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The dream is going up in smoke. You are looking helplessly at a failing business and nothing you try works to turn it around. You are not alone. Most entrepreneurs experience one or more business failures before they find that magic combination that works for them. If you talk with people, you will learn that many successful business owners have firsthand knowledge about failing businesses. Something like twenty-two percent of new businesses fail within three years. What should I do if I have a failing business?*First, you should be on the lookout early for signs of failure. It is easier to turn a business around if you catch problems while they are manageable rather than wait until the boat has nearly sunk. *You may need to cut your loses if you see you have a failing business. At best if you shut down your operation in time, you may be able to avoid bankruptcy. *Take time to analyze the situation and understand the reasons behind the failing business. You may consider your experience as one of having made “costly mistakes.” The proper outlook is having “bought valuable experience.” Mistakes are only bad if you do not learn anything from them. *Dust yourself off and start again. It’s the same principle of the cowboy who is thrown from a horse and gets right back on again before he loses his nerve. *Do not look at a failing business as the end of the world. It may have left you strapped for cash, but as long as you maintain optimism and a successful mindset, you can discover ways of finding the money you need to start again. If twenty-two percent of new businesses do not make it past the three-year mark, then that means seventy-eight percent do make it. Was it smooth sailing for all of those? Of course not! Even the largest of companies face some of the same problems the small entrepreneur has staring him or her in the face—money crunches, economic downturns, poor management, rising costs, and the like. You no doubt understood there were risks when you first went into business. So, when you think your business might be failing, start taking some
action. Find the resources that will give you the best advice. Look for
ways you can improve the situation. Seek expert advice, however, and
avoid negative people and the ones who enjoy telling you, “I told
you so.” Lower business debt and fix your company
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