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What to Do When Your Small Business Fails


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The world is full of ups and downs, and the world of business is equally not left out of this kind of trend. You might have the best business plan on ground, have the capital and personnel and just somehow, the business would just come crumbling down like a pack of cards after a while. 


While it is true that you would feel pain at this loss, you are an entrepreneur and sound business mind and should not let this weigh you down for long. After all, the great businessmen of today have also failed at their businesses at one time or the other. The only failure they embraced was the failure to give up, and that paid off. What should you then do when your business fails?

failure

    1. Feel bad
This is the first thing and the most natural response you should have to a failed investment. If anyone tells you otherwise, they are just trying to mask your human side. It is very good for you to allow yourself feel bad about the business because you have put a lot of time, energy, resources and personnel to it and you really had high hopes to it. the key here is to not allow the sulking mood take over and turn you into a downcast person. Mourn the loss, let it define a phase in your entrepreneurship career, but never let it define you.

     2. Evaluate the damage
If you have failed in certain areas, the next thing to do after crying and cussing is to check the amount of damage that had been done to the business. Review the decisions that you made which culminated in the failure, the debts that you incurred in the process and how much the business and you yourself have been affected. Try to be very honest with yourself as this is key to moving forward.


     3. Pick up your assets
No matter the level of damage done, you would have a lot of assets on ground to pick from at the end of the day. Pick up the rest of your equipment left, make sure you pick along with you your personnel that would help rebuild the team and return you to glory days and last but not least, pick up all the errors you have made and the lessons you have learnt from them. This would make you into a better decision maker in the future and better equip you against like situations.

failure


     4. Brainstorm
Now that you have started to pick up the pieces, brainstorm with your team and start to think of the way forward. We can’t stress this enough – you can’t go forward if you don’t know where you’re coming from. Take your past into account and use it to better equip your future. Take the best ideas and either delete or relegate the rest to the back seat for future references.

     5. Rebuild/ Start over
After brainstorming with the team and getting reliable inputs from the sources on ground, you only have two options facing you now – to either dump the business idea and pursue another line or try to rebuild the business from scratch. Make sure you have exploited all other options before you go for dumping, and only use it as a last resort.