Failing a startup can be a devastating blow to your reputation, confidence, and career. But it doesn't have to be the end of your entrepreneurial journey. You can learn from your mistakes, bounce back, and rebuild your credibility in the startup ecosystem. Here are some tips on how to do that.
The first step to rebuilding your credibility is to admit that you failed and take responsibility for it. Don't blame others, make excuses, or hide from the truth. Be honest and transparent with your team, investors, customers, and peers. Explain what went wrong, what you learned, and what you would do differently. Apologize for any harm or inconvenience you caused and thank them for their support and feedback. This will show that you are humble, accountable, and respectful.
Identifying your limits is key to recovering after failure. It is not failure, but how you react to it that will give you strength to continue. One of my big failures led me to one of my success stories because I realized my mistakes in time and accepted the consequences of my actions instead of avoiding blame
I have had 3 pivots in my Startup. Every time I pivoted I acknowledged my failure and reasons to pivot. Every time I learnt from my mistakes and failures and improved along the way to find the best possible PMF. Failures are always a stepping stone to success. I still fail & learn from it, every single day. As rightly said by someone - the day you stop failing, you stop learning.
The second step to rebuilding your credibility is to share your insights and lessons learned from your failure. You can do this by writing a blog post, a case study, a podcast, or a presentation. You can also join communities, events, or mentorship programs where you can offer your advice and expertise to other entrepreneurs. Sharing your insights will show that you are generous, knowledgeable, and willing to help others. It will also help you reflect on your experience and improve your skills.
When my first business failed and I was forced to sell it, I used the lessons learnt to start a whole new business. I have always been very intentional in sharing my failure and the lessons learnt to help others learn from my mistakes. People will respect you so much more when they recognise that you are sharing where you went wrong to help them.
I am quite active on Linkedin and Twitter from the last 15+ years and trust me whenever I share an insight I learn about how others tackle it and more or less I find the solution to all my problems, rather than hiding, being vocal is the best way forward, its the world to learn in public & grow in public too.
Sharing with others really helps to heal internally and also prevents them from going through the same situation. Mentoring is a great way to give back to the new generation. Helping entrepreneurs identify a problem at an early stage, before it becomes too complex to handle.
The third step to rebuilding your credibility is to network and collaborate with other people in the startup ecosystem. You can do this by attending meetups, conferences, hackathons, or workshops. You can also reach out to former colleagues, mentors, investors, or customers and ask them for feedback, referrals, or opportunities. Networking and collaborating will show that you are proactive, resilient, and open to new ideas. It will also help you build relationships, trust, and reputation.
I’m missing the most important part of networking here; give before you get. When you network - make sure to listen attentively, give other people space to shine, share hard-won experiences and introduce people to others you know who might be able to help them. Do this continuously and your reputation will be back on track in no time.
Networking is important, during the good or bad moments. Sharing and hearing experiences can give you another perspective of the problem/solution
Fail or succeed the more you are vocal about the more support you will garner and also get the backing and confidence to rise like a phoenix. Its not wrong to fail, its wrong to fail and not move forward. Collaboration is the name of the game.
The fourth step to rebuilding your credibility is to start small and validate your next idea before scaling up. You can do this by using lean startup methods, such as customer discovery, prototyping, testing, and iterating. You can also use tools, such as landing pages, surveys, or MVPs, to measure your market fit, demand, and traction. Starting small and validating will show that you are data-driven, customer-centric, and adaptable. It will also help you avoid wasting time, money, and resources on unproven assumptions.
Picking your next idea: use your powers of observation as a founder. There are problems you have seen that are crying out for a solution. You could do all of them, but that would fail again. Instead, invest in Thinking Time (Keith Cunningham): How easy it is to access the market / decision makers? Who else is serving them? Who or what stands to gain with them being in the status quo? For every problem you see, there is someone or something benefitting from it being exactly how it is - how will they likely react when you come through and make it faster / cheaper / better / completely different? Thinking in this way can prepare you for the second and third order consequences of your business - and your reactions.
PMF should be on your own terms and own capital, post that you can command scale and funds too, I believe a founder should get his own skin in the game first by starting small validating and keep building.
The fifth step to rebuilding your credibility is to celebrate your wins and failures. You can do this by acknowledging your progress, achievements, and challenges. You can also reward yourself and your team for your hard work, dedication, and creativity. Celebrating your wins and failures will show that you are positive, grateful, and confident. It will also help you boost your morale, motivation, and passion.
The more u share, the more the world will care, case in point Elon Musk, need I say more? He is literally building in public and u can see the new X.com the way he has revamped it in a year odd, phenomenal.
The sixth step to rebuilding your credibility is to keep learning and growing as an entrepreneur. You can do this by reading books, blogs, podcasts, or courses on startup development. You can also seek feedback, mentorship, or coaching from experts, peers, or customers. You can also try new things, experiment, and innovate. Keeping learning and growing will show that you are curious, ambitious, and committed. It will also help you acquire new skills, knowledge, and perspectives.