Are you an entrepreneur? Did you build a dream business brimming with potential? Did your business take off? Did it crash before take off? There could be various situations that an entrepreneur must face during his journey. Even a very successful business can suddenly face defeat and collapse like a house of cards. This is but natural and every entrepreneur will attest to it. This should not stop any entrepreneur from collecting all the cards and putting it back up in a bigger way with a stronger foundation.
When a business is crashing, the entrepreneur becomes aimless and starts cutting down on costs, firing employees and makes an attempt to save the last coin possible. This ruthlessness is because of the realization that there is no way the business is making it out alive. This is a disappointing and challenging time for entrepreneurs, especially if they are first-time entrepreneurs. They lose hope and faith. Many bounce off the wagon of entrepreneurship to enter a stable income job. Many wait years to recuperate from the financial trouble and losses that they suffered, often paying debts long years after the debacle.
Sachin Mittal’s Steps to Rescue A Failed Business
It is not easy, but if you are a true entrepreneur you will be up for the challenge of putting the pieces back together and getting the motor running again. Here are some of my tips to help re-establish your dying business.
Step 1: Analyze The Cause/s of Failure
- Did you run out of funds or spend all your start-up capital too early?
- Did you try selling your product to the wrong customer?
- Did you not invest in bringing traction to your business?
- Did you give customers a poor experience?
- Did you not anticipate how fast your venture will grow?
- Did you choose the incorrect place for your venture?
- Did you forget to market your product?
- Did you use marketing campaigns that hurt your product?
Here are just some questions you should ask yourself. Take note of the causes of the downfall of your business because these will serve as a checklist on ‘What Not To Mess Up’ while you re-establish it.
Step 2: Get Professional Advice
If you want to get back up on your feet as soon as possible, get advice! Getting advice from Venture specialists or a successful entrepreneur can always act as a guiding light for you. Of course, you do not forego your instincts to follow a plan that does not seem ‘you’. The point of this is listening to different points of view from experienced individuals who may have either experienced or witnessed similar troubles in another entrepreneur’s path. Advice never hurts.
Step 3: Initiate Full-Fledged Rebranding of Your Business
What is re-branding and how can it help? As the name suggests, Rebranding will breathe a new lease of life to your failed business.
- Rebranding starts with the products/services you provide as a business.
Understand the shortcomings (if any) and make the right changes.
- Rebranding includes refreshing your base of employees.
If you are housing disinterested employees or employees who lack the requisite skills to complete their job roles adequately, you must make some changes to create a real ‘team’.
- Rebranding needs you to look into the efficacy of processes at work.
These may be internal mechanism, distribution of labor, physical production, among others.
- Rebranding requires a new level of dedication to your customers.
The pre-existing customers must be pledged better service in the future. The target groups must be reevaluated to ensure they are still relevant.
- Rebranding includes revamping the image of the company.
You cannot attract new customers while whispers of how your business failed are still going around. A negative association will stop people from associating with your company name. There will be an obvious lack of trust to even try your products.
A wise investment at such a time is PR. Best done by you yourself- represent your company, represent your struggles, let people be the judge and watch you rise from the ashes.
Couple your efforts of good PR with a slight transformation in the physical image of the company- if possible tweak your brand name, the logo or the seal. This conveys to people that the company underwent a change.
Step 4: Find Your Angel
By far the most challenging step is to find an Angel investor or Venture Capitalist who will trust you with funds to allow your business to rise from the ashes of failure. Rightly named, an Angel investor can hold the key to stability for your rebranded entrepreneurial venture- with a steady supply of venture capital/start-up funds, you can avoid a lot of mistakes that led to your decline in the first place! But the challenge is to prove your worth and convince them to invest in your ‘sick’ unit to turn the picture upside down.
Step 5: Never Lose Faith In Your Idea
You have failed and lost every battle the moment you lose faith in your idea. There will be many people who tell you it was never worth it but do not be vulnerable. Back your idea up because it is worth it!
Go ahead, become a top entrepreneur. Rise from the ashes of a failed business- innovate and disrupt the Start-Up World!