The COVID-19 crisis has wreaked havoc on the entire world—on individuals, businesses, the healthcare sector, and every area of society. So it’s no surprise that there have been a lot of business closures this year. But closures can’t be blamed solely on COVID-19 because even before the virus infected patient zero, about 1 out of 5 businesses failed within its first year. If they’re resistant enough to reach five years, there’s a 50% chance that it will falter.
After 10 years, only about 33% of businesses will survive. Business failure is fairly common and consistent, and while 2020 contributed to a lot of business failures this year, it’s not the only culprit. So if yours was one of the businesses that failed this year, here are some pointers for getting back on your feet.
Take the time to grieve your losses.
You put yourself out there, invested not just your financial resources but also your energy, hopes, and emotions into your business, but it didn’t work out. It’s a hard pill to swallow, but also one that is alright to admit. Your business failed, but it doesn’t mean that you are a failure. So take the time to lick your wounds, acknowledge the pain of losing something you worked so hard on, and cry it out. Experts say that when we accept our pain, it will hurt less. So if you want to heal from this traumatic experience, allow yourself the time to grieve and mourn properly.
Be objective about what went wrong.
It’s hard to be objective about a project when we’ve poured out blood, sweat, and tears working on it. Even while you grieve, do a proper autopsy of your business:
- Go over your logs and financial statements to see where you need to take responsibility. While it’s not productive to beat yourself up over what’s done, it’s good for you not to make excuses for your mistakes, so you can learn from them.
- Get a second pair of eyes—someone you trust to have your best interests at heart without sugar coating what went wrong—to help you see where you can improve. During this period, staying connected with people who love you enough to encourage you and tell you the truth is crucial. ;
- After you’ve learned about your mistakes, give yourself permission to move on from your mistakes and not commit the same ones for your next venture.
Sort out your finances.
Money is not the easiest subject to broach, especially after you’ve lost your business. One of your best options, for now, is to reach out to your connections to ask for a job. Find yourself a steady-paying gig, so you’ll be able to pay your bills, pay down your debt, and save up before you can figure out your next steps. And you never know; what starts as a way for you to survive financially might provide you with your next big idea.
Look into new opportunities during this unique time.
Once you feel you’ve saved enough to start a new venture, create a road map for how you want your new business to run this time. Since we live in unprecedented times, look into business opportunities that will meet many people’s needs, like buying a home care business franchise or starting a professional cleaning service. While the pandemic has truly wreaked havoc in our lives, it has also created many new business opportunities for aspiring entrepreneurs. So look into gaps in the market and find a service or a product that you’re uniquely positioned to provide.
After a failure, starting over again is not easy, but don’t allow yourself to be held back by fear. Believe that you have a lot to give to the world, and creating a business is just a way for you to do that.