Knowing When To Quit
I just read this article on MSNBC.com about “knowing when to call it quits in business.” It follows the story of Sandy Tacchino of Fresno, Calif, whose Little Dreamers retail shop recently closed due to bankruptcy. She put everything into the business only to see it fail after just a few years in this weakening economy.
From stage, upline kingpins teach their downline IBOs that their Amway businesses are much better than brick and mortar retail stores or even franchises. There’s little upfront capital involved, and you don’t have employee headaches or other such problems. While this might be true on a superficial level, an Amway business is just like a traditional business in many respects.
For instance, you won’t get paid unless products are sold through your business and your organization. The buy from yourself and teach others to do the same model is not a long-term sustainable business model. Instead of kicking back and watching the profits roll in each month, you’ll be traveling around the country, constantly trying to replace those IBOs than are leaving the business month-after-month. Congratulations, you’ve just replaced one job with another! Having a downline organization is important, but so is selling products to non-IBOs, people outside of the system.
For those who think this is a foreign concept, I have something secret to tell you. Shhh, it’s called retailing!
The article continues by mentioning five warning signs for impending business failure. I’m going to focus on the three that have the most relevant. Have you experienced any of these in your Amway business?
- LACK OF SLEEP: How many hours per day, week, and month are you devoting to building your business? Has it affected other parts of your family and social life? Are you constantly driving back home at ungodly hours? Do you need to down countless cans of XS Energy just to stay awake? If so, you might be suffering from a lack of sleep caused by your business. If the results justify the lack of sleep, maybe that’s okay. But, if you’re not making much after spending 20 hours a week, then maybe it’s time for a change?
- CHRONIC CASH FLOW and PAYROLL PROBLEMS: Are you making any money after each month in the business after expenses? What are you doing with the extra money you’re making? If after six to twelve months you’re not making more than you’re putting in, I would say that the business might not be working.
Here’s a good quote from the article:
After sinking some $400,000 into her business (including $200,000 of her own money), Tacchino faced a classic dilemma for small business: How do you know if you should cut your losses and walk away or continue fighting to hold on to your stake and your dream? Tacchino believed her can-do, go-for-broke optimism would result in an American success story, not a failure.
You may not be losing that much money in your Amway business, but you may be facing a similar dilemma. When do you know when it’s time to quit? Sure, the Amway business works for other people, some whose stories might even be similar to your own. That doesn’t mean, however, that it’s going to work for you just like them! Take what skills you learned during your time as an IBO and use them in another venture. After all, they say variety is the spice of life! Amway is not the be all to end all your upline kingpins say from stage!
The moment of realization for me came after two and a half years in the business. Expenses far outweighed the meager income that I was generating. I could either try harder or I could quit. By choosing failure in the Amway business, I succeeded. Looking back after nearly a decade, I know that I made the right choice.