Starting a business has never been so easy but does the ease increase or reduce the risk of failure? The economic environment may be improving but the volatility and competitiveness is increasing. Four out of five start-ups – that’s a staggering 80% – end in failure.
‘Who’s Gone Bust?’ report improved economic prospects have had a positive effect on figures in 2013 for consumers and retailers:
|Companies failing||Stores Affected||Employees Affected|
|2014 (to Sept)||39||1,282||11,892|
|2013 (12 months)||49||2,500||25,140|
|2012 (12 months)||54||3,951||48,142|
|2011 (12 months)||31||2,469||24,025|
Although the figures relate primarily to medium or large retail businesses ‘Who’s gone bust?’ state the improvements in the economy may still come too late for several retailers like Phones 4U.
Business failure can be a long road of heartache and heartbreak for both employee and employer. Let’s not forget that people invest not only their money but their dreams, their relationships and their beliefs in a business. Money can be replaced, but the emotional effects of grief and diminished spirits can be more difficult to overcome.
It is important to first recognise after a business fails that both employee and employer can share the same emotional grief, moving from denial to anger through to acceptance and on to gain new perspective. I have had personal experience of this, remember that old saying: “what does not kill you…?” It really does make you stronger. You can’t change the past, so it’s best to work on what you can change, namely the present. It goes without saying that you cannot move forward if you are constantly looking back.
Hunter Centre for Entrepreneurship, University of Strathclyde conducted research in 2011 that found the “majority of respondents had either gone on to start a new business, or were intending to do so. This reflected their self-belief that they were ‘natural’ business owners and could not or would not consider working for someone else, and that the closure was not their fault. In fact, the impact of the closure event was to generate greater caution.”
The business may have failed but you have not.
If you find the courage to work through the grief and maintain your spirits, with your new experience, perspective and knowledge you will reap the benefits and can ignite your dreams again. My experience has certainly taught me lessons that I have shared in my book Business Evolution. I have grown and run several successful businesses employing staff but I have learnt more from my business failure. I am more resilient and experienced and unlike some, I mentor my clients through the coalface of the challenging and volatile economic climate.
So do not ever give-up, whatever the figures; you only fail if you fail to make what you have learnt WORK.
If you like this blog you may also like this https://theproblem-solver.com/assets/how-to-recover-from-failure/