
In case we've done these things and we're still not making any profit, then we better decide weather to stop or to continue. 3 years as for me would be too long and it will be a big waste of time and finances. It might lead to total bankruptcy once we wait that long.

Your business plan must be pretty weak and you don't know how to bring changes in your business as per the market demand and conditions or customer demand, otherwise, businesses do take a few years to set up and start running properly, and you don't start getting fruits the next day after planting a tree, it takes time, so one needs to be patient and hard-working and should have enough confidence about what they are doing in order to succeed.

So giving only 2 years to a business and then closing it down because it's not running is not the way. Even if you have to spend money from your pocket or take business loans, that shouldn't be an issue as long as you know that your business can become profitable in the future if you work on it.

I have been in business now for 5 years and not making profit from it yet, it depends on the business and if you think you are heading in the right direction. Business is a tough environment especially if it is a one man show but you need perseverance. I will advise you to wait for minimum of 3 years if you still have cash to spend on the business before quitting, I am not making profit from my business yet but the property has increased which is something that is keeping me going because if I decided to cash out, I will leave with good return on my asset.

Yes, it's understandable as a business owner when you are believing to your business and of course to yourself. Then, you'll do everything even up to taking loans just to push it through because you see that there's still a chance.

But there is going to be a point of time that you will realize that every effort and money you've exerted on it will come to an end. The lessons are there and you'll still be able to use that in your next business venture.

However, the pain that you'll feel by letting it go is going to remain in your heart.

Maybe a year or two. After that, when there are no substantial profits that are entering, then maybe I will consider for a change of business idea that I think will fit more on my current location. Although some have still manage to recover after years of not profiting, but know that not all businesses have the same fate. Some are just there to teach you some lessons so that you will discover in yourself on what type of business you will most likely to succeed to.

There are a lot of questions that need to be asked before the decision that it was a "bad idea" should be concluded. I think some are:
- Did you have the resources needed to grow from the beginning?
- Was the work put into the business always efficient and done to your idea of optimal?
- Did you or those who were in the business truly care about it, or just about the money?

These are just three questions that can help determine whether closing down and doing something else is the right way.

If resources weren't a problem, efficiency of work was near optimal, and care was put into the creation and operation of the business, maybe it wasn't a great idea after all....or maybe some adjustments are needed.

I would say that most of the time, things can be adjusted to work rather than calling deeming failure straight away.

I definitely agree. Before we decide to close our own business just because it doesn't generate incomes for a couple of months now, let's make sure first that we have done everything we could like enhancing what is needed for our business and giving it a new look while only costing us a low price, and setting up a new attraction for the people. Now if all of these doesn't work, it's either the business is not for you or you got the wrong venue, and by that time, it's time for you to close the place and proceed to the next chapter.

It's a strong assertion and always a strong one to leave that which you already know or have ideas about to seek the unknown because, you ain't getting profits on the first.

The thing is, you don't get to place some years on it. Like traders, trading loses, its often about when you just can't bear the lose your enquiring and that be the sign to leave.
I'm take the same step towards business and investments. You never can tell what decision you would be taking to bring you good luck or hard luck.

Which ever it is, its much more better than being in a bad business where you've got no foresight to forecast what is up ahead and the means to archiving it.

I personally might not be able to survive in a business that doesn't even bring me much profit within 3 years. Because we do business is to make more profit.

But it will be different if the situation is that we see the potential for our business to slowly develop because we see market trends that seem to be in favor of the field of business that we are currently doing.

I will decide to keep my business if there are 4 things:
✓ I can still get profits even though the amount is minimal
✓ Seeing potential market trends that will help our business going forward
✓ I am in comfortable living conditions and am in no hurry to catch up with success as soon as possible
✓ Still see the potential for our business to grow more rapidly if it continues.

And I will switch to another business if the 4 things above don't exist.

Note: Looking at potential I mean conclusions that have been made based on in-depth analysis and hands-on research on the market and also based on more considerations for the future.

It seems to me that pulling a business for 5 years, which for all 5 years does not bring profit, is ...well entertainment rather or a costly hobby ....
You spend money on its maintenance, time, effort, and return 5 years no ! I think you have to objectively assess the situation and make a strong-willed decision:
- or tell everyone that it's a hobby, an activity for the soul, not a profitable venture.
- or admit that the BUSINESS did not work out ... And then make a decision - to close, freeze, sell, give as a gift ... Because you can definitely have a more profitable idea, which can really be a business, a business that brings you profit and satisfaction.

Five years is a period that is too long as most people would go homeless with just a few months without any kind of income, in my opinion someone opening a business should prepare themselves to go one year without profits, but if after that year it does not seem as if the business is going to breakeven anytime soon then it is time to simply accept the reality and move on, as if there is one thing we do not get more on this life is time.

Same with my timeline. If I don’t see any progress and improvement after a year or two, then I’ll be force to stop my current business and just study the market more while i’m still earning for my funds so I can start a new business. While business location is also very important, but I also think that a manager’s business strategy or skills are also very important so might as well change my strategy so I’ll be successful in my next business.

For me then i would really be in 6 months time and a maximum of 1 year on which if i dont see any progress or increase of revenue or you are still on losses then it would really be just that wise that you should stop and cut everything.Dont pursue on things which arent that effective or profitable anymore because instead of earning you would rather be having losses. Its hard to accept the truth or reality but there are really things in life
which we do really need to accept and move on. There are really things which arent really meant for us on which it is really just that wise that we should really be moving forward rather than on completely stopped.

It might really that hard to move on but there's nothing we can do.Its up to us whether we do have some take a break or would really be pursuing other business on which we could really put our focus on. This is really just that reality of this life on which problems are inevitable specially on investment or business because not everyone would really be that successful when it comes to his manner. This is why its never ending chase
on different methods and ways for us to have that successful path but since everything is unpredictable or the future isnt something that could be known then result or situations is something totally random.

This is true. If you know that you're already losing more than what you first invested then it's a big sign to stop. Knowing where things go wrong and if you'll be able to counter it may lead to at least you salvaging some of the money you invested. We should know when to stop and when to continue taking risks in situation such as this as it cost a lot for us.

We have to be observant in reading the market situation, when the business we are running is not in accordance with market demand, of course we have to get out of it so as not to lose a lot of things, especially time or to be able to look for other business opportunities.
How long or not we last depends on the market opportunity that is visible, if indeed the market opportunity is not there then leave but if the market opportunity is still there then develop the business to be better so that it can attract many people, it all depends on the type of business we are running.

Having confidence in your business model also plays a great role in that, someone who knows they have started a business that can run if they keep working on it and keep making changes as per the market conditions and demands, should give it time and it will surely succeed one day. If you have started a business without proper planning and everything and you see it going down constantly, maybe you should go ahead and stop taking more losses.

One should also see how much money they can afford to spend on their business if it doesn't turn profitable within a few years if they know they have enough money to keep it running and they know it will generate the money back for them, they should do it, but if it's the other way around, they should just quit.

It’s a really tough call to make, a painful one too if it’s your own business. It's crucial to evaluate the financial health, market conditions, and potential for improvement. If the business consistently fails to generate profit despite efforts to turn it around, a realistic timeframe could be maybe 1-2 years. However, seeking professional advice and considering the long-term viability of the business is essential before making a final decision.

Before thinking of a closing down an unprofitable business, you have to check alot about the business. These include:

👉👉How are you running the business?
👉👉Are you running the business in the right way?
👉👉Are you running the business in the right location?

After all this try to analyse the cause of your losses. You can sometimes work on this to make a unprofitable business to became profitable.

3 years?, is an ample amount of time for an unprofitable business. Being very optimistic, I would bet on two years of extension at most, if you can dedicate more time and money to a "business" after that, in effect, it is nothing more than just a hobby, because it is not productive and every time it only depletes more resources that probably will not have an effective return and also cannot be used later in more fruitful projects, extending the time of something due to lack of resignation is a fact that is highly detrimental in the long term, it is better to know when to say "no longer" to something that no longer has a case... Of course, there are a wide variety of variables to consider, but whenever the results of a venture are negative, in my opinion after one year and a maximum of two, it is the best option to opt for possible new scenarios.

Atleast 3 years time, if one I able to continue it for another two more years it'll be better. Any business needs atleast three years time to make it profitable. When one finds it loss, he should have the alternate plan to move on to something else keeping the first business active. Because to make it established is not an easy thing. Everything doesn't start with profit, we need to add value to the product in an unique way. Maybe while giving regular try something will be catchy and reach the people in a better way and create good business.

If you are doing business and you see that it is not moving forward, you should think and observe what is going on with it, that you are not making profit, but there is no business that brings profit easily, before you start a business, you should know about what you are trying to establish in business, you should think about what customers prefer to buy that increase the customer happiness and service.so that you can sell to them and advertise it, because it is sometimes difficult to get profit when starting new business. Is not advisable you should stay for 3years if business is not going smoothly, is better you should change it and go for new one.

This is an interesting topic in

it really is I have a youtube channel and a website that have been live for more than 3 years and don't give me the profit yet, at least for now but there is people viewing the channel or visit the website while I still pay for the game and internet for the youtube channel and pay the domain for the website.

I dont want give up when see the analytic and remember how much i spend for this but in the other hand I want to give up because it took multi-year and still not any single cent transferred to my bank account.


If you guys know about startup like Grab Uber or doordash the company still make unprofitable business and still operating

https://www.talkimg.com/images/2023/07/31/Q8EaH.png - https://finance.yahoo.com/ (Grab Annual Revenue)

The hardest thing for entrepreneurs is to be able to survive and not loss in the first 3 years, according to the results of a study from experts, it takes at least 3 years for entrepreneurs to know whether the business will be profit or closed, unfortunately when 2 or 3 months loss then many are impatient so as to close Business and thinking looking for other business opportunities.

the duration of two years are very long and some people stop that business in which they did not get anything in a single year. Business foundation also depends on the location and advantages will be increase if you settled a business with huge knowledge about it.

I will suggest that never settle the foundation of business directly and prior to it you should get experience by setting with another businessman to know how to get profit. experience will make you more profitable and even after experience you don't get profit then that business is not for you and you should now change that business with something else that gives you huge returns.

Its understandable especially if the entrepreneur doesn't have much money to spend and they can't afford to lose more bigger before they can see the result of the efforts they made thru the business they create. Nothing wrong about closing if you cannot able to make it since there are still many chances and learnings that we can apply once we are trying to bounce back again. What's more important their is you learn from previous mistakes and you can do different approach to try if other things might work for second or third try building up a new business.

I tried to build some business and it do make money for me but it is still unprofitable. I was close down the business after 3 months, I realize my shortcomings was the location, the location is little bit too far from my target customers also it is in a big road which very crowded and very difficult to reach. Now I realize that it's not only about the traffic but it's more about the easy access. I will try to be better if I have another chance. I think you should close it now and try other business.

If you will allow a business to be ran in three years with out profit that depends on the nature of business especially if it is not the business you expect to feed from directly for survival. If it is a family business that is based on consumption then you need to hit the ground running. A business where you expect not to make profit in three years, you also must have prepared salaries for those taste starting it, maybe that is the area that op was making reference with the excerpts he made. IMO, three years duration of waiting for business to start bringing out profit is quite a long time.

Good realization on that one. If a business is only getting worse at time passes by and you know for yourself that there is something that needs to be done to improve it, you have an option to either solve that problem and see where it takes you or close the business and start over. It is different for each of us and the businesses we handle.

That's weird. You should be able to earn from your Youtube channel already as a content creator unless you're not actively uploading or not getting enough viewership from it. If you're having fair amount of subs, likes and views, you should definitely apply for Youtube Partner to be able to monetize your videos and you know the rest already.

For sites, not sure if you built the site from scratch but you can start freelancing business either as a backend, frontend, or full stack dev. Not sure what country you reside from, but clients usually pay a lot in freelancing. There are freaking lowballers, but a good and well-paying client should be there.

Sometimes in such situations people are stubborn and do not do what is necessary. If the business is making a loss, steps should be taken to close it down. Otherwise, you may exhaust all available resources. You may also be wasting the capital needed to start another business in a failed business.

Sometimes we do not know whether a business will be profitable or not until we open it. Therefore, we should not be stubborn in our decisions. If the business is not profitable and we know what went wrong, we should take action. I think what you are doing here is right. You saw what the problem was and closed the business without making a loss. Otherwise you will continue to lose.

location is indeed something that must be considered in doing business or opening an offline business, but if you also open an online shop I think it can cover existing losses, especially now that offline market enthusiasts have decreased, people prefer to shop online, so this might be your consideration when starting Do business again,  with online shop options provided on the trade platforms offered in your country

If there are no potential profits coming in within a year, then for me it’s best to think another business that will most likely to click in that certain area or location. You can actually chose not to close your business but maybe use the same location to create another business that will most likely gain more demand from the people around.

Business uses a trial an error method too. If the first idea does not work out, then do not waste your time on it. Proceed to your next plan and try out a new business idea then maybe that will work this time. Just be patient if everything does not work based on your plans, learn from it and grow.

You are the ones who would be able to find out on what timeframe or extent you would be able to tolerate out such losses because there are ones who do really just waiting for a month or a year basing up on how much you could be able to afford to lose or patching up those negatives on a unprofitable business until you would really be making out  such conclusions whether you would be proceeding or would really be stopping.Its true that there's no point on continuing on a business isnt generating income because the primary reason on why we do make out a business or investment is that we are really that looking for another source of income and if there's nothing that it could give out and worst it do really give negative. Then why would proceed or continue? There's no point on doing that.
In my case if i do see that i do have negative income or profit on a particular month then i would be making out some observations for about 2-3 months before making such conclusion and decision
whether i would continue or not.

Yes to be partnered with youtube is really hard you need at least 4 thousand watch hour and Im still at a thousand currently and need 1000 subscriber and i have 1,4K subs now but to get 4000 watch hours is tricky part since I only have short video but when I uploaded long video no want watch it  ;D
Why I dont give up because monthly view is already reached 1-2K so I dont want to give up now hahahha

For the site Im making Blog and basically dont have really specific niche so I throw it what happened in my mind

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and for the OP i just quick search that Grab Holding that listed on Nasdaq according to https://finance.yahoo.com/quote/GRAB/ still not unprofitable for couple of year it more that 4 year

https://i.ibb.co/LhTpPzY/1.png (https://ibb.co/FqQ7Wbm)

The statement can be true but it can also be wrong, what must be done to be able to prove the statement is true or false is an evaluation, in evaluation we can know that the business being run is not profitable and must be closed down, but you see many big companies that take a long time to be successful ultimately the company is profitable.
I once left a business that had been running for only 2 years not because it was not profitable but because I was not comfortable with this type of business because it really took up a lot of time so I no longer had the opportunity to do anything else. If your business is not going well but you are still very happy to do it why should you leave it because at least you get happiness in doing it even though the profits are not big

Well, 2 to 3 months are a short period to give up. It's a crucial stage to do your best through promoting and think of what your customers might like in order to be attractive and be competitive (if there's other same business near you).

It takes guts if you don't want your effort go wasted just because you're impatient and don't want to continue trying. On the other side, as an entrepreneur, you'll know if the business is gaining or it's already time to closed it down. That is, if you already did what you can do to make it profitable. Maybe that's not the right location or suited business for you so just keep trying.

In order to do business successfully, there are certain things to keep in mind.  If one can do business with honesty and integrity then he will surely succeed.  Although there are both profit and loss in business so a businessman  must be patient.  But in the beginning one does not get much idea about the profit and loss of the business but after two or three years one definitely gets a good idea whether the business is making loss or profit.But the most difficult task for many businessman  is to survive in the first 3 years. When they see the loss of business in the beginning, they stop business and think of something else.Those whose spend are more than their income may have more losses.  Therefore, if you want to do business, you have to understand the income and spend it, then it is possible to be successful.

But having both is good. I mean, if you have a local restaurant, it is better to have it on site as well as on social media where the customers can order and deliver their food because it is so boring if you are just opening online and cooking at home. That is why both are better, and mostly, the online presence is also a marketing strategy. If you've posted your food in an attractive way, for sure you'll get trending and a lot of customers will buy your food.

Isn't this also a "forced" thing? Like if you can't afford to keep it going then you close it, if you can keep it going then you do not close it. I get that he thinks that it should be closed if its not making enough profit, but at the same time if you are still sustaining after 3 years, then it must be bringing at least SOME money. Think about it, for three years, where did the money came from to pay your mortgage or rent, where did the bills were paid, where did the money came from to help you feed yourself and your family. Basically unless you saved 3 years worth of costs for you and your business beforehand and then spent that while making nothing, then I guess the business already is doing fine. Sure maybe its not worth millions and millions of dollars, but if it pays for you and your family, that's success enough. If it doesn't, then you are already forced to close down to shop and find money somewhere.

3 years does seem like a long enough time to determine whether a business is profitable and whether you have the right passion to sustain it over the long run. It's far too easy, especially in the age of internet businesses, to leave a business running as a zombie or barely breaking profit. Sometimes it can be hard as the business owner to admit to yourself that a lot of invested time and money was potentially wasted along the way, if it is unable to sustain itself or see a bright enough future to keep going. However it can be freeing once the process has ended and you can start to heal again, maybe choosing a different idea or building up savings again by working for someone else.

There are examples where people kept on trying for years before getting success. So there is no definite period defined after which your chances of success are zero. But if you are not getting success then you may look at strategy you are following. Something reconsidering or redesigning the strategy also work. I think there is no way one can get success if he is determined, consistent and equipped with right strategy.

I know a person who was barely making ends meet and they kept running the business for years until it finally exploded. The business was a small food truck and they were never behind, they were just barely making any money on top of all the expenses, but it became popular at some point, got good reviews and people begun to pile up. You can never know when the market changes and it becomes good for you.
I also know a guy who was running a scrap yard and 2 years ago the prices exploded, he was basically getting 2x for every truck transported out, compared to a year before.

If you aren't losing money and the business is running itself without bringing profit, keep it going.

Always trial and error and this is something that would really be normal on dealing up with some venture or business or investment on which it would really be just that a normal approach.
You cant really just make yourself that easily be able to reach out that success or pinnacle of it if you wont really be trying out on whatever challenges that you would be facing up along the way and this is something that must really be needing for you to sustain or survive because not all people would really be having no challenges that they wouldnt be able to face up along the way.

If you are dealing up with something that you havent been able to see some progress despite of different alteration or how many times you do make out that reassessment in terms of those methods and ways
then it would really be up to you on how you would gonna make yourself that making a decision whether you should proceed or would completely stop basing up on your own observation.
There are indeed things in life which arent really meant for us because no matter how hard we do but still we do fail on doing so or able to survive or make it successful.

Holding a business for a long time is not easy especially when the business is not moving well. I don't always have that time to wait for a business that is not profitable for me if I don't get what I expected to get. This is why it is good for us to always do some quick research when we want to do business and one thing about business is the location.

Location is one of the important aspect of doing business. If a business is located in a good location, there is no way the business is not going to boom and bring profits to the owner of the business. It is good for us to establish a rapport with people when we want to create a business that will give us reasonable profits.

Before you think about the business not being profitable, have you considered some other factors that might have constitute to the poor performances you've experienced, have you checked in within and without to know what are the possible causes to the poor performances, one thing to observe is that if you never know the causes of this poor outcome, you will still have same experience even when you introduced a new business to set in.

Yes, I have to agree that it’s too early to close your business after 2-3 months of non profit. For me, maybe I have to give it a year before I can finally decide to close it down and find some other means that will gain more demand from the people.

Business will most likely to fall and not prosper because of its location. Or the location is right but your business idea is not perfect for it. So you have to balance both to make it successful.

I think i believe the statement based on my own personal experiences, in 2017, i started an electrical and electronics business, three months into the business, criminals broke into my shop at night and made away with almost everything in it, Generators, my Laptop computer plus a host of other electronic gadgets, they even made away with money i left in the drawer, the total loss was running into millions in my countries currency, so let me just say that the total loss was running into 5 thousand dollars and above...

From then, that is, after that incident, i start struggling with the business, at a point, i sold my car and invested the money into the business but it was as if i poured salt into an ocean, nothing changed, rather, everything was becoming harder and harder day after day, i managed to coup with the business all through 2018, went through 2019, and in 2020, just at the beginning of covid 19 lockdown, i went behind and shot the business dead for good, it deserved to really go because it had taken a great toll on me, health wise, psychology wise, financial wise, i didnt regret giving up on the business because it was even like a great relieve to me, at least, it gave me the chance to try something else new and better.

He's statement is not bad, but at the same time I would say that before you decide to call it quit, it's best to put some things into consideration:

First thing you have to do is research; you have to deep further into the business you're into and see if you can figure out why the business is not being successful yet. There might be one thing that you're doing wrong which is still hindering the business from being successful. And another thing is that if you end the business, do you have other plans? So my advice is that you look into it and see if there are changes you can make in the business, seek for advice from those who have done it before you , and if after you have tried new tactics and it's still not working, then you can go ahead and look for something else and put an end to this one.

A business that is not profitable after a year of establishment needs to thoroughly cross-check what the issue may be. Although a business takes time to stand on its own, it is one factor that determines its level of success. That will be the location of where your business is situated.

In my, understanding, location has been the major lead to people's failure in business. When you have a business idea in your head, you don't rush into it without first studying the area you want to start up the business.

If the business is not situated in a good-running business area, it is bound to fail because the location is off from the business that is started there.

Because of this, while beginning a business, people opt for an area that is developed, has a lot of residential buildings, and has a lot of people in order to avoid creating a firm that will take years to establish a stronghold.

Every time the community demands may varies, if your business is on the demand you can sustain this but as you were saying that the business you own is not making a profit anymore and more on outside cashflow I guess it's enough for your realization to make a move to stop that business and don't let your self think that it could recover people demands more and they want some new they really need.
Instead don't lose hope if your business fails always try again this serve as lesson and work hard to your financial freedom.

Three years is way too long to just sit idle on a business that is not making a profit. In the first year (12 months), you should even already be counting out the amount of profit your business has generated for that year, unless you are not doing your business in a rented shop; if not, you should know how much profit you have generated for the first year and make your calculations to know if it is worth the shop rent you are paying every year. For instance, if you rent a shop for $1350, in a year you are expecting to make at least X3 of your shop rent because if you can't, then your business will likely fold unless you are not the one paying the shop rent with your money. But if you have a shop rent to pay, then your business should be able to generate the shop rent and your own salary as the CEO; otherwise, you should close down the business. But if you have tried to fix things up in the first or second year and yet it's not working, then you should probably close it.

This is the type of thing that I studied at business school in college ( university ). By saying that any business that isn't profitable in 3 years should be put out to pasture, you're ignoring an avalanche of variables that could be at play that make this "3 year and dead" theory nonsense. 

It truly depends on a thousand different factors, location, when you projected to break even/a profit, competition, overhead etc etc etc

That is a pretty good idea and I would also recommend you start looking for alternatives, in case there are no profits coming in any time soon. One year is probably the best time period, because of all the financial reporting also focuses on one year. If the business is only losing money, I would not keep adding new capital too it and rather try to change things. Maybe there is the possibility to reduce your capital and time investment tremendously and only let the business run at the side, without you worrying too much about it. The issue with failing businesses is that we don't only need to take the money you lose into account, but also the money you could have made doing something else. For example, as an employee you could have made 60k USD per year, then we need to add that to the loss we made in one year running our business. It might be hard to accept defeat, but it's better to stop now before the losses get out of hand. Also, we might be able to use all the previous work we put in for another project.   

Just because someone is able to sustain the business even after 3 years doesn't mean they should keep doing it if it's not bringing any revenue but going into loss. One should only keep doing it if they see some growth and they have the confidence that if they keep working on the business, make some changes here and there, do some innovations that will bring more customers, etc., then the person should keep spending money on it, otherwise, it's useless and shouldn't be done.

A business that generates $20k per month and the total expenses you have to bear are $30k or maybe more than that business is basically eating you up, and you will soon become bankrupt and will either need to take a loan or start selling what you own to keep running it, so it's definitely better to think about stopping it right there.

Honestly when the business isn't sustaining thats the time you already need rethinking twice about your decision in continuing the business.
but I don't say you should immediately rethink but make your decision based on your data going forward like seeing how business is going within the time frame of a month.
then you would make the ultimate decision whether to keep the business or instead just close it down since it has no future.
after all, you should always be logical and make decision based on the data then you will make best decision ever. otherwise you might continue to lose.

Location indeed plays a pivotal role, and it is crucial to acknowledge that each place presents distinct challenges. For instance, the issues faced by individuals in urban areas differ from those encountered by their rural counterparts. Meanwhile, businesses are driven by the objective of offering solutions to prevailing predicaments.

Personally, I have observed numerous individuals faltering in their entrepreneurial endeavors due to ill-considered locations. The experience of selecting a strategic location holds paramount importance. In fact, anyone aspiring to embark on a business venture must ensure that the scope and coverage of their enterprise are meticulously planned even before deciding to initiate the venture itself.

I agree with Kelvin O'Neal's statement, what he said I have experienced before. In 2016 I opened a business from scratch, needed unexpected capital such as decorating a business place, buying needed equipment such as shelves and other unexpected needs. The first year I couldn't do much, my business didn't go as expected. Entering the second year, not much has changed, the capital I invested in doing business began to decrease due to financing my daily needs.

Then I started thinking in the third year, if things like this continue, my capital will run out. I started to apply the marketing science of selling capital, there is no profit that can be obtained every time a transaction occurs. After running for almost two months, consumers began to increase, maybe because the goods I sell are cheaper elsewhere. Slowly I started to increase the selling price little by little in stages with the reason that the buying value was increasing.

Consumers are starting to understand the conditions that are happening, they are already used to the new rates. In the end my business started to survive even though the profit was not too big. Whatever you do, you need patience and the latest breakthroughs. When the situation doesn't go as planned, you need to make the right decisions and have the courage to take risks to survive a downturn.

As a general rule, one (1) year gives you a broad idea on how your business is working on the market. Depending on the type of business you have started, that amount time gives you at least a rough estimate on how you have proven yourself to the market and on how your customers are loyal.

In the food industry, there are certain cycles where a business can be profitable in the long-run. In the first four (4) months of business, your customers must know your product and they at least must have decided that distinguishing factor you have compared to other businesses. In the next eight (8) months, this will determine if you have a loyal customers who have repeat orders.

To conclude, a business must be thoroughly planned out before you decide whether you want to continue or to close. While others may have a relatively longer of time on its forecast, one (1) year is the typical time in order to decide whether it can be profitable or not.

It's heard to open a business in an undeveloped country, before you see customers that will buy from you it will be hard because the economy is very bad and people are mainly focusing on just surviving and eating food.

Environment has a bigger part to play with opening business in a certain location, always do your right findings before proceeding, your success rate develops on the situation of the country, state or location.

There is a different in leaving your country for another country to study or go to university, the quality are higher standards compare to local university in your countries.

If your country's situation is bad and you have a good business in mind, leave that country and travel to another good country to start your business, you will grow and become successful.

However, is there anything else besides profits and revenues? What about customer loyalty, credibility, brand recognition, and innovation? Even when businesses are operating at a loss, they may occasionally acquire additional intangible assets. Maybe after 5 years, or 6 years, or 4 years, the business will experience a profit surge because the timing is right, or it might not be the right time but could be

Indeed, the situation could result in bankruptcy, and nobody is willing to take out loans or liquidate their assets. Nevertheless, remaining there may not be the only option. Perhaps it's a matter of finding the right angle, or perhaps it's not, but adjusting business strategies could turn the tide, even though the tide does not actually turn

I think time cannot be measure with this. If you cannot find any proper way to get better profits you should probably close that business immediately. Unprofitable businesses should only stay operating under pretty situational events. For example covid was bit too long but still situational event and it wasn't enough reason to end your business down. I think business markete should be regularly checked to avoid such situation.