Know when to give up on a business idea

Knowing when to stop and when to double down, even when the market signals aren’t yet rewarding your efforts, is a crucial lesson I’ve learned throughout my entre­pre­neurial journey.

I founded my first company Straight from university, with a degree in history and a £2,000 business schol­arship. I had no idea how to even send an invoice, but I dove headfirst into starting an online coffee business in York. The grant included some branding, initial equipment and a website that I built using one early version of Shopify.

Despite my best efforts, the business ultimately failed due to tight margins and, if I’m honest, my own lack of knowledge. I had some work experience, primarily in the public sector, but was ill-prepared for the challenges of starting and maintaining a business.

A few years later, I tried another venture – ethical certi­fi­cation. I was very inter­ested in the topic and did my best to educate myself. However, a lack of domain experience meant that although our IP was licensed, there was no meaningful return for me personally.

This taught me that ideally you should stick with what you know and double down on your strengths.

Dare to take the leap into the unknown

In between these ventures, I began to build a career in marketing by taking on some internal positions and rising through the ranks. Eventually, I became the marketing director for a software consulting firm. Early on in the coffee business, I realized that I had a flair for – and enjoyed – the marketing aspect of the business.

The next big decision came in 2021. The pandemic was in full swing and I had to decide: quit my secure job with the fancy title or take the plunge into the unknown and start a new company.

The pandemic affected me in two ways. Firstly, it had given me the oppor­tunity to take a step back and really think about what I wanted to do with my life. I still had the entre­pre­neurial hunger within me and decided I needed to scratch the itch for good.

Second, I learned that being employed isn’t as safe as everyone says. No matter what you do, uncer­tainty is always just around the corner. The only thing you can do is determine your approach and response to change.

So I jumped and built myself up Open speed, a marketing strategy consulting firm. We work with founders, CEOs, leadership teams and investment firms, from young startups to high-growth companies, providing our clients with deep insights and tailored marketing strategies that drive results.

I learned when to abandon a business – and when to double down

Unlike my previous ventures, Open Velocity is actually making a profit and growing (third time’s the charm, right?).

However, it wasn’t without its challenges. If I’m honest with myself, a few times I’ve thought, “Wouldn’t it be a lot easier to just get a regular job?”

The last year in particular was tough. Inflation and the cooling of the investment market weighed on our growth. Many customers felt the pain too: Marketing costs rose and conversion rates fell as fewer in-market customers were chased by the same number of competitors.

What kept me going was the belief that the idea was viable, even if market condi­tions weren’t ideal. We kept the business lean and focused, and have made a much better start to 2024.

Learn when to stay with your company or change it

We are often asked by clients to assess the viability of their new products or business expan­sions to help them decide whether they should stick with their current strategy or switch to something new. This makes us good at identi­fying positive and negative trends in companies that indicate whether an idea is worth pursuing, even if the market signals and sales are not quite there yet.

Reflecting on my journey so far, here are some things I would consider when assessing whether it is time to abandon or double down on a business idea:

When to stay:

• If you consis­tently gain repeat business from satisfied customers, that’s a strong sign that you’re providing value. This indicates that your product or service meets a real market need and that you have estab­lished a certain level of trust with your customers.
• You have a clear compet­itive advantage, even if your market awareness is not (yet) high. A compet­itive advantage is a unique aspect of your business that sets you apart from your competitors and provides value to your customers. This could be a propri­etary technology, a highly skilled team, a superior product or service, or a strong brand reputation. (Conversely, if you don’t have a clear compet­itive advantage, that could be a sign to rethink!).
• They are able to get things done and keep the wheel turning. Execution is every­thing. A mediocre strategy that is executed well will always outperform a brilliant strategy that never sees the light of day. If you cannot improve your execution and opera­tional effec­tiveness, you must accept that your business is likely stagnating or not reaching its full potential. In the early days of OV, I had two sticky notes above my desk. One said, “Finish the shit,” the other said, “Overhead = death.”

When to rotate:

• If the business is danger­ously affecting your mental or physical health. No business is worth sacri­ficing your well-being. Status won’t keep you alive.
• They rely on a silver bullet (“This one new tactic will change every­thing”). In my experience, success comes from a combi­nation of factors rather than a single correct tactical move. If you find yourself pinning all your hopes on a single marketing tactic or growth strategy, it may be a sign that you need to take a step back and reevaluate your approach.
• Going to market too early: Timing is crucial, and sometimes even great concepts struggle when launched before the market is ready. For example, at my ethical certi­fi­cation company, sustain­ability was discussed in the 2010s, but the consumer pressure we now see on brands to act sustainably was not yet there. The B Corp Success and other certi­fi­ca­tions show the idea was valid, but we didn’t quite get the timing right.