In the wake of the pandemic, many businesses had to pivot, and for some, the decision to close their doors can feel like a failure. We’re conditioned to think that shutting down a business is a sign of defeat, but that’s simply not the case. Closing a business can be a power move—one that allows you to cash out of something you’ve built but that no longer serves you or your goals.

I’ve been there myself. As a serial entrepreneur, I’ve voluntarily closed businesses that were no longer in alignment with my family’s needs or my personal vision. It’s a decision many entrepreneurs face, and while it can be difficult, it’s often the smartest choice in today’s fast-changing economy.

Why Closing Can Be the Smartest Move You Make

Today’s economy looks vastly different from even just a few years ago. The pandemic changed how we do business—what we need, how we operate, and how we connect with customers. And while many businesses are thriving post-pandemic, others have struggled to adapt. Smart entrepreneurs know when to walk away and realize that closing is a way to preserve energy, financial resources, and personal well-being. Holding on for the sake of obligation or emotion can quickly lead to financial distress, burnout, and unmanageable stress.

Here are a few instances when closing a business can truly be a power move:

1. The Market Changed, But You Don’t Want To

Back in 2018, I closed my business, At the Ready Publications, LLC, which published “The Online Magazine for First Responders.” Initially, the market for niche online publications for first responders was strong, with a unique position as a free, digital magazine targeting rural areas. But over time, larger competitors entered the space with more robust offerings, bigger subscriber lists, and stronger sponsorships.

In 2019, two of the biggest players in the industry decided to go fully digital, and it became clear that competing for attention in this crowded, high-resource space wasn’t the right move for us.

So, we closed up shop, cashed out, and dissolved the company—without regret. Recognizing that the market had shifted and that we no longer wanted to compete in that arena was an empowering decision.

2. Your Client’s Needs Changed and Your Business Has Run Its Course

When a business is solving a problem, it can thrive for years. But what happens when the problem is solved or when customer needs change? One of my ventures, Dragon Slayer Tutors, supported law students with the unique challenge of preparing for the “Baby Bar” exam in California. My niche was law students, particularly working adults with families, navigating the challenges of law school.

In 2020, however, my alma mater’s accreditation changed, and the state bar removed the requirement for students to pass the Baby Bar. As a result, my business model became obsolete almost overnight. Additionally, many law schools started offering fully accredited online law programs, so the landscape on online legal education changed significantly, and many law programs offered remote tutoring and study opportunities. 

Rather than fighting to keep it alive, I recognized that my services were no longer needed by the market, and I stepped away. Instead of feeling bad about it, I was thrilled that my clients no longer needed this particular service. Letting go was a smart decision, not a failure.

3. The Business No Longer Serves You

As a business owner, you are the master and commander of your company. You decide what your business looks like, who it serves, and how it operates. But what happens when the business no longer aligns with your lifestyle, goals, or passions?

I’ve seen many business owners, including a boutique owner and a restaurateur, close their businesses simply because they weren’t having fun anymore. Maybe they’ve outgrown their original vision, or the financials have changed, making the venture no longer profitable.

In some cases, it’s a desire to regain work-life balance—perhaps taking a step back to focus on family or stability, such as returning to a traditional job for health benefits. This can feel difficult, especially in a culture that promotes relentless hustle. But closing a business to align with your personal goals is a power move.

4. Your Business Evolved Into Something Else

Businesses, like people, are meant to grow and evolve. And sometimes, that means closing down one venture to give way to the next.

In my own business, I’ve evolved from solo law practice to a 2-attorney firm practice, now back to solo practice and have refined my areas of focus over the last ten years. I no longer practice as much administrative law, mostly small business.  While it feels like a significant shift, it’s not a failure—it’s an evolution. 

This is something I see regularly with other entrepreneurs as well. As the markets change, we need to change. Law professionals change areas of practice.  Caterers offering a takeout meal service every week.  A previous career coach becoming an HR Consultant. A jewelry designer adding on a brand management service for other designers. Instead of seeing these evolutions as failures or “closures,” let’s start normalizing them as growth.

Changing the Narrative: Closing Isn’t Failing, It’s Evolving

In today’s economy, where so much is in flux, understanding when to pivot, close, or evolve your business is more important than ever. It’s time to embrace the idea that closing a business doesn’t signify failure—it can be an empowered decision that positions you for the next chapter of success.

So, let’s normalize closing a business as a power move. Rather than seeing these transitions as negative, we should celebrate them as evidence of adaptability and growth. As entrepreneurs, we don’t have to cling to the past; we can create the future.