"Sometimes there are clear signs a business is failing. University of Toronto's Rotman School of Management entrepreneurship professor Becky Reuber lists three different types of signals entrepreneurs should watch for.

Financial: Are you struggling to make payments like rent? Is it hard to buy inventory? Are you taking on more debt than you're comfortable with just to keep the business going? Is your banker worried when he reviews your statements?

Customers: Is there a decrease in repeat business? Is there an increase in customer complaints? Are their lawsuits from customers?

Employees: Is employee morale diminishing? Are key employees leaving? Are departments fighting with each other? This may be because "employees can often sense businesses that are going bad," Reuber said.

If an entrepreneur spots these signals, it's time to ask a tough question. Does it make sense to close down the business? The hard part is there isn't always a right or wrong answer."

While all of these signs are good indicators of the business as a whole it doesn't account for the portions that may be working. It is good to examine the parts of the enterprise that do work and see if they are still viable

Can the product or service be marketed alone on or off the web?

Can the producer or service be restructured or revamped to fit a niche market that is not being served?

Is there a way to lower costs and not diminish quality?

Is there a new product or service that can be added to infuse financial life into the existing business?

At the end of the day entrepreneurs need to make decisions that they can live with but it is best not to utilize long term solutions to rectify short term problems.