While your business is in its infancy, all it takes is one mistake, one bad call or one misstep to put your company in financial dire straits. Still, this is not a reason to admit defeat since such a thing can happen to anyone. Keep in mind that every defeat is a valuable lesson, so try to learn as much as you can from your bankruptcy. After all, you will need this knowledge on your climb back to the top. With this in mind and without further ado, here are four ways which will help you bounce back after bankruptcy.
1. Nothing to be ashamed of
From the historical perspective, some figures appear so incredibly successful that it seems impossible even to imagine that they ever encountered a rough patch in their lifetime. However, even people like Henry Ford, Walt Disney and Abraham Lincoln went bankrupt at one point in their lives. The moral of this story is not in the fact that a failure can happen to anyone, but that even when it does, this isn’t the end of the road.
2. Seta budget
A lot of people make a mistake of trying to calculate their incomes and expenses on the run. This usually doesn’t end well, so it would be a good idea to set a budget this time and adhere to it as much as possible. Three main points of your post-bankruptcy budgeting is to track your spending, start living a bit below your means and learn how to allocate money properly. Make your rent and utilities a priority and try to save at least 10 percent of your entire income to have as an emergency fund. This will prepare you for some inevitable setbacks and will mean that you don’t have to borrow money for some of these minor holdups.
3. Build up your credit rating
After a bankruptcy, your credit rating will be just horrible. This means that should you need to apply for a loan, chances of getting it will be minimal. For this reason, you need to find a way to repair your credit score and there are two ways to do so. You can either take the longer way, by taking a secured credit card and improving your rating over a long period of time or hire some help from niche experts like CleanCredit. The latter one can be a bit more efficient, but there is really no reason why you shouldn’t go for both of these methods.
4. Do some diagnostics
In order not to repeat some previous mistakes, you need to figure out what led you to go bankrupt in the first place. A lavish lifestyle, bad investment, job loss and medical expenses are just some of the things that may cause you to go bankrupt. Of course, you shouldn’t count out global disasters like earthquakes, floods and tornadoes. Depending on the region you live in, this could be a more or less probable hazard. Knowing what the root of all the problems is can make it easier for you to avoid it in the future.
People say that starting from scratch is always hard, but bankruptcy isn’t exactly a real fresh start. All the hardships you have undergone will still be looming over your head and it will be up to you to find a way to boost your morale and press forward. As you could see, even some of the most successful people in the history have felt like you at one point. The fact that you currently feel down might be just a phase in your life, one of many you will have to go through on the path towards your success.