Deciding whether to continue, sell or close a shop is difficult because it combines money, time, professional identity and years of effort. To prevent attachment to the project or exhaustion from determining the answer, reconstruct the situation as though an independent third party were assessing the business.
First question: can the business become profitable again?
Remove exceptional factors and build a realistic twelve-month scenario. Is the revenue required to break even credible given the current location, customers, team and market? If recovery demands unrealistic sales growth or impossible cost reductions, continuing may consume even more cash.
Second question: does the shop have saleable value?
A business may have value even when its owner no longer wants to run it: customer base, lease rights, location, brand, website, inventory and operations. However, the value of a business is not simply a function of turnover. Profitability, lease quality, dependence on the owner and stock condition strongly influence buyer interest.
Revisit our guide to evaluating a business acquisition from the opposite perspective: what a buyer looks for also creates value for the seller.
Third question: how much does waiting cost?
Each additional month can improve the situation or make it worse. Measure cash consumed per month, new debts and the value of inventory. A 'wait and see' strategy needs a deadline and specific objectives.
Prepare a sale early enough
A business sold under pressure is harder to present well. If selling is an option, clean up inventory, formalise procedures, make accounts reliable and reduce the shop's dependence on its founder. These actions also improve the business if the sale never happens.
Voluntary closure is not the same as insolvency
Voluntary cessation of business requires a financial situation that permits the relevant formalities. If the company can no longer pay debts due with available cash, it enters the field of legal financial difficulty and must promptly contact the appropriate professionals. Do not delay action on a financial situation requiring formal procedures by treating it solely as a commercial decision about closing.
Do not decide alone when the situation is serious
Accountants, lawyers, chambers of commerce and public prevention services can provide an independent view. In 2026, the French government strengthened its early intervention efforts to encourage small businesses to seek help sooner.
Prepare three cases
Build a 'continue and restructure' scenario, a 'sell' scenario and a 'close' scenario. For each, set out the cash needed, time frame, debts, inventory value, personal toll and likely financial outcome. The comparison then becomes much clearer.
Official sources
French Ministry of the Economy — Solutions for businesses in difficulty · Service-Public Business — Preventing business difficulties