Thinking about closing
Closing isn't always wrong. But it's worth knowing if it's necessary.
Some businesses should close. The model doesn't work, the market has moved, the owner has changed — and continuing is just deferring an outcome that's already decided.
But some businesses that feel like they should close are actually fixable. The diagnosis is wrong. The problem has a solution that hasn't been tried yet. A conversation before the decision is worth having.
What closing actually looks like
The signs that something structural is wrong.
There's a difference between a business that's struggling and a business that can't be fixed. The first needs a different strategy. The second needs an honest conversation about what's actually possible.
The revenue doesn't cover costs even at full capacity
The market the business was built for no longer exists at that margin
The owner has left — in everything but name
Every attempt to fix it requires more of what's already not working
Before you decide
The free course names what you might be carrying.
Business failure — even the thought of it — follows a recognisable emotional pattern. The Grief in Business course names the stages. It doesn't tell you what to do. It helps you understand where you are.
Free. Takes about 20 minutes. No login required.
Take the course →A conversation before the decision.
We'll look honestly at where the business is, what's actually broken, and whether closing is the right answer — or whether there's a path worth taking first.
Straight answers
Questions worth answering before the decision.
How do I know whether to close my business or keep going?
Separate three questions that usually arrive as one. Is the business viable — can it earn, at some structure, at some price? Is it viable in a form you're willing to run? And can it survive the time it would take to get there? A no to the first is a different decision from a no to the second, and most owners considering closing have only really answered the third.
Is it too late to fix it?
That depends almost entirely on runway rather than on how bad things feel. A business with several months of cash and a structural problem has options. A business with weeks has fewer, and the honest answer at that point may be an orderly wind-down rather than a rebuild. Knowing which situation you're in is the first thing worth establishing.
What should I do before deciding to close?
Get the real numbers in front of you — actual break-even, actual obligations, what's genuinely owed and to whom, and what would be left after an orderly close. If there is any prospect the business cannot pay its debts as they fall due, get insolvency advice immediately and before trading another week: in both Australia and New Zealand, continuing to trade in that position can create personal liability for a director. Take advice on the legal and tax position from someone qualified to give it. And be clear about whether you're deciding to close the business or to stop doing this particular version of it.
Does closing mean I failed?
Closing a business is a decision, and sometimes it's the correct one — for the numbers, or for the person. What's worth avoiding is making it in exhaustion without having looked properly, because that's the version people revisit later. A decision made with the full picture in front of you holds up regardless of which way it goes.
Closing isn't always the wrong call. It's worth knowing whether it's the necessary one. The free health check asks for nothing until the very last step.
Take the free health check15 questions. No login, no email, no cost.
Also useful: the free course on when a business stops working · free break-even calculator · why businesses fail in 12 months