Losing a business is just as devastating in an emotional sense as it is in financial terms, but that doesn’t mean you should let yourself wallow in self-pity. Instead, you can begin the process of recovery almost immediately by analyzing your past to determine why your business failed. Every failure can be linked to a specific action or string of poor decisions and, by identifying those acts, you can learn from the experience.
Figure Out Your Finances
The next step in recovering from a business failure is to determine how you’ll manage your finances. You’ll need to determine if you’ll be filing for bankruptcy and, if so, what debts that will eliminate. You’ll also need to find a new source of income to help you meet your financial obligations as you move forward. This means earning enough to cover your living expenses and other debts while having enough left over to save in a high-interest account.
Even though you no longer own your own business, you should continue forging relationships with other entrepreneurs and small business owners. Growing these friendships will help you to keep informed about resources and events that could help you in the future. You’ll also benefit from the support of those who are familiar with your situation. When you are ready to try again, your network will be there to encourage and assist you.
Enjoy Life While You Can
As you already know, entrepreneurship is a demanding path to take, and you can end up putting in 60 or more hours a week. As you recover from your loss and rebuild your life, use the free time you have more wisely. Take advantage of the paid time off your employer offers to take a vacation. Make sure you’re eating right and getting enough exercise each day. Don’t forget to spend time with family and friends as well. Living a full life will benefit you when you are ready to take a new risk.
At some point, you’ll be able to look forward with excitement and confidence. It may take several years or just a few months, but don’t try to push yourself. You’ll know when you’re ready. When that day does come, create a new business plan for yourself and begin something new. After having learned from past mistakes and planned for your new venture, you’ll be ready to experience success.