It is important to understand the reality of doing business. Not everyone gets it right the first time. It is important that you are realistic about it — that no matter how well-detailed your plan is, there are still chances that it could fail.
If you are starting a venture or a small shop for the first time, always accept the fact that the first few months or years will be full of mistakes. Your lack of experience will always offset your efforts and spotless plans. While there are some ways to avoid this (like getting an experienced partner or gaining experience at a small scale), you still cannot guarantee the smashing success of your idea.
So what should you do when you fail? Here are some of the things to keep in mind:
Take a break
Some businesspeople recommend those who failed at their first venture to try again right away. But this is not always a wise move. Consider your mental health. You may be still in shock or denial. It is healthy that you let yourself feel things and acknowledge your negative emotions. You may wish to travel to forget the pain, or you may reach out to family and friends and ask for their support. Do what you think will help you heal. And of course, take your time. No one’s rushing you to start again.
Check the figures
When you think you’re all ready and emotionally stable again, the first thing to do for getting back in track is through financial recovery. You might have given the last pays of your ex-employees or you have already paid the suppliers and partners, but look into what’s left for you. If you’re not making money at the moment, check your emergency fund and calculate how long it will last you. Otherwise, you will need to find another steady source of income, such as a day job or a freelance consultation job. You need to be financially stable, so you will be able to move again.
Review and refocus
You have an indomitable spirit, and you’d like to try again. But this time, you are much wiser. You are not going to a battle without an armor and tactic. At this point, review your past actions and determine where you have gone wrong. Have you picked the wrong supplier? Have you looked for a business lending company and made an agreement you can’t actually commit? Have you trusted the wrong people? Did you launch the product too late? These are the questions that you need to answer. And when you are considering things, you should also ask yourself if you are going to stick to the same business idea or focus on an entirely different venture.
Now that you have learned what you needed to learn, you are ready to start again. This time, plan with the right people and make sure that your strategy is solid. Do a lot of tests and surveys to perfect the quality of your products or service offerings.
Business failures happen, and they may break you. But remember that they give you lessons, which will help you on your next venture. And they may also help you gauge if the business is really for you. They may even lead you to a direction where you’ll thrive and succeed.