WHAT IF YOUR BUSINESS FAILS?
At the initial stage of a startup, life seems glamorous due to new logic implementation, investments, self-motivation, and publicity. But the harsh reality is wild-eyed entrepreneurs start a new business and consider themselves unique. As per the reports of business analysts, they say 6.5 million businesses launch every year and 90% of them fail.
This is the ratio:
- In the first year: 21.5% of businesses fail.
- The second-year: 30% of businesses fail.
- Fifth-year: 50% of businesses fail.
- 10th year: 70% of businesses fail.
Now, many entrepreneurs think they don’t fail due to their unique idea, backups, strength, etc…
The main reason why some of them don’t fail is very simple. They don’t give up.
You may be thinking, why are we discussing the failure of the business?
In answer I would love to share one the best quote which inspired me to write on this topic:
Why does the business fail?
As an entrepreneur, if you are always looking to enter the startup fray then the imminent prospect of failure is always there to catch you during your simple error. In this demanding era, if you are not ready for often trials and ordeals then you will probably find yourself on the street of failure.
Most of the businesses fail due to such reasons, like:
1. Failure to Keep Promises
Promises are the heart of the business. If you are not keeping your promises then it will not create worth for your business. If you think you will earn faster and get richer without delivering values or keeping promises more than your competitors then it will ruin your business. Just think about it.
2. Fail to address the consumer’s pain points
If you can’t connect properly with your targeted audience then you can’t address their needs and provide them solutions. An inability to connect with your audience will not help you to invoke certain emotions and status for your business.
3. Lack of transparency and authenticity
If you want to win customers, win their trust first. Without transparency and authenticity, your customers will lose trust in your business. At last, not today but maybe someday your business will fail.
4. Lack of uniqueness
Very few businesses come up with new innovation, the rest of all just follow the 1 to infinite steps of the business. Staying afloat is more troublesome during fierce competition. You must have the bull eye with a lucrative market strategy to compete against your competitors.
To compete your competitor you have to follow PDCA cycle which is well describe in this article: COMPETITION – AN INEVITABLE FACTOR IN ENTREPRENEURS’ LIFE
5. Fail to create successful sales funnel
Sales funnels play a vital role in business. Your sales team educates your customers about your product/services. They can build customers relationships stronger by spreading your success stories, testimonials, and marketing, etc. If you fail to find the most genuine and smart people or your sales team fails to create outstanding marketing strategy then somewhere your business will suffer.
6. Failure to build an employee “tribe.”
You might hear this: “If you want to go fast, go alone. If you want to go far, go together.”
Most of the businesses fail because they forget their employees during small successes. Many businesses forget that the employees’ tribe and culture are crucial for their organization.
7. Fail to control expenses
Entrepreneurs who have millionaire habits will detriment their business. If you are using a company’s money for your personal without any backup plans or you are blindly investing your money in the company’s unwanted stuff then you must have to carry an acute sense of control.
8. Lack of planning and effective leadership
Many newcomers can’t navigate those murky waters during the high demand of customers. The reason is one entrepreneurial fray struggle. Yes, without having a real experience of the business world they find some tasks impossible. In this situation, every business needs a trustworthy leader or a mentor who is having great insight and 7 C’S quality to guide them during tough situations and plan all business strategies to deal with hard times. For proper planning you must have to empower your business with GOLDEN CIRCLES.
Now these are the defined reasons why business fails. After taking all precautions yet your business fails then you must have to find some new way.
So how can you deal with failure?
Even if you have started with a fantastic idea, plan and with a dedicated team but some external things are beyond your control. Sometimes lack of experience or strategies can collapse your business. Many startups meet failure in 1 to 4 years. So do you think everything is finished? No. Keep trying and analyse your failure.
How to Move on When Your Business Fails?
Figure Out What Went Wrong
Do post-mortem of your business. Determine what things went wrong? When you achieve what and why not? How did you deal with certain situations? When your customers’ lost their interest in your business? What values you had serve them and where did your communication work effectively and where not? Then compare it with the list of most contributing factors of your business failure and summaries it.
Get Your Finances In Order
Here, you need to be mindful. Either situation is good or bad, money matters has always been a sensitive topic. Before starting a new business, you need to focus on your primary source of income. Get financially stable then jump into your next big idea.
Get Excited Again
I know to experience a business failure is an emotional blow but you can’t get demotivated. You can’t get stuck with dumb. It’s your business that failed not you. Re-energize yourself with fresh new ideas and hopes. Before starting your new business, market yourself. Yes, start marketing about your expertise, regain trust and authentication for yourself. It will help you and your new business.
Build A Support Network
First of all, surround yourself with people who love and care for you. Attend social entrepreneur events, business events or schedule a meet with organizations to share experiences. Arrange a reunion with your employees, create new stories. Create a more positive atmosphere. During social gatherings, listen to everyone not only with their words but with their body languages too. Observe! Focus and start building an army for your future business.
Start Thinking About A New Business Plan
Failure can’t stop you if you find the difference between FAIL and F.A.I.L. Once you start practicing all the above tactics, you will automatically get a bunch of ideas for your new business. Follow your dreams. Utilize your time to reinvent your thinking and planning. Come up with the visuals of your promises, ideas, and prototype of your business. Work on it.
Take Advantage Of Life After Business Failure
Before starting for something new, you must know how to take advantage of your experiences. To gain a better opportunity, you must have to take your contacts, mistakes, and authority together. Either your contacts are your employees, business partners or clients, they will refer you to more clients. Furthermore, your mistakes will help you to make decisions for your new endeavor. and Lastly, share your experiences with others. Sharing your experience will help people to trust you and respect your leadership and management experience.
In sum up lines, your business failure is not indicating that you are failed. Instead of feeling bad, think that you need to take some important steps for bigger success. Move on with more experiences and make new plans. Find your success in your next business venture. Don’t stop, keep trying to achieve your dream.
Here’s something you might find useful : ENTREPRENEURS & LEADERS – WHAT’S STOPPING YOU? | BE A MEMBER ALONG WITH ENTREPRENEURSHIP | 10 PILLARS TO FLY YOUR DREAM IDEA INTO A SUCCESSFUL BUSINESS.