A financial crisis is often an entrepreneur’s trial by fire; it’s difficult and depressive, but it is of absolute essence that you not give up. Failing is a painful way to learn, but it is the best one, too. In fact, you’d be amazed at how many successful companies have managed to recover from bankruptcy and make it! So, a financial disaster has already happened – you made some mistakes, or you haven’t; either way, it’s time to pick up the pieces and give it another go!
1. It happened, deal with it
The first step towards recovering from a financial disaster is actually coming to terms with the fact that it happened. This is also the most dangerous stage of battling failure, seeing as how it isn’t really consciously done. Ignoring, making excuses or lying to yourself won’t do you any good. If everything is falling apart, the worst thing that you can do is tell yourself that it’s not really that bad and that things will probably turn out fine.Failure happened to you and the first thing you need to do is accept it as reality.
2. Figure out how/why it happened
After coming to terms with failure, you should start consciously retracing your steps and looking into the reason behind everything falling apart. There’s a high possibility that you won’t be able to identify the exact culprit, which probably means that there is a group of reasons and circumstances that led you to the point of failure. This means that your entire work system needs bettering, so come up with a list of things that need to be done differently and start building a new system of doing business from scratch!
3. Work with your team
It is at the point of failure that the true meaning of “team” is put into question and now is your collective time to shine. Work with your people, ask them for advice, ideas and opinions as to what was done wrong; the employees are the very backbone of every and any company, so their thoughts are more than important.
4. Develop a plan
You will need a strategy, there’s no way around it. After facing failure, people tend to become much more careful and this can be a perfect thing for your current situation.
In any case, you’re going to need to start repairing your credit score, so think about referring to businesses such as the Clean Credit Company – a necessary step you need to take if you want any kind of a loan further down the road (and you will).
Now is the perfect time to plan your every move and try predicting as much as you can. Of course, you’re going to miss a thing or two, but a financial disaster is an excellent life lesson when it comes to being careful.
Create a new business plan with your team and keep your chin up!
If you have a mentor — maybe someone like Ross Boardman — he would be more than happy to help you. Share your thoughts and take every piece of advice into account because your mentor has probably gone through a situation similar to that which you are going through right now.
6. Forward is the only way
Looking to the past is always a smart step, but “looking” and “dwelling” aren’t synonymous, especially in this situation. Teach yourself how to filter out the necessary information that you need from the past and never go back to that place. Instead, look forward and treat your failure as a battle scar – something that you’re proud that you have gone through and still remained afloat.