8 Steps In Handling Business failure

Though this article is strictly written for entrepreneurs and business owners; anybody can make use of its lessons. If you are prepared to learn, please read on. Now how do you handle business failure? How do you recover from a business failure? Well, you are going to find out below.

1. Be prepared to fail

You prepare in advance to handle business failure by changing your perception towards failure. Just as my mentor “Robert Kiyosaki” says “No one is doomed to bad luck.” Sometimes, unplanned shit happens but I will rather prepare myself for it ahead of time than to carry the illusion that things will never go wrong.

You can also prepare for business failure by giving your business your best shot, while expecting the worst. Expecting the worst may lead you to setting up a landing haven; which in this case will be a contingency plan. A pilot learning how to fly an airplane will never be allowed to practice without a parachute; so must you also never start a business without an escape plan.

A contingency plan is the reason why successful entrepreneurs start new businesses despite their failures; it’s the reason why I am still in the game of entrepreneurship. I have had successes and failures in business but that doesn’t still erase the odds. I might be back to square one tomorrow; but I am not afraid to lose it all because I have prepared my mindset to handle even the worst situation.

2. Don’t take failure personal

The message above is straight and precise. If you’ve been hit by a storm in business; don’t take it personal, it’s just life. Don’t go banging your head against the wall because you won’t solve anything that way. Don’t go criticizing yourself; don’t regret ever starting a business.

The fact that you failed in business doesn’t mean you are doomed to bad luck. It’s not your destiny to be a failure; failure and success is all about choice. Instead of talking down on yourself, cheer yourself up; you’ve just proved that you have the nerve to handle risk.

It takes guts to start a business and fail; and you’ve just built one and lost it. Most people will remain average because they lack such guts; they may die poor because they lack the courage to risk failure. Most people will never know what it feels like to lose a million dollar business and that’s why they will never build a billion dollar business.

3. Take responsibility

Taking responsibility for your actions is an essential ingredient to handling business failure and making a success out of it. Don’t go looking for whom to blame. If you were bad at cash flow management; admit it. If your business crumbled based on the decision you took or the business move you made; don’t deny it. Admit it and move on. Making mistakes is what makes us human.

4. Let your emotions flow

When you’ve lost a business; just let your emotions flow. Cry if you must and don’t feel bad about crying but I will prefer you do it in your closet. Don’t even think about hurting yourself because your predicament is just a phase that will come to pass. Allow your emotions flow because that moment of pain and tears will turn out to be one of your memorable and most inspiring moments in life.

5. Analyze the situation

Analyze the situation and circumstances surrounding your business failure. Where did you go wrong? What did you do wrong? What caused the failure? What would you have done to prevent the failure that you failed to do?

These are the questions you should be answering at this point in time. If you don’t find definite answers to the questions; then you are bound to repeat the feat again. You can also pick the pieces or leftovers of your failed business. They may prove useful in your next business venture.

6. Take note of the lessons

This is probably the most important element to converting your business failure into success. You will be a fool to lose a business and not learn from the experience. In fact, this experience may turn out to be a priceless asset in the long run. Yes, you’ve fail and there’s nothing you can do about it. One of the most important questions I always ask someone who has just lost a business, contract or an idea is this: What did you learn from your failure?

If you can’t answer this question confidently; then more business failures await you. The lesson from your business failure is very important because it will form the foundation on which you will build a successful business.

7. Resolve to succeed

You can either use your business failure as leverage to greater heights or as a spade to digging your grave. The choice is yours. Instead of being cowed by your failures; use your business failure as a stern resolve to succeed. Each time I fail; I resolute to strive harder and smarter to cover for my losses and failures. Failures don’t weigh me down; instead, failure inspires me to success. You should strive to use your failures positively.

8. Start again

You have failed, cried your eyes out and learned some lessons. But the question now is: will you have the guts to start a business again? The word of God made me understand that the glory is not in the falling; but by rising each time we fall.

Truth is; “I am not afraid of failing, I am only afraid to quit the entrepreneurial process having come this far.” In the business world, you are not yet defeated until you quit the game. As long as you are still in the game; even if you are hanging by a finger, you can always start again.

As a final note, this is my eight step guide to handling business failures. These are the exact steps I take whenever I fail to breakthrough in business. Before I draw the curtain close, I want you to know that failing in business is a painful experience; but it’s worth it if you go about it positively and make a success out of it.                                                                                                               -(Credit: Mytopbusinessideas)