Business failure can feel like the end of the world. In fact, the fear of failure haunts 35% of entrepreneurs. And when business owners are faced with a mountain of losses, it’s easy to say, “never again.”
What many fail to remember is that they can turn these losses into lessons — and then get started on their next business venture.
Lesson 1: How to Take Accountability
No one wants to say “yes, I failed,” but the hard truth is, the first step in moving forward is embracing where you went wrong. It wasn’t the economy’s fault because you should’ve kept a better eye when monitoring your company’s cash flow.
Running a business involves knowing how to scale up and down accordingly. You can’t blame your staff, because if you provided them with what they needed, they would’ve succeeded.
Perhaps you didn’t even bother hiring staff because you thought you could handle the workload solo.
23% of small businesses don’t survive because they don’t have the right team.
Another great mistake. And, lack of money isn’t on anyone but you. It’s up to you to put your business in a place where your product speaks for itself. And if it’s too soon to showcase your product or service, having a tight elevator pitch is your responsibility.
See where we’re going? Admitting you were a cause for your business’s failure isn’t fun, but it’s needed for learning and growth. Don’t beat yourself up though. Just because the business failed, doesn’t mean you’re a bad person.
Take it easy on yourself. The greatest decision you could make is to uncover the positives.
Lesson 2: When to Say When
With your newfound knowledge, it may seem like a good idea to relaunch your business bigger and better than before. Resist the urge!
Perhaps your business was a good idea for you but your customers found no value in it. Consider doing some thorough research. Poll your target audience on what it is that they want and what they’re willing to pay for it.
If the value balances out, then you’re moving in the right direction.
42% of business failure is because people no longer need products/services those businesses offer.
Lesson 3: Call in Help
When it’s time to hop into your next business venture, you might want to look into using your strengths in a different industry. Before you make that move, call in the experts. Seek out a mentor in the industry to help guide you throughout this new journey.
And if your business failed because of a lack of assistance, it’s time to think about hiring staff to help you run the business. Having a multi-award-winning end-to-end CRM software helps, so you can focus on the parts of the business you enjoy and are truly passionate about.
Be honest with where your skillset isn’t great and seek out those experienced in that area. If finances drug you under the first time, hire an accountant to help you raise, budget and invest your money wisely.
Did you have a partner last round? If not, consider it before your next business venture. Maybe your last partner was more of a hypeman than a helpmate.
Be sure to select a business partner who will aid in your growth. Having a team of knowledgeable people behind you will improve how you run your next business.
Business failure isn’t something worth celebrating, but when you can use that opportunity to learn and gain knowledge, you can move on with wisdom and take the next step toward your next success. Regardless of what happened, don’t give up.
As Winston Churchill once said, “Success is not final, failure is not fatal: It is the courage to continue that counts.”