Things you should do when your business fails. Did you know that Charles Leiper Grigg, the owner of the popular soft drink 7-Up failed woefully six times before he achieved success? He lost so much money and zeal after trying six different formulas with none of them working, but he refused to give up. At the sixth try, he got the formula right and today 7-Up has become a popular household drink.
Too many times we are overwhelmed by our failures that we lose focus and fail to look at the brighter side of life; at the bigger picture. As Paul Meyer said, 90% of those who fail are not actually defeated, they simply quit. Quitting is one, if not the easiest thing to do. You do not need to make any tough calculations, critical thinking, strategic planning, or important risk. You just stop.
Thomas Edison, the inventor of the light bulb, actually failed 999 times before he finally got the result which brought about the light bulb. Part of his experience moved him to conclude that, “there is only one thing that is a failure and it is quitting.” Failure is an opportunity to start over, this time, more intelligently. Failure gives you the leeway to unlearn and relearn; to master the process. It takes great strength to ignore the naysayers and those who think something cannot be done.
Every business, in its early stage, is a risk. Just as it has the potential to bloom into the next big thing, so is there an equal chance of it being that project that never clicked. While you’re bound to feel disappointment when a particular business venture doesn’t work out, here are five things you should do when your business fails.
1. Take A Breather And Practice Self Care
Nobody is flawless. We are bound to make mistakes however little, what matters is our ability to recover from our mistakes. Failure happens even to the best of us; even when we have seeming imaginative ideas, so don’t be too hard on yourself. The first step to take when your business fails is to take a breather and heal. Your healing process begins with acknowledging and mourning your losses, rediscovering the spark you once had and refueling your vigor.
When your business fails, it seems like your world has come to an end and you might feel empty, but you must learn to love and dust yourself. Accepting failure is tough; it’s often easier said than done. The realization that the business you put your heart, soul, and sweat into will not come to fruition often sucks when it hits home. However, you should be prepared to ride your storm with valiance and face the next tide.
2. Evaluate What Went Wrong
You cannot spend too much time grieving when your business fails. Unless you want to dwell in the debris of your failure, it is important you move on to the next phase that is analyzing the cause of your failure. There are a plethora of lessons to be picked up from a business idea that didn’t pan out right, and if you don’t learn these, you would only keep making the same mistakes over and over again. The shrewd entrepreneur will carefully appraise his actions all over to determine the exact cause of his failure
You must be clear and honest with yourself and be ready to take responsibility for your actions and choices while analyzing the successes and mistakes that occurred in your business. When these have been realized, you must make necessary corrections, fine-tuning your choices this time, to move on.
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3. Assess Your Financial Situation
When your business fails, chances are likely that you lose either your entire financial capacity of a sizable part of it. It becomes worse if you had borrowed money, perhaps from the bank or family friend, to begin the business. Now you feel like you’re tied to a rock and thrown into an ocean to drown. However, it doesn’t have to feel that way.
You don’t necessarily have to weigh yourself down to the gallows. You could even consider getting a job while you cogitate over the next auspicious idea to delve into, and while at it, save some money. You can even be able to pay your debt and earn a steady source of income to stabilize you once more. On the plus side, you never know where a good idea will emanate from.
4. Reach Out To Networks
You might need to reach out to other people, probably more experienced entrepreneurs, or people who have been in a similar circumstance and soared past. Savor their stories, get enlightened and learn new perspectives. You might even need to attend networking events, connect with more entrepreneurs on social media, or introduce yourself to business owners. Whichever way, ensure you are reaching out to credible and passionate people.
Apart from professional networks, family and friends offer a great source of emotional support. Just so you know, you won’t make an inch of progress when your business fails if you are not on the right track emotionally and mentally.
5. Reorientate Yourself And Consider A New Business
This final step to getting up from a failed business is quite crucial as you do not want to make the same mistakes twice. Spend time, a lot of it, evaluating and reinventing yourself. Have you discovered areas where it didn’t work out for you the last time? Have you gained more experience and ideas about the market and entrepreneurial process? Do you have the financial, mental and physical wherewithal to explore a new business idea?
If you’re cut out to be an entrepreneur, no single business failure can derail or deter you. You will have the same mindset and motivation as Charles Leiper Grigg, mentioned at the onset of this piece, who continued to pick himself up until he discovered his gold mine.
Ensure you prepare a new, detailed business plan to serve as a blueprint to seamlessly guide you through the vicissitudes that characterize new businesses. You might decide to re-enter the same industry you failed at, or, explore an entirely new idea. Whichever it is, ensure you devise your visions and goals properly, making sure they are measurable and achievable.
Gotten an understanding of the things to do when your business fails?
Rather than become depressed pondering over the bleakness of the situation, take a break and recover your enthusiasm. After that, carry am objective evaluation of your failed business to understand the reason for its failure. Ensure to also assess your obtainable situation, and while at it, reach out to your network, including family and close friends. Finally, get reinvigorated and ready to pounce once more on a more fertile idea, this time, more prepared and experienced.