When should you call it quits with your venture?

This was a discussion that came out of Club42 . Sharing the summary of it for the benefit of the larger audience.

1. Before starting a venture have a word with your family or be it mentor - someone who holds you accountable, and decide on what success would look like and what failure means (For eg. it could be 3 years without significant traction or running out of money)

2. If you find yourself burnt out and run out of energy. If you wake up and dread the day ahead, that's a sign.

3. If the market does not exist : The test to find out - if none of the players in the market are making money, then its a market problem. If everyone else is making money but just you aren't, then it is an execution problem. If it is the former, then its time to quit (or pivot).

4. That said, don't quit early - most businesses go through near death experiences a few times. Entrepreneurs often come up with breakthrough solutions under constraints. Given you are not burnt out.

5. Further reading: Seth Godin's book called The Dip .