How to Bounce Back Quickly After Closing Your Small Business

October 7, 2020
Kaz Bosali

When your business idea doesn’t work out

By Carla Lopez

Setbacks are part of the journey for entrepreneurs. In fact, before launching Microsoft, Bill Gates started a company called Traf-O-Data that did poorly and was eventually forced to shut down. The ability to keep pushing forward is a fundamental part of achieving your dreams. While it can be tough to move on, focus on regaining your confidence and learning from your mistakes so you can enjoy better results next time. Here’s how to recover your motivation and launch your next big idea.

Start Planning Your Next Chapter           

Planning another business venture can help you turn your setback into valuable lessons. Lean into the pain and evaluate what went wrong, building on the strengths of your previous plan and scrapping whatever didn’t work.

Perhaps you started your business for the wrong reasons. Maybe you had insufficient funding or tried to expand too quickly.

There are several reasons why small businesses may be forced to close their doors. Although you may find it difficult to think about your past business decisions, it’s important for avoiding the same mistakes in the future.

When you’re ready to start new, keep things simple and affordable, such as with an online store. You can find e-commerce-oriented free resources to help you get off the ground and set your brand apart from your competitors. For example, wikis allow you to search for helpful information on resource management, advertising, and customer service to improve your chances of success.

Assess Your Financial Situation

Closing down a business often means financial trouble. It’s a good idea to give yourself time to recover before starting your next business. If you have an emergency fund, use it. If not, find a way to start earning income fast. Reach out to people in your professional and personal networks, including old business partners or past employers. You can also join the remote workforce through freelance job boards like Upwork. These platforms post short- and long-term jobs in web development, marketing, customer service, and many other fields.

This might mean putting your next business idea on the back burner for a while. However, it’s a vital step toward building up the funds—and confidence—you need to get back on the entrepreneurial path. Keep in mind that if you’re going to be working from home, maximize your productivity by finding a low-traffic, quiet spot to work out of. 

Practice Self-Care

It can be very emotional to close down a business that you put yourself into, and it’s normal to face a healing process. Business Insider suggests that you may even go through a period of grief, experiencing sleep disturbances, fatigue, irritability, and loss of ambition. 

This is an important time to practice self-care, tending to your mental and physical health by maintaining good habits and being forgiving. Find activities that help you accept your mistakes and regain your confidence.

For a self-esteem boost, break out of your comfort zone by attending meetup events, trying martial arts, traveling, or learning something new. Make your home a more positive space by keeping it clean, decluttering, and letting in more sunlight. 

Facing a major life setback can be debilitating. If you recently closed your small business, you may be wondering how you’ll ever find the confidence to try again. Give yourself time to recover and remember that failure is common on the path to success. You’ll be itching to get back out there before you know it!

About the author: Carla Lopez kept her entrepreneurial spirit even after retiring a couple of years ago. She created Boomerbig.org for retirees who still desire to work and achieve - a site that offers business resources for people in their golden years. 

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