There are more businesses, which fail than the ones that succeed. If you are someone who failed at your last venture, you should not lose heart. There are millions of successful people who got off on the wrong foot and are now doing great.
The important thing is to learn from the mistakes and try your best so as not to repeat them. Experiences, whether they are good or bad, all add to an individual’s learning curve. In this article, we speak to some leading names in the business world. We ask them about how individuals can start a new business after filing for bankruptcy.
Take the Bankruptcy as a Learning Curve
Filing for bankruptcy does not make you a failed businessman. It also does not mean that you will never be able to realize your dreams of being a successful entrepreneur. Bad business decisions, inexperience, and sometimes factors beyond your control (Coronavirus Pandemic) might be responsible for a business going under.
It is true that bankruptcy has accumulated a notorious reputation in the banking and financial world. Every business needs to start with the help of some capital. Banks find you are not fit if you have filed for bankruptcy. Individuals should know that the record of bankruptcy under Chapter 7 lasts for at least 10 years.
In the following section, we will outline certain steps you should be taking to ensure that your new business is up and running in a successful fashion.
5 Things Entrepreneurs need to do before Starting a New Company post-Bankruptcy
1. Securing Financial Capital-
As we have already stated, some businesses might find it hard to part with their capital for your new business. However, there are many financial institutions who would be willing to bet on you and offer loan after bankruptcy. The rate of interest might be on the higher side, but you would need the capital to get back on your feet.
2. Prepare a Well-Defined Business Plan-
Your first business might have failed for lack of proper planning. Do not make the same mistake the second time around. Prepare a business plan by taking into account all the factors. Ensure that you also filter in the time frame, the unforeseen elements, and a progress report of your revenues. This will not only help you get a direction but also encourage the lender.
3. Keep all the Paperwork in Order-
If you are starting a new business after bankruptcy, it is important to ensure that all your legal paperwork is in order. This includes permits, licenses, certifications, and returns. Authorities will be paying closer attention to you than usual and looking for any lapses you are going to make. This is why you need all the paperwork to be updated at any cost.
4. Save Money as and when possible-
Most first-time businesses fail because they blow through their cash pile in a careless fashion. When starting a new business after bankruptcy, ensure that you have good financial management strategies in place and are saving money at every juncture. This means cutting down on costs as much as possible. Every penny saved in your new business will allow you to improve the revenue flow and the eventual profit margins.
5. Market your Brand Organically-
We all know how marketing and advertising spends can eat into a business’s revenue. If you are starting a new business after bankruptcy, ensure that you are able to save on these costs. Try looking for free mediums and channels to promote your brand and products. This includes using Google My Business and social media platforms for the best results.
The Final Word
There is a lot of stigmas involved when one faces bankruptcy. However, once you are successful in your new venture, nobody remembers the past failures. By following all the points in the article, you can ensure that your new venture after a failed bankruptcy stint will be successful.