Based on a Bloomberg research, for every 10 businesses, eight of them fail within the first 18 months.
Even successful business owners and entrepreneurs failed in one or two of their businesses.
Of Thomas Edison’s many failed experiments, he once said:
“I have learned fifty thousand ways it cannot be done and therefore I am fifty thousand times nearer the final successful experiment.”
I always say that in business there’s no failure, only feedback.
An FB friend, asked me, “Mommy N, I failed in my business. It was my first business. How do I cope? How do I bounce back from a business failure?”
Mike (not his real name) has a very good question.
“How do I cope?”
First of all, I like the way he framed his question. Yes, he failed but he wants to know how he can cope with his business failure.
He failed at his first attempt in business but he’s not giving up. He still wants to be in the business. I truly understand where the anxiety and fear of failing again are coming from.
Failure in startups is relatively high. More than 50% of small businesses fail within the first 4 years. The obvious reason is that most of these small businesses are run by first-time entrepreneurs who have limited entrepreneurial, business and management experience.
Now, if you’ve read my book, you probably knew that I failed in more than 20 businesses in the last 40 years.
Just like Mike, I was also a newbie at that time in entrepreneurship. I didn’t know any better.
Think about it, 20 businesses. How was I able to get back on my feet and start other businesses?
Successful business owners have known this for a long time:
One word: Mindset.
What are my mindsets then? Haven’t I thought that maybe I’m not cut out to be an entrepreneur and other self-limiting beliefs that I told to myself?
So, to answer Mike’s question…
If you failed in business, how do you cope? How do you bounce back?
Well, the first thing to analyze why it failed.
Take a look back. Spend some time looking at your business’ history. Take note of the things that you overlooked.
What are the main causes and root causes of why your business failed?
The next thing is to know how much you have and how much you owe. Now that the business is closed, where will you get your primary source of income? Do you have savings? Debts? Where will you get the money to fulfill your financial obligations?
Spend time to analyze your expenses and figure out a new line of revenue.
I know you lost money in the business. So, why would you reward yourself? As an entrepreneur, most of us work in the business 60+hours a week. This is the perfect time to take a break. Have a vacation (if you can afford it). This will allow you to de-stress and clear your mind to allow new and fresh ideas.
Make sure to bring a notepad or something you can jot down those ideas in your trip to ___________. (State where you want to go)
What a better way to learn than from other successful entrepreneurs. They’ve been there. Learn from their failures so you don’t have to commit the same mistakes in the future.
Be surrounded by people who share the same love for business: those who will lift you up and support you along the way.
Now, this is important:
Our great success can often be found just a few steps away from our greatest FAILURE.Mommy N
Don’t give up just yet.
Have you failed in business miserably?
What are the causes of your business failure?
What lessons have you learned from them?
Please do send in your answers by commenting below.
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