Inbizability owner, Derek Goodman knows owning a business will undoubtedly come with its fair share of financial hardships, especially in these unpredictable times. Sometimes, these financial setbacks can be smaller than we anticipated, and at other times, they can be bigger than we could have imagined, causing us to falter and doubt our better judgment. However, many times it is these exact setbacks that lead to an even better and more promising outcome than we could have ever foreseen. So, if you’ve found that you’ve hit a financial stumbling block in your career, don’t despair.
Take it as a learning curve
Financial setbacks — or any setback for that matter — can get us to reevaluate where we may have gone wrong in our entrepreneurial journey. However, it is through this learning curve that we get the opportunity to learn from our mistakes and become better at making the best business decisions — be it financial or otherwise.
Relying on others
Experiencing harsh financial setbacks can feel like an isolating experience if you feel you have to bear the burden on your own. However, it is essential to remember that many people have been in the same boat, and many have persevered in spite of it. So, whether you have family, friends, or trusted business colleagues in your corner, you can choose to rely on the advice and support of those in your inner circle to help you overcome these trying times.
Business plans are there for a reason; they can help you to plan for the future while being aware of the present. A good business plan will pay attention to detail and should include risk aversion plans to help prevent similar financial setbacks in the future. In essence, it will help you to be better prepared and more equipped to handle (and avoid) such instances moving forward.
Why the right funding matters
Obtaining the right funding is important, especially when it comes to setting up your business. Therefore, it is vital to do the proper financial planning to ensure that capital is being allocated and appropriated correctly to avoid unnecessarily high-interest rates and repayments. A financial planner can help you draw up said plan to ensure that there is no deviation from it in the future and that all financial preparations and allocations go as planned.
Limit your liability
An LLC is one type of business that guarantees that your private and business assets remain separate. This can reduce the severity of financial setbacks and provide benefits in many other areas, such as certain tax benefits and more flexibility should you change your mind about your business structure in the future. In addition to this, there is less paperwork involved in setting up your business, and it is relatively simple to do.
You’ve probably asked, “How do I start an LLC?” Well, a formation service can assist you with these details and the filing process and is often cheaper than utilizing the services of a lawyer to file your business for you. Although, if you are filing in another state, it is good to be aware of the different filing regulations that may apply there.
Use technology to your benefit
In most cases, greater awareness means more exposure, which can mean more revenue for your business. Furthermore, sales and marketing go hand in hand to get more business coming in these days, which is usually done through technology to increase brand awareness further. This is where technology can be used to your advantage to target a substantially greater online audience who may be interested in your offering.
Failures don’t have to be permanent
While financial setbacks can be downright scary, they don’t have to be permanent. Choose to move on and grow from an unpleasant experience and come back better than before!
Thank you so much to Derek Goodman, CEO of Inbizability for their informative and creative guest post on reframing failure into a strength!
Image via Unsplash
Failure should be our teacher, not our undertaker. Failure is delay, not defeat. It is a temporary detour, not a dead end. Failure is something we can avoid only by saying nothing, doing nothing, and being nothing.