Wednesday, May 04, 2011

We are closing one business to focus on our Mission

The standard dialogues from the top management who are closing a business are
  • We are closing one business to focus on our mission.
  • Our strategy has been changed, and we no longer want to be in this business.
  • The business is no longer aligned with our vision of the company.
Would any entrepreneur close a business, if they are getting profits? If there are profits in the business (even if they are very tiny), then anyone would try to sell the business, rather than closing it.

If they are not getting profits, and closing the business, cannot they tell the same thing directly rather than telling all the management words like Focus, Strategy, Mission etc.?


  1. Dude, companies always look for profit to investment ratio. If they have two business units with one yielding lots of profits and have a long term scope for growth and other yields profit but the profit to investment is less.. then the company always wants to invest in the first unit rather than second one..then they will say it is not aligned with their long term strategy..

  2. If the business unit is getting profit, then any sane person would sell the business, and not close it down.

  3. What if nobody comes to buy it..

  4. You are correct.

    The reason for my post was, recently, one business was closed, which had an unique idea. I liked their service, and I am not aware of any other service provider in the same space. They were not getting profits, and when they closed, they gave the reason as focus instead of not getting profits.

    Had I been a rich person, I would have answered this by buying that business for less price. ;)