Peter explains when entrepreneurs should quit their business: when customers see no value, the market isn't ready, or your passion dies. He argues quitting is strategic, not defeat, and shares how startups he backed failed in one market but succeeded after pivoting to a new one they actually cared about.
Peter, how do you know when it's time to quit your business and start something else? Would quitting be a sign of defeat?
Depends on what you mean by quitting. We used to say, we want to go out and find people who refuse to fail. And kind of that tremendous tenacity and perseverance to overcome adversity. Yeah, I think reality is if it's in the end, you kind of work, it's a dumb idea and there's no value for the customers or the market, then it's really important to say, actually stop that idea, but the experiences I've gained will power me into a different idea where my passion is. And I've actually been an angel investor in two businesses where they have brilliant ideas, but the market just changed against them. And they actually had a fantastic startup management team, loads of innovation in the business, but the market just wasn't there. But having said that, the third time that they actually went and became successful refocusing their ideas on a new market they were passionate about, they've had success. So I kind of think there's two things. One is kind of pursue when you determine you're gonna quit, The best way to validate that is either socially or directly talk to consumers, talk to the customers you're trying to serve. If they say it's a crazy idea and there's no value, or it might be too early for the market, loads of ideas are too early for the market and they're not ready for prime time, then kind of pause, do course correction, determine where you can move, get back to your passion and come up with an idea that's gonna work.
I guess my curveball answer would be, loving your business, then it's time to move on. And that may not be quitting the business, that could be selling the business too. There's loads of entrepreneurs who build it up, their company to a certain size, and then they get bored, and then they start looking for other things to do, whether it's investing in new companies to start. And if, you know, when that happens, your current business just kind of stagnates because you're not pouring the love, energy, passion that you were pouring in before. And so the answer for me is If you lose the fire, it's time to move on. If it's at the point where you can sell it to somebody else, great, do that and do something that makes you come alive again. And if it's at the point where it's not something that anybody would want to take on because it's too embryonic and the market wasn't there, you couldn't get customers, then close it down and go do something else. And there's, there's lots of failures that you'll have along the path. Failure isn't the enemy. The enemy is keeping on doing something because you feel you should, but you don't have passion for it. You're never going to be able to build anything great if you don't have that energy and excitement that wakes you up every morning to go and pour into your company.
