Lost Everything? How Businesspeople Start Over

In short:

• Take time for yourself after a business failure. Company closures can be stressful, and a break is often needed to recharge before you tackle new ventures
• Scores of successful businesspeople have presided over failed companies at one point or other. Be open to learn from mistakes and refine the process over time.
• Embrace the opportunity to start over again without previous restrictions. Starting again as a seasoned entrepreneur now gives you an advantage.

 

Every day, we speak to business owners and company directors whose businesses have run into problems. If your company has similarly found itself in trouble, then the first thing you should remember is that you’re far from alone.

In fact, some of the most successful businesspeople in the world have experienced the disappointment of a failed company at some point in their journey.

As such, we’ve looked at the best advice given from entrepreneurs that had lost everything but eventually came out on the other side. Several tips came out time and time again, so it’s fair to say that the advice below has been somewhat tried and tested.

 

Allow yourself three days for grieving, then plan your comeback

Planning for a fresh start is a skill that most entrepreneurs should have in their toolbox. However, it’s important to take a step back for a short period before you dive straight back into the business world.

While some may need a little longer, three days is the absolute minimum that you should wait before you start working toward your next venture. Entrepreneurs are often workaholics, and you may feel the need to get started straightaway, but this isn’t always recommended.

Without a clean break between ventures, you run the risk of working in exactly the same way you always have. This may not necessarily be a bad thing, but the failure of a company should be a time for reflection. You may think you already know the reasons behind its closure, but it’s important that every aspect is looked at thoroughly first in order to identify areas for improvement.

Once this is done, you can start to plan how to build the capital to get up and start again. It’s a good idea to set reminders for themselves to stay on top of their plan execution.

Before you start on anything else, though, make sure that you allow yourself enough time to relax and decompress. Take a walk, visit family, get some rounds of golf in with some friends. Whatever you do, don’t start planning for your next step until you’re feeling replenished. By the time that you eventually allow yourself to start evaluating your options, you’ll be champing at the bit to get going. That energy and enthusiasm is invaluable in the start-up period.

 

Stop, change direction, and ramp up acceleration

As above, allowing yourself time to stop and get your head in gear will be essential. Focus on your desired outcome and begin to strategise. Look to build a team around you that shares your goal and that you can delegate to efficiently.

The next step is to look at your marketing. New businesses need marketing heavily in order for people to realise that they exist. This part may be easier if your new business is similar to your last, but if not, you’ll need to research the magazines, websites, radio stations and more that are used by your new target market. Smaller local businesses shouldn’t underestimate the power of local newspapers and social media groups.

Alongside this, you’ll need a strong grasp on your company’s day-to-day operations and financial predictions. Again and again, we ‘ve found that directors that know their numbers are in a much better position to deal with hardship when they are faced with it.

 

Surround yourself with friends

This is not only good advice for spending the downtime between closing one and opening another business, but also throughout your career. Running a business can, at times, be a lonely and stressful experience. Socialising can take your mind away from work momentarily and introduce you to valuable new ideas at the same time.

You’ve made a great first step already in researching others that have been through the same experience. Don’t beat yourself up nor dwell on external factors that may have prompted your company closure. Though it may seem like an enormous disaster right now, it can often be looked upon as a rite of passage of sorts for many entrepreneurs.

Be careful not to isolate yourself from others. Your friends are a great safety net and brilliant natural method to help you recover from any anxieties or depression.

 

Your mindset is everything

During your grieving period, take the time to reset your attitude.

Starting a new hobby can be a good way to take your mind of matters and helps to foster a growth mindset. We’re all guilty of opting for the comfortable and familiar in stressful times, but if you hope to open a different business soon, you must embrace your adventurous side again.

Take up a new sport, learn a new language, or master a new craft. Learning how to play the bagpipes, for example, is unlikely to aid you in your new business, but it will get you out of your comfort zone. Get used to learning things again.

After some time away from running a business, you should be bursting with ideas and keen to jump back into the hot seat. Try to tap back into the initial enthusiasm you felt when starting your first business, that energy can be very useful when starting again.

Establish your initial reasons for building your business in the first place. Once you have established why, use this as your motivation to build a new venture.

 

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Not sure what to do?

If your company is struggling with unmanageable HMRC debts, poor cash flow, or an uncertain future, you are not alone.

We speak to company directors struggling with the same issues as you every single day, and we are here to give you the help and guidance you need.

Call our team for free, no-obligation advice today on 0800 975 0380 or book a free consultation

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Seek the positives from the disaster

Often, a massive loss can still open many doors of opportunity if you allow yourself to see them. You’ve likely looked at several things over the years and thought, ‘if I were starting out again, I’d look to operate in that industry’, or ‘there’s a gap in that market that someone’s going to exploit soon’. Now you have the opportunity to be that person.

You may find yourself fired from a company that you have helped grow. This could be the best time to take your fate into your own hands and own your own business.

Using an event that has devastated you to spur you into more ambitious action is the path by which we have witnessed many directors succeed.

Business insolvency expert and Senior Consultant at Forbes Burton, Ben Westoby adds that “the important thing is not to lose faith in your abilities. Just because one of your plans has gone wrong does not mean that every one of them will. Top sportspeople still lose the occasional game, top movie directors still produce the odd flop, and top chefs still burn the toast from time to time. The difference between them and lesser professionals is the ability to brush themselves off and go again without dwelling on the occasional failure.”

 

Consider getting away

Several of our clients have suggested putting serious thought into travelling if you need to shut up shop and start again.

One director said that although he is doing well now, he would start again in Thailand, taking as little as possible with him if his business were to fail.

It’s not a bad idea. Why limit yourself to the UK when starting a business? While it may seem like a huge jump, you’re under no obligation to stay wherever you choose to go. In fact, as long as you keep your outgoings low, the worst that can happen is that you’ve had an interesting holiday. If you had a choice of overseeing a business failing in the Maldives or Scunthorpe, which would you choose?

Of course, moving abroad isn’t feasible for everyone, but taking a holiday is recommended. Short breaks are brilliant for providing a change of scenery that gets the creative juices flowing.

A fresh environment is excellent for sparking new ideas within us, while travelling itself can reset your emotions and simultaneously reduce your stress.

 

Pay your rent first, then start another business

Before you go racing off to start up another business, you should take the time to wrap up any loose ends from your old business beforehand.

A properly executed liquidation or dissolution should take care of any outstanding debts, but some unscrupulous firms can leave unfinished business that can return to bite you further down the line.

Make sure all of your personal and business affairs are wrapped up ready for a new start. The last thing you need when starting a new business is to be juggling company and personal problems at the same time.

 

Share your new vision

Get yourself out there!

Make your potential clients aware of your presence by telling them what you do, and why they might be tempted to choose your service over the existing firms in your sphere.

Here, it helps to have a vision for your business. What is it that sets you apart and makes you better? This can be useful to communicate in your marketing efforts.

As well as potential customers, it’s worth getting the same vision across to any staff you may have. Some of these will form the face of your business and be the ones most in contact with your clients. If they buy into the same ethos, it’ll make it much easier to build a strong company identity.

 

Source your capital appropriately

Here, we are not just referring to financial capital but also to intellectual, physical and relationship capital. Assess the capital you have immediate access to and determine whether it can be improved upon.

A fresh start is the ideal time to research different routes to take. By taking your time now to find the best options for your business, you’ll be able to build a much stronger foundation to start a company from.

 

Network, network, network!

Our advice is to do some research and attend as many events as possible, spending as little money as possible. You could even sit in a lobby without a pass to enter an event.

If you can be fearless and speak to everyone, the chances are that you’ll get a pass by speaking with the right people. If you arrive at an event at 7am and sit at the bar until 1am, it’s unlikely that you won’t talk to at least one person of interest. Learning to be unafraid to ask for help will make the world of difference.

Creating genuine connections with those in adjacent industries can open up many doors in the future. If they’re keen to see you succeed, they may be able to refer some work to you or even collaborate in some marketing efforts.

The best business relationships work both ways, though. Try to think about what your business can offer other businesses in the area. Do your customers often ask for a service that you can’t offer? Perhaps you can arrange a referral scheme in which you receive a commission for any work you can put forward to another business.

 

Make starting afresh a habit

Some may argue that entrepreneurs should be starting afresh annually in any case. Financials, systems, processes and people should all be assessed on a regular basis.

Complacency is the enemy of the business owner. If your new company is a success, you should use each new financial year to employ the same mindset that you did when you started. Can anything be improved upon, are certain elements not working? Employing a reactive work style can ensure that changing external factors don’t leave your business behind.

Look at all of the high street brands that got caught with their heads in the sand when the rise of ecommerce was happening around them. Many were too slow to embrace the move to online shopping, and just crossed their fingers in the hope that the traditional model would still be strong enough.

No doubt that scores of them at the time would have looked to ecommerce if they could have started afresh, but too many were sadly wedded to the infrastructure they had built their business around for decades prior. Had they had the conviction to rip everything up and start again somewhat, then we may still have them in our shopping centres.

 

Get free advice today

If your business is in trouble but hasn’t closed just yet, you should speak to a business insolvency specialist as soon as possible.

Forbes Burton offers several different services to help struggling business owners. Unlike many which only provide liquidations, we can look at your situation and put in place a tailored solution that works specifically for you.

We can close companies via liquidations or the slightly more economic option of dissolutions, but we can also put rescue plans in place to allow you to continue trading or sell the business.

There’s even the option to restructure your business in such a way that you can wrap on business up and start again anew. When you can get the commercial debt written off, then you can build a new business, while taking previous lessons you may have learned from your former business into account.

If you need some advice on which would be the best option for you, why not take advantage of a free consultation? Please call us on 0800 975 0380 today or email advice@forbesburton.com