Watching your new business venture tank after you've invested all your time, effort, and money in it can be heartbreaking to say the least. No one likes to trade their dreams and aspirations for anxiety and depression. But that's what happens after your startup idea falls flat on its face. However, you need to treat the failure as a part and parcel of life and move on. Lamenting over it will only result in you being stuck in the same place forever. Pulling yourself up and moving on is easier said than done, and therefore, we've put together a list of four steps to help you cope with your failed startup.
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Stage one: let it absorb
Everything started on a high note. You had all your investors in place and you'd hired some great people to work for you. Then how come no customer wanted to buy your product? Where did you go wrong? All entrepreneurs go through shock and confusion when their startup fails. No one likes to believe that it could happen to them. But it is alright to be confused. After all, if you knew your venture was going to tank, would you start it in the first place?
Stage two: figure out where you went wrong
Stop blaming your suppliers, investors, and employees and take ownership of your debacle. At first, it is alright to be depressed and blame everybody but yourself, but then you need to isolate yourself for some time and evaluate what went wrong. This will not only give you the closure you need, but will also help you understand what mistakes to avoid if and when you launch your next venture.
Stage three: classify assets
Every business, no matter how bad its final outcome may be, has some sort of assets. Equipments, office space, cars and intellectual property remain yours no matter what and helps you cut your losses. Clients who've stayed with you till the very end may not seem very useful when you're down in the dumps but they are a big asset, too. Count your blessings and evaluate your assets as they will come in handy when you decide to sell them individually or collectively as a business.
Stage four: start over
The best way to cope with a failed business is to start all over again. Divert your focus away from your failure and concentrate all your efforts on making your second venture a success. You might feel that you've lost your will to make a new business work after you saw your previous efforts fail miserably. But that will never dies. Fid it and get it simmering all over again. Don't think about the money you lost. That's a thing of the past. Instead focus not only on recovering that money through you next venture, but also making huge profits.
If you let your failure bog you down and keep you there, you let it win. Instead, take heed of the above four steps and get cracking on a new business idea.