Try as we might, we sometimes find our businesses at the brink of failure. Debts are starting to pile up, collectors are starting to call, and all credit cards have been maxed out – and income is simply not enough to cover all expenses. It’s depressing and it’s hard. You can seriously be in a deep funk after your business failed, and you are dealing with the consequences of failure.
Here are some tips to help you if you feel your business is floundering or has failed:
Take a deep breath
Review your current situation, especially if you have debts to pay. Look at your financial situation: assess how you can fix it and how long it will take. Business failure is something that affects not only you, but your family as well. What and how can you sell from the assets of the business? Will you need to sell the house? Will you need to move your kids from private school to public school?
Brace yourself for this part of your life as it is not going to be easy. But it is essential to keep your optimism up, and know that better times are up ahead.
Carefully review every step you have made.
Then identify and evaluate your mistakes. Think of what you could have done otherwise or improved. This is not the time to blame yourself or others, but learn from your mistakes and try again – hopefully this time with a more successful venture.
Accept that failure is part of entrepreneurship.
Entrepreneurs fail all the time. Of course, you don’t want to be part of the statistics of small businesses who’ve closed shop, but that’s just how it goes. Going down and rising up are all part of being an entrepreneur. You need to be OK with the idea that you can fail. You’ve failed this time; just go ahead and do it the second time using what you’ve learned from this failure as your ammunition.
Persistence is the key.
Try and try again until you find a business idea that works. Refuse to give up. Re-examine your business idea, and determine if it can go toward a different, untapped market. There may be some niches that your idea can address that you have yet to see.
Do more research, or reading.
The more information you have, the less unknown variables, the greater the chances for success. Read books about other entrepreneurs, especially those who have failed, and learn from how they rose up again. If you are really feeling down, there are books to help you deal with failures and how to cope with them.
Concentrate and focus on your business goals and vision.
Look forward, not backward. Be proud of what you have accomplished and learned along the way. Try to look at your failure positively – sometimes, a business failure can be a blessing in disguise.
Help some other faltering entrepreneur along the way.
Submit your story to a magazine or even write a book to help inform other entrepreneurs on what to avoid. Who knows, this might pave the way for an entirely new career for you.
Prepare yourself for the next phase
If you decide to start again with another business, be sure to read more and delve deeper into the industry. Before you start your new business, prep yourself in ways you never did the first time. It will not only give you the knowledge you need, but the confidence and strength to move forward. Get to know people in your planned business venture. Develop your social media and real-life networks and contacts. You may just find people who could help you or give you advice about your next steps.
Don’t be afraid to start more than one business venture at the same time.
You never know which one will work. If time and resources are limited, just make sure that you have a back-up plan. In fact, always have a back-up plan (if you didn’t the first time).
>> Read Quotes on Business Failure
Recommended Books on Business Failure:
- Billion Dollar Lessons: What You Can Learn from the Most Inexcusable Business Failures of the Last 25 Years
- The Ten Commandments for Business Failure
- Failure is Obsolete: The Ultimate Strategy to Create Recurring Success in Your Business and Your Life
- Why People Fail: The 16 Obstacles to Success and How You Can Overcome Them
- Why Smart Executives Fail: And What You Can Learn from Their Mistakes
Category: Business Challenges