How to fight back from a business failure?
What defines an entrepreneur? A person who has the enthusiasm and willpower to overcome the risks of a new business venture that wears the failure badge of courage and talks positively about what they have learned so far. Many investors presume that if the entrepreneurs have not failed once in their business lifecycle they have never tried anything ground-breaking or haven’t the faced the real truth.
In a nutshell, failure is the reality’s way of telling you what you don’t yet know but need to if you want to excel in this dynamic market.
Here are 5 significant ways that you can consider to prevent your business from failure:
1. Assess why the business failed-
Firstly, look back and analyze why you lost. Go to flashback and make note of everything including what went well and where you took the wrong decision. Think strategically so that next time you won’t face the similar situation.
In case, you failed in your product branding, which ultimately dropped down your sales, then rethink what more you can do for branding your product. Understand the strategies of your competitors in the market, what they are doing to improve their branding, how they are handling their customers and a lot more.
Give a call to your competitor as a customer to understand their tactics and try to modify those strategies so that you can come up with a unique way out. However, I can guide you with few branding strategies that can help you modify your existing strategies, here’s the list:
The history is filled with instances where the better product lost out in the big market battles. For instance, Betamax Companywas leading the market earlier with its best audio, but VHS came up with more innovative features that shuttered Betamax.
2. Forget your pride-
Pride is poisonous. Keeping your pride aside can be very effective as you’ll be able to identify new opportunities that come your way. Because pride can destroy your mind and makeyou unable to recognize what is right and what is wrong. Being an entrepreneur, the presence of mind is essentially important for decision-making.
I can give you an example of the destruction your pride can make; Brooklyn Taco a well-known restaurant that recently shuttered had an offer in the beginning for around $400000 for 80 percent shares in the business. What did the owner think? By giving 80% share he is selling out his business. Brooklyn Taco after rejecting that proposal became a dormant brand.
So just think if you get 10% shares in a failed company it is not profitable?
So forget about your pride and have a positive attitude towards your business to bring your business back on the track. Half the problems get finished when you start thinking of growing.
3. Calculate losses-
While assessing the reason for business failure, go through your accounting books once to analyze your expenses. As having knowledge about business finances is extremely important for rebounding your business. You can say the key to success “organized accounting books”.
You need to make a budget for the expenses and set goals for improving your sales for the next attempt you are about to make.
However, while analyzing your mistakes, did you find unorganized accounting procedures? If yes, then your business was in havoc as accounting back-office processes is a crucial part and being a startup you might have thought of handling your books on your own.
Well, then the failure was obvious as according to researchers 90% of small businesses or startups failed in their first five year due to poor accounting practices. Knowing the fact that accounting is the language of business, procrastinating your accounting work will only surround you with liabilities.
Thus, keep in mind and schedule in your calendar what all your need to do with your books
Having a complete overview of your finances can ensure more success to your firm in every aspect.
4. Build the right team–
Having the right team can open the doors of success immediately. Find and hire people that are in need of jobs and have the courage to face any challenge as such people will only put in efforts to take your business to the next level but also prove themselves.
Choose employees who understand your vision and make it their vision because while hiring you both are standing in the place. Your employees are joining your company to prove themselves and you are opening company to prove yourself. Just imagine, what it will be when the employer and the employees have thesame mindset? No one can stop your business to grow in the agile market.
What will be the positive impact of the right team in your business?
Teach your employees all the work you are performing so that even if you are not available in the office, the work doesn’t stop.
Let’s talk about Brooklyn Taco that got shuttered. The owner was so busy with cooking Tacos that his nerve got damage and the only option left was surgery. And finally, Brooklyn Taco lost everything when the owner was in the hospital. He forgot to teach his employees how to make Tacos.
5. Prepare a roadmap in the right direction-
After failure, prepare a roadmap with all the analysis you made from your previous mistakes, gather answer for the questions:
With all the vital answers, you can set clear goals with your team to run your business in the right direction. Follow the below-mentioned strategies to make your business unbreakable whenever an unexpected storm arrives:
Implementing these actionable strategies and working on it immediately will describe the true entrepreneur inside you.
As doing what your heart says needs a lot of courage, and by starting your own business you have made it. Ups and downs are the part of life and business never allow the thought of failure burden you. Don’t ever and ever give up on your dreams!
Tracy Watson is a business development manager at Accounting To Taxes- a well-known company offering complete finance and accounting services. She has always been a great contributor to the accounting industry and also responsible for branding and lead generation. And being a passionate writer as well she helps businesses with her informative articles.