The possibility of having to shut down a business is one reality that many entrepreneurs will rather not consider. However, 8 out of 10 businesses will eventually have to accept that reality and should yours happen to be one of them, here are 4 things to do as soon as you throw in the towel:
Feelings of sadness, anger, and confusion often trail the loss of your business. Don’t try to fight them… feel each one of them. However, while doing it, try picking up the pieces of yourself that you’ve invested in managing your business.
Take a break, go on a vacation, indulge in your ‘best’ hobby, and think about everything but BUSINESS!
Review the ‘why’ and ‘how’ of your failed business
With a clearer mind and head (thanks to the vacation), do a review of why and how your business failed. Did you throw in the towel too quick? Was your customer acquisition cost higher than your customer retention rate? What increased your cash burn rate?
Don’t engage your partners or employees in the blame-trade game. Find out ‘what went wrong’ and begin to proffer solutions.
Settle the accounts
‘Settling the accounts’ will perhaps another hard thing to do because it means you admitting your failure to investors, employees, customers, and competitors. Schedule meetings with investors and renegotiate your debt-repayment, speak to your employees and help them understand that ‘failing fast’ is way better than managing a dying business.
Don’t rush into the next business
Did you stumble on a business idea while on the journey of ‘finding yourself’, don’t be in a hurry to make it the next business. Don’t give into the urge to ‘prove a point’. Take time to thoroughly validate each business idea and surround yourself with the right people that will make your business one of the 2 businesses that will survive their 1st five years.
To wrap this up, don’t believe that choosing to shut down your business makes you a failure. Rather, you’ve learnt new ways of not doing business.
Have a profitable business day!
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You’d be glad you did!