October 22, 2020

Recovering From Your First Failed Business

It is unrealistic to assume that the very first business idea that you conceive will be a smashing success. The statistic that 80 percent of the businesses fail in the UK within the first year of their inception may show only one side of the coin but it aptly describes the fate of most businesses around the world.

Handling a business failure may be difficult but following are certain things that may help you to recover from the failure and get you back on your feet to find your next venture:

Financial Recovery

If you want to preserve career momentum you will need to recover financially and this must be the first step of your recovery. Where you stand financially depends on the extent of losses that you have experienced due to the failure of your business and how much of personal finance you have lost.

If you devote some time to read the stories of entrepreneurs who have made it big in the business world you will realise how they achieved success despite incurring losses that amounted to millions of pounds.

If you had created an emergency fund while the business was still operational, now may be the right time to tap into it. If you have exhausted your savings then you may have to think of a way to generate a steady stream of income for sometime before you can dive into the next entrepreneurial venture. Also, you shouldn’t apply for an emergency loan until you have a plan in place to repay the loan.

Psychological Recovery

It is common for entrepreneurs to experience a degree of depression, burnout and anxiety even when their business hasn’t not even failed. It is understandable to feel devastated after a crushing business failure especially after putting in all the hard work and experiencing all the excitement of a growing business.

Spending some time to heal yourself emotionally is probably the right thing to do in the aftermath of a business failure. Different people have different ways of dealing with this situation and this may include spending time with family or friends or becoming a member of a support group.

There is a lot that you can learn from the famous failure that Steve Jobs experienced when he was ousted from the very company that he had founded. He took some time off and went wandering around Europe to find motivation and inspiration.

The Dissection

Failure can no longer be called a failure when you learn something valuable from it. Spending some time reviewing the circumstances that led to the failure of your failed business will go a long way in determining how successful you will be in your next venture.

The major factors will be quite evident such as losing a major client or an acute shortage of capital. But there may be underlying factors that led to the precipitation of those major factors. It will also bring closure to your mind as it will help you to recover faster while teaching you the important lessons that you can implement in your next venture.

Getting advice from your peers and spending some time studying why other startups around have failed can also be quite helpful. Consulting with an entrepreneur who has a lot of experience will teach you a lot about bouncing back from failure.

Preparing Yourself for the Next Opportunity

If a few months have elapsed since your previous business failure you should be in a better position to decide between setting up a business or continuing with a more traditional career path.

After you have gained confidence that you have learned the necessary lessons and found some financial stability you can get started once again on your entrepreneurial journey.

Gaining diverse experience can also pay off in the long run. For this you can talk to people from your own industry and also those from other. You can also attend networking events that bring you in touch with those who can greatly motivate and inspire you to take things forward from this point.

Success and failure are a part of life and each have their own significance in terms of what they teach us about life and most importantly ourselves. You should also give a little thought to how you can secure your life by taking out insurance or writing a Will using a free Will kit.