I messed up, now what?

Most business owners have had that moment when they realize they messed up, whether it’s a small oversight or a big issue.

My title here is “accounting crisis manager” so believe me, I see this a lot. You are not alone- everyone makes mistakes. It’s how we recover that is important.

There is no shame in making mistakes. We just need to take a deep breath and switch gears into recovery mode to move onward and upward.

One issue I see quite often that can get businesses in financial trouble is not outsourcing the work or outsourcing the work to the wrong people. In other words, just because your cousin can handle checks doesn’t mean you need to give them the job. On the other hand, if you have a professional bookkeeper, you should trust them to do their job but still maintain oversight.

People tend to feel a sense of shame for not understanding every part of their business. Just remember that to build a successful business, you will need to lean on other people. When an owner gets busy, and they will, shortcuts tend to be taken. This is where I see clients get into trouble, and it’s why outsourcing is so important.

Businesses can go through ups and downs for numerous reasons. Recessions, decreased demand of the products, and high unemployment rates can all affect the company’s revenue.
If you’ve hit tough times financially, some of these steps could help you bounce back.

  • Charge more for the product
  • Add fees, especially in service industry
  • Sell any assets you are no longer using
  • Reduce expenses
  • Get advice from a professional
  • Keep moving forward
  • Be flexible

I don’t mean to sound like a pessimist, but you really do want to plan for the worst as a business owner. It’s important to understand that potential loss and disaster are looming, and the better you prepare, the faster you will bounce back.

You can prepare and help strengthen your business with these steps.

  • Take a complete inventory of your business regularly
  • Ensure bookkeeping is up to date and correct
  • Back up your data and use up-to-date software

Remind yourself that those who have experienced great success have also experienced great failure, too. Find a solid and trusting support system, plan your course of action, and be prepared to build yourself and the business up again.

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