Last week an entrepreneur emailed me that he’s shutting down his startup and moving on. After working hard, spending many months on the idea, and over $100,000 of personal savings, it was clear that the business wasn’t going to be successful. There were a number of signs leading up to his decision.
Here are a few indicators to evaluate if it’s time to shut down a startup:
- Even after multiple iterations it’s clear that the product is a weak vitamin and not a pain killer
- Product / market fit appears close yet there’s little demand from customers (again, a vitamin)
- Customer requests are all over the place showing a lack of consistent market need
- Genuine passion for the customer and product has subsided
- Bonus: Achieving success and deciding to shut things down due to the stress (see Flappy Birds making $50,000/day and pulling the game)
Deciding to shut down a startup is a difficult decision. Once the decision is made, and the trigger is pulled, the result is a major sense of relief.
What else? What are some other indicators when deciding to shut down a startup?