Bouncing Back from the Brink in Business
Do you know the difference between things getting just a little out of hand, and the breaking point of a business?
As a small business lawyer, I can tell you that the two aren’t terribly far apart.
If you’ve noticed:
You feel like you’re floundering
You’re having cash flow problems
You’re constantly putting out fires (instead of working on the business)
Then your business is trying to tell you something.
Read more: Help | Seeking Legal Advice For Your Small Business When The Wheels Have Started To Fall Off
It’s so important to address those warning signs as soon as they come up, because the majority of the time they’re the result of a foundational issue within the business that, left unchecked, is likely to send you to the brink.
The Breaking Point of a Business
The “brink” is when you feel like you’re out of options: you’re exhausted, you no longer feel excited about your work, and the business is in debt. You’re looking at giving up, salvaging what you can (or just giving it up because you’re done), or (if you even have the energy) trying to sell the business.
In my experience, when this happens it doesn’t tend to end well. A lot gets sacrificed—and aside from the financial hit, the business owner also takes a massive hit to their confidence. This makes it extraordinarily difficult to get back on that horse.
But if you’re in this position, remember: you started your business for a reason.
What was that reason again?
I’d bet it wasn’t to eventually crab-walk out of there.
Complete failure is avoidable
Here’s the excellent news: you can avoid this situation altogether by setting your business up in a way that’s aligned with how you intend to operate. And as a business lawyer, I can say that a lot of this comes under my umbrella.
I’ve written a lot about the importance of having strong foundations in your business. The sort that is aligned with the way you work, and completely tailored to you. The sort that helps turn a less-than-stellar month into a learning curve or growth, rather than a cliff-edge.
What You’ll Need to Bounce Back
If your general feeling is “I’ve gotta throw in the towel” then you could be on the brink.
Here’s the recipe to make sure you bounce back - or make a more intentional decision, rather than packing it in because you don’t have anything left in the tank.
Clarity in your Purpose
It’s too easy to get lost in the day-to-day when you’re running a business. But the risk here is that you can run out of energy, and lose sight of why you started doing this in the first place.
Staying anchored to your vision (all the time, but also when things aren’t going so well) will enable you to regain your clarity, focus on getting through the obstacles, and carry on.
Drive
Running a business is not for the faint hearted. It’s a slow burn, a long game.
Having the drive and the staying power (and recognising the signs of burn out so you don’t get all the way there) is a significant factor in the businesses I've seen be able to course correct.
Grit and determination are part of this: the setbacks are real, and the knocks are real. It’s simply not easy, and they never go away. It’s the ability to continue forward with passion and drive that can separate the businesses that bounce back/course correct, from those that don’t.
Foundations
Ah, my specialty!
Those with solid foundations are positioned to be able to bounce back/course correct. WIthout these, once the house of cards tumbles the only way forward is to rebuild from scratch.
That’s avoidable, with the solid foundations of:
A business structure that works,
An offering that is pitched and priced well, and
A legal framework that means you can take steps to protect intellectual property, limit liability, enforce payment obligations of third-parties (i.e. enforce payments of money that’s owed to you).
Now THAT is a formula for successfully pulling through.
Is it Time to Course-Correct?
If you’re facing so many challenges that you’re beyond fatigued, and feeling like you’ve lost sight of why you went into business in the first place, then I can help with that.
The right option might be to sell up, but in order to do that the business will need to be in a state that makes it salable. I’ve had clients come to me aiming to tidy things up for sale, only to gain a renewed sense of purpose in their business as a result of strengthening their foundations.
So if you’re on the brink, or you just feel like things aren’t under control, you can book a free 1:1 chat with me to say hello, and start to figure out, together, what the next step is for you.
Psst: I’ve created a guide, Legal Advice for Small Business, to help you feel more empowered when it comes to making decisions about your business. Check it out!
