Here’s How (by Kelli Brewer)
Is it possible to create a business after a financial loss or company failure? Absolutely! Not everyone succeeds the first time around, and mistakes and failures can be steps on the way to a solid and thriving business. The key is to learn from past errors. You don’t want to wallow in them or let them define you — but neither should you pretend they didn’t happen. With the right approach and attitude, you may even find that your past setbacks have strengthened you as a leader and entrepreneur.
Clean up any leftover messes.
If past financial difficulties have left lingering effects in the form of unsustainable debt or bad credit, get this taken care of before you proceed with your launch. Consider consolidating your debt, if possible, but remember that taking out a consolidation loan can adversely affect your credit — at least, initially. So, if you already have credit issues, consider other debt reduction strategies, such as paying off loans with the highest interest first. Getting rid of older or outstanding debt can also help your credit. Go over your expenses and see where they can be reduced, or if you are spending more than you need to on unnecessary items or services.
Make a point of learning from your mistakes.
Do a thorough scan of your past efforts, both in your personal life and your business, so you have a clear sense of why exactly things went wrong. Was it an unforeseen disaster? A regrettable choice you made? Poor advice from a colleague? Or perhaps, a mix of different factors? Do your best to pinpoint why your efforts were not successful and why you experienced loss.
Then, ask yourself what you could have done differently. Perhaps you could have budgeted more carefully or gotten better insurance. Or maybe, it was something as simple as failing to trust your gut. Identify your strengths and weaknesses so you have an objective understanding of how to do better. Better yet, invest in comprehensive finance training from HB Publications and Training International to help you develop solid management skills.
Take what you have learned and put it into action.
Record both what you could have done differently and what you did correctly. Keeping this in mind, write up your business plan. A business plan will serve as a blueprint for your business and guide you as you put it all together. It also functions as proof that your startup will be viable, which is especially important if you want to secure funding. Lenders and investors who may look askance at you due to past setbacks or errors may view you more positively if you can demonstrate that you not only have planned methodically but have addressed potential weaknesses, as well.
Make your life easier with helpful apps and software.
If you don’t feel financially ready to hire full-time employees, or even freelancers, cut down your work time by relying on tech to assist you during these early stages of your startup. There are apps that can help you stay organized, software to help with money management, and tools to help you set up meetings and stay connected.
If you do go ahead and hire team members, make sure you have a good payroll system so you don’t waste time and energy staying on top of this potentially headache-inducing aspect of business ownership. Find a platform that offers payroll processing from mobile so you can accurately calculate wages and deductions and file taxes error-free, even away from your desk. Being able to run reports, create payroll reminders, and deposit funds to your staff’s bank accounts on the fly are compelling features, too.
Starting a business is overwhelming at the best of times. But it is also exciting and an opportunity to put your talents into action. Focus on the positive and seek help when you’re feeling overwhelmed. If you feel you could use additional training in financial management, HB Publications and Training International offers courses and coaching that can help you.
Article written by Kelli Brewer of Deploycare.org