How to Cope When Your Business Folds

By QuickBooks Canada Team

2 min read

Business failure can happen to anyone, and when it happens, can be very stressful. However, a failure doesn’t mean that everything is over. It is just an obstacle on your path to success. If you handle failure properly, it can actually be a positive thing because in every failure, there is a potential for growth.

Acknowledge Your Failure

When your business fails, accept the fact because you can’t change anything by obsessing over it. If the failure was caused by your mistakes, own them and don’t blame others for the failure. Everyone makes mistake, and people who admit to their mistakes earn respect from others. Take a break, dust yourself off, and move on. Dwelling on your failure doesn’t help you in any way. The earlier you can move on, the earlier you can focus on your next venture.

Treat It as a Lesson Learned

Treat your failure as a learning opportunity. Review what you did wrong so that it won’t happen again. Don’t let your failure defines who you are. Many successful people have failed more than once. For example, Arianna Huffington, founder of the Huffington Post, had her second book rejected 36 times before she created her major online news publication. Even the Huffington Post in its earliest stages faced negative reviews, but now it’s one of the most successful news sources in the world.

Plan Your Next Step

Don’t let failure be the only thing you take away from your experience, and don’t think of starting over as a complete setback. While the experience is still fresh, start planning your next move. Write a business plan, highlight your vision and define your mission. Finance your new venture with a loan or what is left of your failed business. As an example, Steve Jobs was fired from Apple in his 30s. Instead of sitting around, he started a new company called NeXT, which was eventually bought by Apple. A few years later, Jobs was appointed the CEO of Apple.

Don’t Fear Failure

Entrepreneurs rarely get it right the first time. It may take two times or even twenty trials before they become successful. Don’t let fear control you. Fear has a way of locking you into a mold of what’s safe, but what’s safe may not be right. Try new things to find something that works. You may feel the lack of confidence after failing, but remain positive. What comes next can’t be any worse and thinking positively is a way to build self-confidence. If you believe in your vision, others will too.

Find a Mentor

Sometimes the worst thing you do after a business failure is think that you need to handle everyone on your own. There’s no shame in getting assistance. Surround yourself with supportive people, and find someone who can support you and steer you in the right direction. This person can be a friend with a successful business or a business coach.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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