Building financial resilience: Lessons from small business setbacks

Running your own business is a rollercoaster—since launching my business in 2022 I’ve experienced the highest highs and the lowest lows. Every day is different, but that’s what makes it a thrill. As the CEO of Clara for Creators, I’m getting on calls with Fortune 500 execs in the morning, and later that afternoon I’m packing boxes and doing intern-type tasks. This journey has been humbling and I’ve learned a lot of important lessons along the way.

Some of the toughest moments in my journey as a business owner have revolved around finances. I’ll never forget when we lost a deal with a huge client due to the economy. The client had promised we would work together on a campaign in the winter and without warning, they had severe budget cuts, which meant we wouldn’t be able to work with them as planned.  But, the problem was, I was counting on that money. My business is small and it was the holiday season. That five-figure deal meant a lot to our business. At that moment, it felt like my world was crashing down. I knew I had a choice, to sit and sulk or think of a way to protect my business moving forward. (I did both.) That experience taught me that I can use setbacks to better set my up business for success. And, it was a lesson to implement new verbiage into our contracts which protected our business from those events moving forward.

In this blog, I’ll be sharing some of the biggest lessons I’ve learned about overcoming financial challenges and how I created opportunities from setbacks. Whether you’re just starting your business or navigating through a tough time financially, I hope my journey will inspire you to be able to look on the bright side.

Expect the unexpected

If there’s one thing I’ve learned in business, it’s that surprises (both good and bad) will happen. Whether it’s unexpected expenses, losing a major client, or a bug that causes your app to crash, things happen and you’ve got to learn to embrace the unexpected.

I remember when I first launched my company in January 2022. I made a viral video on social media talking about my journey to launching and we started to get thousands of sign-ups and app downloads! I was so excited. After almost a year of working on my business, I felt like my hard work was paying off. My whole family came over to help me because I couldn’t keep up with creator registrations. I was on top of the world for a few hours. Then, suddenly my site crashed. There were too many people trying to sign up and our servers couldn’t handle it. I panicked. I had to alert our engineers and get our site fixed. It ended up taking a whole day! In addition, it drained funds and cost money we hadn’t budgeted for. The experience made me realize the importance of an emergency fund—something I hadn’t considered when I first launched my business. 

Expecting the unexpected doesn’t mean you will be able to prevent every issue that comes your way, but it does mean you can be better prepared. So whether it’s setting aside an emergency fund for rainy days or having a contingency plan, being proactive can make all the difference.

The importance of financial forecasting and data analysis

Financial forecasting allows you to anticipate potential issues within your business, plan for slower seasons, and be more resourceful.

After 2 years of business, I didn’t realize how much money I was spending on software services. They were all on auto-pay after all. But, by analyzing our cash flow and projections, I was able to spot this early on this year and cut back and make adjustments to our budget for the new year, saving me thousands of dollars.

Data analysis is equally important. By digging into creator behavior and how creators use our website, I discovered I was focusing and investing in the wrong areas of our site that no one even used. These data-driven insights helped me redirect resources and focus on what would actually help propel my business forward.

QuickBooks has been a valuable tool in helping me make data-driven decisions. It has simplified financial forecasting, allowing me to track our expenses, and providing real-time insights into my business. With access to this type of information, I’ve been able to make more informed decisions and handle forecasting with confidence.

Turning setbacks into opportunities

As hard as financial setbacks and obstacles are, they often come with opportunities. When we experience financial issues, I always take a look at how we are running our business. I ask myself if there is anything I could do to prevent the issue moving forward. And sometimes, it is a wake-up call to reassess our priorities and restructure operations.

For example, our contracts with vendors weren’t as strong as they could have been, which I learned when we had a client back out of a campaign. After that, we renegotiated our contracts to prevent it from happening again, which ended up leading to an increase in our average deal revenue.

Ultimately, financial challenges have pushed me to think outside the box and have helped my business become stronger. What felt like a mistake or loss initially helped us thrive long-term!

The value of a strong support system

I didn’t realize how lonely it would be as an entrepreneur. Your friends and family don’t always understand what you’re going through or your struggles but could still be great listeners on the days you need it most. During my toughest days as a business owner, I leaned heavily on my support system—family, friends, business connections, and even my followers on social media.

For instance, when I was determining our pricing structure to work with clients, a mentor in my network offered advice that completely changed my point of view. I have also been vocal about my founder journey on my social channels, sharing our challenges, and have gotten a lot of unexpected support that way! When I share our struggles online the response is always incredible. Not only do people offer encouragement, but some have even connected us to new opportunities.

If you’re a small business owner, building and maintaining a strong support network is important. Try to attend industry events, be active in communities online, and reach out to people who inspire and uplift you. If this resonates with you, I’d love to connect with any and all small business owners!

Embracing a growth mindset during tough times

I’ve always considered myself a positive person, but as a founder, mindset is everything, especially when you’re facing daily obstacles and constant setbacks. Having a growth mindset has been one of the best things I’ve done in my journey as a business owner.

When I encounter setbacks, it can be so easy to feel bad for myself and give up. Instead, I make an effort to view it as a learning experience. I ask myself, “What can this teach me? How can we improve as a business moving forward?”

To stay positive, I focus on celebrating small wins and looking at the bigger picture. For example, in my office I surround myself with wins from my business journey such as speaking badges from panels I’ve been on, awards, and newspaper articles I’ve been featured in since launching my business. These small mementos serve as a daily reminder of motivation to keep going.

Conclusion

So, as you go into the new year try to remember that setbacks don’t define your business journey—but how you respond to them does. Every challenge you face is really disguised as an opportunity to learn, grow, and come back stronger. By using tools like QuickBooks and maintaining a growth mindset you can make it through even the toughest times!

I hope these lessons resonated with you and help you as you are growing your own business. And lastly, remember, you got this!