What to do after your business fails
Start-up ecosystem is developing at a rapid pace. According to NASSCOM reports, India is the fastest growing and third largest start-up ecosystem globally. As a new entrepreneur or a business owner, theres a lot of uncertainty in front of you. In fact, the failure rate of start-ups are relatively high, especially for the first time entrepreneurs.
According to a report by Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. On a happy note, around 80 of the entrepreneurs survive the first year and around 50 complete first five years.
Business requires more than just passion and expertise to succeed and in some cases you just need to get lucky. But do you know the exact reasons behind a business failure?
Why businesses fail?
One of the many reasons for failure is that the entrepreneur themselves are unaware of the mistakes they are making. Some other reasons can be poor leadership, lack of short-term and long-term planning, poor management, ignoring customer needs, lack of capital, poor location can result in business failure. Says Simran Jha founder and CEO of Cord Communique. But life goes on nothing can stop us from moving forward. Failure is not the end of the world, it can be the possibility for many entrepreneurs. Instead of getting depressed, ask yourself what are you to do now, here are some tips that you can go for,
- Spend some time with yourself
Take a vacation or spend some time on your hobbies or something that you like. Failure is unavoidable. But deep down, its kind of refreshing when that struggling business comes to an end. Exercise, take a hot shower, eat your favourite dishes, meditate and relax for the time being. Do whatever keeps you calm. This will help you to come out of that situation. Your stress level will also decrease and you might get some new ideas to get started for the next time. Says Jha.
- Dont take your failure personally
Life is unpredictable and so is business. Unexpected circumstances can take place anywhere. Even if your business failed that doesnt mean you are a failure. You need to discard these thoughts as it will only give a blow to your self-esteem and confidence. Imagine if Bill Gates personally took the failure of his first business, then Microsoft would have been never founded. Its better to accept it and allow needed changes. Be adaptable and take it failure as a challenge and not personally. Rahul Rattu, Founder of Shoed-Up.
- Work with other industry or entrepreneurs
Try to attend more networking events, try to connect with more entrepreneurs on social media. This will help you in the long run. Ask and share your experiences with other people and introduce yourself to business owners. This will help you in getting some new perspectives and also you will learn new ways to deal with your problems. There might be some entrepreneurs, who might inspire you or whose story is same as yours. Says Rattu Expose yourself to as many entrepreneurs as possible and also get along with the start-up companies.
- Start preparing for you next business or take a different step
After one failed venture, you have become now a wiser and experienced entrepreneur. Consider your failure nothing more than an opportunity. Try to analyze, where did you go wrong? What can you do differently this time and how to avoid the same mistakes. Use your contacts and past experiences to get better results this time. Spend some time thinking about a new business plan. Says Abhishek Sharma, Founder of Umbino. If you are very sure of starting a business again then no one can stop you from following your dream. Sketch out your ideas and keep track of the market.
- Be with people who encourage you and help you to grow
Surround yourself with optimistic people. Find a guide or mentor and keep on learning. If you want you can take a class or go for a seminar. Meet new bunch of people who will help you in future. Choose a job that you like and avoid people with negative vibes. Says Sharma.
- Enjoy your free time
As an entrepreneur you hardly get free time. But now when you dont have to devote your full time in their you can enjoy yourself. Go out with your friends, take a much needed vacation and spend some family time. Catch up with all your old friends and try to make out all those missed memories. Says Jha. In short rejuvenate yourself.
No one wants to start a business that doesnt succeed. But definitely, failure is not the end of the road. It is just the speed-breaker.
