From small product launch failures to an entire business shutting down, there are no easy failures.
No matter how well you prepare mentally for it, a business failure can be devastating. The toll it can take on your confidence, emotional health, and business bank account is not to be taken likely.
It’s not easy, but it is possible to completely recover from a business failure. In this article, we’ll give you a few steps to help you bounce back.
Failure in business is something that is inevitable and sometimes it may come when you least expect. It is in this situation that you have to be prepared to accept it if it happens. You also must learn that, for the blue chip companies that are making multi-billion dollars every year, it’s not always smooth sailing. And since failure is something that you cannot avoid, you should set your mind to accept that, if your business fails, its not the end of the world. Just the end of one venture. This happens to everyone and therefore, you need to be set in your mind to handle failure in case it happens to you.
Reflect on the Root Cause
Apart from accepting the situation, it is not just enough to call it a failure. You should try to find out the real cause of the problem. There must have been something that was not set right before and you should try to find it out so that you can move forward easily. Here, you can do a little research on what let you down, it can be that your business had a vision that was not clear enough or maybe you never researched on it before setting foot on it. Therefore, once you have identified the cause, you can then find a solution.
There may be many causes but if you are having trouble coming up with some, Let me get you started:
-Economy not right for your business to thrive.
-Your level of expertise was not sufficient enough to carry the business.
-Lack of funding.
-Lack of demand for your product or service.
-Goals, target market, vision, was not clearly defined.
-You did not take full responsibility for the business.
For some other ideas that may have caused your business failure check out our article Why Your Product Launch Failed and How to Prevent it From Happening Again
Ask Yourself “What Happened? and What Did I Learn?”
Honesty is key here.
There are so many situations that can lead to business failure if not taken care of. You need to analyze the situation that led to failure in the first place. Analysis here involves the whole situation from the business plan, the market and finally to the start of the business. If you find that the problem aroused due to the business plan that was not well laid down, it’s time to get up and try again. For example, some of the fundamental things might have been omitted in the process and therefore needs to be prefixed.
The most important thing in business is to learn from every step, every obstacle and from every challenge. Failure in business should implant some valuable lessons. The lessons learnt from the past mistakes are so significant in reconstructing the second step. Of course, learning is a continuous process that you can never exhaust.
It is imperative to keep on learning so that whenever there is something going wrong in your current business, it becomes easier to fix it before it breaks down. Indeed, many times you will face the same challenges and if you cannot learn from the past mistakes, the same thing may also set your business to fail. Therefore, it is wise to use the lessons learnt to improve on present and future situations.
Implement New Ideas
The best way to move forward is to identify new ideas and to implement them if they are viable. If you are to go back to your original business, you may need new ideas on how to improve on the services and this may lead to success. At this point, you have already identified what caused failure in your first business and here, you have to put on new measures to ensure that your business is going to succeed this time round.
Also, at this point, you may have to consult some of the key entrepreneurs who have succeeded and learn from them. You can also find some business consultants, talk to them about your previous business, and let them give you some advise that can help restore your hope for success.
Set a New Goal
Your previous business goal may have been out of line with the actions you were taking. They may have also not been in line with they type of business you have. When recovering from a business failure, you must set a goal that is in line with that business.
One thing that tends to derail some entrepreneurs is metrics that do not matter. Perhaps you set a goal to get your brand out to the general public. You worked hard, threw a ton of marketing dollars into your campaign and hired a social media expert to manage your accounts. You may have 100,000 followers on Instagram but does that translate into actual profits for the business? The next time around, you may want to make the goal sales conversion instead of brand awareness.
Rebuild Your Hope
Failure should not always occupy the greater percentage of your mind. Failure may bring about worries that may drain all your hope. If this is your situation, you need to be optimistic and let your mind think more about the strategies for success rather than the worries of the loss.
At this stage, remember that, by worrying, you will never add or restore anything. Therefore, gather some strength and continue to strive towards your newly set goal. This is a very important and incredible stage that will surely make your business to thrive once again.
Take a Break
It is the best to take a break so that you do not rush into things. By doing this, you will find enough time to consult, think about on what to improve and also to acquire more capital for the next business. Most of the people do fail and fail because, they do not take enough time to think about the next step and to lay down strategies that will lead to business success. Therefore, if you have been a victim of failure, you should take some time to relax and gather strength to bounce back.
Press the “Reset” Button
After you have taken a break, it is at this point that you can begin your business. At this stage, you are very much equipped and aware of some of the things that will steer your business to success. Also at this point, are well set to lay the strategies that will prevent the business from failing again. Remember that, to succeed in business, you should never lose hope at any point or challenge. Once you have re-energized and learnt from your past mistakes, you should start over again and be hopeful for success.