Learn Why You Should Start Another Business after a Failure

5 Reasons to Restart a Failed Business

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Many young entrepreneurs end up failing. It doesn’t mean you’re a loser nor does it mean that you shouldn’t restart your business.

You might have heard that 8 out of 10 business fail. In fact, the situation isn’t all doom and gloom: according to SBA study, only a quarter of companies fail in the first year of operation.

And the figure doubles the next year. 50% is a lot, but definitely better than 8 out of 10.

Should you try again after you’ve failed? This article will provide you with 5 reasons why you should give it another try.

Your Role Models Also Failed

Do you have any famous businessmen you look up to? Only some of them did not fail in their first venture. Thomas Edison failed multiple times, and so did other people who young entrepreneurs admire.

Colonel Sanders made KFC a success after many ups and downs, and so did Ray Croc. Their companies outlived their founders and are worth billions of dollars.

If you want to follow in the footsteps of great entrepreneurs, you should learn from their mistakes. The lesson you draw by studying any self-made man’s biography is that failure brings you one step closer to success.

But, saying that anyone can make it as big as Ray Croc is a bit of an overstatement. Thousands of people understand that running a business is just too difficult for them and go back to their careers. That’s not to say you should.

Actually, failure gives you a lot of benefits.

You Gain Experience

Running your first business must have been a nightmarish experience. The paperwork, bookkeeping, mismanaged employees — remember? Everyone goes through this stage.

Thomas Edison is famously quoted as saying, “I didn’t fail a hundred times, I just found a hundred ways of doing things that don’t work.” Now you know what doesn’t work, and your next business will be way better.

You Become a Better Leader

The first business is a formative experience. You learn a lot of things about leadership as you progress.

Now you are way better at motivating your employees. You don’t micromanage them but delegate responsibilities instead.

You Learn Bookkeeping

Keeping your books balanced is crucial for any business, from a brick-and-mortar store to a multi-billion corporation. The odds are that this was one of the main things that caused your business to fail.  This is especially the case unless you hired a professional like the guys behind bookkeeping services Greenfield Wi.

Many young entrepreneurs try to wing it, thinking that if all goes well, accounting will follow naturally. Now you know it’s as simple as it seems.

Whether you learned bookkeeping yourself or found a reliable accounting professional , you have this side of business figured out.

You Make Useful Contacts

Networking is what shapes your business opportunities. If you’ve run your company for quite some time, you’ve gathered a good deal of useful contacts.

If you make a fresh start, you know who to talk to. These people may even become your new business partners or fund your project.

Your Entrepreneur Mindset is Rebooted

Developing your first business idea makes you feel great. You are the boss now, and you are enjoying the responsibility and the prospects that come out of that.

However, many entrepreneurs don’t take their business seriously enough. They think their plans will work out just fine and nothing will be able to prevent them from achieving success. Some can’t even see the reality they’re facing and daydream instead.

Now that you failed, you know it’s more about hard work than it’s about buying a yacht. You’ll handle your second company way better.

The number one lesson that you should learn is that initial plans do not always work out. This time, you’ll adjust your strategy to reality.

You Can Manage Ideas Better

Arguably the hardest part of running a business is sifting through workable ideas and discarding the dead-end ones. Maybe your startup was too unrealistic to exist in the first place?

Albert Einstein once said, “The definition of insanity is doing the same thing over and over again and expecting a different result.” If your initial idea failed due to poor market research, trying it for a second time makes no sense. The good thing is that you now know you have plenty of market research to do.

Sure, you will drop many great ideas. But, they were rosy dreams and nothing more than that. Keep in mind that a good idea is not the one that sounds good, but the one that works.

You Will Feel Great

We all live for emotions, be it the thrill of climbing a mountain or the joy of playing with your children.

If your business experience was something more than constant stress and anxiety, you know how good it feels. Closing a hard deal, seeing your employees invest in your company, watching happy customers exit your store — all of it feels amazing.

Wait for the frustration of failure to fade away, and you’ll be able to experience all of these emotions again.

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