Timing Is Everything: Recovering from a Small Business Failure

Small businesses make up a majority of the businesses in America, yet there is a huge risk when opening your own business. Small businesses’ odds of surviving decrease as time goes by, according to a report from Small Business Trends. 

Statistics are fine to analyze until you realize that there are individuals behind each one, business owners who have to deal with closing a business. If you’re one of these individuals, you’re the one that must reach a decision to board it up, which causes emotions that statistics and numbers can never truly convey. You tried and succeeded for a while, but the business is closed now. Here’s your path to starting over and overcoming this hurdle.

Remember Your Success

We have a tendency to reach our goals and immediately want something new. No matter how much time you put into one achievement, you usually want the next big thing immediately afterward. This is a wonderful trait to have since it keeps you striving for something better.

However, this can also lead to you forgetting everything you’ve accomplished along the way. After your small business closes, give yourself time to reflect and remember the obstacles you overcame to get to the point of opening a business at all.

Starting your own business and the courage, drive, and work ethic it takes to accomplish that is worth celebrating. It’s also exactly what you need to start again. You learned what worked and what didn’t. Carry that knowledge into your next venture, and don’t let the fear of failure stop you from trying something new after you process this “failure.”

Give Yourself Time

While you shouldn’t let one business closing stop you from ever trying again, you should give yourself time to process all the emotions that come with a business closing. Everyone has their own way of dealing with emotions and unplugging for a while.

Everyone recovers from a failure, and some even view failure as an achievement. Take this approach and spend time doing things you haven’t done in a while that bring you joy. Practicing self-care is one of the best ways to rejuvenate your mental and physical state.

As a small business owner, you probably wore an array of different hats and had little time outside of work to focus on yourself. Take the opportunity now to come up with a sustainable self-care routine that you can continue into your next venture.

Reconnect with friends and family, catch up on your reading, head outside — do what makes you feel good. If that means getting a makeover, by all means, head out for a cut and color. While you’re taking care of yourself, though, keep your finances in mind.

Allow Your Bank Accounts to Bounce Back

Don’t immediately go into another venture unless you’ve dealt with the fallout from your closed business. Wait until the time is right, finances are secure, and you can focus on the future. 

After your business closes, tighten your belt and make a stricter budget for yourself. The last thing you need is to worry about finances right now, so save all you can. If you have enough in savings to get by until you start something else up, pat yourself on the back.

If your personal savings were tied into the business, then filing for bankruptcy might be your best option. If not, you need to secure a source of income and fast. Your experience as a business owner provided you with a network that you can reach out to for help securing a job.

Though it might sting to become an employee for someone other than yourself, you can stop stressing about the bills and use the time to come up with your next business venture. Perhaps you can start small while employed and open an online store. Your platform options are endless nowadays. For example, dropshipping allows you to sell trendy products without a storefront or inventory, from backpacks and bags to gadgets and electronics. Find out what strikes your fancy and then take it slowly. There’s no need to rush this decision.

When you have the next plan ready to go, invest time into the plan. You know where the pitfalls are and how to avoid them. Be patient and wait for the right time, place, and investor. 

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