Getting Back in Business After a Financial Setback
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Failure is a common part of business ownership. Every successful entrepreneur has faced their fair share of business failures and financial setbacks. While these stumbling blocks can be discouraging, they’re only temporary! Use this experience as a learning opportunity so you can get back in business with the knowledge and skills you need to succeed this time around, a particularly important concept if you’re planning to start a business from scratch.
And be sure to tap into all the resources that are available to help you. For example, consider working with the experts at Redde Payments to ensure your website is optimized for receiving payments. Let’s dive into some of the other steps you can take to overcome your obstacles and get back in business!
Start at Home
If you’ve recently experienced a financial setback, you might be tight on funds right now. One of the best ways to keep your startup costs low is to launch your business from home! You don’t need an office or retail space to thrive. In fact, some of the world’s biggest companies operate entirely online. Sell products through an e-commerce store, offer consulting services over video chat, or welcome local clients to your home for in-person services.
If your business idea involves meeting and working with people one-on-one, consider converting your garage into a client-friendly space with a separate entrance so your clients don’t have to walk through your home. This will make people feel more comfortable about visiting your workspace. As a bonus, you’ll separate yourself from household distractions during work hours. What’s more, such upgrades to your property can even boost your home’s appraisal value!
Work a Side Gig
If you need some extra money to cover your personal bills while you launch your business, pick up a side gig. There are countless great ways to make some extra cash on the side without committing to a full-time day job. For example, TopCV recommends becoming a mystery shopper, driving for a ride-sharing or delivery company like Uber, offering consulting advice online, or renting out a spare room in your home. Get creative and try to think of ways to use your assets and skills to make some extra money while you get your business underway.
Make the Most of Free Marketing
Marketing can quickly become a major expense. Instead of splurging on paid advertising strategies like pay-per-click (PPC) and banner ads, take advantage of free and low-cost online marketing techniques. For example, you can post regular content and engage with followers on social media for free. You could also create YouTube videos, produce a podcast, or write blog articles for your business. Try to grow your following organically by producing engaging, valuable content for your target audience. Eventually, these followers will turn into paying customers who are loyal to your brand.
Enhance Your Skills
After experiencing a past failure, it’s important to reevaluate your skills. Maybe you lack some of the key skills you need to excel as a business owner — and that’s okay! No one is born a great entrepreneur. The good news is that it’s never too late to learn. SkillsYouNeed.com explains that all small business owners should possess a few key tech skills, so this could be a good place to start. For example, make sure you know your way around Google Analytics, email marketing, social media communication, project management software, and mobile payment processing.
Leadership skills are also critical to your success as an entrepreneur. As your business grows, you will take on more and more workers, whether employees or freelancers, and managing this growing team can become increasingly challenging. Consider taking a leadership course through online learning platforms, and learn how to better lead others before you run into issues.
Research Your Business Idea
Not all business ideas are destined for success. Before investing time and money into your new business, make sure you validate your idea properly. Business owners who skip this step are often surprised when their businesses fail to produce the profits they expected.
To ensure there is demand for your business, start by identifying your target buyer and determining whether or not your idea addresses their needs. Does it solve a common problem? Does it help them achieve their goals? How much are they willing to pay for your solution? The best way to do this is to speak to real members of your target audience by conducting focus groups, phone interviews, and online surveys.
Monitor Your Cash Flow
According to a study sponsored by US Bank, cash flow issues are the number-one reason why small businesses fail. While many small business owners focus on profits or revenue, these metrics can present a distorted view of a business's financial health. Businesses run into cash flow problems when they don’t have the liquid capital on hand to cover their bills, regardless of whether or not they’re making sales.
Make sure you understand the importance of cash flow management so you can avoid these problems. You won’t be able to stay in business if you can’t pay your bills! Payment processing and other services via the Redde Payments platform can help you stay on top of incoming revenue.
Moving on from a financial setback can be tough. It’s easy to get discouraged and step away from entrepreneurship for good, but the best thing to do is jump right back in! Learn from your mistakes and use your experience to improve your business strategy. With knowledge and planning, your new business will have an even better chance of success!
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