There will be failures in the course of your life as an entrepreneur. They will not always be your fault, but that doesn’t mean you will get to fly over them. You will have to be in the pit of failure more than once, but if handled properly there is a bright side to any failure.
“Surviving a failure gives you more self-confidence. Failures are great learning tools, but they must be kept to a minimum.” – Jeffrey Immelt
Following are three common failures made when starting a business, and the lessons to look for in the mess.
Running out of Money
It happens, and believe it or not it is not always due to irresponsibility. The unexpected happens, and if you could plan for it, it wouldn’t be unexpected, would it? The only thing you can do is figure out what happened and move forward, doing your best to make sure it never happens again. One way to do that is with a small business line of credit.
Sites such as Biz2Credit.com can connect you with banks, credit unions ,microlenders, and alternative lenders that offer these and other financing products for small business owners. This may include capital and small business growth loans, including SBA loans, among other options.
Choosing a Bad Location
Money was tight so you chose the cheapest location that would serve the purpose. That’s great! The only problem is what if people won’t come. If it is out of the way of most of the general public, business may be slower getting started than was originally anticipated.
At this point, there are two options. If you can move, do it now. If you can’t, throw all you can into marketing to make people want to come to where you are. Adjust where needed to account for the slower business, and when business picks up you will be able to pat yourself on the back.
Missing the Demand Estimate
You did all the market research yourself, and now you are wishing you had hired a professional. Something just isn’t right. Everyone you talked to said they needed what you were going to offer. Where is all the business?
Market research and estimates are tricky, and if you do them yourself you very well may screw up. If you are already there, all you can do is reevaluate. If this business doesn’t work, you have learned your lesson for the next one. Some things are worth the money, and marketing professionals are included in that group.
Failures happen, and all you can do is try to keep them to a minimum, learn your lesson, and celebrate when you make it through.
This article was submitted by Faith Stewart. Faith Stewart has a BBA with a major in accounting and spent 10 years working in the various aspects of accounting and finance before pursuing her passion for writing.