When your online shop fails, when earnings are nonexistent and gains are just a distant and fading dream, you might want to stop operating. However, you don’t need to quit thinking or doing. It is still possible to be an entrepreneur. You can still be a success. Here are four things to think about as you shut off your ecommerce business.
You Aren’t Alone
Failure is part of the entrepreneurial process. A number of the most famous entrepreneurs you can consider neglected, sometimes repeatedly, before they founded a successful business.
Bill Gates and Paul Allen of Microsoft attempted and failed in the 1970s with a automotive traffic management solution named Traf-O-Data. Likewise Nick Woodman, who made the GoPro, failed with an online, discount electronics store before going on to be a billionaire.
Walt Disney, Richard Branson, Larry Ellison, Henry Ford, as well as Colonel Harland Sanders all endured through failed companies . The list goes on.
In actuality, based on the source, something like 80 percent of new businesses fail in the first 18 months of operations. Of the companies that survive 18 months, only half will make it beyond year five. These statistics should not dissuade you from starting a business. But they ought to remind you that you might need to start multiple.
Your biggest challenge, then, isn’t to prevent failure, but to conquer failure’s psychological bite. Often the difference between a successful entrepreneur and a failed one is simply the successful entrepreneur tried one more time.
Recover Value from Your Assets
Even in case you’ve deemed your company a failure, it probably still has worth. Do what you can to get as much cash as possible from the resources that you’ve got.
This may mean selling any remaining inventory, auctioning off your domain name, posting your office equipment and transport materials on Ebay, or even selling your whole business.
Your goal is investment recovery. Get back as much of your investment as possible.
For inspiration, consider the instance of Hastings, the book and music retailer. It filed for Chapter 11 bankruptcy and was soon bought by Hilco Merchant Resources and Gordon Brothers Retail Partners. The buyers shuttered Hastings and made their money from the sale of resources. If Hastings is worth something despite being a failed business, other failed companies are, also.
To sell your assets, consider calling competitions, posting ads on Craigslist, offering items on marketplaces such as the above Ebay, or putting your company up for sale on Flippa or similar.
Evaluate, but Don’t Obsess
Assessment is the act of assessing something to learn about its character, quality, or skill. You should evaluate your failed business. Failure’s only redeeming quality is that it can teach us a lesson about success.
In a really honest way, attempt to ascertain what went wrong with your organization. Can you run out of capital? Did you will need a better plan? Was your product not a good match for the market? Was your site too slow? Was shipping too costly? Could it only have been a matter of timing? Can you overpay for search marketing consultants?
Try to determine as succinctly as possible what caused your company to fail. Then work out how to prevent this problem in a future firm.
Do this without being fanatical or blaming yourself. You likely had something to do with your company going awry. You’re culpable. However, as mentioned previously one, failure, in one form or another, is common.
Learn from your mistakes and be prepared for the next enterprise.
Start Your Next Venture
“If you’re one of the numerous aspiring entrepreneurs who have taken the leap and started your own business just to finally fail, fear not, there’s an upside which you may remove from the experience,” wrote Kevin Colleran, a venture partner at General Catalyst Partners, in a 2013 Wall Street Journal article.
“Rather than obsessing about the negative aspects of failure, you need to focus on the often stated but rarely thought lessons that failure makes you stronger, and increases your odds of future success. In case you have failed previously in a business enterprise, you’re lucky because your odds of success the next time around have improved.”
Colleran’s point shouldn’t be understated. Your latest failure is a powerful indicator of your future success. Stop beating yourself up about your latest failure. Learn from it and move forward, planning for your next ecommerce performance.