For every quote on resilience there is probably a failure business that motivated its birth. Chances are you will not make it big in your first venture or first try at your business. Failures are part of entrepreneurship and success stories are easier to sell, you might not hear of the failures of many people who have made it.

Successful entrepreneurs are defined by their attitude. The willingness to learn lessons from your business failure will determine your chances of being successful. 20% of new businesses fail after a year in operation with about 40% of the successful businesses closing after 5 years.

While failure in business is common, it is however not a walk in the park. A business failing can strain your finances, relationships and your confidence in yourself.

What to do after a business fails.

Analyze your failure to figure out what went wrong

You may not feel like dwelling on it, but when a business fails, it is crucial to analyze every aspect that could have led to the failure. Find out what went wrong, where, how and why. Start by looking at what you wanted to achieve when you started the business and if you were able to accomplish it. If not, why not.

Did your product or service fill a noticeable niche in the market, did it have any competitive edge and did you communicate your value proposition clearly. Did you collaborate well with partners and employees? Look for any blind spots that could have contributed to your business failure to avoid the same mistakes costing you more in future.

After pinpointing what went wrong, you will be in a better place to determine whether you can improve on your idea or get a different one and start over.

Is Entrepreneurship the right choice for you?

Businesses are not for everyone, depending on your strengths you may realize that your personality and skills might not be sufficient to run a successful business. Before starting another business that could damage your finances, consider getting a full-time job for the immediate future to get back on your feet.

Read more on if entrepreneurship is the right thing for you at http://milhanaccesscapital.com/determine-whether-entrepreneurship-is-the-right-path-for-you/

Stay Positive

Getting excited again after a business failure is not easy, staying down is not an option either. Take note of things you enjoyed doing in your business to remind yourself of your passion for starting out in the first place. Look for ways you can maximize on the returns while noting down things that strained you that you can delegate or hire someone.

Look for mentors that can guide and jumpstart your enthusiasm. Talk about what you are struggling with, your mentor can offer business tips that might steer you in the right path.

Rise above your failure

Failing means you took a risk and went for what you wanted, not everyone can do that. If anything, it should give a boost to your confidence. Embrace the lessons that your failure brings. Do an audit/SWAT analysis. Determine the mistakes that you can correct and pick yourself up.

How to be a successful entrepreneur

Your success as an entrepreneur will be determined by your mental and emotional strength. Be of strong mind, have a willingness to sacrifice, be able to commit and have unwavering determination.

Be mindful of your circle of friends and have the right mindset

Mindset changes that successful entrepreneurs make.

Complaining does you no good– Complaining is a complete waste of time, hardships and challenges will undoubtedly arise, complaining about them gets you nowhere. Have the will to pick yourself up after difficulties and learn from your mistakes.

Learn from your failures– Every failure is a learning opportunity. Do not allow your mistakes to define you. Treat failures and mistakes as learning opportunities.

Get used to being uncomfortable– Comfort zone is not even an option when it comes to entrepreneurship.  Discomfort is part of running a business, you will have to push yourself outside your usual limits to stay on top of your game.

Keep an open mind- When times are good, you may be tempted to maintain the same way of doing things. It is however necessary to find keep abreast with new technology earlier on.

Take risks– Your business success and growth will be determined by your ability to take calculated risks. Challenge the status quo, have a curious mind, question everything, seek knowledge, understand why what works, works.

Believe in your idea– Your faith in yourself and your ability to execute your business idea and prevail in times of hardship is the make or break of your business. Believe in your eminent success and work diligently to make it happen.

Accounting in a small business involves keeping the books to identify waste, fraud, theft and tax purposes. In order to ensure your business remain successful and saves money in the long run, it is important for entrepreneurs to hire professional accountants. Most owners might prefer to do it themselves or delegate to other staff which can be detrimental to the business, successful companies have gone broke due to fraud, theft, unpaid taxes and even embezzlement.

Some of the most common accounting mistakes that small business owners make include entering data incorrectly, not documenting expenses and income or just basic math errors. Here is how to fix some of the bookkeeping mistakes.

Disorganization

Organization is a priority in accounting. Document and keep records of everything, use the business credit and debit cards for expenses and keep receipts for all expenditures. Maintain updated books and be sure to note down petty cash expenses the moment you incur them. Do not mix personal and business finance, while this may be unavoidable at some instances, be sure to indicate it as a loan to the business and get receipts on the same. Auditors will rarely challenge expenses supported by receipts.

Putting of the paperwork

Business owners especially during the beginning are forced to wear many hats to get a good hold of the business. Postponing to update your books might seem trivial but may affect the business in big ways. Avoid getting behind on filing reports, bill payments, invoicing clients and the financial statements which can lead to increased debts, bounced checks, and mistakes that you might not be able to iron out after time has passed. Always keep your books current not to miss out on financial opportunities.

Math Errors

Entering the wrong date or figures in the wrong place, rounding off incorrectly could cost you dearly in terms of paying taxes or hurt your small business finances. This is where professional accountants come in.

Hiring the right staff

This point cannot be stressed enough, delegating your book keeping to unqualified staff is one of the major mistakes that small businesses make. If the people you have put in charge of your accounts do not know what they are doing, your business will be the one to pay for those errors. Besides, not everyone has your best interest at heart and they may not be invested so much in the business to care on correcting errors and ensuring the books run smoothly.

Be willing to delegate

Small business owners are hesitant to delegate since they may feel like they are giving out power to experienced professionals. However, your business growth and ultimate success will depend on your ability to involve professionals who will handle the parts of your business that you may not be competent to manage.

The business will benefit more when you focus on what you are good at and allowing others to do their jobs. Expert advice is required for maximizing income.

Communication

Keep a clear line of communication between yourself and your book keeper to avoid accounting mistakes like filing records and reports which will affect the financial data. Reconcile statements and note down any expenses like employee bonus or cash discount.

Bookkeeping tips to avoid Accounting Mistakes

Tracking Receivables

Your small business could be losing revenue by not tracking receivables, your business could have good potential for revenue with little to no money coming in. create a system of managing outstanding invoices to avoid losing money on some accounts which can in turn mean looking for a loan to cover expenses. Consider investing in invoicing software that can send reminders to clients such as Vyapar

Tracking Purchases and expenses

Not tracking expenses, payments or bills and fees will result in discrepancy between the money you are spending thinking you have and the actual amount in your business accounts. Start by tracking small purchases that adds up over time including petty cash to avoid misuse.

Validate your purchases and income

One of the danger of messy book keeping is overpaying taxes. Inaccurate record of business expenses could mean more deductions that your business have to.

Bottom line

While there are many ways to prevent accounting mistakes, the person entering the numbers should do so correctly and be able to interpret assets, taxes and other financial matters. But more so, that person should be a professional accountant.

Make clear record keeping a priority to avoid rushing to complete books for financial transaction which could mean making mistakes in a hurry that will waste more of your time correcting or cost your business dearly. Keeping organized records everytime will you give a clear picture of the business income, expenses, profits and cash flow.