*contributed collaborative content
No one will want to go out of business, but sometimes, for all kinds of reasons, that’s exactly what happens. Businesses close every day, large and small, leaving the business owners with some decisions to make.
The biggest decision you’ll have to make is whether you want to go back into business or you would prefer to work for someone else instead. This will depend a lot on your skills and how much you liked being your own boss, as well as other factors to consider. If you do decide to go back into business, you might be both nervous about the idea and wonder how to do it. Read on for some ideas.
Why Did You Go Out Of Business?
No matter how difficult it might be, you need to think about precisely what it was that caused you to go out of business in the first place. Understanding what went wrong, and being honest with yourself about it, will help you to avoid those mistakes again. Some reasons for going out of business include a lack of good marketing, too much competition, inferior quality products, taking too much money out of the company, not moving with the times, and even an injury or illness that meant you couldn’t work anymore.
When you know what the issue was that meant you had to go out of business, you can put measures in place to avoid this happening. You might consider working with an SEO agency, for example, to ensure customers can find you through search engines and to help you get ahead of your competition. Or you might want to find a mentor to give you advice more generally.
Get Financially Stable
When you went out of business, you may have done so with very little money, and you might even be having financial difficulties because of the lack of success in your previous business. If this is the case, it’s far better to wait until you are financially stable before you start again. Otherwise, you might find that you run out of money before you can get very far or, if you need to borrow money to launch your new business, you might be turned down because you can’t show that you can pay it back.
This could mean that you need to get another job in the meantime to have an income. The good thing about this plan is that you can build up your new business while you’re working and minimise the risk, helping you feel more confident about starting again.
Start Something New
Going right back into the same kind of business that didn’t work out last time might not be a good thing to do. Even if you don’t notice it to begin with, or even at all, doing this could have a detrimental effect on your self-confidence and mental health. If you’re doing the same thing, you might be worried that the same outcome will occur, meaning you’re not able or willing to make business decisions. In the end, this will lead to failure, and your fears will have been realised.
If you do something completely different, using your general business skills but in a different sector, then those old fears won’t be so prevalent, and you should be able to get further ahead, using your past mistakes as a way to know what you should do this time around.