All right I admit, that's not the most positive headline I've ever read either, but many small businesses fail and that sad result prevents many would be entrepreneurs from even trying. So why not investigate what you can do to cut your losses if your small business doesn't make it. It could give you a bit more incentive to take your shot.
Now, if you believe that starting a business is only for people who like taking risks, you're probably right. But no one ever said you have to get crucified because you tried. Only the terminally timid would think like that.
There are three main areas you can downsize your risk and they're Family, financial and emotional They're each complex but let's see what we can cover now.
To protect your self esteem if your great idea is shown to be a terrible mistake, remember that you are not a failure. Maybe the idea was a little too soon or you just needed a little more business and marketing experience. Maybe the newer, tougher competitors entered the market and probably you make some mistakes and bad decisions. But YOU are not a failure, unless you decide you are until that point, you are acquiring new skills.
Putting measures in place to protect your family if your business fails is another thing to consider. Remember, when you're under stress and feeling frustrated the people closest to you will feel it too, even if you don't notice. When If you're hard on yourself they will be upset. But don't lose site of the really important things.
Yes, it's inevitable that your time with them will suffer when you're burning the midnight oil, but I can promise you there will only be one Kindergarten Easter pagent, one middle school graduation, and one tenth anniversary. The day that your child is too big for you to pick up will come sooner than you think. If you lost these moments in your life because you were "at work" failure will hurt more. Don't give up the balance in your life.
How to reduce the financial pain is probably the easiest thing for you to control – Don't spend what you don't have. If this is your first business - for heavens sake don't mortgage the house! Look at an online business as a great way to learn a lot without risking an equal ton of money. There are dropshipbusiness models where you don't need to pay for inventory. You don't need to spend a fortune marketing your online business because you can learn to do much of the important work yourself. It's a great way to keep a lid on your investment – and your risk- and if you're not willing to stretch yourself enough to learn new skills, you'll never make it. Once you have a little success going for you and have a better feel for what you're doing and how to buy it, you can outsource some of the work, but don't outsource too early in the game.
Starting a small Business is tough. Louise Collins, the author of START UP MISTAKES, learned that all too well. In fact, when she looked back at her first full year running her online business, Louise added up what her mistakes cost her. It came to over $20,000.00.
And that's why she wrote START UP MISTAKES - a look at what NOT to do if you're wondering how to start a small business when you'd rather turn your money into profits - and not lessons.
More Resources for Business Mistakes
