Before we start talking about certain things to do after a business failure, let us first tell you that these are very common. Almost 60% of all businesses, especially those owned by first-time entrepreneurs, fail within the first two years. So, don't beat yourself up and think you are the only one – you are not!
Even if you have a great business idea and a fantastic team and even if you invest all of your time, energy, and money in your business, sometimes, you can't go against the external factors. Things like a declining market or strong competitors can cause your small (or big) business to collapse overnight.
However, when a thing like this happens, that is, when your business fails, you can't just sit and cry. You can't give up on your dreams of being an entrepreneur and owning your own company. Instead, you should do the following things.
1. Shut down properly
One of the first things you must do after a business failure is to make sure you shut it down properly. Focusing on this can be difficult, but hey, this is something that must be done if you want to avoid paying fines, damaging your reputation, etc. And most importantly, if you want to work on your new small business idea in 2022, this is something that you must do.
Shutting down a business usually means giving your employees their last paycheck, paying the taxes, dealing with paperwork and closing the books, letting your customers and clients know what happened, etc.
Of course, shutting down a business requires doing a lot more things, so if you don't know where to start, it might be a good idea to hire a lawyer, a business advisor, or even a financial consultant.
2. Close down the office
Now that your business is shut, it is time to close your working place. There is no point in occupying a space you are not using – that will only eat away your budget. Instead, try to close down the office as soon as possible.
To do that, first, you will have to talk to a person from whom you 'borrowed' the office space. Go over the contract and ensure everything is in order. And, don't forget to pay your last rent.
After doing this, you can slowly start taking your things out. No matter what kind of business you had, you probably had a lot of things (equipment, products, furniture, etc.). So, hire some commercial movers and have them relocate all of these somewhere safe – to your home, storage, or some new business space you rented. Movers can help you start over elsewhere in just a few days in case you plan to start a new business immediately.
3. Give yourself some self-love
As previously said, with the help of professional movers, you can relocate to your new office space and start a new business in no time. But, that may not be a good idea. After a business failure, you need to give yourself some time. That time is necessary for healing, resting, and, most importantly, evaluating everything that has happened (so that you don't make the same mistake again).
It is okay to grieve. For you, this business failure was a huge loss, so you are expected to feel angry, sad, and worried. Feel those emotions – they are an inevitable part of healing. But don't feel them for too long. You need to pick yourself up and give yourself some self-love. Spend a couple of days (or weeks) just relaxing and clearing your head. Starting a new business and career transitioning will be much easier after doing this.
4. Figure out what went wrong
After a business failure, one of the things to do is figure out what went wrong. This is a must, especially if you plan on starting a new business. Learn from your mistakes now, and you won't repeat them later!
Let us assume that you had a great business idea and did everything right to put it into action. But, still, your business failed. To find the reason why ask yourself the following questions:
Answering all these questions can help you understand why your business failed. And more importantly, it will help start a new, successful business later on.
5. Surround yourself with the 'right' people
Sometimes, some things to do after a business failure is just surrounding yourself with the right people. And this applies to both personal and work life. First, you need to surround yourself with friends and family members who will understand and support you. You don't need other negativity from skeptical and reluctant people, so stay away from those.
And secondly, you need to surround yourself with great businessmen and successful entrepreneurs. Of course, you cannot just befriend all of them, but what you can do is sign up for as many business workshops, lessons, etc. This is where you will hear stories of success, where you will learn new skills, and where you will gain extra experience. Thus, look for these events in and around your city – you will not regret it.
6. Prepare for a new venture
Since you have already opened your own business, you have an entrepreneurial spirit inside of you. So, don't even think about giving up on it just because one of your businesses failed. The most successful people nowadays have a dozen of business failures behind them! Just do all the things we mentioned above, and we are sure you will be able to prepare for a new business venture.
As you have seen, you can do many things after a business failure. We mentioned just six of them, but you already know there is much more to it. So, let that be your homework. Devote the next couple of months to examining your business plan and, of course, your mistakes. After doing that, you will have no problems starting a new business.
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