Saying Goodbye To A Project – Smart Strategies For Tough Decisions
- Oct 3, 2024
- 4 min read
Anna Stella is an award-winning marketing expert, academic researcher, and founder of the global marketing outsourcing agency BBSA. She is also the president of the BASA Awards® and host of the hit YouTube show “The Best of Business Show.”
Every entrepreneur knows the passion and dedication required to launch a new project. From ideation to execution, it often feels like raising a child and nurturing it through growth and challenges. But just like with parenting, there comes a time when difficult decisions must be made. One of the hardest is knowing when to say goodbye to a project.
Holding on too long can drain your resources, morale, and time. Here’s expert advice on when and how to pull the plug on a project that’s no longer serving you.
1. Financial reality: The first sign to pull the plug
One of the earliest indicators that it's time to reevaluate a project is when the financial model starts to break down. You may have invested a lot of time, energy, and resources into getting a project off the ground, but if the financials aren’t working, you have to reassess.
The moment the financial model stops working, that’s your sign. Financials are the engine of your business. Without sustainable revenue, you’re driving a project to failure.
Look at the costs of customer acquisition, your profit margins, and your overall cash flow. If these metrics are consistently negative or trending downward, it may be time to call it quits.
2. Sales struggles: The tipping point
The second key factor is sales. As important as financials are, sales tell you whether there’s a market for your product. If you can’t close deals quickly enough to sustain the project, the longer you persist, the more your resources will drain. One key point of advice is to evaluate the cost per acquisition. If it’s too high compared to the price of your product or service, it’s a clear red flag.
Keep in mind that time and money invested don’t justify continuing something that isn’t working. If your sales rates are stagnating or declining, it’s often a sign that the market demand isn’t there, and the project may no longer be viable.
3. Don’t be afraid to let go of a project
Many entrepreneurs struggle with letting go of a project, seeing it as “killing their baby.” This emotional attachment often causes them to hold on far too long, even when the data suggests it’s time to stop. But holding on too long can be costly. In some cases, the product or service may no longer be relevant, or it may have been marketed to the wrong audience. Ignoring these signs and pushing forward can lead to wasted time, money, and effort.
One successful entrepreneur shared how they implemented a strategy called a “pull-the-plug meeting” where, after hitting specific financial goals, the team gathers to decide whether to scale the project or kill it. This disciplined approach allows for regular reviews of the project’s viability and prevents emotional decision-making.
4. Know your limits
Being honest with yourself about your investment, both in terms of time and money, is vital. Many founders face a tough reality when they have to put their own money into a struggling project. As one expert put it, “You can’t compete if you don’t have the capital, sales, or resources.” There comes a point where continuing may feel more like insanity than perseverance. Knowing when to walk away is essential for protecting your financial health and future ventures.
5. Trust your team and the data
Entrepreneurs are naturally passionate about their projects, and this passion can cloud judgment. To avoid this, it’s critical to bring in outside perspectives from your team. Even experts admit that they often need their team to step in and provide unbiased data on whether a product is still relevant. Listening to these voices, even when it’s hard, is essential. If the data shows declining sales or diminishing relevance, it’s time to seriously consider saying goodbye to the project.
Your team can also help you separate emotion from logic. By setting aside ego and letting your team weigh in on the decision, you not only get a broader perspective but also ensure the decision is based on facts, not passion.
6. It’s about strategy, not failure
Letting go of a project doesn’t mean you’ve failed. It’s simply a strategic decision. “Killing” a project frees up resources to focus on more promising opportunities. Some projects just aren’t right for the long term, and clinging to them will only delay your success elsewhere. It’s better to pivot or redirect your efforts to something with stronger potential.
Saying goodbye to a project is a necessary part of growth. Not every idea will be a winner, and learning to identify when it’s time to let go is an essential skill for any entrepreneur.
Anna Stella, Marketing Expert, Founder
Anna Stella is an award-winning marketing expert, academic researcher, and founder of the global marketing outsourcing agency BBSA. She is also the president of the BASA Awards® and host of the hit YouTube show “The Best of Business Show.”
Anna has more than 20 years experience in the B2B, B2C, and non-profit industries. Notable clients include Volkswagen AG, the Government, the European Union, RICS, and Rational AG, to name a few.
Anna holds an MBA in Marketing from Henley Business School, a Master’s Degree (MA) in Strategic Marketing Management from Kingston University, and a BA (Hons) in Marketing and Communications from Nottingham Trent University. She is currently completing a Doctorate in Marketing Outsourcing at Strathclyde University and is due to publish her first book in 2025.
