Starting and operating a new business involves considerable risk and effort. The possibility that an entrepreneur will experience failure is high, but failure can be valuable if the entrepreneur is able to learn from it.
Learning from failure is a process, it is not automatic and instantaneous. We are living in the age of the entrepreneur, thus even in the face of uncertainty, entrepreneurs must assume the necessary risks.
There are several ways an entrepreneur can successfully turn failure into success.
First, the entrepreneur must see failure as a positive attempt rather than a negative outcome. As an entrepreneur you need to be forthcoming in identifying your strengths and weaknesses. You must never stop thinking about the rewards of the business; your financial independence and personal satisfaction.
Secondly, failure provides the opportunity for the entrepreneur to reorganize aspects of his life. Running a successful business can place so much emotional demand on the entrepreneur leading to the neglect of other aspects of the entrepreneur’s life. This can be detrimental, and entrepreneur’s must ensure a balance between work life and private life. Failure thus provides an opportunity for the entrepreneur to prioritize planning of tasks according to their degree of importance.
Moreover, an entrepreneur can learn more from his failures than successes. Failure is a recognition of the need for the entrepreneur to change personal attitudes and habits regarding time and resource allocation. It gives the entrepreneur the opportunity to develop greater cognitive adaptability.
In addition, other businesses can also learn from the entrepreneur’s mistake and that can help the economy as a whole. Recovery from loss or failure offers an opportunity to increase one’s knowledge of entrepreneurship.
Failure in business also allows the entrepreneur to pay close attention to the details of his business, knowing that others want the success he has. When business fails, an entrepreneur must endeavor to be detail-oriented about the most important things in his/her business, making sure to satisfy customer’s needs. Perhaps, an employee is developing a negative attitude towards work, the entrepreneur needs to spot it. Pick up all the clues, don’t just read.
As an entrepreneur, you need to learn to trust again. Delegate some responsibilities to others.
The entrepreneur should also seek assistance from family, friends, professionals and business associates. Spouses should also be consulted to help alleviate the stress of dealing with failure.
Finally, an entrepreneur must have an exit strategy. Will the company be succeeded by family/ non-family member, merged with another company or simply liquidated?
Ultimately nobody cares as much about your business, as you do, so go easy on yourself. The sense of accomplishment you get from starting out the new venture should motivate you to pick up the pieces should you fail.