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Shutting down a business: What every founder needs to know
“When you're going through hell, keep going." This podcast is about failure and how it breeds success. Every week, we talk to remarkable people who have accomplished great things but have also faced failure along the way. By exploring their experiences, we can learn how to build, succeed, and stay humble. We are actively looking for sponsors. If you’d like to reach over 200,000 readers monthly, Keep Going is the perfect opportunity. Check out our one-pager here. If you’d like to appear on either show, email john@biggs.cc.
Starting and running a business can be one of the most rewarding experiences, but knowing when and how to shut it down is equally crucial. In this post, we’ll explore key insights from Dori Yona, CEO and co-founder of Simple Closure, on navigating the often daunting process of business closure. You’ll learn about the common pitfalls, best practices, and how to ensure a smoother transition during this challenging time. This was an interesting interview and had a lot of info for folks who might be considering closing their businesses so I took some of the best practices from our conversation. Understanding the Need for Business ClosureEvery year, millions of businesses in the U.S. shut down for various reasons, from running out of cash to strategic pivots. Dori shares that many founders wait until it’s too late, leading to fines and penalties. The proactive approach involves assessing your business’s financial health and recognizing when it’s time to seek help. The earlier you start planning for closure, the better the outcome. The Simple Closure ProcessSimple Closure offers a streamlined process for shutting down a business. It starts with a quick onboarding, where you provide essential information about your company. This information is then analyzed in conjunction with public state databases to ensure no detail is overlooked. The result is a tailored shutdown plan that simplifies what is typically a complex process, reducing timelines from several months to just weeks. Best Practices for Preparing for Shutdown1. Don’t Go It Alone: Dori emphasizes that founders often underestimate the complexity of shutting down a business. It’s essential to seek professional help to avoid costly mistakes. 2. Budget for Closure: Many founders mistakenly believe they can simply run their business until it’s out of money and then shut down. However, shutting down incurs costs such as taxes and employee severance. Dori advises ensuring you have adequate funds available to cover these expenses. The Importance of Knowing When to Shut DownRecognizing the signs that it’s time to close your business can be difficult. Dori explains that some founders may resist shutting down even when financial indicators suggest it’s necessary. It’s crucial to evaluate your situation honestly and make informed decisions. This might involve using tools or resources that can help calculate the best time to close based on your business’s specific circumstances. Conclusion: Key Takeaways for FoundersShutting down a business is never easy, but with the right guidance, it can be a manageable process. Here are the primary takeaways: - Be proactive and assess your business’s health regularly. - Don’t hesitate to seek professional help. - Ensure you have the funds necessary for a proper shutdown. - Understand your liabilities and plan accordingly. Frequently Asked QuestionsWhat are the first steps to take when considering shutting down a business? Start by assessing your financial situation and consulting with professionals who specialize in business closures to understand your options. Are there costs associated with shutting down a business? Yes, there are various costs, including taxes, employee severance, and potential fines, which is why it’s important to budget for the process. How long does it typically take to shut down a business? With Simple Closure, the process can be expedited from several months to just a few weeks, depending on the complexity of your business. What should I do with my business’s assets when shutting down? Services like Simple Closure can assist with monetizing your assets, ensuring that you get the most value out of your business before it closes. You’re currently a free subscriber to Keep Going - A Guide to Unlocking Success. For the full experience, upgrade your subscription. If you’ve been reading or listening to Keep Going for free, you’ve already seen the value of having independent work that isn’t shaped by corporate sponsors or the news cycle’s noise. But independence has a cost. If you find something useful here, if these words make you pause or think, I’m asking you to step up. A few dollars each month means I can keep doing this work without compromise. Without your support, this project stays fragile, balanced on the backs of a few.
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Sometimes you're too early
A great post by my friend Kim Kolchin. He's been writing a lot about AI and contractors/repair folks. Check him out.
Sometimes you're too early
I was naive. And I was early.
Way back in 2015, way before there was any kind of “smarthome” gear, I launched Gate, a mailbox sensor that I spent years designing and building.
I thought that if you built it, they would come. After all, everything online told me that success was a click away.
We launched Gate on Kickstarter. We even got a TechCrunch article written about us.
I was so excited that I prepped my team for an onslaught of orders. The story was simple: we built a smart mailbox sensor that notified homeowners when mail arrived. Our Kickstarter price was $299.
$299 was too much for most users. $299 for a mailbox sensor was an investment, not something you pay for on a whim. I knew that I had solved a major problem for folks. I knew that people needed this. I saw folks trudging to the mailbox, down super long driveways, just to find out the box was empty. So why didn’t people bite?
They didn’t bite because I was naive and too early. My vision was clear, my idea was good, but the time wasn’t right. For decades, many of us have been trying to shoehorn tech into places it doesn’t belong. We tried to build things using tools that were clumsy at best and destructive at worst. My product was just like that. It was a device that cost as much as a cheap cellphone that did one thing well. In the price-value-quality triangle, we were well within the value and quality corner but no where near the price corner. We were doomed from the start.
I learned a valuable lesson that day: always be selling. I should have tested this product in the wild much earlier. I should have sold it at trade shows, at events, to people with long driveways. I shouldn’t have depended on an online campaign. My device was a piece of hardware. It made sense to maybe 20% of the U.S. population with long driveways. And those people didn’t read TechCrunch or visit Kickstarter.
When everything is available online, nothing is special. I now know that the real moves happen face to face. That’s how the ball starts rolling. Maybe you send a hundred emails to your biggest fans. Maybe you set up a booth. Maybe you show your product to people in real life.
But you have to sell.
Gate didn’t become the company I’d hoped for.
Fast forward ten years.
Ring now sells a mailbox sensor for about $30.
The lesson isn’t that we were “right.”
The lesson is that markets, technology, manufacturing costs, and ecosystems all have to mature and the winners aren’t always the first movers. The most important thing to consider is that you have to have sold your first dozen products to friends before you even try to sell online to strangers. And don’t be frustrated when your great idea fizzles. Ninety-nine percent of them do. But that one percent that wins? That’s where success lies.
Sometimes the hardest part of entrepreneurship isn’t having the right idea.
It’s having it at the right time.
My personal Substack
© 2026 John Biggs
548 Market Street PMB 72296, San Francisco, CA 94104
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