How to make someone understand dealing with loses in a business?

[Kennysplash]

You can let them know that experiencing losses is normal in business. It should not be a disappointment to them, rather they should swiftly find ways to get back on their feet.

 

[Heatman]

Sometimes a lot of people lose money in business, but after a while they will be able to recoup. This is why, when starting a firm, it is critical to have a backup plan.

Some people actually find it very difficult to understand that businesses is all about profit and losses which is why it is very important for them to know how to get involved in transaction that might cost them a very huge loss which will wreck the business.

 

[Good-Person]

Some people actually find it very difficult to understand that businesses is all about profit and losses which is why it is very important for them to know how to get involved in transaction that might cost them a very huge loss which will wreck the business.

Well, I always understood the fact that I shall not make profits all the time. This is why I have started to trade and understanding this fact is very important as a trader.

 

[Sotherefore]

You can let them know that experiencing losses is normal in business. It should not be a disappointment to them, rather they should swiftly find ways to get back on their feet.

If the losses is something that is easier to overcome it will be very much understandable and some people will see it as experience , but however losses that involve a huge sum of money that the company is affected negatively is not always an easy thing to withstand in most cases.

 

[Joy123]

If you are operating at a loss in your business, try to should reduce your expenses. Is there anything you have to cut from spending? Reduce the amount of drawings you are taking from the business. Increase your sales, charge more on your products and services, get an advice from an advisor that will help you turn around.

 

[eLdavis]

I believe this person has the mindset that one needs to take risk in other to make money, so he is ready to take that risk. What you should do is make him understand that while there is nothing wrong in taking risk, there is also something called risk management.

 

[Abigael]

There comes a time when you need to quit for sure. Sometimes things just don't go as planned even if you have done everything right. You need to tell this person that if everything he has tried hasn't worked, he needs to give up and try other things.

 

[Genie01]

Making losses is also part of the business, you don't have to convince anyone, a lot of people are not going to get this right, I don't think if there's any reason to convince them.

 

[Shigobad2020]

Making losses is also part of the business, you don't have to convince anyone, a lot of people are not going to get this right, I don't think if there's any reason to convince them.

Business is normally full of profit and loss but because we prefer the profit , we now get devastated when we loose but the best solution is find another alternative to solve the problem.

 

[Henrywrites]

I know someone who wants to open up a business. I told them to keep a fixed budget(in case they encounter loses). However, they keep saying that, if they encounter loses then it means, they are not doing it the right away.

Their thinking is not incorrect but however, it could easily make us go bankrupt, if you don't know when to quit. So, how would you make them understand when to quit? Or do you think we need to keep on trying till we succeed(however not everyone can succeed)?

What are your thoughts on this?

One thing with business owners is that some react negatively to getting a loss. I have been in situations where the loss that was experienced in my business was a reason I began thinking outside the box and found better ways to handle situations. So, why would some go defensive because they experienced a loss?

 

[Heatman]

I believe that anyone who started a business should actually understand what it means to run a business. This is that there is always profit and loss in business management. There is no way you can be able to run a business without experiencing a loss in your business from time to time. When you are not ready to understand this,then you are not ready to become a business owner.

 

[Grant]

Sometimes you have to learn based on experience, so letting them experience a loss in their business will be enough to teach them. But, if you want to teach them before, show them past experiences with other companies where they lost a lot of money, and learn from how they solved their mistakes. Sometimes the best way is for them to experience their mistakes and learn from them.

 

[Heatman]

One thing with business owners is that some react negatively to getting a loss. I have been in situations where the loss that was experienced in my business was a reason I began thinking outside the box and found better ways to handle situations. So, why would some go defensive because they experienced a loss?

Personally, I have experienced a very big loss in my business of poultry and fish farming, it was even so bad that I almost was crippled in that business. If not for the financial assistant that I received from my mentor that I used to resurrect the business back to its feet. I actually understand that this is something that is capable of happening in my line of business and I was ready to embrace whatever the outcome that comes with it.

 

[Good-Person]

Personally, I have experienced a very big loss in my business of poultry and fish farming, it was even so bad that I almost was crippled in that business. If not for the financial assistant that I received from my mentor that I used to resurrect the business back to its feet. I actually understand that this is something that is capable of happening in my line of business and I was ready to embrace whatever the outcome that comes with it.

I think that whenever you face losses in businesses, you have to sit down and relax. In many cases, you may also need to stop conducting and carrying out business activities. This is when you must think about what caused loss in the first place. Getting to the root cause of loss is one of the main aspects of carrying out business.

 

[Heatman]

I think that whenever you face losses in businesses, you have to sit down and relax. In many cases, you may also need to stop conducting and carrying out business activities. This is when you must think about what caused loss in the first place. Getting to the root cause of loss is one of the main aspects of carrying out business.

Yeah, that's very correct. When you understand that business is all about profit and loss, you will know that it's never all about profit only. So, whenever you're open to loss in your business deals, you won't feel downcasted when a loss hits you. Rather, you will start working on how to fix your loss immediately.

 

[Good-Person]

Yeah, that's very correct. When you understand that business is all about profit and loss, you will know that it's never all about profit only. So, whenever you're open to loss in your business deals, you won't feel downcasted when a loss hits you. Rather, you will start working on how to fix your loss immediately.

There are many businesses men who suffer from losses in a row. This means that they develop a losing streak by the passage of time. However, many of those businessmen learn from their mistakes and mend their ways. Even Warren Buffet also suffered from losses.