How to pick yourself up after a major financial set back
By Irene Chong
Recently had a financial setback in your small business? Three simple steps - accept, aim and achieve - can get you back on track.
At some point or another, you will encounter setbacks in your business. "How could this happen?" "What can I do now?" While these questions are likely to consume your thoughts following a setback, there are steps you can take to return to your old self as quickly as possible.
The circumstances that resulted in your financial setback have already happened. While much of our mental and emotional energy can be spent on 'should haves' and 'could haves', the first step to picking yourself up again involves accepting the circumstances that led to this point.
Take time to understand the cause of the setback and consider what actions will prevent it from happening in the future. Are there certain checks and procedures you can implement in your business to ensure any problems are recognised earlier? Do you need to assess certain types of risks more closely before making decisions? Acknowledge the mistakes made and factor these into future financial decisions and business plans. Importantly, acknowledge where you are at financially and be realistic.
Step back and focus on the big picture. What are your current financial aims and objectives? Consider listing your short-term financial goals such as saving a small amount of cash each week or repaying what seems like a huge debt in small instalments. Also list medium and long-term goals and business objectives. Don't be afraid of aiming high if there's a realistic chance of achieving your goals.
Focus on achieving your short-term financial goals first. There will be some easy wins that will build your confidence, while some challenging goals might be harder to achieve than you anticipated. You might find some goals need readjusting to keep them realistic and achievable. Take it step by step and, above all, remember to remain focused on achieving your objectives.
It is not uncommon to experience serious deflation as a result of a financial setback, but don't despair - accept what has happened, refocus your objectives and set about achieving your financial goals again.
*This article is not intended to be a substitute for financial advice. Please seek financial advice where appropriate.