In the first throes of outlining your business plan, there is no thought of failure. All you see in the excitement is a future built on success, and this attitude is integral to a thriving startup. If you begin life with all the potential risks in your mind, you can be too conservative and make decisions against your better judgement.
However, on the other side of the coin, failure is a real issue that you might have to deal with at some point. After all, 60% of new companies go under within three years. This is incredibly scary for bosses, yet you shouldn’t be fearful of saying, ‘I failed’. Here’s why.
Covid-19
You don’t need an excuse because you don’t have anything to prove to anyone. However, if you’re looking for a way to soften the blow and explain to people what happened, the Coronavirus outbreak is a ready-made justification.
Around 11,000 outlets shut in the first half of 2020, which is twice as many as in the same period during 2019, and Covid is a major factor. After all, the constant closing and opening up don’t do startups any favours, not when there is customer confusion, and while furlough is helpful, it only pays 80% of what you would expect to earn.
You Haven’t Failed Yet
Failure is tough to define, and this plays a part in the shame and embarrassment entrepreneurs deal with when things go wrong. When everything isn’t rosy, it can feel as if you’re the only business that is not turning over considerable revenues.
Even if you aren’t, this doesn’t mean it’s over. It also doesn’t mean you’re done if you have to file for insolvency. Company insolvency isn’t bankruptcy – it’s expert help. Creditors attempt to restructure the organisation to let you pay off your debts while speaking to creditors to negotiate settlements and payment plans.
Failure Is Practice
This sounds like a cliche, and it has turned into one in the last few years, yet it’s true all the same. To fail is to learn. Yes, it’s harder to stomach when you do it with a business because the last thing you want is for all your hard work to count for nothing.
Still, nothing prevents you from analysing the mistakes and leveraging them to return with a better plan. It takes some successful entrepreneurs years to strike gold as there’s always scope for a second crack of the whip.
It’s Not Your Attitude
It’s theirs. The attitudes of people pointing the finger at you and making you feel small are the ones that need to alter. Remember that you took a gamble and tried to carve out a better life for yourself. For that, you should be applauded.
People who carry on playing it safe and making money for other people while never aspiring to anything great shouldn’t make you feel like a failure. In comparison, you’re a winner for attempting to transform your life.
A failed business isn’t always a failure, and that’s why entrepreneurs shouldn’t be scared.
