Failing in business at some point is not only inevitable but essential. Failure is the biggest teacher, therefore there is always a lesson to be learnt. Failing at anything can be horrible and it can definitely knock your confidence, however, it’s vital that you get back up. As the small business owner and decision maker, you are allowed to fail, however, it’s your recovery that says everything about you as a leader. You need to make sure that you are leading by example and showing your team how to recover from a failure in business.
If you find yourself experiencing a business failure, here is how you can recover from it.
Take time out to evaluate
If you’ve made a mistake, it’s easy to make rash decisions or jump in trying to fix the issue without thinking it through. However, sometimes you need to step back and take some time to evaluate before making your next move. It’s important to realise and acknowledge your mistake before moving on. It’s also especially important to realise that a business failure or mistake doesn’t make you a failure. Dealing with failure can be a painful process and its one that will help you be better at what you do.
Figure out the lesson
There is almost always a lesson to be learnt from business failure or any kind of failure in life. For example, if you don’t budget properly and end up having cash flow problems. The lesson to take from this is that you need to invest time in budgeting and going through your finances, in order to avoid making the same mistake twice. Although the lesson may not be so clear straight after, you will need to reflect to see how to avoid making the mistake again.
How bad is the damage? This will be part of your reflecting on your business failure, and see what has gone terribly wrong and what you may be able to work on to fix. It might be a good idea to even discuss any big issues with people your trust in the industry to see if something is repairable. For example, a lot of big businesses get into trouble because of their social media blunders. If this happens to you, you will need to take responsibility for it and apologise.
It’s essential that you create a business contingency plan for any big projects so you are prepared. However, if you have already made a mistake, then you should consider making a contingency plan for the future. A contingency plan will allow you to set up actions to take, should things go wrong.
When you’re running a business and are solely responsible for your entire business, the stress can mount to mistakes. Running a business is stressful, therefore sometimes mistakes and failure are inevitable. You need to understand your strengths and weaknesses and make sure you ask for help when you need to. For example, if you have made mistake with your taxes and the HMRC are fining you. You know, that you need to seek the help of an accountant, who can help you deal with your taxes. Whether it’s legal advice, tax help or just somebody to listen to you and help you figure your next move, it’s essential to ask for help.
It’s also worth talking to your team and employees. As the boss, you will pressure yourself to fix all the mistakes and figure out the next move by yourself. However, if you have a good team around you, ask for their help. Your team can help you recover because they will care about the business and their job.
Take time out
Sometimes a business failure can be huge, life-changing. If your business has gone bust your dealing with a burnout, you will need to take time out. Sometimes you need to remove yourself from an environment to get a perspective on everything. If you have lost your business and it has gone bust, then you need time to recuperate and give time to yourself before you make your next move. Losing a business that you have given your all to can be heart-breaking, however, it’s essential to take the time out and deal with it. If you jump into something else, you may not fully understand why everything went wrong.