Below is an article written by guest writer Carla Lopez at boomerbiz.org.
Lost Your Business? There Is Hope in the Future
Being an entrepreneur without an active business is one of the worst feelings in the world, which is why you need to put yourself in a position to grab the proverbial bull by the horns once again. From self-care to keeping yourself financially safe, read on to learn about how you can take the first steps toward doing the thing you love once again.
Take Care Of You First
Before you immerse yourself in the strain of launching a new entrepreneurial project, it’s crucial to learn ways to alleviate stress. If you don’t want to spend a ton of money, Elite Daily asserts there are plenty of ways to practice self-care that won’t eat your working capital. Setting boundaries, being thankful for what you have, and eating well are all examples of ways to put yourself first. Of these, your diet is perhaps most important, and maintaining a nutritional balance can go a long way toward keeping your mental health in check.
When You’re Ready
When you are emotionally ready to explore your options, jot down ideas. Not every idea will be good, but if you pay close attention to what you do best, you’ll be on the right track. You’ll also want to keep an eye on current trends and search the market for services that don’t exist.
When you have your idea and have written a business plan, it’s time to consider who you may need to hire to help you start your business. Instead of hiring full-time employees, you can save considerably by working with freelancers. Many freelance professionals apply to jobs on hiring platforms that offer opportunities in various fields, such as web development, writing, marketing, sales, and customer service — so these websites would be good places to look for candidates.
Next, decide on how, exactly, your business will be structured. Although many entrepreneurs choose sole proprietorship, if you took a financial hit with your last business, this may be the last thing you want to do. Consider forming an LLC, which will require your business to have a unique name, which you will then need to register. There are a few different ways to do this, so do your research to decide which makes the most sense for you.
Registering your business offers some protection while forming an LLC has other benefits. These include reducing your financial liability because of professional losses. Throughout the formation process, you may also find that instituting an LLC gives you more flexibility and less red tape to cut to establish yourself professionally.
Recovering financially may be more difficult than taking care of yourself and forming a new business idea. Unfortunately, the 2020 pandemic has depleted many people’s savings, so you may need to pause or restructure your plans to get your finances in order before you jump headfirst into a new business. Start by evaluating what money you do have coming in, then reach out to a financial planner for help creating a budget that builds a foundation for saving.
It might be necessary to take out a home equity or business loan to float your family until your business is self-sustaining. There are many factors that determine whether you can get a loan, and these include your credit score, what, if any, collateral you have available, your debt load, and industry. Business.org also notes that some lenders require a business history of at least two years, so taking out a loan in your business name may not be possible at this point.
Losing your business is a disheartening event. Fortunately, your entrepreneurial spirit won’t allow you to linger on the sidelines for long. When you’re ready, ease into the process and make sure you put measures into place to protect you from any potential future losses you may encounter on your next journey. But, remember, before you prioritize your profession, learn how to take care of yourself. Self-care is so important to your mental health. It is not optional.
For more inspiring content, check out the blog at Lotus Laura.
Thank you to Carla Lopez for reaching out to me! If you are interested in contributing a guest article, please contact me at email@example.com!