Watching your business go under is a terrible feeling. All of that hard work you put in has come to nothing and you might even be in a worse financial position than you were when you started.
When this happens to people, they’re often disheartened and they decide that they aren’t cut out for the business world so they should just go back to work and lock those dreams away forever.
The truth is, it isn’t always as simple as that. Just because that business failed, it doesn’t mean that you are never going to succeed. There are so many business leaders out there that have had multiple failed businesses before they made it big.
For example, KFC wasn’t founded until Colonel Sanders was 65 years old, before that he’d been rejected hundreds of times and now it is one of the biggest fast food restaurants in the entire world.
While it would be nice if we could land on our feet the first time every time, life isn’t like that, so don’t give up. If you’re thinking of taking the plunge a second time, you should be a bit more careful. Think about these things before you make any drastic decisions.
Why Did You Fail?
Businesses fail for so many different reasons and identifying where you went wrong should be the first step when starting a new company. If you failed because you didn’t manage the finances properly then you know that you need to improve on that.
However, it might have been that you failed because your product simply fell out of fashion. Markets move fast and sometimes things just become obsolete. No matter how well it is run, a CD shop is going to struggle to survive in the face of digital downloads.
It could also have been that you didn’t have a good enough team around you and so you need to improve your hiring process the second time around. Whatever the reason, make sure you work out what it was and don’t make the same mistakes again.
Are You Qualified Enough?
Another reason that you might have failed is that you were not ready enough. Having a great product idea is only the first step. Maybe you got too excited and launched into a business without learning how to run one.
If that was the case, why not take a business management online degree program? It will teach you all of the skill that you need to know to handle the day to day running of a business. When you combine this knowledge with a great new idea, you stand a better chance of building a working company.
You should also seek the advice of seasoned businessmen. They were like you at one stage and they probably made all of the same mistakes that you did. Asking them about the simple mistakes that can kill a business will help you to avoid them when you start your new business.
Is The Product Right?
Without a good product, you won’t get anywhere. A solid marketing campaign can increase sales but it cannot sell a product that nobody wants or needs so if you haven’t got a product that you can put your faith in, then maybe it’s not the right time to start a new business.
If you can’t lay out in simple terms why somebody would buy your product, then you probably don’t have anything worth selling.
It’s also important to find an idea that you are passionate about. Trying to sell a product that you don’t believe in yourself is very difficult and you aren’t likely to get very far with it. Your enthusiasm about a product will carry through to every single part of your company and make it far easier to move forward.
When you’re trying to pitch to investors they will be able to tell if you’re heart’s not in it and this will put them off working for you. Your employees will also be far more productive if they see that you are invested in the product itself. If you don’t care about it, then how can you expect them to?
Put Together A Good Team
While it might be your idea, you can’t do it all on your own. The employees are one of the most important things and they can make or break a business, especially in its early stages.
When you’re hiring, you should look at people’s qualifications but also try to gauge how they would get along with you and other employees. You don’t all need to be best friends but having a good working relationship is more important than people often realize.
Don’t be disheartened by past failures, just think about things a bit more carefully this time around and you should be fine.