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5 strategies for bouncing back from a failed startup

5 strategies for bouncing back from a failed startup
From Mashable - July 17, 2017

For more than two decades, the numbers surrounding the survival rate of small businesses have remained unfortunately consistent. Only 20 percent of all new businesses make it past their first year. After five years, 50 percent of new businesses no longer exist and only one-third are able to enjoy their 10-year anniversary.

As entrepreneurs tackle the legal formalities of assorting with a failed startup, including dissolving it with the state, they are also faced with the stigmas that surround what it feels like to have a business that failed. Getting back out there and trying all over again is really tough. It takes a lot of courage, confidence, and a solid strategy to get back on trackwhich, believe it or not, your unsuccessful startup has actually prepared you for.

If your first business wasnt a success, heres how you can bounce back using the lessons failure taught you.

1. See failure as a time to reflect

Use the moment you failed as a means to reflect and think about what happened. Where did you go wrong? Was it your approach? Did you underestimate your market? Did you spend too much or try to grow too quickly? Did you lack support or guidance? Track what you learned and look to mistakes made as valuable lessons for improvement with the next business. You might even find it cathartic to blog about your experience. Transparency matters to your customers and sharing an honest account of what went wrong helps paint you and your business in an authentic light with your audience.

2. Solicit feedback

One of the reasons why startups fail stems from a lack of feedback. Some entrepreneurs take their ideas and make them inaccessible to anyone else. Often times, the reasons for doing this range from fear the idea will be stolen by a competitor to striving for perfection in the hopes of catching an investors immediate attention. Now that the business is no more, use this time to ask partners, providers, and even employees for their feedback. Encourage them to be open with you on everything from how the business operated to the offerings themselves. Be honest with yourself in acknowledging what went wrong, especially if there are common issues coming up with those who worked alongside you.

3. Get strategic about venturing into a new business

4. Avoid the get rich quick approach

5. Dont hurry yourself if youre not ready

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