Surviving a Small Business Failure

Few people realize how traumatic a business failure can be beyond the obvious financial problems this presents. More often than not, friends and family may gauge the severity of a failure on the extent of the business losses incurred by the owner alone. Since small operations are often financed from personal savings, 401k, or even home equity loans, the financial consequences can be truly devastating. There are however other factors to consider when operations end abruptly. They can often outweigh the monetary losses incurred.

As upsetting as this may be, and in fact as devastating as this might be on personal finances even to the extent of causing personal bankruptcy in many cases, the emotional trauma can even be more severe. Most owners either start off with a deep sense of passion for what they do or come to embrace their businesses as an extension of themselves. In a society in which people often value themselves by what career they pursue, a business failure can result in a low self esteem. Lest this might be underestimated, we need only remember that after meeting a new person, the focus of a conversation usually turns to what a person does for a living.

Most business owners however don’t simply see their businesses as livelihoods but as a reflection of their personal commitments, their passions, and their independence. It’s difficult for owners to separate their lives from their endeavors and hence the consequences of a failure can last well beyond the financial losses are regained.

Entrepreneurs must instead constantly remind themselves that companies do fail and look to the fact that even multi-million and multi-billion dollar corporations cannot always stem market changes or the plan adequately. The efforts of the mom and pop operations are truly impressive. Minimizing the amount of personal exposure to the financial side can significantly help, as financial devastation especially for those with families can be the second major source of personal turmoil.

As anyone who experiences a crisis, entrepreneurs who are committed to their trailblazing lifestyles must strive to learn from their mistakes, pick themselves up, and chart a course for the future. There is certainly no guarantee of success, but the processing of full personal recovery can often involve pursuing the difficult world of business armed with priceless personal experience and the dedication that initially started them down the path of independence and control over their own destinies.

Jacob Lumbroso is a world traveler and an enthusiast for foreign languages, history, and foreign cultures. He writes articles on history and languages for and has a website on Musical Instrument Accessories and advice on finding the right Musical Instrument Store.

More Small Business Financing Articles

How to Grow a Small Business

Once you have started your own small business there are a number of ways you can grow your business larger. Even in a bad economy it is possible for your business not only to survive, but to thrive.

In fact, many of today’s largest and most successful businesses were started in the midst of the Great Depression of the 1930’s. So you should have no trouble increasing the size of your small business, and hopefully also increasing your profits.

There are only three ways to make more money with any business. They are number one: Get more customers. Number two: Get your customers to purchase more. Number three: Get your customers to purchase from you more frequently.

The size of your small business is directly proportional to the number of customers you can acquire, and the amount of goods or services you can provide.

It does no good to vastly increase the number of customers your business receives, if you are unable to supply their demand. Conversely, it does no good to increase the amount of goods or services you are able to source if your customer pool is not growing as well.

Therefore, while the only way to grow your business is to get more customers, you must also grow your ability to supply those customers at the same time.

Only if you can do both things, which is to get more customers and build your supply while still maintaining a positive return on investment, will your business be able to grow.

Now then, if you already have a small business or large business for that matter, and have grown it to a particular level or reached a plateau and now you wish to grow your business even larger, you stand in very good stead.

Assuming your business is currently profitable it is a simple matter to redirect a portion of your profits into avenues that will help you to acquire more customers and to build your supply of products or services.

Much of this can be done with outsourcing, and if you develop effective systems for customer acquisition and streamlining your supply chain, then simply increase profits and finance even further outsourcing, which will even further increase the size of your business.

That said, it is possible to develop a system for your business which will allow your business to continue to grow while you personally have to do less and less work.

One of the fastest ways to acquire more customers for your business is to be tracking the ways your business is successfully obtaining customers currently, and then simply do more of that.

Another good way to grow your business is to be creating a mailing list of your current customers, and then mailing to your customer list and giving them special offers or special promotions. Perhaps even give them limited time coupons or incentives for making referrals to your business.

Another way of growing your business, which is often overlooked, is to encourage your current employees to offer ideas on business growth and ways to improve your current business.

Doing this has the positive effect of generating positive morale on the part of your employees. They feel like a more important part of your business. Who knows, maybe some of their ideas will help your business to grow even faster and bigger than you yourself could imagine.

Calvin Brown is a wealth creation expert and author. He lives in Anacortes, WA and spends his time teaching others how to create wealth. For more information about how to grow a small business and increase your income, check out his latest book, “The Money System” which is available at

Small Business Tips To Ensure Your Business Survives Christmas

In almost all cases, lenders could like to provide a tiny business a secured the web of credit during which collateral is put up for guarantee. However, if you do not you’d like to put personal assets, then applying for unsecured business line of credit have to be considered as the most acceptable choice. However, it is in a position to be quite challenging for a small business to buy unsecured business lines. Here also are a few guidelines to improve your possibilities for when you actually apply for one.

Small business financial depends upon nature of the business i.e. Fresh or seasoned business. Quantity fetched through the small business finance can be used for numerous purposes really like purchasing a land, furniture, raw material, advertisement, machinery, outgoing expenditures and so on.

Small business finance will be in a position to be accessed from numerous lenders really like prominent banks, institutions, lenders. With nowa, today little business financial is too available thru the online market.

One false move because a little the web business owner during a tiny town and you actually could find yourself without a small the internet business and without a implies to address each one of your bills and other things that come getting ready. Your tiny online enterprises success has a great deal to do with who you are also, the way you actually believe getting ready others, the cleanliness of your little the web business and the staff or employees that are also working for you really, representing what you really also are preparing and making your tiny online business feel and look brilliant each day.

On the other side if the business person doesn’t you’d like to risk estate, she or he will be able to choose for unsecured tiny business loans that are also approved without collateral. However, on unsecured little business loans, lenders fee increased interest rate for covering risks. The lender gives most effective shorter repayment duration for unsecured tiny business loans.

These are also just a couple of of the numerous resources available to small business owners. When going though hard economic times, info is key, and through nowa resources, because well as others, you actually is in a position to buy the answers to your questions, find the support you need, and have an excellent list of tips for difficult times that is going to assist your business remain strong no matter what the economic climate.

So here is chance to get your free tips on small business help and in addition to that get basic information on saving money visit small business solution

Small Business Grants for Women

Many young ladies out there have gained a lot of interest recently in the so called small business grants for women. And how can we be surprised to hear this, considering the fact that the government offers real chances and supports to good projects and causes. After all, why shouldn’t women take advantage of these small business grants for women and invest the money in noble goals and successful, meaningful businesses? The sad thing is that, even though the world is changing for the better, the society and the business world is still leaded by men – but the government grants for women are here to change all that!

There are some requirements you need to meet before even thinking about applying for small business grants for women – and the most important one of all is that you have to own a business. More exactly, you need to have at least 51% in order to be eligible for such a business grant program. It is highly important that you have a flawless credit card history before you apply for the small business grants for women. For sure, this is not an easy job and you must think way ahead in order to maintain a clean and positive credit card report. If you have done some financial mistakes in the past, then repair them while you can and only then apply for the grants sources.

The strategy is the most important part of your application for the small business grants for women. What you need is a great plan, a one of a kind idea and a little creativity in order to make it all seem incredibly appealing and convincing. The right idea can help you gain many points and can definitely put you in a favored light.

You might want to hear some extra tips regarding the ideas that sell best when wanting to obtain small business grants for women. Well, think about all the things that can actually help your community. For starters, women always prove to be great in education-related fields, so why not start from here?

But your region or city might need some very specific businesses or organizations for the citizens. You, as a local should know bet what your area needs – maybe a medical centre or maybe a cultural centre. As long as you base your strategy on a meaningful cause, you are definitely a perfect candidate for the small business grants for women.

All these might be a little confusing – but if you really need some extra help, you can hire a specialist to guide you all the way. Like this, you can create the most powerful business plan and get the small business grants for women you desire.

You must be convinced by now that the small business grants for women are a great solution to start a business or an organization. Small business grants for women can become a reality, as long as you put some efforts into planning your proposal. So, act ahead, start researching, planning and thinking about your strategy to get that grant money!

Small business grants for women encourage starting new projects, or expanding existion operations. On her website Livia Monroe gives the latest tips and advice about the successful application procedure.

Launch A Small Business With Your 401k

If you’re a senior who wants to augment his or her nest egg with a small business, you can use your 401K or IRA funds to do so without having to pay taxes on your withdrawals or obtain a loan. This fairly unknown funding method is becoming a solution for many people who want to run a franchise or own their own businesses. Today, many potential entrepreneurs don’t know that they can have access to tax-advantaged capital to start their own companies or businesses with their retirement account balances.

Using your 401K or IRA funds to start a business via a retirement plan investment is also known as an ROBS or “Rollovers as Business Start-up.” Self-directed retirement accounts such as IRAs and 401Ks may be used towards funding a plan that may legally support private and public stock holdings as long as these are eligible for ERISA and tax law exemptions. For ROBS, 401Ks are most popularly used.

The main concept of the ROBS is the creation of a “C” corporation as stated by law. This newly-created corporation can then sponsor a 401K that openly allows acquiring and holding eligible employer securities. After this, the entrepreneur can roll a part of his or her currently qualified retirement funds (or all of it) into another 401K. The plan is also called an “eligible individual account plan,” which then puts investments into the new corporation’s stock. The business entity, which now has funds, then buys into a franchise or gets a small business.

This procedure is much like what an individual investor does when he or she buys stock in a company or business that’s publicly traded. He or she gives the company money in exchange for holding shares as investment collateral. The publicly-traded company then has access to the money and may use it towards strengthening itself. With the ROBS, it’s pretty much the same, except for the investment being made in a company that’s privately held as opposed to a publicly-traded business.

Carina Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group. For more info onPuritan Financial Group please visit our website at


Free Student Loans report Fill our this simple form to download this great report..
Its FREE!!
Read this before you get your next student loan.


Email Marketing by Javelin
Or get the full student loans ebook and get the right information about student loans..

WE Like You

YOU Count