Bankruptcy and Entrepreneurship

Entrepreneurs are generally driven and highly motivated people. When a venture or business fails, it can be very hard for the owner to not take it personally. For an entrepreneur, bankruptcy can be a demoralizing and draining experience. However, this doesn’t have to be the case. Another way to look at bankruptcy is as a fresh start. It doesn’t have to be the end of the road. Check out these 6 steps entrepreneurs can take to bounce back after a bankruptcy.

  1. Face it head on

Don’t try to avoid or ignore the issue at hand. Things didn’t work out, and bankruptcy was the best option at hand. This is nothing to be ashamed about or take personally.

  1. Take an inventory

Part of facing the issue in a healthy way is taking a pragmatic look at your financial situation. This is crucial to processing the present and preparing to move on to the future.

  1. Budget

As you move forward, put together a budget and stick to it. This will take away stress, add to peace of mind, and is a practical step to position you for the next move.

  1. Embrace transparency

Don’t hide or dodge the issue with the people around you. Seek out family and friends, people you have healthy and affirming relationships with, to help you come to grips with your bankruptcy and move on to the next thing.

  1. Focus on where you’re at

The same laser focus entrepreneurs have with their businesses needs to be applied to bankruptcy. Rid yourself of distractions. Focus on budgeting and making wise financial decisions that set you up for success in your next venture.

  1. Reengage

Remember, you’re not a loser or a failure. As stated above, this is your clean slate. Concentrate on getting through the bankruptcy efficiently and in a healthy a way, take of yourself, and get ready for the next adventure.  We advise clients to make a list with the heading “Knowing what I know now, what would I do differently?”  Take this knowledge with you as you head on toward your next adventure.