357: When To Shut Down Your Business Or Quit Your Job With Steve Chou

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You’re listening to the My Wife Quitter Job Podcast, the place where I bring on successful bootstrap business owners and dig deep into what strategies they use to grow their businesses. Today, I’m doing a solo episode to answer yet another question that I get asked all the time. Steve, how do you know when to quit? Whether it be your business or your full-time job, how do know when to move on? Well, here’s my exact framework. But before we begin, I want to thank Klaviyo for sponsoring this episode. Now, I’m super excited to talk about Klaviyo because they’re the email marketing platform that I personally use for my e-commerce store.

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and it depends on them for over 30 % of my revenues. Now you’re probably wondering why Klaviyo and not another provider. Well Klaviyo is the only email platform out there that is specifically built for e-commerce stores and here’s why it’s so powerful. Klaviyo can track every single customer who has shopped in your store and exactly what they bought. So let’s say I want to send out an email to everyone who purchased a red handkerchief in the last week. Boom. Let’s say I want to set up a special autoresponder sequence to my customers depending on what they bought, piece of cake, and there’s full revenue tracking on every single email sent.

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Now Klaviyo is the most powerful email platform that I’ve ever used, and you can try them for free over at klaviyo.com slash my wife. That’s K-L-A-V-I-Y-O dot com slash my wife. I also want to thank Postscript for sponsoring this episode. Now if you run an e-commerce business of any kind, you know how important it is to own your customer contact list. And this is why I’m focusing a significant amount of my efforts on SMS marketing. SMS or text message marketing is already a top five revenue source for my e-commerce store. And I couldn’t have done it without Postscript.io, which is my text message provider.

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Now, why did I choose Postscript? It’s because they specialize in e-commerce and e-commerce is their primary focus. Not only is it easy to use, but you can quickly segment your audience based on your exact sales data and implement automated flows like an abandoned cart at the push of a button. Not only that, but it’s price well too and SMS is the perfect way to engage with your customers. So head on over to postscript.io slash Steve and try it for free. That’s P-O-S-T-S-E-I-P-T dot I-O slash Steve. And then finally,

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I wanted to mention a brand new podcast that I recently released with my partner, Tony. And unlike this podcast, where I interview successful entrepreneurs in e-commerce, the Profitable Audience podcast covers all things related to content creation and building an audience. No topic is off the table and we tell it like how it is in a raw and entertaining way. So be sure to check out the Profitable Audience podcast on your favorite podcast app. Now onto the show.

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Welcome to the My Wife Quitter Job podcast. Today, I’m gonna cover a question that I get asked all the time. Should I close my business and how to know when to move on? In this episode, you’ll learn the exact questions that I ask myself when deciding whether to move on and pursue something else. So first off, the principles outlined in this episode apply to all areas of life. So for example, I actually use this framework for relationships, projects, marketing strategies, everything. I also wanna stress that quitting or moving on does not mean

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that you’re necessarily giving up. Sometimes moving on simply involves a pivot or a mindset shift that can change your perspective or how you feel. It’s also important to note that we all have baggage in our lives. It could be your job or your business that need to be culled without even realizing it. We all put up with activities or people who drain us of our energy because we’re afraid to rock the boat. So the framework that I’m about to talk about will help you put an end to your misery. And by answering these questions, you’ll achieve clarity,

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and understand exactly what you must do. But before we begin, I want to emphasize that in order for this process to work, you have to write down everything. Every single question that I’m about to ask you in this episode must be typed or handwritten in a document. Also, you must force yourself to assign a number to each one of your answers as well. Numbers don’t lie, and they allow you to quantify and justify the results in your mind before taking action. So just a side note, some of you listening to this episode are used to using your gut

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to make big decisions and using your gut is great, but sometimes your gut doesn’t know the answer. Sometimes you’re just hungry. All right, so question number one, is your job or your business limiting your growth? Now, when it comes to quitting your job or shutting down your business, the first and the easiest question to ask yourself is whether you’re settling or compromising your full potential. Are you working at a job or running a business that has a low ceiling and doesn’t exercise your brain to its fullest potential? So for example,

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Let’s say you’re selling cheap Chinese junk using AliExpress dropshipping and providing almost zero value to your end customer. Now, even though you might be making a couple bucks here and there, is selling junk with zero quality control a sustainable business that will continue to grow? Meanwhile, are you working a day job where you’ve stopped learning? Are you just going through the motions at work every day just for the sake of a steady paycheck? And can you see yourself growing at your current position?

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Now, my friend Nathan Barry was making a healthy six figure income selling courses and eBooks when he realized that he wanted to work on something bigger. So he made the difficult decision to shut down his course business and started ConvertKit, one of the best email marketing software companies in the world. Now, for this question, I want you to write down one of the following two statements and assign a number from one to 10, where 10 is the best. My business or job offers the potential to grow and challenge me to the best of my abilities. Or two, write down

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My business or job does not offer the potential to grow and challenge me to the best of my abilities. Then give it a number from one to 10, where a 10 indicates that you’re being challenged and growing. All right, question number two. Have you put your best foot forward? Have you tried your best to improve the situation? Have you done everything in your power to grow your business or are you just giving up at the first sign of hardship? Now for most people, the answer to this question cannot be answered objectively.

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and you probably need to seek a neutral third party for a real answer. Over the years, I’ve received countless emails from small business owners complaining that it’s impossible to start an e-commerce store. Steve, I’ve tried every marketing strategy out there, this is never gonna work. Steve, I’ve tried selling online, but every product I could think of had too much competition. Now one time, I decided to challenge one of my readers who claimed to have tried everything, but when I went to take a look at her website, her online store looked horrible. There were spelling errors, grammatical mistakes,

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and the photography was terrible. So it’s no wonder that her online store was a failure because she didn’t even complete the basics correctly. So when it comes to putting your best foot forward with your business, you can’t really claim to have tried everything until you’ve overcome at least a couple of major obstacles. You can’t claim to have put your best foot forward without soliciting outside help. And this principle applies to your day job as well. Like have you spoken to your boss to discuss other roles that might be more fulfilling for you?

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So before writing off your job or your business, make sure that you’ve given it your all. Because knowing that you’ve tried your best to rectify your situation is extremely important in order to move on with a good conscience. There should be never any regrets. So write down one of the following two statements. I put my best forward to make things work. Or there are additional avenues that I haven’t tried yet to improve my situation. Then assign a number from one to 10, where a one indicates that you have tried everything in your power.

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and a 10 indicates that you haven’t tried much. Okay, question number three, is your job or your business sparking more joy than frustration? So most likely you aren’t listening to this episode unless you are sufficiently frustrated. But a simple question to ask yourself is whether you are still enjoying the journey. Are there more positives than negatives and is your time worth the added stress? Now when my businesses were making 4X my day job salary, I was actually making 8X when I finally quit. I actually debated whether to quit.

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but I loved my job so much that I was willing to stay despite the inconvenience of having to commute to a physical office. And when my wife and I started our online store and received no sales for the first couple of months, the thought of shutting it down actually had crossed my mind. But I was learning so much and having so much fun running the business that I was willing to stick it out for better or for worse. So for this question, write down one of the following two statements. My business or job provides more enjoyment than stress. Or my business or job

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provides more stress than enjoyment, then give it a number from 1 to 10, where a 10 indicates that your business sparks joy. Question number four, is your business or job detrimental to your health? Now, the word health for this question can apply to many aspects of your life. So for example, does your business negatively impact your own health, as in both mental and physical, the health of your marriage, the health of your relationship to friends, the health of your relationship with your kids?

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Now, first of all, you have to decide how much you value each of the things that I just mentioned. Some entrepreneurs claim to put family and marriage first, but then do the complete opposite. Other entrepreneurs sacrifice their own health to maintain their business and their family. So the key is understanding what you truly value here. Then you must ask yourself how detrimental it is for you to stay in your current situation. Is your business or job worth the toll on your mental and physical health? And the answer to this question only requires a number.

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Write down a number from one to 10, where a 10 indicates that your business or job does not affect your health whatsoever. All right, next question. Does your job or business compromise your beliefs? Now, what’s funny about money is that it often does strange things to people, and excessive greed can sometimes lead to compromise. And it’s a slippery slope here. As humans, we sometimes make decisions purely based on the money without thinking about the effects on other people or the environment. So for example,

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Let’s say you started a successful business selling diamonds, but later discovered that millions of innocent women and children were being exploited to mine and produce your products. Would you be fine with that? What if the company that you work for is responsible for dumping toxic waste into the ocean? Now, sometimes our business or our job silently kills us on the inside. And even though the money is good, you may have to ask yourself whether you’re working on a project that you believe in. Is your business or your job turning you

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into someone that you hate. So my buddy Derek Halpern used to run a successful business publishing entertainment news and gossip before deciding that it didn’t make him feel good inside. So he shut it down and he now runs a multi-million dollar business selling health food over at Truvani. So for this question, write down one of the two following statements. My business or job adds value to the world and I believe in what I do. Or my business or job does not add much value to the world. I could do better.

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Then assign a number from one to 10, where a 10 indicates that you feel strongly in what you do or the service that you provide.

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If you sell on Amazon or run any online business for that matter, the most important aspect of your long-term success will be your brand. And this is why I work with Steven Weigler and his team from Emerge Council to protect my brand over at Bumblebee Linens. Now what’s unique about Emerge Council is that Steve focuses his legal practice on e-commerce and provides strategic and legal representation to entrepreneurs to protect their IP. So for example, if you’ve ever been ripped off or knocked off on Amazon, then Steve can help you fight back and protect yourself.

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Now, first and foremost, protecting our IP starts with a solid trademark and Emerge Council provides attorney-advised strategic trademark prosecution, both in the United States and abroad for a very low price. And furthermore, the students in my course have used Steve for copyrighting their designs, policing against counterfeits and knockoffs, agreements with co-founders and employees, website and social media policies, privacy policies, vendor agreements, brand registry, you name it. So if you need IP protection services, go to EmergeCouncil.com and get a free consult.

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And if you tell Steve that I sent you, you’ll get a $100 discount. That’s E-M-E-R-G-E-C-O-U-N-S-E-L.com. Now back to the show. Next question, how often do you think about quitting? Now this answer to this question is actually often the best indicator of whether you should quit your job or move on from your business. How often do you think about quitting? Is it literally every single minute of every day? Or is it only something that you think about occasionally, like once per month?

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The most telling signal of whether you should quit is how your situation makes you feel. So for example, when you think about your business or job, does it put you in a bad mood? Does thinking about your situation ruin your entire day? Does it stop you from sleeping well at night? Well, if negative thoughts about your business or day job consume your mind all the time, then that’s a leading indicator that you need to get out of there. The answer to this question requires only a number. Jot down a number from one to 10, where a 10 indicates that you rarely think about quitting.

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and a one indicates that you think about quitting all the time. Next question, and there’s only a couple more, I promise. What’s keeping you in your current situation? We all do things that we don’t want to do because we’re afraid of the consequences. So when it comes to a soul-sucking job, most people work because they don’t know how to make money otherwise. Most people are afraid to quit their jobs because they don’t have the confidence to succeed on their own. Sometimes people stay in bad situations out of obligation. I have a friend who helps run her family business

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even though she hates it, but she doesn’t want to disappoint her parents and she’s afraid of confrontation. I have another friend who runs a business with a good friend, but her partner isn’t pulling her weight. And in this case, do you cut ties and risk ruining the friendship? Now the best way to deal with situations involving fear of the unknown is to analyze all the possible outcomes. If you are scared of quitting your job to start a business, ask yourself, what’s the worst that could happen if the business completely failed? Then come up with a backup plan.

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So for example, when my wife and I started Bumblebee Linens, our backup plan was simply to go back to work if our business failed. And when you outline and create a backup plan for every possible negative scenario, it makes your decision to move on infinitely easier because it takes the fear out of the equation. So before you answer the question of what’s keeping you in your current situation, jot down all the possible outcomes and come up with a plan of action. Then assign a number from one to 10,

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where 10 indicates there are dire consequences for quitting and one indicates that quitting isn’t a big deal. Okay, last question. Is it too late to change your attitude? Now when it comes to every situation in business and life, your attitude determines everything. So for example, when sales were non-existent for my business in the early going, I could have reacted to my situation in two completely different ways. It’s game over, man, game over. No one’s gonna buy these stupid hankies, screw this.

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Or, this sucks, but I’m gaining many new skills that will benefit other aspects of my life. Even though the money is not where I want it to be yet, I am enjoying the journey. Do you see the difference in attitude between the two scenarios that I just mentioned? Well, oftentimes we want to quit because our mindset is not where it should be. And if you’re angry or resentful towards your job or your business, you’ve pretty much given up already. You can no longer be objective. So before you make the decision to give up,

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try to enumerate all the positives of staying in your current situation. Sometimes seeing the positives and the potential benefits written down in a document can reframe your dilemma in a completely different light. So for this question, write down one of the following two statements. I’m analyzing my situation with a clear and open mind, or two, I’m angry or resentful with my situation and it will be difficult to overcome. Then, assign a number from one to 10.

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where one indicates that you’re at max anger or resentment. Okay, so once you’ve answered all those questions and assigned a number to it, the final answer is to actually tally everything up and determine whether you should quit. All right, so if you’ve taken the time to think through all the questions that I just talked about and write it all down, you actually probably already have the answer that you seek. But for engineers such as myself, I try to let the numbers do all the talking. So take all the numbers that you assigned for all eight questions

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and tally them up. And if your total is less than 20, you should get out of there now, just quit. Whatever it is that we were talking about or thinking about, just quit right now. If your score is between 20 and 39, you most likely need to quit, but delay judgment for a couple of weeks to make sure that your feelings don’t change. If your score is between 40 to 55, your situation is mediocre, not great, not horrible, and it’s a judgment call on your part. But in case you’re Asian and listening to this,

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A 55 out of 80 is still a failing grade, so I’d probably still quit. Now, any score above 55, your situation doesn’t seem that bad. Just stick it out and see if you can get your score closer to 80. Now, if all the numbers in this whole scoring system still aren’t providing you with the answers that you need, you can assign weighting factors to make certain questions worth more than others. So for example, I value the health of my family and my own wellbeing above all else.

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So I always give more weight to that question above. Now, if your quit score is between 40 and 55 and you have no idea what to do, here’s my general philosophy. Do you want to go through living life at 50 %? I mean, is 50 % good enough for you? If you can see a legit path to raising that 50 % to 90 % or more in your current situation, then you should probably stay, suck it up, and do the work. But if your situation is already toxic, then just get the hell out of there.

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Regardless, the simple act of asking yourself these questions in this episode and just writing everything down will help you achieve clarity. And in most cases, tallying up the numbers won’t be necessary because you already know based on your responses. But fear should never ever be a reason not to move on. Because the worst thing that can happen to you is spending another year getting your soul sucked out of you. The worst possible outcome is not giving yourself the chance to realize your true potential.

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Hope you enjoyed that episode and please let me know what you think about my framework. In general, I try not to quit anything unless I’ve given it a go for at least three to five years. For more information about this episode, go to mywifequitterjob.com slash episode 357. And once again, I wanna thank Postscript, which is my SMS marketing platform of choice for e-commerce. With a few clicks of a button, you can easily segment and send targeted text messages to your client base. SMS is the next big own marketing platform and you can sign up for free over at postscript.io slash d.

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That’s P-O-S-T-S-E-R-I-P-T dot I-O slash Steve. I also want to thank Klaviyo, which is my email marketing platform of choice for eCommerce merchants. You can easily put together automated flows like an abandoned card sequence, a post purchase flow, a win back campaign. Basically all these sequences that will make you money on autopilot. So head on over to mywifekotorjob.com slash K-L-A-V-I-Y-O. Once again, that’s mywifekotorjob.com slash K-L-A-V-I-Y-O. Now we talk about how I use these tools in my blog. And if you are interested in starting your own eCommerce store,

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Head on over to mywifecoderjob.com and sign up for my free six day mini course. Just type in your email and I’ll send you the course right away. Thanks for listening.