CUT LOSS, ACCEPT THE PAIN, EVALUATE, AND REARRANGE A NEW PLAN
Sometimes in business, we face the situation of unstoppable losses, no matter what we do. We always have the same situation day by day, losses. Naturally, the minds of humans tend to keep what they have. They keep running losses business in the hope they can change the situation. This can happen until they can not survive anymore. In a situation like this, you will lose objectivity, can not see a thing in a proportional way. If you can not decide to stop, it will be a matter of time waiting for your last blood.
Cut loss is stopping the business, an activity that is failing with the aim of preventing more losses. The following consideration can be taken before you decide to cut loss your business or activity:
The remaining efforts that logically can be done
Think logic, do you still have some cards to overcome the situation?. Consider the remaining capital, Don’t bid all of your capital (all in). Calculate every risk of the efforts. Always prepare a margin for the mistake. Always ask yourself, is the effort logical enough? how realistic they are? When you have very limited effort remaining or the effort is very risky.
The time remaining
We can beat everything but not the time, sometimes we think that still much effort we can do to save the situation. Sometimes we don’t realize that the time is running out. Do the cut loss before it is too late.
It takes time to heal the pain.
What do you need to do after deciding to cut losses? take your time, clear your mind, go somewhere to neutralize the pain. It will take time for you to restart your tired brain due to thinking hard in saving the situation. Try to evaluate your own mistake before other parties. Be happy, you are still alive and still have the capital to restart the new business, so you still have a chance.
Rearrange the new master plan of your activity/business.
Based on the evaluation of your previous failures, re-arrange new business or activity which suitable with your latest condition. Think as logically as possible, calculate your remaining capital, your ability to handle the risk in new business. Always prepare for plan B if your plan fails, make sure you are ready for it.
Run your new Activity better, learn from the mistakes
Always there’s a blessing in disguise for every fail story. Make sure you don’t make the same mistake. Plan, do, and evaluate better for your new activity. Remember, you will need more energy, effort, passion to run your new business, due to lesser capital caused by the previous failure. Love your new business, and good Luck!.