5 Things to Do When Your Business Fails

“Success consists of going from failure to failure without losing enthusiasm.” To paraphrase Winston Churchill,

The consequences of failure, whether they be financial loss, shame, etc., can be difficult to bear. Failure isn’t the opposite of success; it’s a necessary step on the way to success. 
Both triumph and defeat are equally inevitable. 

The only thing that counts is how you react to setbacks. In reality, the capacity to bounce back from setbacks is what separates the successful from the unsuccessful. 

Giving up because of discouragement is a common occurrence. When you’ve exhausted all other options, picking yourself back up again might feel like an impossible task. That sort of environment produces successful people.

They emerge from the fires of defeat more formidable and wise.

Be ready

Every business endeavor has some degree of uncertainty. Never put your entire company on the line by betting the farm. Risks must be controlled at all times. 

When running a company, it’s essential to manage cash flow wisely. It would be disastrous to lose both your company and your home at the same moment. You need back-up strategies in case something goes wrong. 

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You should try to have an open mind and hope for the best while also being prepared for the worst. All of this planning is done before taking any kind of risk. Better prepare yourself to deal with setbacks if and when they arise.

5 Things to Do When Your Business Fails


It’s always good to take stock of your losses, no matter how dire the situation (if there are any). Think about what can be done to save the situation. It’s not an option to give up and give in. 

Keeping a diary in which mistakes are recorded, together with notes on how they may have been avoided, can be very instructive. Despite the adage that hindsight is 20/20, we must not lose sight of the fact that we may use our newfound knowledge to improve our next attempt. 

To put it another way, you now have the knowledge to make more informed decisions in your future endeavors. The wisdom you get via introspection is invaluable.

Resist the urge to do nothing.

Failure might knock you for a loop, but it shouldn’t keep you down for more than a few days. You’ll spiral into depression if you dwell on what went wrong, what you might have done differently, and how you’ll never recover if you take your setback personally. I wrote how to Motivate Yourself as an Entrepreneur When You’re Feeling Down

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It’s a quick and perilous descent towards despondency and giving up from there. 
Don’t let other people’s gloating or attempts to tell you you were wrong get to you. 
You may be sure that some people will appear out of nowhere to offer consolation while subtly implying that you should have known better. As a matter of fact, if a pencil never writes, it may easily keep its point and maintain its appearance. 

But you are a winner, and even when you’re dull from the wear and tear of labor and failure, you’ll need to polish yourself and get back to winning. If you allow yourself to wallow in a rut, climbing out will be that much more challenging. When inertia kicks in, it’s nearly impossible to begin moving. 

Don’t bother with inspirational podcasts or novels. Awaken your muscles and start moving. Plan your company’s next move. Fear may be overcome, and change can be made via taking decisive action. 
The easiest approach to bouncing back from defeat is to do just that.

Don’t just let everything go

People typically stop exercising and doing the activities they enjoy when they are unhappy or grieving. They acted on the basis of how they were feeling at the time. This is an egregious slip-up. 
If you don’t feel like doing anything, taking a vacation from it won’t help your mood. You’ll feel much worse since everything has stopped for you. 

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You shouldn’t give up the gym, taking your family on outings, or anything else that makes you happy just because your business venture has failed. Hold firm in your efforts. Even if you’re not feeling it, you should go ahead and complete these tasks. Basically, just act like you’re doing it. You’ll start to feel better and rediscover your motivation as time passes.

Give it another shot

Failing is an occurrence, not a person; this becomes clear once you remove yourself from the equation. Change one or more of the factors, and you change the result. To be successful, you need to figure out what needs to happen for that to happen. 

Maintaining forward momentum will prevent inertia from setting in, leaving you ready to try again. 
Alter your strategy, but keep your final goal in mind. The key to getting beyond setbacks is learning how to control your emotions while you grit your teeth and keep plugging away at whatever it is you set out to do. 

To paraphrase a popular Japanese proverb, if you fall down seven times, you must get back up eight times.

You must press on.