Question: My business is failing. It was going well before the recession, but I can’t hold out any longer. I want to start another business, but this time I want to do it right. So I plan to get a job, heal up, and try again. Am I nuts?
Answer: Yes. You probably are nuts. Most of the world’s population is quite satisfied being an employee, or a surf, or some other low-level operative. There are very few people who are willing to risk the disappointment you are now going through just to own their own company.
In all likelihood for you, being your own boss is more important than job security. On the other hand, it’s entrepreneurs like you who make the nation great.
The important thing is to learn something from your failing. Why exactly is it that you are going broke? Do you know how to read an income statement? Does your business even routinely produce an income statement?
You’d be surprised at how many failing entrepreneurs don’t normally produce Income Statements and Budgets. Learn these simple accounting tools. Use them on your next business.
How do you promote your business? Most business owners are able to accurately predict their expenses. Usually the problem is their gross revenue is not high enough to cover these expenses. In order to increase their gross revenue they must increase their sales or promotion activity. Have you learned how to do that?
Have you learned how to handle people? Almost every business owner I talk to claims human resources presents the biggest challenge. Have you learned how to motivate employees?
How are you going to change when you manage employees in the future? Remember, you are the only person you have control over. If change is going to happen in your life, you must be the one who changes.
The important thing about failing, is to fail forward. Before you leave your present business make sure you have learned all the lessons. Be hard on yourself. Forgive yourself. Realize that this is a learning experience and take advantage of it.