Running a business is not for the faint of heart. The path to success is abundant with challenges that test the fortitude of even the shrewdest entrepreneur. Studies reveal that 50% of small businesses succumb to challenges and cease operations within five years. Hard work and any efforts to avoid setbacks are often negated by the unpredictability of entrepreneurship.
Although devastating, financial setbacks are opportunities in disguise. How you handle them determines if your business will bounce back or not. If you are passionate about your business and prepared for the oftentimes painful recovery process, you should use the opportunity to develop the wisdom and grit required to achieve long-term success.
Desired Effects Coaching explains how to get your dream business up and running again:
Acknowledge and analyze the setback
Resist the instinct to panic and blame external factors. Factors outside your control may have contributed to your setback, but chances are you could have made better decisions to avert the crisis. You need to perform a thorough analysis and objective evaluation to figure out the cause of the setback and how it could have been avoided. Own your role in causing it and learn so that you do not repeat the mistakes.
Enlist a strong support network
Entrepreneurship can be a lonely path. To succeed you need a strong support network for guidance, support, and mentorship. In your hour of financial setback, your network can offer both emotional and business support. Swallow your pride, and ask for advice and help from your trusted peers, friends, mentors, and employees. Chances are, one of your contacts has overcome a similar setback and is in a position to offer guidance and insight that can hasten your recovery.
Implement the right payroll system
When trying to recover from a financial setback, it helps to have a payroll system that allows you to graph the financial data of all payroll expenses and create a forecast. With integrated features like time tracking, you can assess your business performance, manage team schedules, and approve and adjust timesheets on the go. When choosing a platform, you should make sure it also supports real-time reporting, integrates with your payroll system, has an employee self-service portal, and offers mobile support.
Adjust your marketing strategy
Your business needs an injection of cash inflow to get out of the financial setback. Begin by analyzing your current marketing strategy to find flaws then implement new strategies that are likely to boost sales. Aggressive marketing helps you retain existing customers as you seek to acquire more. In the spirit of frugality, you should focus on low-cost marketing strategies like social media campaigns and email newsletters.
In fact, social media is one of the best and most affordable ways to engage your audience. Whether it’s a team of you or your staff, a variety of online tools can help amplify your messages. For example, if you’re not super savvy when it comes to Instagram, a free Instagram post generator can eliminate the hassle and help you produce superb posts in a matter of minutes.
Research the competition
Before throwing your hat back into the ring, you must conduct exhaustive market research. Assess the viability of your recovery ideas by finding out what your competitors are doing to succeed. Research the local, national, and global markets to find out what works and what doesn’t. Use the information from your research to fortify your recovery strategy and out-compete your competition moving forward.
Take advantage of available financing options
Everyone from local entrepreneurial groups to government programs wants to see your business recover. There are several grants and loans that can give you the injection of capital you need to get out of the financial hole. Conduct proper research to determine whether it’s best to apply for a bank or private loan, and to find one with favorable rates for your business.
Take sensible business risks
It might take stepping out of your comfort zone to reclaim your business dream. This does not mean gambling blindly while your emotions are still running high. Use what you’ve learned from your setback and analysis of the market to make objective decisions. Taking a sensible business risk involves testing out new strategies before implementing them on a full scale.
Final thoughts
Financial resilience is an important quality for any prospective entrepreneur. When financial setbacks inevitably rock your business, you should stand firm, re-evaluate, and strategize recovery. Use the strategies outlined above to tackle the obstacles you encounter on your entrepreneurial journey.
Photo credit: Carlos Muza on Unsplash
To help eliminate a rocky path forward, connect with Desired Effects Coaching to help enhance your leadership and communication skills. We can help you unpack the challenges you faced previously, and provide you with a toolbox so you can successfully move forward. Connect with us today to find out more.
Guest Author: Stephanie Haywood
Stephanie Haywood is an internet blogger and host of the Life Boost Blog where she focuses on sharing the gifts of self-knowledge, self-care, and self-actualization. Visit her at mylifeboost.com .