Evaluating the cost effectiveness of a dream

I have two businesses: one that I do very part-time, and one that I’m willing to have turn into a huge success right at any moment. Unfortunately, the “huge success” part isn’t coming as quickly as I’d like, so I’ve been spending some time recently mentally evaluating the cost effectiveness of a dream. I know that getting a business to the very profitable stage takes time, but when do you decide that it’s not worth it any more? I thought at first that I needed to look at the financials and decide whether the business could continue to be viable, but after looking at those I don’t think that’s the deciding factor. (Although I did discover that those could use some significant improvement, and I’ve taken the necessary step to improve them.)

How do I evaluate the cost effectiveness of a dream? Do I think back on the lost income from the years I didn’t work, trying to make this and a similar business a reality? (I’m thinking not, since the past is past.) Do I think on the enormous amount of time I’ve put into it? (Again, probably not, since that’s in the past.)

How do I know when enough is enough, or when I’m close to the tipping point and if I just stick it out a little longer, I’ll be a success? For now I’m going to continue just going with my gut. My gut is telling me to stick it out longer. I am thinking about putting a time limit on how long I’ll continue to heavily invest both time and money in the business without seeing the desired results though. I figure that will help me come to terms with things. Have you ever dealt with a similar situation? If so, how did you handle it?

View Comments (3)
  • What I would look at:

    1. Is the company name spreading?
    2. Am I more known in my field? Today, tomorrow etc than last year.
    3. Is the company making money? Not that I am taking money, but is it making something that is being funded back into it? Through assets, equity, clientele building.
    4. Do a spread sheet from past years of operations, gathering percentages of changes. Use these percentages to go 3-5 years forward – Do you like what you see? If not, can you do something to change a few pieces? Advertising – Networking???

    Then follow the gut.

  • Don’t give up! Usually the tipping point is right around the corner when you feel that way! It does take time to build a successful business, it is not easy- it takes persistence. I think more than anything, you need to go abck to your reason “why”. What was it that drove you in the beginning? Money is never enough of a motivating factor- you have to reconnect with your why. And then once you do, find new ways to move forward. Maybe you need to readjust some things. Maybe you need to focus in. Maybe networking with others more is what you need? If I am passionate and reambling on, its because I have been where you are at- and believe me, it will be a chance meeting that could be the kick you need. For me it was a local celebrity at a home show, who loved the biz, and wrote about us in the paper a couple times as well as had us on her readio show. It was the tipping point. Stick it out- if its your dream, remember it and keep fighting- the pay off is well worth the effort!!

  • Thanks for the comments & encouragement. Things are improving with my company when compared from year to year. Maybe it’s just not at the rate that I would like. I started the business because I crave flexibility. I’m not a 8-5 kind of person, no matter how hard I try to be. (Which isn’t to say I’m not a good employee, I just don’t enjoy it.) I also LOVE doing what I’m doing. And, even if I were to stop trying to make the business happen, I could still do this for fun and a little income.

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