What do you do if your business venture fails?

En mi experiencia de varios a?os como mentor de emprendedor@s he aprendido que el error/fracaso es una fase imprescindible del proceso hacia el éxito. No hay ningún emprendedor/a de éxito que no se haya equivocado en múltiples ocasiones. La diferencia está en que algunas personas aceptan el error y aprenden de él y otras tiran la toalla al primer revés y no lo vuelven a intentar. Cuando un proyecto va mal hasta el punto que no tiene futuro, hay que ser realista y valiente y decidir cerrarlo. En el momento que hemos decidido cerrar el proyecto empieza la fase de análisis: qué hemos hecho mal, porqué no hemos tenido éxito, qué hubiéramos hecho distinto. Estos aprendizajes serán el mayor activo para impulsar el siguiente proyecto.

Se meu empreendimento falhar, eu analiso as raz?es da falha de forma objetiva, aprendo com os erros cometidos e utilizo essa experiência como uma oportunidade de crescimento e aprendizado. Em seguida, busco novas oportunidades, aplicando os conhecimentos adquiridos para construir um projeto mais sólido e resiliente no futuro.

Si tu empresa fracasa, es fundamental enfrentar la situación con resiliencia y determinación. Primero, realiza un análisis exhaustivo de las causas del fracaso para comprender completamente lo sucedido y aprender de la experiencia. Luego, considera opciones como la reestructuración, la búsqueda de inversores o la venta de activos para mitigar las pérdidas y salvaguardar cualquier valor residual. Mantén la transparencia y la comunicación abierta con los empleados, socios y otras partes interesadas, brindándoles apoyo durante la transición. Aprovecha esta experiencia para crecer personal y profesionalmente, identificando lecciones aprendidas que puedan informar futuras empresas o carreras. Recuerda que el fracaso no define tu valía.

The initial step is acknowledging the situation. Embracing the reality of a failed venture, rather than denying it, allows for a constructive foundation from which to start rebuilding. This acceptance has been pivotal in my ability to move forward, enabling me to approach the situation with clarity and purpose.

Some people say failure is not an option. This is delusional thinking. Failure happens for a variety of reasons. When it happens, the best course of action is to sit calmly with the outcome for a week or so. Accept that this situation did not work out. Examine the factors that got the venture to the point of failure, find solutions to those factors and keep them in mind for the next venture. Learn from the mistakes. If any of them are fatal to the venture, make an effort to avoid them in the future. If you can't avoid the factors that brought about the failure, perhaps this venture does not work in the current environment. Move on to the next thing.

A thorough review of finances is critical. Assessing the venture’s financial health, understanding outstanding obligations, and planning for financial sustainability were my initial steps post-failure. This financial audit provided a clear picture of where I stood and what adjustments were necessary for future stability.

Every failure is laden with lessons. Reflecting on what went wrong, identifying the key takeaways, and adapting my approach for future endeavors have been essential steps in my journey. This process of learning and adapting has not only improved my business acumen but also prepared me for new opportunities with a refined strategy.

Leaning on my network for support, advice, and encouragement was invaluable. Sharing my experiences with mentors and peers provided me with different perspectives and insights, which were instrumental in navigating the aftermath of the venture’s failure and planning my next moves.

With lessons learned and a support system in place, planning the next steps involves setting new goals and creating a strategic plan to achieve them. For me, this meant identifying new opportunities where I could apply my skills and learnings, always with an eye towards innovation and market needs.

Cultivating resilience is crucial. I focused on maintaining a positive outlook, staying flexible, and being prepared to face new challenges. This mindset of resilience has empowered me to persevere through setbacks and remain focused on my long-term objectives.

Beyond the immediate steps following a business failure, it’s important to foster a culture of experimentation and acceptance of failure as part of the entrepreneurial journey. Encouraging this mindset within my team and network has helped demystify failure, promoting a more innovative and risk-taking approach to business.

En mi experiencia el fracaso no es el fin del camino, sino una oportunidad para crecer y aprender. Es difícil al comienzo pero ayuda el mantener una perspectiva abierta y flexible sobre lo que está sucediendo. De una u otra forma cada empresario exitoso ha enfrentado fracasos. Lo importante es levantarse y la actitud con la que respondes.

These are my 3rd business ventures. I have learned many things from the two failures. Here’s a concise guide to bouncing back after a business failure: Acceptance: Acknowledge the failure and understand it’s not the end of the world; it’s just the end of one venture. Take a Break: Rest, recover and avoid dwelling on the past. Reflect: Analyze the root cause of the failure. Learn: Understand what happened and learn from your mistakes. Monetary Recovery: Cut your losses, explore loans, asset sales or crowdfunding. Psychological Recovery: Bounce back emotionally; remember you’re not alone. Remember, setbacks are stepping stones toward success!