5 Signs It was Time to Close
Erikka Gray
In August of 2024, I made the difficult decision to close my brick-and-mortar storefront after four and a half years of business. While this was not an easy choice, reflecting on the past 6-12 months revealed several key factors that influenced my decision to pivot. Sometimes, recognizing when it’s time to shift gears is essential for long-term success. Here are five signs that helped me realize it was time for a change:
1. Declining or Stagnant Revenue
Despite efforts to boost sales, my revenue had plateaued, and in some months, it even declined. When consistent sales growth becomes a challenge, it’s a clear indication that the current business model may no longer be viable. Even with increased marketing efforts and promotions, the return wasn’t significant enough to justify maintaining the physical storefront.
2. Decline and Closure of Neighboring Business's
The decline and eventual closure of other businesses around me had a significant impact on foot traffic. As nearby stores shuttered, the once-bustling area began to feel empty, leading to fewer customers walking through my doors. With less complementary business activity in the vicinity, it became harder to attract new visitors to the area.
3. Market Shifts
The retail landscape had changed, particularly post COVID, customers were at home less which was influencing shopping habits. Consumer behavior was increasingly leaning towards convenience, with many preferring online shopping options. Staying competitive in this shifting market would have required a significant pivot.
4. Location Challenges
The physical location of the storefront began to present more challenges than opportunities. Whether due to foot traffic patterns, accessibility, or local competition, the location no longer aligned with my target audience. In an increasingly digital world, being tied to a specific geographic location limited growth potential and made it harder to adapt to changing customer preferences.
5. Difficulty Reaching New Customers
Another indicator was the difficulty in attracting new customers. While I had a strong base of loyal, repeat customers, the marketing efforts to reach new audiences weren’t as successful as hoped. Over-reliance on repeat business without new customer growth can signal that your business model needs an overhaul.
In recognizing these signs, I realized that my business model, while successful for a period, was no longer sustainable in its current form. Closing the storefront has given me the space and clarity to explore new opportunities and ways to better serve my customers in a changing market. If you recently closed a brick and mortar or considering opening one comment below!
