As opportune and welcoming as the entrepreneurial realm may be, failure is oftentimes an essential part of success. It may not seem like it once you realize that the years you spent devoted to a particular goal were in vain, but failure should not be the reason to abandon your desire to build a business empire of your own.
In fact, it can serve as the perfect source of motivation to overcome the challenges that have previously prevented you from succeeding, and fuel your desire to design an even better idea.
Taking into consideration that approximately 90% of startups fail, you can rest assured that you’re not alone in your desire to accomplish something monumental. Before you let go of any second or third attempts, let’s see how you can decrease the risks and increase your chance of success upon experiencing such failure!
Take a closer look at your attempt
How you perceive your failure will greatly determine your ability to move past this stage of your business journey. If you see it as just that, a failure, you will likely fail time and time again, whereas if you see it as an opportunity to learn, you can adjust to the new circumstances and use them to your advantage. There are quite a few lessons you can learn from your mistakes, and even more importantly, use them to prevent repetitions.
No matter how unique the circumstances of your business may be, your failure can likely be attributed to several very specific underlying issues. Sometimes, they are linked strictly to poor budgeting, lack of market research, or simply no business plan to follow or monitor. Whatever the case may be, use the information to prevent such events from happening again with your next attempt to start your own business.
Restructure your finances
Since your failed business is no longer a source of income, you will need to get back on your feet before you move forward with your goals. You need to know your market before you can create a solid budget for your life as well as your business plan. For example, over 90% of startups in Australia rely on some form of investments in order to stay in the running, meaning that a highly competitive market requires a predefined financial strategy. If you’ve failed before, and you cannot afford to fail again, all the more reason to take a closer look at your budget leaks and funding methods.
For this very reason, relying on business loans in Australia has become one of the most reliable ways to fund startups without exhausting your personal resources. Failed business attempts often mean that you need more stability now than ever, and keeping your business and personal funds apart is often the best way to go.
Learn from others in your industry
It’s not just the successful ones that deserve your attention, on the contrary. If you have access to information, interviews, any form of data related to failed businesses in your industry, you should also learn from them in your search for the truth.
Both the failed and the thriving businesses can help you establish your own roadmap, prevent certain mistakes, implement best practices, and recognize opportunities that you’d otherwise miss. Whether you take online courses, talk directly to business owners, or you simply stay informed via online portals – it is up to you, as long as you are informed and educated on trends and pet peeves in your industry.
Build your support crew
As beneficial as this failure may be for your business, it still takes a toll on your motivation and your creativity. No matter how resilient you are, make sure to surround yourself with the right people during this time. Spending time with supportive friends and family will give you the energy and desire to move on sooner rather than later.
On the other hand, surrounding yourself with prominent mentors and teachers, as well as figures you admire in the professional world, can be of great help to your business ideas. They might be able to shed some light on your mistakes and point you in the right direction for any future endeavors.
Plan for challenges
No amount of preparation and focusing on prevention can completely eliminate the role of mistakes and setbacks in your professional journey. That said, you need to embrace the fact that you’ll come across other challenges during this new adventure of yours, and you need a plan to tackle them.
Analyzing whatever caused your failure means you’ll be able to prevent the most damaging of errors in judgment while staying flexible and adjust to new tidings can help you recognize possible issues down the road before they occur.
Use your experience and your knowledge, and with the right idea in your hands, there’s no reason you won’t be able to succeed in the business world.
Author: Victor Miller
Victor T. Miller, a Sydney-based business and marketing specialist who has expanded businesses over 5 years. I am a person who loves to inform people about the latest news in the industry also as sharing tips and advice based on my professional experience and knowledge.