If you’re running your own business, you’ll be in one of two situations: everything is functioning without issues or you’ve hit a major setback and are scrambling to recover. Business failures are a part of entrepreneurship and a setback can feel like a blow to the stomach when you have a personal stake in the company. A mishap in your business can cost you money, time, and jeopardize the overall health of your business. Business setbacks are inevitable, but they aren’t a death sentence for your business.
Here are a few ways to assess your current state and bounce back after common setbacks.
Balancing Your Business and Personal Life
To start, let’s review some typical setbacks so you can avoid these pitfalls in the first place. Balancing work life and personal life is challenging on its own. When a major crisis happens, this balance becomes even more difficult. Grief, medical issues, childcare, and other major life events can affect your quality of work. When a personal crisis happens, it’s important to resist the urge to power through. Sometimes you need to step away and deal with whatever is happening in your personal life.
Losing a Major Client
One of my first writing clients was fantastic. Not only was I writing about inspiring topics that I was passionate about, but I was getting a steady income. Then one day, the company had massive layoffs, which meant I got the boot and lost part of my income. Losing key clients can hurt your business on many levels. It might reduce your income, but you also lose the progress you’ve made with that client. While it’s tempting to flood every lead with emails, doing so can stretch your resources too thin. You may also ruin the business relationships if you come across as too pushy.
Not Enough Cash Flow
The goal of running a business is to make money. Yet, cash flow can vary from month to month. There is also the issue of pending invoices. You send out your invoice right after finishing an assignment. Yet, clients forget them like leftover rice in the back of the refrigerator. The professional reaction is to send a follow-up email for any outstanding invoices. Yet you spend an hour trying to figure out how to write a friendly, yet firm reminder to pay your invoice. By planning, you can avoid running low on funds.
Lack of Time
Time management is a struggle for many entrepreneurs. Even when I start my days early, time block my tasks, and am laser-focused, I still struggle with finding time for everything. Between client work, administrative tasks, marketing, etc., time is a constant challenge. And when I don’t dedicate time to certain tasks, certain things don’t get done, and my business has suffered. If you feel like there aren’t enough hours in the day, try shortening your to-do list. Focus on the essential tasks. Additionally, it might be time to outsource or delegate some of your work.
The Bounce Back
Let’s not pretend that business setbacks don’t take a toll on your confidence and your mental health. We start to worry more, become anxious, and doubt ourselves. So, before taking action, it’s important to follow these steps. When a setback happens, we can often feel like a failure. The truth is, no matter how bad your business mistake is, remember this: you have what it takes to bounce back. Remember to encourage yourself often. Build a positive mindset so that when something throws a wrench in your plans, you know that you’ll recover.
From the book The Miracle Equation comes the five-minute rule. This rule is about giving yourself five minutes after something bad happens. You take those five minutes to allow yourself to feel sad, angry, disappointed, etc., and then you move on. Would you eat an entire pizza in one sitting? No, you’d eat it one slice at a time. You can apply the same technique to problems. If your setback seems too overwhelming, then you can break it down into small parts. Here are some practical steps to take:
- Identify the problem and get as specific as possible.
- Think through and then write out possible solutions.
- Break down your chosen solution into small and manageable steps.
- Plan out your action steps by setting SMART goals.
- Reach out to the people or resources you may need.
Problems can feel overwhelming like someone threw a fifty-pound weight at you. When you focus on solving the problem one step at a time, you can make progress with ease. Focus on the solution vs. the problem. Sending out dozens of emails to prospective clients can seem like you are solving a problem. Yet, being reactive doesn’t always mean you’re moving in the right direction.
When disappointment happens, try looking at the silver lining. What is something good that might come from this event? If you lose a major client, this frees up time to work on other areas of your business. Additionally, you can consider taking a break. If the setback didn’t cause any major damage, you can take a few days, even a week, to figure out how to respond. Lastly, change your perspective. Try to look at a problem from different angles, and this can help you generate multiple solutions. The more solutions, the better opportunity you have to grow.
Evaluate the work you’re currently doing
Sometimes a setback is an opportunity to make changes for the better. For instance, do you have systems in place if you need to take time off? Who is your second-in-command? Do you have emergency savings in the event of low-cash months? Do you have a referral program in place to help you find new clients? Are there opportunities to scale?
Revaluing your current business model can help you prepare for current and future challenges.
