1. Get closure
Instead of spending many sleepless nights guessing what went wrong, make the time to impartially examine your business journey, and look at these various areas and questions to see where your venture took a wrong turn. From there, you’re one step closer to rectifying these mistakes in your new venture.
Was there a lack of money? Was there mismanagement of business funds? In some cases, according to Shikar Ghosh, a lecturer at Harvard Business School, too much funding can also be a contributing factor to business failure. “What funding does is cover up all the problems that a company has. It covers up all the mistakes, it enables the company and management to focus on
things that aren’t important to the company’s success and ignore the things that are important.”
b) Partnerships and other business support
Was there a lack of support and teamwork in your business? Did you have the right partner for the job? Did you have the help of business advisors and experts?
c) Your business goals and plan
Were your goals realistic and well thought out? Did you make any mistakes in an attempt to rush the process of reaching your goals? What opportunities passed you by, which you maybe should have acted on?
2. Accept responsibility
Once you have identified what went wrong, instead of blaming others for the business’s downfall, accept responsibility for the role you played and acknowledge what you could have done differently. By accepting that temporary failure is part and parcel of any business journey, you’re one step closer to springing forward into a new, successful venture.
3. Move forward
Before Henry Ford founded the Ford Motor Company, he failed five times. That’s why he was quoted saying, “Failure is just a resting place. It is an opportunity to begin again more intelligently.” Moving forward might involve starting another business venture, salvaging the old one or maybe even taking a break from business all together. The most important thing is to just keep moving on.
According to Ghosh, “In any natural system, failure is the engine that causes growth, that causes new birth, that causes anything to happen…One of the truly big differences between growing economies and economies that stagnate is the acceptance of failure.” The sooner you accept what has happened, you can move towards a new stage of your business life, taking with you the valuable business lessons learnt from your momentary failure.