So, your first business venture didn’t quite go to plan. Don’t panic; we all face setbacks in our lives, and the failure may just be one of the low points en route to reaching your goals.
On the other hand, it may be a signal that entrepreneurship isn’t for you. Alternatively, you might just need a little more time before jumping back into the fierce and ferocious world of modern business.
Do You Have The Drive?
Failing with your first business idea can sap your energy. Therefore, it’s imperative that you ask whether running a company is right for you. While there’s no one perfect mould for a winning entrepreneur, these character traits are a great starting point. If you don’t fit the bill or have that natural drive, it might be better to seek normal employment.
After all, the security of a set wage and a job can be very satisfying. Likewise, the reduced responsibility and flexibility may offer a better work-life balance. Above all else, there are no guarantees. So, the financial rewards may be better as a worker.
Are You Legally Allowed?
Whether your old business failed or is in the process of failing, you must tie up the loose ends. Otherwise, the damage caused could stop you from actually launching a new company. Director disqualification and other legal issues cannot be ignored. Seeking a quick solution before turning your attentions back to the new idea is key.
Aside from the legal viewpoint, those issues may form a major distraction. If you’re unable to put your heart and soul into the company due to those ongoing battles, it will show. Until those matters are sorted, it’s imperative that you hold back.
Do You Have A Winning Idea?
Before creating a successful company, you must equip yourself with a great idea. You may think that you’ve had your Eureka moment, and maybe you have. Then again, you had the same feeling with regards to your first business concept. Therefore, it’s vital that you scrutinise every element before rushing a decision.
Modern businesses needn’t always be exciting. Opening a restaurant could be a far better option than trying to take over the world. It’s better to succeed in a small pond than fail in the ocean. Besides, choosing steady growth over volatility can encourage a far better work-life balance too.
Are The Resources Available?
As you learned from the original business, running out of money spells disaster. Therefore, if you must know that there is an opportunity to raise the necessary capital. Whether this is done via crowdfunding, bank loans or private investment doesn’t matter. The key thing is that there is enough cash available.
It’s equally vital that you learn to spend money in a responsible way. Whether this means operating as a home-business, outsourcing tasks, or using modern tech is up to you. One way or another, though, reduced overheads will reduce the pressure for instant results. This could make all the difference.
Can Success Be Sustained?
When launching a new business, the first job is to establish its place in the market to achieve that initial level of success. However, the journey rarely ends there, which is why you must take a look at the big picture too.
Will there be opportunities for the business to grow through online sales, secondary stores, or franchising? If the answer is yes, then it could be the ideal concept for your next venture. If, however, it’s roof is very low, it may be worth putting the brakes on. Furthermore, you need to know that your products and services have a long shelf life. Fad ideas won’t work.
Can You Handle Another Failure?
It’s not a nice thought, but a new business venture could potentially suffer the same outcome as the first. After all, the number of failed startups easily outweighs the success stories. There is a degree of risk involved, and it’s pivotal that you factor this into your decisions.
Failure could bring more negativity to your reputation as well as your personal life. In fact, even the bumpy road to success could cause stress on relationships and home life factors. With a supportive family around you, there’s no limit to what can be achieved. Still, you have a responsibility to do what is right for them as well as yourself. Do not forget it.
The Final Word:
Many of the points discussed above take a negative tone, but that shouldn’t put you off. Instead, it should simply encourage you to analyse the full picture. If you still believe that all factors are still pointing towards that next venture, that’s confirmation that you are ready to bounce back.
