If at first you don’t succeed, try, try, try again.
–William E. Hickson
According to the US Small Business Administration (SBA), approximately 70% of new businesses survive the first two years. The rate drops to approximately 50% for businesses that survive five or more years. How does an owner make the decision to close a business? Is there always one right answer?
For this Discussion, consider the following scenario:
Twin brothers Ryan and Mike co-own Stamps and More, an independent shipping business they established shortly after graduating from college. While initially struggling during the first two years of operation, the business eventually turned a profit in the third year. Unfortunately, just as the business was starting to take off, the economy took a down turn. Sales are plummeting, and cash flow is down. The brothers are now faced with the decision of whether or not to close the business. Ryan, the optimistic twin, wants to consider every alternative available to save the business. Mike, the pragmatic twin, wants to cut their losses and close the business.
Which brother would you side with, and why? If you side with Ryan, what options do you have to save the business? If you side with Mike, what is your backup plan to wind down the business? Justify your response.
Post your Response.
Read a selection of your colleagues’ postings.
Respond to one colleague who chose the same approach as you, and to one colleague who chose the opposite approach, in one of the following ways:
Return to this Discussion in a few days to read the responses to your initial posting. Note what you learned and the insights you gained as a result of the comments your colleagues made.
Be sure to support your work with specific citations from the Learning Resources and any additional sources.
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