Eight out of every 10 entrepreneurs who start a business fail within the first 18 months, according to Bloomberg. Statistics also show that many successful business founders were dealing with business setback many times before enjoying the fruits of their hard work. Walt Disney, Henry Ford, and even comic genius Stan Lee who bounced back from bankruptcy are just a few visionaries to have made it through tough financial times, never losing sight of their goal. If you are undergoing financial difficulties and you have a family to support, follow these tips to ease the load on your household.
Tying Loose Ends
There are certain signs that suggest it might be time to file for bankruptcy after business setback. These include facing creditors, being behind on essential payments like your mortgage or rent, spending your savings or taking out loans to pay bills. Bankruptcy can be a psychological blow but you can turn this around. Think about it as a chance to put your finances in order and reduce the stress caused by creditor pressure. It is important to file at the right time to prevent further loss. Bankruptcy provides for the reduction or elimination of certain debts, and can provide a timeline for the repayment of non-dischargeable debts. It also permits individuals and organizations to repay secured debts with more favorable terms to the borrower. Filing early can help you and your family hold on to your home. You can meet your day-to-day living expenses instead of struggling to pay a myriad of debts at once.
Learning from Your Mistakes
Entrepreneurial journalist Eric T Wagner of Forbes takes a realistic look at business failure, arguing that there is a reason why so many businesses go down the pipeline. His advice is food for thought for those considering starting a new business or to move their current business in a new direction. Wagner states that failure often stems from failing to keep in touch with clients through deep dialogue. It is important to really listen to clients to identify demands and target areas of business that need change. Other mistakes include failing to find a market niche, and failing to identify a business model that works. Seek help from an advisor if needs be; consider it an important investment in the future of your business.
The Importance of Staying Positive
Kids can absorb their parents’ stress. They can realize something is wrong even when they aren’t told precisely what is happening. Older children will be mature enough to understand that you may be undergoing tough times, but that it is temporary. Let them know that you may need to cut corners but that you are working towards a solution. This will teach them the importance of continuing to move forward even in the face of setbacks.
Having Fun Together as a Family
Show your children that in the toughest of times, you are there to lean on each other. Continue to enjoy leisure time together and if possible, enjoy sporty adventures in the Great Outdoors. Nature has a proven stress busting effect, while outdoor sports have a wonderful ability to keep your mind ‘in the present moment’, allowing you to forget about worries for a while. If you are used to taking a trip abroad, opt for camping instead. You may be surprised at how much fun you have in the midst of something that is priceless: the beauty of nature.
Facing business setback and filling for bankruptcy is hard for anyone. But, you are just one of many business to go through this before finally achieving success. Analyze where you could have gone wrong and try to take steps to improve it. You can even find a mentor who can point out new directions for your business to take. Finally, be honest and communicative with your children. Let them know that times will get better because you are taking steps to make a change. Finally, continue to enjoy life, remembering that you have an invaluable source of support: your family.