Simple Tips for Starting a Business Out of Financial Failure

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If you’re like many other people, you suffered a significant blow to your career in the last year or so. Maybe you lost your small business. Maybe you got laid off from your job of 15 years. Or perhaps you’ve gone through another type of setback that has you reeling and uncertain how to pick up the pieces.  

If you have an entrepreneurial spirit, your disappointments and failures can be used to make you stronger, smarter, and wiser. And what better way to use your recent hardships to your advantage than to start a new business? OmniMarketing2020 is here with some practical advice for the prospective entrepreneurs out there who want to take their career to the next level:

Address the Problem(s)  

Oftentimes, failure and success go hand in hand. Failing at something provides an opportunity for learning and improving, which is why many of the world’s most innovative and successful entrepreneurs have experienced setback after setback. 

Nonetheless, failure is hard, and it’s essential to process your grief before moving onto your next chapter. Whether it’s a loss of business or a loss of job, embrace the setback and allow yourself time to get through the emotional and psychological impact of it. 

For you to make the most of your failure, however, you must analyze it and figure out what you can do better next time around. For example, if you’ve suffered a blow to your reputation, look for how you can begin repairing it; working with an SEO and reputation management agency can help you rebuild your name in the industry. If team dynamics is the primary issue that led to your setback, figure out how you can better communicate and work with others. If you struggle to manage your finances, work with a financial planner to right the ship.

One common culprit of business failure is not paying close attention to your cash flow. If you’re spending more money than you’re taking in, it won’t be long before your business closes its doors. If you’re wearing a lot of different hats during those lean early days of your business, you can use software to help you stay on top of your finances. Software like QuickBooks Online Advanced, for example, allows you to easily track your cash flow using a number of reports, graphics, and data comparisons. Although this type of software provides you with the information you need, it’s ultimately up to you to put this data to good use.

Give Yourself Options

When you’re preparing to move onto your next venture, be sure not to limit yourself. Starting a company in the same industry in which you have expertise certainly has its benefits. But don’t shy away from exploring other options. Take time to brainstorm any industries, niches, and vocations that interest you. Make a list, do some market research to figure out which business ideas are feasible, and narrow down your options to a single idea.  

Create a Killer Business Plan  

Once you’ve chosen what business idea to pursue, start putting together a detailed business plan that you will use to secure funding and navigate obstacles during the first few years of the company. Among other items, your mission statement, core values, financial projects, funding needs, marketing strategies, and target audience should be included in your plan. Note that you will need to make modifications to your plan as your business grows; for now, just make it as accurate as possible. 

Branding and Marketing

When kicking off your new business, make sure you’ve put together a plan for branding and marketing. Although this could involve hiring a freelancer to handle the work, you can actually do a lot of this on your own without a lot of hassle. Social media (Twitter, Facebook, Instagram, etc.) is a great way to market your business and get eyes on your new endeavor. You can also use a website builder to create a quick-and-easy home for your business online. Lastly, online tools such as a free online logo maker can help you create an identity for your business that you can use on social media and your website.

Use your setbacks to your advantage. Take time to process your grief and learn how you can handle things better in the future. Allow yourself to dream up brand-new business ideas, even if they’re in a completely different sector than you’re used to. And create a thorough business plan that will help your company get off the ground and succeed long-term. Remember: Embrace your failure, and you’ll be all the stronger, smarter, and wiser for it!