It is a known fact that failure is a part of becoming an entrepreneur and starting a small business. If you cannot handle failure or do not expect it to happen, then you obviously are not ready to run the business.
According to statistics revealed by U.S. Bureau of Labor, 20% of new businesses fail the first year followed by 30% failure within the second year, a 50% failure within the fifth year, and 70% failure within the 10th year.
There must be no business out there which has gone exactly according to the plan as many external unpredictable factors are constantly at work. Not only external but internal factors also weigh a lot when it comes to the success and failure of a business.
Here are a few steps which will help you bounce back and reboot your failing business;
Put on Your Thinking Shoes Again!
Reviving a failing business is like starting all over from the beginning. You will have to get in the mode of trying new strategies even if there are chances that it will fail. Trial and error is an important part of moving towards the success of the business. You will have to put in extra efforts and extra hours like a start-up owner.
Revisit Your Business Goals and Plan:
When reviving your failed business, you will need to look at your business goals and plans once again and dig deep to understand if everything is inline. Make a list of reasons why your business failed the first time and look hard to figure out how to avoid the same mistakes.
Form a Support System:
Bouncing your business back is not a one-day job. It will be a while before your company stabilizes. This entire phase can be quite stressful and take a toll on your health. Be surrounded by your friends and family. Discuss your ideas with them and get their perspectives as well. It is very important to build a support system around you in such difficult times. Also, relax by engaging in activities you like such as exercise, music or meditation, it will rejuvenate you increasing your thinking efficiency at work.
Connect with Customers:
If you are a product or service-based company, then one of the most important factors for the success of your business is your relationship with customers and customer satisfaction. When your business starts failing, bringing in new customers is next to impossible but retaining the existing customers also becomes a difficult task. You need to come up with a strategy to attract the customers so that they stick by you. But in an act of desperation to survive, do not try to deceive or false advertise to your customers as that comes under unfair business practice as Federal Trade Commission (FTC).
“The FTC has the legal mandate to investigate consumer and business complaints that apply to unfair trade practices. The investigations performed by the FTC can involve one company or an entire industry about legal issues such as false advertising and conspiracy to manipulate commodity prices.” according to Sierra Litigation.
Honesty is the best policy if you plan on retaining your existing and winning new customers.
Make Necessary Policy Changes:
Failing business means there are some serious issues with the company policy both external and internal. Restructure the policy and make necessary changes. Revamp the policy for customers as well as employees. Do not forget to update this new policy in the internal company server and circulate the policy to the customer by email.
Failure is not the end of the world but a beginning of a new success. The best practice is to embrace the failure, adapt to it, learn from it and move ahead towards reinventing your business and taking it to greater heights.