3 Signs It May Be Time to Shut Your Small Business Down

It's important to know when to call it quits.

It takes a lot of guts, dedication, and patience to get a small business up and running, and to keep it running month after month. And as a small business owner, you're probably no stranger to challenges, whether it's long hours, pressing deadlines, staffing issues, or a lack of money in your business checking account.

Now, some challenges are worth pushing through. But there may come a point when it pays to consider shutting down your business and trying something new. Here are some signs that that's a route to look at taking.

1. You're not turning a profit after several years

When you start a small business, you can't expect to turn a profit right away. But if it's been years since you've been in operation and you're still in the red, then it may be time to close up shop.

Shark Tank investor and personality Kevin O'Leary says that if your business can't make money after three years, then it's basically a hobby, not a business. And so you shouldn't be counting on it as a source of income any longer. 

2. You're perpetually stressed

Many small business owners experience periods of stress and bouts of burnout. But if you're worried and mentally drained all the time, to the point where it's really begun to impact your health, then it may be time to call it quits.

Small business owners commonly put a lot of pressure on themselves to succeed. That can be a good thing, provided your health isn't suffering. Once that changes, it's time to consider a career change. 

Incidentally, this applies to non-business owners, too. If your job in finance or accounting or whatever it is has taken over your existence and turned you into a walking wreck, then it's time to look at making a switch.

3. You're no longer excited about your business

It's eager to power through different small business challenges when you're passionate about the product or service you're offering and you're hopeful about your company's prospects. But if that excitement has burned out, and you're no longer feeling positive about your business, then it's a sure sign you're better off closing down operations and finding another way to generate an income for yourself.

It's okay to walk away

The simple act of starting a small business is something you should take pride in. It takes a lot of effort and determination to get a small business off the ground, and to keep it running. But shutting your small business down doesn't make you a quitter. In many cases, it makes you a pragmatic person who's in touch with reality and wants to better their health and financial situation. So if these signs apply to you, consider closing your business -- and do your best not to feel bad about that.

Remember, too, that wrapping up one small business venture doesn't bar you from embarking on another. You may no longer feel good about your present company, but that doesn't mean you won't find roaring success in another capacity.