Should You Close Your Small Business in 2024?

It would be more than fair to say that 2023 was a great year for small businesses. A record-breaking 5.5 million new business applications were filed in 2023 alone, making it the strongest year of new applications on record, according to the Small Business Administration.

But whether you started your small business in 2023 or earlier, you may be at a point where you're thinking about shutting it down. Ask yourself these questions to see if that's the right move this year.

1. Am I still in the red?

It can take quite a bit of time for a small business to turn a profit. If you started your business last year and your bank account balance isn't looking so robust, that's understandable. But if you started your business in 2021, for example, and you've yet to turn a profit after almost three years, that's a different situation.

Think about why your business hasn't been profitable to date. If it's a situation you see improving, then you may want to keep pushing. Otherwise, you may want to nip things in the bud before you sink more time and resources into your business, all the while going without an income.

Also, think about your personal financial situation. If your lack of business profit has pretty much depleted your savings account, and you can't afford to continue on that road, then it may be time to close up shop. However, if you think some changes to the way you run your business will result in a profit at some point, and you have very deep cash reserves, then you may decide to carry on.

2. Am I enjoying what I do?

Maybe your small business isn't as profitable as you'd have hoped for. Or maybe it's not yet profitable at all. If you can afford to keep going and you're enjoying your run as a small business owner, then that could be reason enough to continue making an effort. You never know when things might take a turn for the better.

On the other hand, even if your business is doing well financially, if you're miserable, then it may be time to stop. It's hard to stay motivated to run a business when you're unhappy and perpetually stressed. And in time, your feelings are apt to impact your performance -- and, in turn, your company's.

3. Have I lost all sense of a work-life balance?

Maybe your business is making money and you find the work engaging and fulfilling. That's all fine and good. But if you're in a place where you're working 90 hours a week and there's zero time for family, relaxation, or sleep, then it may be time to rethink your situation.

Now, this doesn't automatically have to mean shuttering your business. Bringing in more help may be viable. But if you've gone that route already and it hasn't changed your workload, then it's time to take a serious look at your life and ask yourself whether your current situation is really what you want.

Running a business can do a lot of great things for you -- financial and otherwise. But there may come a point when it no longer makes sense to keep a business going. So if you're not sure whether 2024 is the year you should call it quits and try something else professionally, run through these key questions to find out.