Estimated reading time: 2 mins
Not everything in business can go exactly as you planned. There are always outside forces at work, creating situations that can put roadblocks in your way. It’s a shock when a business fails, but it doesn’t have to be the end of the world.
Debts can soon sink a start-up business, as can a change in the market, or even global problems affecting trade. If you learn how to handle failure, even if you’ve had to call in the insolvency lawyers, there are ways to recover.
- Accept failure and learn from it. Don’t waste time trying to revive a business that has failed. Accept the failure, get out, and move on. If you want to try again with a new business, you will need to learn from your mistakes. Why did your business fail? Did you try to grow too fast? Were you let down by an investor? Did you choose a poor location for your business? Whatever went wrong, try to find out why, and learn from it so you don’t make the same mistakes again in a new business.
- Actively decide to change. If you’re going to do the same things again, you will likely fail again. You have to actively make the choice to change your behavior or opinions and do something different.
- Prioritize the tasks that will lead to change. You might need some support to make the changes you need in order to recover from failure. This might be taking on more training in an area your knowledge was lacking in previously, securing more investment, or hiring new staff. Whatever those tasks are, prioritize them and get those done first.
- Get a mentor. If your first start-up ha stumbled, it could largely be down to a lack of knowledge or experience. If this is the case for you, it could be wise to find a mentor. A mentor is someone with more experience who will guide you through the recovery process and help you to create a stronger business that is more stable. A mentor could be anyone with the relevant skill, but many people ask old bosses to help them.
- Move outside your comfort zone. Sometimes, the trick to recovery is trying something new. If you’re doing all the same things, you’ll make the same mistakes again. Get out of your comfort zone, shake up what you’re doing, and work out what new things you could try instead.
- Align yourself with the right people. Your network can help you to succeed in business. The right contacts can help you to find the right employers, the right suppliers, the right partners, and even your first clients. Do some serious networking, both in person and online, to build up a strong network of the right people who can help you on your way.
- Keep an eye on your finances. Money is the main reason that businesses fail, so keep a close eye on your finances. Your budget must be kept under strict control, and you must know exactly where all your money is being spent.