Since my last post (I know it’s been a while), my team has been doing a lot market research and due diligence on the sustainable housing project in Lund. We have come to the following conclusions:

• The housing problem in Lund is real and of high concern to the city and the dean of  Lund University
• Sea container single apartment developments represent the fastest and cheapest way to supply new housing to the market
• The non-student residents in Lund are strongly opposed to new student housing developments
• Rent controls and high tax rates in Sweden make it unprofitable for individuals to buy to rent
• A small-scale sustainable housing community would  be well received by the city an university, however, will most likely take years to be realized due to the red tape surrounding development procedures within the municipality

Due to the last three points our team has decided to abandon the project; and we are OK with that.

Any successful entrepreneur will tell you the importance of failing often and failing quickly. It is what you learn from the process of figuring out why you will drop a venture that is important. Failing quickly further allows you to save valuable resources that you will need to put into your next project.

How do you know if it’s time to quit?

Knowing the difference between what Seth Godin refers to as a “Dip” and a “Cul-de-Sac” or “Cliff” is vital to entrepreneurial success. A “Dip” is a temporary set-back in you venture that will get better if you keep pushing. A”Cul-de-Sac” or “Cliff” on the other hand is a problem that won’t go away no matter how much time or resources you put into it.

An entrepreneur must prepare and anticipate dips. She must also be able to analyze the problem at hand and objectively decided whether or not it is time to quit.