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How do you manage the emotional fallout from a startup failure?

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Failing at a startup can be a devastating experience. You may have invested a lot of time, money, and energy into your venture, only to see it collapse or fade away. You may feel angry, sad, guilty, ashamed, or hopeless. You may doubt your abilities, your choices, and your future. How do you cope with these emotions and move on from a startup failure? Here are some tips to help you manage the emotional fallout and learn from your mistakes.

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Jade Sulaiman

Revenue-Focused Digital Marketer | Email & Copy Specialist for SMBs & Coaches
Andre Nudelman

Private Equity Education

1 Accept your feelings

The first step to dealing with your emotions is to acknowledge them. Don't suppress, deny, or avoid your feelings. They are natural and valid responses to a loss. Allow yourself to grieve, vent, or cry. Express your emotions in healthy ways, such as talking to a friend, writing a journal, or doing something creative. Don't judge yourself for feeling bad or compare yourself to others who seem to handle failure better. Everyone has their own pace and process of healing.

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Jade Sulaiman

Revenue-Focused Digital Marketer | Email & Copy Specialist for SMBs & Coaches
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Starting a new business is emotionally tasking. It feels like bringing a new baby into the world. Oh, the excitement! When the startup fails, it can be devastating. Picture a miscarriage or a stillbirth... But you just have to come to decision to move on. The pain is real. The devastation is emotionally draining Cry, if you must. Don't bottle your feelings. You are not a failure because your startup failed. You fail if you allow the situation define you. Accept the fact that the business has failed and move on. Get pregnant again with the next idea. This will make healing from the painful emotions quicker.

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Andre Nudelman

Private Equity Education
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Very important to separate yourself from the venture. You were able to create the startup and run it, but for some reason, it failed. Now, that you have the opportunity to learn from this failure, you are better equipped to try again.

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2 Seek support

You don't have to go through this alone. Seek support from people who care about you and understand what you are going through. Reach out to your family, friends, mentors, or peers who have experienced startup failure. They can offer you empathy, advice, or feedback. You can also join online or offline communities of entrepreneurs who share their stories, challenges, and lessons learned. You may find comfort, inspiration, or new opportunities from connecting with others who have been in your shoes.

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Jade Sulaiman

Revenue-Focused Digital Marketer | Email & Copy Specialist for SMBs & Coaches
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Don't be too big to discuss your pain with a few trusted friends. You definitely need some emotional support when your startup goes south. I recall discussing my situation with a friend when my e-commerce business failed to rise after it took a hit from the prolonged lockdown period as a result of COVID-19. His story consoled me and made me realise that my experience wasn't the end of the world. Rather, it gave me a platform to explore other options. You see, not sharing your pain with others is an express road to depression.

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Andre Nudelman

Private Equity Education
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Most successful entrepreneurs had several failures on their way to success. Look for these failures and learn how these failures contributed to the success of the new enterprises.

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3 Reframe your failure

Another way to cope with your emotions is to reframe your failure. Instead of seeing it as a personal or permanent flaw, see it as a learning opportunity or a stepping stone. Try to identify what went wrong, what you did well, and what you can improve. Take responsibility for your actions, but don't blame yourself for everything that was out of your control. Focus on the positive aspects of your experience, such as the skills, knowledge, or relationships you gained. Recognize your achievements, efforts, and resilience.

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Andre Nudelman

Private Equity Education
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Write a recipe for your failure and try to identify what went wrong. It will help design the future recipes for new ventures.

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4 Take care of yourself

Failing at a startup can take a toll on your physical and mental health. You may experience stress, fatigue, insomnia, or depression. You may neglect your basic needs, such as eating, sleeping, or exercising. You may isolate yourself from others or engage in unhealthy habits, such as drinking, smoking, or overworking. To recover from your failure, you need to take care of yourself. Make sure you get enough rest, nutrition, and hydration. Do some physical activity that makes you feel good. Find some hobbies or activities that bring you joy or relaxation. Seek professional help if you need it.

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Andre Nudelman

Private Equity Education
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If you feel bad, seek support, learn as many cases of successful people that failed as an inspiration. Think, if you were able to start this failed venture, it means that now you are even more prepared for the new adventures on ventures.

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5 Plan your next steps

Finally, to move on from your failure, you need to plan your next steps. You may decide to pursue another startup idea, join another company, or explore a different career path. Whatever you choose, make sure it aligns with your goals, values, and passions. Do some research, network with potential partners or employers, or enroll in some courses or programs that can help you develop your skills or knowledge. Set realistic and specific objectives and action plans. Celebrate your progress and achievements. Don't let your past failure define you or limit you. You have the potential to succeed again.

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Andre Nudelman

Private Equity Education
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Use the recipes from past failures and prepare a new one for the new venture with all you learned from the previous failure, plus what you learned by researching other cases of successful people's failures.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you manage the emotional fallout from a startup failure?

1

2

3

4

5

6

1 Accept your feelings

2 Seek support

3 Reframe your failure

4 Take care of yourself

5 Plan your next steps

6 Here’s what else to consider

Startup Development

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How do you manage the emotional fallout from a startup failure?

1

2

3

4

5

6

1 Accept your feelings

2 Seek support

3 Reframe your failure

4 Take care of yourself

5 Plan your next steps

6 Here’s what else to consider

Startup Development

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