Even many of the most successful entrepreneurs have had the experience of business failing. The intricacies of business can cause a business to stall, even if you are not directly responsible for the downfall. Unfortunately, the many moving gears of a new business can cause you to overlook essential factors, leading to an unfortunate business venture.
Many entrepreneurs emphasize the importance of recovery. As Bill Gates says, “It’s okay to celebrate success, but it’s more important to follow the lessons of failure.” The best entrepreneurs use the experience of a stalled company to strike back more forcefully than ever with new projects .
There are several ways to strike back badly after a business plan fails.
Don’t fuse the potential of a startup
In reality, many startups don’t go according to plan. A study by Harvard Business School shows that 75 percent of venture capital-funded startups fail. However, many young entrepreneurs only see examples of startup successes in the media, with former startups like Snapchat, Airbnb and Dropbox being among the numerous success stories. With many of these former startups in particular, which are so widespread in everyday life, the idea of startup success can merge into an unrealistic vision.
On the contrary, the false impression that most startups are successful can lead to ill-advised entrepreneurial planning. Without realizing the possibility of a particular startup’s failure, some entrepreneurs can blindly develop a business plan without looking for possible hiccups or bumps in the road.
If your business plan does not go as desired, it is worth investigating carefully why this happened, regardless of whether you were involved in it personally. It’s also worth recognizing that the company just ended up like many do, so don’t treat it as an indictment of your potential or talent. From Warren Buffett to Bill Gates, even the most successful entrepreneurs have their share of investment and business failure.
Realize that the profit is seldom instantaneous
With a few exceptions, startups are unlikely to be profitable in the first year or two. One piece of knowledge that a stalled company can provide is the lack of immediacy of success. As you begin your next project, it will be easier for you to remember the multitasking, demanding work hours, and mental demands of your previous project and help you make a decision about whether or not it’s going well. This time, with the previous challenges fresh in your mind, prudence will play a bigger role in evaluating the success of a business idea.
Especially if your previous project showed potential but you lacked the capital to continue the experiment longer, it may be worth taking time out to raise money before starting your next plan. Ideally, companies should be able to support each other financially for a period of time while the excitement grows and the business model really takes off.
Merge new lessons with a new industry
An off-course company can teach several lessons about this industry itself, particularly how their customers are responding to a new product or service. Perhaps your business plan and idea felt solid, even though the approach wasn’t well received in the niche. If the product or service is in any way compatible with another industry, it can be very worthwhile to explore that industry instead, especially if it is one that you already have contacts in.
Keep track of satisfied customers
Even if your previous business plan did not work out as planned, you could still have previous customers who were satisfied with the product / service or even your charm as a seller. When tackling your next project, reach out to these customers and mention your connection to the business with which they are comfortable and satisfied. Ideally, you can get some lucrative leads with pre-existing connections.
There are different degrees of severity for a stalled business. Some failed deals can dry out investors, while others may have pulled the plug before serious damage has occurred. Regardless, it is wise to take stock of the funds and resources that you have. An inventory helps to get a realistic picture of when you can get back on the horse and pursue a new idea, in addition to how much you can realistically invest in terms of money and time.
Define more realistic goals
Experiences with a misdirected business venture can lead to more realistic goals in the future, with new insights into what works and what doesn’t, in addition to realistic short and long term monetary expectations in a given industry. In addition, the experience from previous mistakes will help correct and adapt in the future and expand your knowledge in the moment when you take action.
A fluctuating or unsuccessful business venture is nothing new to the majority of active entrepreneurs. The important thing is how you recover, preferably with more enthusiasm and passion than before. Failure can lead to an expanded understanding of more realistic goals, networking opportunities, and personal strengths, which will help increase the likelihood that your next endeavor will be a success.