Strategies to Adopt After Business Failure

Business failure is interpreted by many to indicate the end of a goal or lifelong dream. But many of the most successful entrepreneurs in the world began by failing or being told they were failures. Thomas Edison’s elementary school teachers decided he was “too stupid to learn anything”; he held more than 1,000 patents and his inventions went on to inspire many of today’s technologies. Vincent Van Gogh sold only one painting in his life, a few months prior to his death; his art mastery is now known throughout the world and inspires new generations of gifted artists. Henry Ford led multiple automobile companies to ruin and his name was quickly disregarded in the industry; Ford Motor Company is now an automobile giant with over 100 years of success. Walt Disney was fired by a newspaper editor for “lacking imagination” and his first business, the Laugh-O-Grams Studio, went bankrupt after only a year; his fantastical ideas ushered in a new era of entertainment, leaving a legacy of smiles across the world.

Each of these now famous, successful names at one time faced personal business failure. Had they allowed their dreams to be crushed, imagine what holes would be left in the collective culture of the world. Business failure is merely a stepping stone for entrepreneurship, and there are several strategies that can be adopted to turn that failure into success.

The first step to transforming business failure is to reflect. In reflection, regard the following:

• Evaluate why the business failed. Was it timing? Lack of funds? Did you risk too much – or nothing at all? Making a mistake is normal. Design a plan to turn past mistakes into a learning experience.
• Separate yourself from your business identity. Business failure does not mean personal failure. Don’t allow it to steal your confidence or motivation. Be resilient.
• Rediscover your passion. Entrepreneurs need that passion and optimism about what they offer. If you lack passion, your business will lack passion too. Try to find a way to express the excitement you have as you market your product, service, etc. What sets it apart from what already exists? Assess if you need a better business plan to showcase what you offer.
• Calculate the costs. Build a budget based on your new knowledge and business plan. Estimate expenses and project income. Do the numbers confirm your expectations and meet your goals?
• Build a supportive team. While you do want talent and ideas, you also want them to mesh with your overall business plan. Having a second in command who respects as well as challenges you will make your business stronger. Rid yourself of those who have a bad attitude or don’t share your passion and vision.

Encountering business failure can be discouraging enough to give up completely on a dream and career, but being a successful entrepreneur often means turning that kind of setback into success. By adopting a reflective mindset, you can evaluate past mistakes and build an even stronger business plan.

Sometimes, business failure leads to a plan that includes selling an old business or purchasing an established one for a fresh start. Sunbelt Business Brokers has thousands of businesses for sale. Take a look at business listings by Sunbelt to find the right fit for your situation.