A list of questions from a presentation by Aaron Harris, a YC partner

when-to-shutdown-your-startup.md

When to shut down your startup

From a presentation by Aaron Harris, a YC partner

This decision making framework is based on the premise that startups are about growth. If you are not growing you are not a startup. You may be a business, but not a growing one. In most cases if the business is not growing it is shrinking (occupies smaller market share).

1. Are you growing?

• Are things going OK?

  Let's say you are surviving.

• Is the business growing?

  It is a much harder decision if it is growing, but maybe not fast enough or not in the direction you'd like it to.

• Are you in a zombi mode?

  You get a feel that nothing exciting is happening. People are bored, some are leaving.

2. Do you have any ideas how to make it grow again?

• Can you drive that growth profitably?
• Do you want to work on the startup that results from that growth?
• Do you want to work with your co-founders on the startup that results from that growth?

3. Consequences

• Are you breaking any promises by shutting down or walking away?

  Consider your stakeholders: investors, users, business partners, employees.

• Can you help them minimize the losses?
• Is it actually better for them to cut the losses and move on?

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You, as a person, are not defined by the success or failure of your startup.

Treat others well and they will happily join you for your next big idea.