6 Tips for overcoming business failure
So you started a business! Fantastic. Are you prepared to crash and burn?
Oh, yes positivity is key, but really. Are you ready for failure? A savvy business owner sure would be after glancing at a few of the alarming stats floating around.
“I haven’t failed: I’ve found 10,000 ways that don’t work” – Thomas Edison
Thanks for the wise words Thomas Edison, this statement is never more true than in the world of business. Over the years, vast swathes of head strong entrepreneurs have suffered multiple business failures before trying again and finally hitting the rich veins of success.
But why do so many startups fail? Simply, they often don’t have the experience necessary to succeed. Muddled financials, sub-par marketing, no planning, emotional pricing, lackluster customer experience , unsuitable staff and a host of other concerns can derail your business toot sweet.
So what next? Tail between the legs and a teary exit? No not for you, lets get back on the old horse with a few pro tips.
1) Keep your chin up
Come on tiger, turn that frown upside down, pull up those socks and show me your war face. You call that a war face?!
It may sound trite but positivity is your primary tool of success. Learning from your mistakes goes hand in hand with this state of mind, don’t get mad. Get even. First write down what you did wrong and what you did right. Let’s start there.
2) Sell, sell some more, sell that too
Be careful to offload every unnecessary asset immediately. Do you think the business still might turn around without you? Keep a percentage just in case. Or if it’s a total loss to you, sell the business and all assets to right your books.
3) Scrub the books
Exactly what do you owe, what do you own and what is coming your way? Get some professional help to truly ascertain your financial position. Be sure you are legally disentangled from the previous failed venture. Only now can you decide whether you can dive in again or whether you need to rethink your financial position.
4) Get back on the horse
You have your war face on, you are freed from business entanglements. You know what you did right and wrong, you know your financial limitations. So now the ultimate question: are you ready for round two or is this not for you?
5) Map a path this time
There’s a good chance this business failed because it was not realistically planned out. Was your website under performing? Were you not in the right physical store to catch your customers? Start with a vision that you really believe in. Everything should revolve around this vision which could include; your mission statement, your business niche and problems you will solve.
Now wrap a serious financial plan around this with some help from a financial planner or business adviser. You really need them this time…
6) It’s not about you
I mean… it is… but more importantly for the businesses success, it’s about your customers. Why did you have so few? What did you neglect? Eighty percent of business comes from twenty percent of your customers, so now is the time to realise they are your business and you somehow failed to satisfy them in the last venture. It’s as simple as that. Go beyond good customer service and value, go further than they expected. Hire the right staff, perfect your website, create a recognizable brand, re-evaluate your price point… You will be rewarded.