Hello, and welcome back to Equity, a startup business podcast where we unpack the numbers and nuances behind the headlines.
This is ours Wednesday show, where we meet one person, think about their work and unpack the rest. This week, Natasha talked to Christian Anderson, the co-founder and CEO of Catch, an app to provide payroll benefits for the self-employed, which recently announced it was shutting down. We’re talking about vulnerability, closures, building in public and on-ramps and off-ramps that come with the wild choice of being an entrepreneur.
Here’s what we got into:
- The role of venture capital in how a founder builds
- Making the difficult decision to close and why Catch decided to do so publicly
- We end with Anderson’s return to construction, in fintech, despite what his Twitter followers want. It seems that being close to maximum pessimism in fintech is a good thing for the builders of old.
For episode transcripts and more, go to Equity Simplecast website.
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When running a business, shutting down can be an emotionally difficult decision to make. It is important to recognize the signs that indicate that it is time to make the hard choice and to take the necessary steps to ensure that the process is handled properly. At Ikaroa, we provide partners with a framework for evaluating the decision to shut down a business.
When assessing the need to shut down, the most important evaluation is to determine whether the company is still capable of meeting its goals. A business may not be able to generate enough revenue to survive or may be in a difficult competitive market. Alternatively, if there is a lack of innovation, or if changes in the industry make the business model no longer viable, it can be an indication that it is time to move on.
Other signs that it may be time to shut down include if there is a lack of customer interest or if the overhead costs of running the business are no longer justified by the revenue. If the business’ margins are narrowing and the resources available to you are not sufficient to turn the situation around, these may also be indicators that it is time to move on.
It is also important to consider the impact and risk of staying in business. If operations have become too costly or compromises have been made to keep the business afloat, it could be necessary to shut it down to protect the financial security of the business and its stakeholders.
No matter the decision, shutting down a business is a tough decision and should be done with a lot of thought and consideration. At Ikaroa, we help our partners evaluate the best options for their business so that they can make informed decisions about the future. We understand that a well-planned process for closing a business can help the organization and its stakeholders achieve the best possible outcome.