Out of business Meaning: Definition, Examples, and Translations
🏢
out of business
[aʊt ʌv ˈbɪznəs ]
Definition
business
No longer in operation or functioning; closed down
Synonyms
ceased trading, closed down, shut down.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| out of business |
Generally used to indicate that a company or business is no longer operating, often over an extended period. It suggests that the business is permanently closed.
|
| closed down |
Indicates that a business has been permanently closed. This term is commonly used in both formal and informal contexts, often describing the result of financial troubles or strategic decisions.
|
| shut down |
This phrase can be used in a similar way to 'closed down', but it can also imply a more sudden or abrupt closure. It can refer to temporary closures as well.
|
| ceased trading |
Often used in a formal or official context, indicating that a business has stopped its operations. It can imply either a temporary or permanent situation.
|
Examples of usage
- The company went out of business after the economic downturn.
- The restaurant had to close its doors and go out of business.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Historical Origins
- The phrase 'out of business' has roots in the early days of commerce, where businesses would literally close down if they ran out of products to sell.
- In the 19th century, as industrialization grew, many small businesses went out of business due to competition from larger firms.
- Bankruptcy laws developed to provide a legal process for businesses unable to repay debts, often leading to being out of business.
Economic Impact
- When businesses go out of business, it can lead to job losses, affecting families and communities.
- Small companies are more likely to go out of business, with around 20% failing within their first year in competitive markets.
- Economic downturns, like recessions, can drastically increase the number of businesses that close their doors permanently.
Pop Culture
- In movies and TV shows, going out of business is often portrayed humorously or dramatically, highlighting the struggles of small businesses.
- The phrase frequently appears in songs and literature, symbolizing dreams that have been dashed or the end of an era.
- Iconic brands that once dominated their markets, like Blockbuster, are often referenced in discussions about being out of business, indicating how quickly fortunes can change.
Legal Aspects
- Businesses that go out of business may file for bankruptcy protection, allowing them to manage debts before closing.
- The legal process to dissolve a business can vary widely by country and may involve various local regulations.
- Reputable business practices promote responsible management to reduce the risk of going out of business.
Management and Strategy
- Companies can avoid going out of business by adapting to market changes and consumer demand.
- Effective financial planning and marketing strategies are crucial for long-term survival in competitive industries.
- Many successful entrepreneurs learn valuable lessons from businesses that have gone out of business, using those insights to launch new ventures.
Origin of 'out of business'
The phrase 'out of business' originated in the mid-19th century in the context of commerce and trade. It is used to describe the state of a business that has ceased operations either voluntarily or due to financial difficulties. The term highlights the closure or discontinuation of a business entity, often resulting in job losses and economic repercussions.