Every business has its ups and downs, and in the end what matters the most getting back in the game quickly and efficiently.
Getting back to your feet when your business fails, most times has to do with your mindset and how you adapt to new circumstances.
The ability to change, improve and learn on past mistakes is what can help you as an entrepreneur to get your business back on track after any kind of major failure.
And in case you are feeling stuck, not being able to decide what your next move should be, go through the points in this article, you are bound to find some possible solutions that can help you start the rebuilding process.
1. Determine what went wrong
The only way to get over a business failure is by realizing how it came to be in the first place. That is how you will know what it is that you need to change in order to avoid a similar situation in the future.
There is a whole list of reasons why most businesses fail. In fact, according to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months, that is 80 percent.
Definitely not a favorable number.
Now a large number of these entrepreneurs is willing to start over, because they believe in their business idea, and they have realized what exactly is that went wrong the first time.
So this is why knowing what to fix is the first step. Now we can go on to useful pieces of advice to get you through this difficult time.
2. Change things up in your company structure
If you have determined what was the cause of your first failure, you should focus on fixing that first, but don’t overlook other aspects of your business.
There is bound to be room for improvement and prevention of possible future mishaps.
Start by revisiting your mission statement, ideas, and goals. See what you can improve on and which areas need to be restructured.
Make sure you keep your most valued employees and if need be hire some fresh blood.
In today’s market, it is not easy finding real talent, and a lot of business success depends on it, so exploring alternative ways of hiring new employees might not be a bad idea.
It is a group of valuable talents that sometimes gets overlooked, and it might turn out that you find the perfect person to help your business get through the tough times.
Having employees you can trust and rely on is definitely one of the key aspects of running a successful business.
3. Ensure your finances are ready for round two
Every business failure is reflected in our bank account.
If you have invested in the right insurance policies you might be able to soften the blow, but if not, then you will definitely need to rethink your strategies and see what funds are available to you for starting over.
You still need funding to get your business back on track. So start with checking what is currently available, what additional funds you need to raise and invest, and how much is left in your safety net.
These numbers will allow you to create a feasible plan regarding the future of your business.
If necessary, getting a small business loan might be a step in the right direction.
And if you made the mistake of not investing in insurance the first time around, don’t make the same mistake twice. You might not be able to get a third chance when it comes to funding your business.
4. Make sure your customers know that they can still rely on your service
Suffering a business failure can be hard to explain to your customers, especially if you have just started building your loyal base. So it is important to keep them in the loop.
Of course, refrain from getting into too much detail as to the reasons for the failure, but make sure you assure them that the quality of your service or product will not suffer for it.
Denying the situation is never a good option, as your customers might feel cheated, and decide to take their business somewhere else.
Having a good relationship with your customer base can actually help you maintain the much-needed cash flow that will in return help your business get over the failure.
You don’t have to contact each person separately, a well-worded email explaining the current situation will be enough. Just make sure you disclose the basics without causing panic. Your customers will respect you for it, it takes courage to admit to one’s mistakes.
There you have it. It is a lot simpler than you might have thought. Simply making the first step and starting the repairs is all it takes to get you back on track.
A positive mindset and a drive to succeed will be enough to get you started. Now the rest is up to the good organization, ability to change, adapt and rely on others to help you get through this difficult period.
But what you have learned will ensure the future success of both your business and you as an entrepreneur.
Originally published on Ideas Plus Business