How to Bounce Back From a Business Failure

Janet Lovelace created Work Can Wait because too many entrepreneurs feel like work is always calling. Work Can Wait is about helping small business owners automate, delegate, and systematize their businesses so they can prioritize their lives.

As an entrepreneur, deciding to pull the plug on your small business is one of the hardest decisions to make. But, this was the fate of millions of small business owners across the globe due to the recent pandemic. If you’ve recently closed your business and are unsure about what the future holds, the following article shared by Touchstone Publishers is here to help.

?Focus on Your Health

?Business closure can prove to be a mentally draining experience, impacting your self-confidence and ability to make decisions. The first few days will understandably be tough and you may experience emotions of anger, regret, and doubt. But, instead of letting your emotions get the better of you, undertake steps to keep your emotions in check and regain clarity of thought. This can include:

?●????Exercising each day. The Globe and Mail notes that when we exercise our body releases various feel-good hormones that naturally combat stress and provide a boost in mood.

●????Getting enough rest. Exercising is bound to make you feel tired and help you to get at least seven hours of sleep each night. Without proper sleep, it’ll become harder to manage stress and negativity.

●????Creating a positive home environment. Decluttering will help rid your home of negative energy and help create a stress-free environment, allowing you to focus on what the next steps will be.

?Take Control of Finances

?Post-closure you still may be responsible for outstanding business dues, such as paying off vendors, utility bills, rent, etc. You’ll need to gather up all business-related documents to get a sense of what needs to be done.

?Repaying all these expenses together can become complex, hence choose to enlist the help of an accountant. Yes, this will incur a cost, but it will help save thousands of dollars in the long run which you could become liable for due to late payments or breach of contracts. You can also ask the accountant if they think selling your business could be an option, which would help as you financially withdraw from the business.

?Simultaneously, take control of your personal budget and cut back on all unnecessary spending, explains Take Charge America. Expenses you can’t avoid will include rent, groceries, and utility bills. Additionally, look for assets that you can sell to increase your cash in the short term; this can include your vehicle, office furniture, unused home furniture, and more.

?Start Looking Forward

?Once all activities related to closing your business are complete, and you’ve allowed yourself the time and space to come to terms with the situation, start looking forward to what’s next. Losing a business is hard, but as all successful entrepreneurs will tell you, it provides valuable lessons which no book, course, or mentor could teach you. Utilizing these lessons in your next endeavor will help avoid past mistakes and increase the chances of your next business becoming a success.

?But, before you jump into your next project, take the time to objectively review what went wrong last time, which could include:

?●?????Bad cash flow management

●?????Ineffective marketing strategies

●?????Lack of investment in product development and research

●?????Poor planning and decision making

?Launch A New Business

?There are many reasons why a business might fail. If you feel ready to try again, be strategic before you restart the entrepreneurial process. Start by re-establishing your credit. Closing your business likely had an adverse effect on your credit score. Check your credit report, as lenders will still use it to predict if you are a wise investment. If your score is too low, then pause while you bring it back up.

?Based on market trends, digital-first businesses are the ones that have thrived in recent years, as they have positioned themselves where the customers have been – online! Hence, to increase the chances of success, your business will need to follow this trend as well.

?Additionally, you can significantly reduce the cost of operations with a digital business. Freelancing writing, setting up a drop shipping business, virtual assistant, web design are a few one-person business ideas that you can run from the comfort of your home with just a laptop. This helps overcome the need of leasing office space, commuting, and hiring staff.

If you find yourself struggling to tackle the challenge of starting another new business single-handedly, look to work with an experienced consultant. A consultant will provide your guidance through each step of the process, help find clients and work with you to make your business a success.

Embrace New Opportunities

You can expect to face some challenging times post-closure of your business. But, the lessons you'll learn from this experience will make you a better entrepreneur, having a wealth of knowledge and expertise to tackle the toughest challenges in your new endeavor. When you – and your credit – are ready, work with experienced entrepreneurs and consultants to make sure your new business path will set you up for success. Starting over is hard, but it can also be an amazing opportunity.

Are you looking for ways to strengthen your leadership skills? Glenn Daniels II at Touchstone Publishing can help! Visit us online to learn more.