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After all, you've already successfully started a business once, and even if that venture wasn't successful – so many factors, often external, come into play – you've gained experience and will assess and handle certain situations differently today than before!
To help you successfully launch your second business, here are a few more tips!
General recommendations for restarting
- Take your time!
Perhaps you've tried long and hard, perhaps desperately, to save your first business, pushing yourself beyond your physical and mental limits.
Therefore, take time to rest, regain your strength, and gain some perspective.
Above all, don't focus on the "failure," but see your new life situation as an opportunity for a fresh start. - Free yourself from past burdens!
Settle your old debts before starting a new business. Before attempting a fresh start, you absolutely must have reached an out-of-court or court-approved debt settlement agreement with all creditors. With outstanding debts, you'll find it difficult to secure funding for your new business or build trust. - Plan carefully!
A restart is a difficult undertaking and only has a chance of success if it is well-planned. Don't rush anything. Especially when restarting, the saying "If you're in a hurry, go slowly!" applies. - Securing your livelihood:
Register as a jobseeker with the employment agency as soon as you cease your self-employment and clarify whether you are still entitled to benefits from the Federal Employment Agency (unemployment benefit I). Perhaps you have also paid into voluntary unemployment insurance
despite your self-employment and are therefore at least initially covered. Otherwise, needy (former) self-employed individuals are entitled to citizen's income support.
Concretely
Root Cause Analysis
You can learn from mistakes and failures. Therefore, analyzing the reasons for failure should be the first step in planning your next venture.
Planning and management errors are among the most common causes of bankruptcy.
Critically assess whether you can improve your entrepreneurial skills. Many self-employed individuals are masters of their craft, but have significant deficiencies in business and economics.
Use the time before restarting your business to further your education, for example, in business management.
Settling Existing Debts
Provided you are not legally obligated to file for insolvency, you have two options for debt settlement: either through the courts (filing your own petition for insolvency proceedings combined with an application for debt discharge and, if applicable, deferral of insolvency costs) or through an out-of-court settlement with your creditors.
Take advantage of the counseling services offered by insolvency and debt counseling centers in your region.
Insolvency law allows for debt relief within a foreseeable timeframe. Even with high levels of debt, this provides a realistic prospect of a debt-free fresh start.
Note: It is generally possible to continue or even start self-employment during insolvency proceedings. However, assessing whether and under what conditions this is actually possible and advisable is a highly complex legal question and can ultimately only be answered on a case-by-case basis.
Concrete Preparation for the Restart
When preparing for your restart, take advantage of the free business start-up consulting services offered by chambers of commerce and economic development agencies in your region.
Clarify whether you meet all the necessary legal requirements for starting a business. For example, some business categories require a permit for registration, and the founder's financial capacity is verified by a tax clearance certificate from the tax office.
Carefully plan the duration and costs of the market launch, as start-up time and costs are often underestimated until the new company establishes itself in the market.
Obtaining new loans and guarantees is generally possible for those restarting a business. However, as long as existing debts remain or debt relief has not yet been granted, you must assume that you are generally considered "not creditworthy."
Seek advice on whether you can (again) access subsidies to cover your living expenses during the restart.
But most importantly: If you're motivated and have the willpower, don't let anything deter you from your path!
So, best of luck with your fresh start!
Source: BMKW's business start-up portal
