No-one plans for a business to fail. Sometimes, despite your worst efforts, it can happen to you all at once. A major market disruption that you’re not able to react to in time, supply line failures, accounting errors, legal trouble. It’s easier for it to happen than you might think. However, it doesn’t have to be the end of your career as an entrepreneur. You can bounce back.
Get a Detailed Definition of the Problem
You can’t afford to be wilfully ignorant or to not want to look too closely at the source of your own failure. Unless you define the problem and learn from it, it is likely to end up happening again. The problem may be outside of your control, a lack of essential business protections, or it may be related to you personally, such as a poor work-life balance or wrong choice. Whatever it is, you have to be ready to learn fro mti.
Make a Controlled Crash
If you’re going through a business failure and you’re aware that you can’t prevent it, then you should look to control it instead. For instance, consider going into liquidation with the help of a bankruptcy lawyer. It can ensure that your debts are paid off, even if it will tank your business credit for some time with traditional lenders. Do what you can to mitigate the financial damage that might be caused by delays.
Get Feedback From Your Network
If you have clients, coworkers, or business partners in touch with you, then don’t be afraid to eat that slice of humble pie and to get feedback from them. For one, you can maintain and build that network and benefit from it in your next venture. Otherwise, you have lost the fear of having your ideas taken that normally prevents entrepreneurs from being completely open with those in their network.
Plan Your Return
Hopefully, you have reflected on what went wrong. It’s time to take the opportunity to plan and protect your next venture. Learn more about ROI and where you can acquire more capital if you had financial problems. If a bad partnership was the problem, plan for how you can go it alone. Don’t fall for any get rich quick schemes if you’re in debt. They won’t work.
Don’t Rush It
If you’re still seriously smarting from the recent failure, don’t rush yourself into the next thing. Take some time, make some money freelancing, or build career skills you need in a position within a company for a year or two. Skill up, regain your confidence, and consider taking courses on running businesses to make sure that you’re as ready as you can be for next time. There’s no rush, and if you try to rush it, you will only end up failing again.
The road to recovery from a lost business is tough, but it’s one you should learn from. Ensure that the next business you run is flexible enough, efficient enough, and carefully managed enough to deal with such critical risks in the future.