It is a well-known fact that the wealthiest people in the world and the multimillionaire business owners have failed a couple of times before reaching the success they now have. Moreover, a significant number of them has had massive fluctuations in their business’s cash flow, going to million dollars and losing them, all in one day, before reaching a constant income and revenue. Building, and even more importantly, maintaining a business is a tough thing to do; it is a game of patience, skill-acquirement, opportunities, and right choices. If one of those things is missing in business, chances are it will join the 70% of small businesses that have failed in their first year.
What is crucial to observe in a situation when a business has failed is the fact that one failure won’t define you, nor your competence to run a business, after all. Similarly, one win or success won’t make you rich forever, either. The best entrepreneurs, like Jeff Bezos, Reid Hoffman or Akio Morita, were not defined by their wins or loses, but rather by their ability to manage and deal with them.
If your business has failed, it’s not the end of the world. Here is what you can do to learn from the experience and put it to good use in the future.
Identify And Analyze The Cause Of The Failure
The initial reaction to a failed business is, of course, emotional and overwhelming, so make sure to give yourself some time to get up and dust yourself off. This does not mean that you can take all the time in the world to put yourself together. After a business has failed, timing is everything. The aftermath of failure is the period you need to use for your advantage; by analyzing the situation right after it happened is the best way to bear the fruitful parts of a failure.
If you want to get right back on your feet, use your failed business as an excellent pointer for the things you shouldn’t do in the future. Analyze why your ideas and efforts weren’t enough for your business to succeed in the first place, and try use that knowledge to inform future decisions. Chances are the cause of your business’s failure is common and easily tackled, so make sure to carefully inspect your business’s history and choices that might have caused the failure.
In the Entrepreneur article on how to reinvent yourself after a business failure, Paul Pruitt, a professional photographer, explained the keys to reinvention. Mr. Pruitt believes that having a failed business is a valuable experience and lesson each business owner needs to be aware of. This has helped him realize not only remarkable things about his business but also about himself. Here are some of his keys to reinvention:
- Be unique: it may sound cliche, but it is highly essential to differentiate yourself from competitors. In order for a business to succeed, you also need to align it with the values and lifestyle you go by.
- Be smart and chose the right clients: you need to identify the target clients in accordance with what your business offers. Then, by infiltrating into their circle, you will slowly but steadily become a part of that very circle. By making yourself indispensable in the particular branch, you will start receiving an increasing number of clients.
- Accept that success takes time; long-term success won’t happen overnight. You will probably have to invest into learning something new. It will take patience, thorough reevaluation and credibility re-establishment once you start a new business.
- Be consistent; by taking consistent action in the new business and developing a solid studying routine, you’ll be more likely to get things done and reach long-term success and fulfillment.
Ensure Future Finances
Business failure and bankruptcy don’t have to be the end of your financial security and financial future, according to the Rowdy Williams Law firm. However, you do need to realize and accept the fact that your business is no longer the primary source of income. Therefore, it is crucial to downsize lifestyle costs and maintain a regular income from secondary sources. This will enable you to open a new credit account in case you want to rebuild your credit and start a new business. Bear in mind, nonetheless, that by taking another loan, you will be a subject to a high-interest rate. This is merely the price to pay in order to come up with a new income source from a new business.
Strong Support Network And Creativity
In tough times, it is essential to surround yourself with the right people. These people will then help you reinvent yourself and build your career path in the direction that you want to take. Emotional support is also extremely important because of the way a business failure affects mental health. Many people take it too personally and go hard on themselves, but by having a strong and supportive group of people that understand what you are going through and want to help is probably one of the most important things in the aftermath of the situation.
Another thing you can do is turn to some creative outputs that will also help you deal with the situation more reasonably and calmly. For example, you can engage in new and innovative projects that will also help you start a new business. Therefore, using a professional dissertation writing service can be of great help for those who are only just started working on a new project.
If you are interested in even more business-related articles and information from us here at Bit Rebels then we have a lot to choose from.