Nobody, even the most experienced entrepreneurs and the most successful business minds in the world, is immune to failure. We all make mistakes and sometimes it is a good thing. In times, we just need for something big (and uncomfortable) to happen to realize that a change should be made. After a major failure comes the perfect moment to reorganize a business.
The setbacks that your business faces as a result of bad decisions that you’ve made can be devastating. Of course, nobody can be fully prepared for a major setback, but the damage can be minimized if the entrepreneurs don’t let the stress get to them and thoughtfully craft a damage control strategy.
#1 Stay calm!
The most important thing you should do when a disaster strike is to keep your emotions in check. Of course, when you lose an important client, a major investor or a key employee the stress levels will be high. But you will do no good if you panic. Of course, you can’t stay calm 100% of the time. Before you continue with the rest of the steps, make sure that you are emotionally stable. Meditate, practice mindfulness, take a walk in nature – do what you need to do to calm down before you jump into the hard process of fixing the mess.
#2 Evaluate!
Before you start looking for solutions, take the time to evaluate the situation. What caused it? What went wrong? What could you have done differently? Understanding what caused the problem will take you one step closer to the solution. This may help you not only fix this one but may help you to prevent the occurrence of other problems as well.
#3 Communicate
Once you are completely aware of the situation, it is time to be open and honest about it. Share what happened to your investors and keep your employees informed. Transparency is very important. Present the unpleasant information with honesty and with respect. Admit your mistake. Don’t get defensive. Better put all cards on the table than hide the facts.
#4 Keep working!
Many entrepreneurs make the mistake to solely focus on the problematic situation and ignore the rest of the business. Yes, you need to think about solving the problem, but don’t remove your foot from the gas pedal. Work on solving the problem, but don’t forget about your clients, don’t forget that you have a responsibility to them and to your employees. The problem is here and needs to be fixed, but you also need to maintain an income and still keep your eye on growth. In the startup world, every second is important. Don’t create more problems for yourself by focusing solely on the one that is on at the moment.
#5 Stay connected!
Don’t try to solve everything on your own. During difficult moments, you need a strong support group. Stay connected with fellow entrepreneurs. They have probably experienced the same and have what to share with you. Reach out to your mentors. They will help you with advice. Get out there and network effectively. It will inspire you and help you get a different perspective on the problem.
#6 Move on!
Making mistakes is something that you should get used to it. Some will be big, some will be insignificant. Running a startup is much about taking big risks, acting bold and being more decisive. You need to learn to forgive yourself and move on otherwise you may hold yourself back when it comes to making the next big move. The fear of failure has killed more businesses than you can imagine. Guilt and shame won’t take you anywhere good, don’t let them destroy your business.
