How do I admit to my co-founder that I don't think we're going to make it?

Admitting to your co-founder that you believe the business will fail is one of the hardest conversations in business partnership, but it's essential if you've reached this conclusion and you need to act responsibly. Your approach should balance honesty, respect for your shared history, and practical focus on next steps. Prepare carefully before the conversation: gather objective evidence supporting your assessment including financial forecasts, creditor positions, and realistic analysis of options; clarify your own thinking about why you believe failure is inevitable and what alternatives you've considered; anticipate your co-founder's potential reactions including denial, anger, blame, or agreement; and choose an appropriate time and setting—private, adequate time for discussion, not rushed or in crisis moment. Begin the conversation by acknowledging its difficulty and your shared investment: 'I need to talk to you about something very difficult. I've been reviewing our situation carefully and I've reached a conclusion I didn't want to face—I don't think we're going to make it. I know this is hard to hear and I don't say it lightly given everything we've built together.' Present your reasoning objectively with evidence rather than emotion: show the financial forecasts, explain the creditor position, outline the options you've considered and why none seem viable. Frame it as a business analysis rather than personal failure: 'Looking at our cashflow, debt levels, and realistic revenue prospects, I cannot see a path to survival. We're projecting to run out of cash in X weeks, we owe Y to creditors we cannot pay, and even our best-case scenarios don't change the trajectory.' Be prepared for various reactions. Your co-founder might immediately agree and be relieved someone finally said it—they may have reached the same conclusion independently. They might strongly disagree and present arguments for continuing—listen respectfully and consider whether they have information or perspective you've missed, but don't be swayed by hope over evidence. They might become angry or blame you for problems—try not to become defensive, acknowledge their feelings, and redirect to practical discussion about what happens next. They might deny reality—this is hardest to navigate because you may need to proceed with protecting yourself even if they won't engage with reality. Move the conversation toward practical next steps: 'Given this situation, I think we need to urgently seek professional advice about our options and our duties as directors. We need to talk to an insolvency practitioner to understand whether there's any viable rescue option or whether we need to consider voluntary liquidation or other procedures. We also need to understand our personal exposure and responsibilities.' Emphasize shared responsibility and shared interests: 'We're in this together and we need to handle this together as responsibly as possible. Our duty now is to creditors, to employees, and to ourselves to handle this properly and not make things worse.' Be clear about what you're proposing but allow discussion: 'I think we should contact [insolvency practitioner] this week for an urgent consultation. I also think we need to stop taking on new obligations and be honest with ourselves about trading while insolvent. What do you think?' If your co-founder refuses to engage or insists on continuing against evidence, you may need to be more direct: 'I understand you want to keep fighting, but I genuinely believe we're past the point where that's responsible. I'm not comfortable continuing to trade knowing what I know about our position. We need to seek advice even if we ultimately disagree about the conclusion.' Document the conversation in writing afterward—send an email summarizing what was discussed, your concerns, and agreed next steps. This protects both of you by creating a record that you took the situation seriously and acted responsibly. If you fundamentally cannot agree on the right course and your co-founder wants to continue while you believe it's wrongful trading, you may need to consider resignation with legal advice, though this is a last resort. Throughout, try to maintain respect for your relationship even though the business is failing—you've shared significant experiences and presumably started the business with aligned values and goals. Business failure doesn't erase that history, and handling the ending with integrity preserves whatever can be preserved of the relationship. Many co-founder relationships survive business failure if both people handle the ending with honesty, respect, and shared responsibility; many don't survive if one person feels betrayed, blamed, or blindsided by how the other handled the crisis. Your goal is not just to close the business responsibly but to exit the partnership with your integrity and ideally the relationship somewhat intact despite the difficult circumstances.