But, failure is a major aspect of being an entrepreneur, so you just have to accept that. Actually, the ability to recover and give it another go is what makes a successful entrepreneur. Microsoft would never emerge, if Bill Gates did not try again after his first business, Traf-O-Data, failed.
That does not mean that failure is easy, but it also does not have to be too difficult, if you take some steps to recover afterwards.
Go on a Vacation
Although this may not seem as the best moment to go on a vacation, you actually need to go somewhere to get some rest, relieve yourself of stress and clear your mind. By doing this you will refresh your mind and enable it to focus on the future and the next steps you need to take to recover from the failure.
Get Your Finances in Order
You will most likely have a debt after your business has failed. The best thing you can do, now when you have the free time, is to try to make some money and start your financial recovery. You can put your talent to work and offer services such as consulting and developing. People will be interested to learn from you and pay for your skills.
Another thing to do is to evaluate your assets such as, cars, equipment, office space, employees or client base. Even if your business is not making any money, you still have clients and relationships with various companies, so the wise thing to do is to try to work out a commercial lease.
Also, it would be great if you have a brand name, because brands are very valuable for investors. Some business got saved because of the mass appeal they had thanks to their brands. Another option is to sell your assets individually or collectively as a business, or you can give it away and keep a percentage if you think the business has potential.
You should go through your company’s and personal financial papers, bills, loans, and see if there is a way to save some money. Maybe there is a possibility of a refinancing loan, or perhaps you can even change the terms of your current loans and credit cards, so you should go through credit card reviews to see which offer the best deal for your needs.
Consider Re-entering the Workforce
If you are considering a return to the previous industry or job, you should keep in mind that the potential employer will examine the time you spent as an entrepreneur and whether your area of competence was relevant for your business.
So, if your business failed in the first two years you will be considered as someone who is easy to reincorporate into the workforce. But, if your business failed after five years or more, you will be viewed as someone who has become too independent.
If your area of competence is irrelevant to your potentially new business, the employer will question your motives in returning to the workforce, and also the commitment you will show as an employee.
Reflect and Adjust
You should ask yourself analytical questions like:-Why did the company fail?
-Was it possible to save it?
-What factors were responsible for the failure?
When you answer these questions, you will learn a few things, and use that experience when you give your business venture another go. It is important to focus on the positives, instead of the negatives, to avoid depression.
Give Your Business Venture another Go
Now that you have evaluated all the factors responsible for your first business failure, understand what went wrong and know how to avoid mistakes in the future, you should try again. Of course, if you are confident in your idea.Your second attempt is more likely to work than the first one as stated by the Economist, if you learn from failure and manage it successfully.
