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Reduce the Risks of Small Business Failure
Ok I admit, that’s not the most positive headline I’ve ever read either, but it’s unfortunately true that most small businesses fail and that outcome prevents a lot of people from even trying. So why not investigate what you can do to cut your losses if your small business doesn’t make it. It might just be what you need to do to get out there and go for it.
Now, if you’re thinking that only risk takes go into business, you’re probably right. But no one ever said you have to risk everything because you tried. Only people who will never try would think like that.
Here are three places you can reduce your risk and they’re Emotional, family & financial. They’re each complex but let’s see what we can cover here.
To insulate your self esteem if your great idea turns into a small business failure, remember that that only the idea failed – not you. Maybe the idea was ahead of it’s time (euphemistically speaking) or you didn’t have the right marketing or business experience. Maybe the newer, tougher competitors entered the market and probably you make some mistakes and bad decisions. But YOU are not a failure, until you concede defeat until that point, you are acquiring new skills.
Making sure that your family doesn’t suffer if your business fails is also something you should think about. Remember, when you’re under stress and feeling frustrated the people closest to you will feel it too, even if you refuse to share it with them. When If you make every set back out to be a personal failure they’ll share that pain. But don’t lose site of the really important things.
Yes, you’ll lose some time with them when you’re burning the midnight oil, but I can promise you there will only be one Kindergarten music recital, one middle school graduation, and one fifth anniversary. The day that your child is too big for you to pick up will come sooner than you think. If you lost these moments in your life because you were “at work” failing will cost more. Don’t give up the balance in your life.
How to reduce the financial pain is probably the easiest thing for you to control – Don’t manage your money carelessly. If this is your first business – for heavens sake don’t mortgage the house! Look at an online business as a great way to build a ton of experience without risking an equal ton of money. There are different retailbusiness models where you don’t need to buy inventory. You don’t need to spend a fortune marketing your online business because you can learn to do much of the important work yourself. It’s a great way to keep a lid on your investment – and your risk- and if you’re not willing to stretch yourself enough to learn new skills, you’ll never make it. Once you have a little success going for you and have a better feel for what you’re doing and how to buy it, you can outsource some of the work, but don’t outsource too early in the game.
Starting a small Business is tough. Louise Collins, the author of START UP MISTAKES, learned that all too well. In fact, when she looked back at her first full year running her online business, Louise added up what her mistakes cost her. It came to over $20,000.00.
And that’s why she wrote START UP MISTAKES – a look at what NOT to do if you’re wondering how to start a small business when you’d rather turn your money into profits – and not lessons.
More Resources for Business Mistakes
