Bouncing Back from Financial Losses

If you started a business in search of the American Dream but are struggling to pay suppliers or you are relying on savings to pull through, you certainly aren’t alone. According to the Bureau of Labor Statistics, around 70% of businesses with employees on the books fail within 10 years. Small businesses fare significantly better, with 66% doing so in their first decade. If your business is one of those that has not stood the test of time, it doesn’t mean you should pack up and give up on entrepreneurship. If trailblazers like Henry Ford or Walt Disney have shown us one thing, it is that one should never give up on one’s vision.

In Search of Clarity

If you find that you are relying on loans to pay off bills, you are depleting your savings or you are continually being pursued by creditors, it may be time to file for bankruptcy. Doing so has a bad rap because it affects your credit score and appears as a public record for 10 years filing. However, it is ultimately the better option if you cannot pay your bills, as it gives you the chance to start all over again. As noted by a Scottsdale bankruptcy attorney firm, “bankruptcy should be considered early enough to be a viable strategy to preserve the business’s assets and help it continue as a going concern.” In other words, filing can be the only way to ensure you have enough funds to start again, perhaps in a completely new direction. CNBC’s Sakina Spruell supports this assertion, stating that if you don’t file and creditors sue, they can garnish wages or even put liens on your home.

Learning from Mistakes

There is a reason why so many businesses go bust and it is important to discover yours, so you can lead a new business to success. Depressed markets may trigger a bankruptcy, but it is also important to ask why competitors in your industry have continued to flourish or at least survive in tough economic times. Entrepreneur’s R.L. Adams notes that some of the most common reasons for failure include failing to provide real value, not connecting with your target audience in a meaningful way, and failing to give due importance to conversion optimization. As far as the latter is concerned, it is vital to invest in conversion-optimizing activities, making them an important part of your business strategy.

Seeking Mentorship

A seasoned mentor can guide you into a new path, leading by example and providing useful insight into potential new business or career paths. If you have an idea for your next startup or business, draft a thoroughly researched business plan and show it to your mentor or to experienced colleagues to glean their opinion. It is vital to receive feedback with an open mind, since you will most likely have less assets to risk losing the second time around.

Failure in business is common, but not definitive. Like great entrepreneurs before you, use it to learn and grow in new directions. Rely on the advice of successful professionals who have your best interests at heart and who will be honest with you on potential flaws you need to overcome.