They say that failure is not an option, but it happens on a very consistent basis. We all know that it’s painful, and we know it hurts even more when it’s a business built by your own fair hands. But if your business stopped tomorrow, or you weren’t able to run it yourself, would it actually cope?
Here are some methods to consider if something untoward happened, such as you are taken out of the running by an external source, or the business collapses. Be careful with these options, and it always pays to be methodical if the worst should ever arise.
Prevention Is Better Than Cure…
Ultimately, you need to get a plan in place, and this should be enough to keep your business ticking over should the worst arise. At this point, it’s important to look at your employees, and make sure that you start to think about who you are going to delegate certain duties to.
You, as the owner and sole proprietor, need to let go of certain duties. If you run your business with your cards close to your chest, it’s very likely that the business will collapse because you’ve not allowed anybody else to take charge of certain key aspects, aspects that you aren’t necessarily that skilled at.
When you think about delegating, think about the skills of specific people, and who certain roles would be handy for. You need to look at the longevity of the company, it’s important to not bring personal quibbles into the mix.
There may be someone that you don’t particularly like, but if they are perfect for a certain role, why shouldn’t you let them have it? The other important thing to think about is not to tell them that you are going to delegate, should there be an issue. This can be very dangerous for you, as they will likely start to plot your demise.
Instead, you should have one person that you trust implicitly to have this information. And as time goes on, plan and review this as people join and leave the business. A contingency plan is something you always need to have in place, and if you don’t, it’s time to start thinking about one.
If you’ve been put in a position where something has happened, and it’s not your fault, it’s your prerogative to understand the legal ramifications. A very prominent example is the option of bankruptcy. You generally have two choices when it comes to your bankruptcy options, chapter 7 bankruptcy or chapter 13 bankruptcy.
The difference between the two, chapter 7 bankruptcy is related to sole proprietorships and business entities, and you have a chance to be able to continue your business, and you can get help to restructure your company. Chapter 13 bankruptcy is only for sole proprietors, you are able to reorganize your debts. And you can get secured loans via this plan, and this could be your saving grace for the business.
Although a lot of people say that bankruptcy is the last option for many companies, it could be the correct way for you to wipe the slate clean and start all over again.
Pursuing A Vendetta
This can be dangerous if something has stopped you running your business, like a car accident or something that was out of your control. In this manner, a business-related accident can be tricky, especially if you have a fleet of cars, you may need to know specific strains of legal law. Lemon law is one such example, and you can get help with lemon law through various legal resources. But you need to get legal clarification so you can see if you have a leg to stand on in this respect.
If you are able to get any sense of recompense for what has happened, it can be a way to get back on track, not just concerning the financial injection you can put back into your business, but in a personal sense. It can be something as simple as a cash injection meaning the difference between your business crashing and your business flying.
The Necessary Evil…
This may not have even crossed your mind, but if your business has gone under, is it worth getting a full-time job? Yes, this can feel like the wind has been blown out of your sails, but it may be a necessary evil just so you can get your bearings and get back on track. Instead of viewing it as a step-down, look at it as if it is an opportunity to give yourself some breathing space and evaluate your next plan of action.
If this has damaged your relationship with your customers, especially if the business has gone under, this can feel like a punch to the gut, because you have worked hard at developing that relationship with your customers, so can it be salvaged in some way? This can be very difficult if another business has already jumped in your grave and stolen your market. But it’s important for you to hold your head up high, and look to the future. Customers come and go, and you need to remember this.
Taking It Personally…
This can be very easy to do, it’s your business, and it has gone, or it’s looking that way. In this respect, the best approach is to be pragmatic and examine the real reasons behind the failure. You need to ask yourself why did it fail, and were there specific factors involved?
If it was something that was beyond your control, and there was nothing that could be done to salvage it, you need to let it go. Businesses fail all of the time, and yes it can be difficult to take it at face value. But by using the lessons you have learnt, you can start back up again.
Starting a new business out of the ashes of another one is a very big task. You have the difficulty of laying the groundwork all over again, in addition to this, you’ve got the millstone on your last business venture hanging around your neck. However, in starting again, you know exactly where you went wrong last time so you can use these lessons to make everything stronger, right down to the smallest detail.
You can also take this opportunity to improve your business plan, start to plough through your resources, and go through the necessary networks for the most up-to-date information so you can hit the ground running.
Picking The Next Wave Of Employees…
If your employees were a catalyst for the failure of your business before, then hiring the right people is something that cannot be stressed enough. In this respect, you need to have proper hiring processes.
It’s always easier to get someone who is partially correct for the role in order to fill a seat in the business. But it’s not just the role you need to get correct, you need the core group of people, and this can be a lot of work. But it’s important to take the time and focus on this.
Re-examining Your Business Expenses
Look at what you had before; did you have a car fleet? Examine this now and ask you if it is really necessary. With issues like car accidents, it can be a big strain on your finances, so start to think about streamlining and determine what is essential and what is not, and also if what you had in your old business is actually relevant to the new one? At the end of the day, old habits die hard, so when you start again, try not to make the same mistakes.
The Benefit Of Education
In relation to yourself, you have learnt a lot, but you can also learn a lot more. While you may want to brush up on business processes, or the right way to network with the right client, you may need to start thinking about who you are, and how this affects your business.
Based on your experiences, you have a more mature head on your shoulders now. We all know that learning is key in building up any business, so you shouldn’t neglect the power of information. There are many entrepreneurs and business owners in the world who are complacent as well as egotistical; this is a bad combination in either form.
Get The Balance Right This Time
The work/life balance is something that is difficult for anybody to get correct, and mistakes in business can be due to a long time spent in the office. But in fact, it has been shown that productivity stops after a certain amount of hours, so think about this and reassess your priorities.
If you are starting another business, your immediate family may have concerns, so think about getting the balance right, not just for the sake of yourself, but for the sake of your loved ones.
Get A Sense Of Adventure
Remember, businesses fail all the time, it doesn’t mean that you are a failure. Any business is a rocky road that we all get on, so start to think about what you are really passionate about, and realize these goals. Start to create more, instead of stagnating. It’s these notions of adventure that will benefit you, now and in the future.
Failure is harsh, but in learning from your failures, the Phoenix can rise. By learning how to recover adequately, and knowing what your options are, this will make it a less painful process.