Updated: Sep 4, 2019
Here are some rules around cutting your losses and starting again or pivoting.
A) If you aren’t expert enough to be able to find or build a software with an insight to build a product 10x better than what is exsiting
B) If the market isn’t growing at least 20%/pa
C) It’s too hard to make money or find users (i.e after 18 months you don't have product market fit)
If you have a business that is sort of working well enough, but you don't have one of the top three ticked try to:
1. Manage yourself out so it can become passive income and move on
2. Get rid of it completely move on
3. See if you can try something outlandish like partner with Wework* and scale your cafe* attached to it globally - if not move on
Too often (I have also been guilty of it) I see founders working themselves to the bone over an idea that honestly is a 1:1000000 chance to even become worthwhile.
In conclusion, If you aren't going to be able to make >20% net profit PA and continue growing, it's easier to put your money elsewhere.
There are millions of good ideas out there and customers looking for change, so make good use of your time with the ones that have the most chance of exits or great organic growth.
If you'd like to see more from professionals watch this. Plenty of insights into pivoting, decision making and product market fit.
P.s all of my posts are first drafts, my researcher will buff them out — so make sure to write in and ask for extensions or explanations if you are interested.