No matter how big or small they are, setbacks knock our confidence. But it’s possible to regain positivity and continue striving for success after a bump in the road.
In this article, company formation agent, 1st Formations, highlights 5 steps that start-ups can take to restore their confidence after a setback. They explore steps like acknowledgement, positive thinking, and goal setting to help business owners get back on track after a setback.
Acknowledge the setback
Step one is to acknowledge that you’ve had a setback. Remember, entrepreneurship isn’t easy, and you’re certainly not alone if this happens to you.
Perhaps you misunderstood your target audience due to insufficient market research, perhaps there was a lack of employee training, or maybe the relationship with your business partner didn’t go the way you planned, and you’ve now fallen out.
No matter the severity of the setback, be honest with yourself, speak to others, and accept feedback and criticism where needed. Then, think about what you need to do to fix it and how you’d deal with the problem differently if it came up again.
Pretending that a setback hasn’t happened or playing it down won’t change the facts and it will only stall your progress. So, acknowledging what went wrong and what caused it is a key step to building up your professional (and personal) resilience.
Adopt a positive mindset
Positive thinking is essential when recovering from a setback. In this step, you should:
- Avoid dwelling on your setback. Instead, focus on solutions.
- Think of your setback as a learning curve rather than a failure.
- Turn low self-esteem and stress into confidence and motivation.
The idea is to project positivity and success into your life to make it a reality again. But there’s more to it than merely thinking positively.
It’s an attitude that comes from practising the habits that energise and drive you. Such habits can include self-encouragement, physical exercise, surrounding yourself with positive and like-minded people, and self-care.
The reality is that this setback is unlikely to be your last, but engaging with the activities, techniques, and people that empower you will help build up your strength to overcome these hurdles with more confidence, creativity, and adaptability.
Also, the impact of your positive mindset will be widespread. Not only will it significantly improve your ability to bounce back, but it’ll also inspire those around you – your colleagues and employees – fostering higher levels of productivity and collaboration.
Ask for support
A big part of recovery that people can often forget is asking for support when you need it. This can be business, personal, or emotional guidance. There’s no need to deal with a setback on your own – asking for help will speed up your recovery and prepare you to deal with any future problems more smoothly.
The Bank of America Small Business Owner Report 2016 shows that entrepreneurs heavily rely on their family, friends, and communities with their businesses. More specifically, 83% of them said they received some form of emotional, operational, and/or financial assistance from a family member. Other types of support they ask for include business referrals and personal financial support.
If you haven’t done so already, build a trusted circle of advisers, peers, colleagues, and relatives/friends that can be there for you when you need them. Be open with them about your setbacks, how you’re dealing with them, and what you’re struggling with. Alternatively, it’s worth considering external support from your local authority or a mentoring programme that can provide focused support.
Be proactive
The best way to move forward and regain your confidence after a setback is to be proactively seek change and new opportunities. You may find that you need to step out of your comfort zone here, but this’ll help you confront any worries or fears that could be holding your start-up back from evolving.
For example, let’s say your business has suffered due to a skills gap. It’s time to focus on recruitment and making the necessary changes to find quality employees.
Perhaps you need to increase compensation, review your employee benefits, or try a new recruitment strategy. Consult your business partner(s), HR managers, finance officers, and team leaders to come up with a new action plan that’ll help you fix this setback and prevent it from happening again.
Or maybe your start-up costs turned out to be higher than anticipated and your business is lacking the capital it needs to expand – it’s time to investigate your funding options. Among other methods, small businesses can use crowdfunding, government schemes/grants, and bank loans to raise money and scale up.
Explore your options, proactively take up opportunities, be open-minded, and work with your team to find the right solutions to get your start-up back on track.
Set yourself goals
It may be easier to regain your confidence when you physically see the progress you’re making. To do this, try setting yourself a series of smaller achievable goals. It’s useful to write them down and tick them off as you go along, helping you visualise your journey.
If you have trouble getting started, try the SMART method. Your goals should be:
Specific (clear and focused)
Measurable (motivating)
Achievable (realistic)
Relevant (to your end goal)
Time-sensitive (set yourself deadlines)
Let’s go back to the example of insufficient start-ups costs, which you now need to bridge with additional funding. Rather than focusing on raising capital (which can feel overwhelming), break your journey down into smaller steps.
For instance, your first goal could be to meet with your financial advisors in a week’s time to review your cash flow and establish your business credit score. The next could be to take a couple of days to research your funding options and their eligibility criteria, followed by submitting a loan application.
No matter your overall target, set yourself realistic goals that’ll help you get there and celebrate small wins as you go. Each time you tick one off, take a minute for self-reflection and give yourself credit for staying on track.
Learn from your mistakes
Finally, once you’ve bounced back from a setback, keep the experience in the back of your mind and learn from your mistakes. As mentioned, you’re likely to face some form of setback again – as is the nature of being a business owner.
Perhaps this setback was caused by a mistake you made, maybe it was a collective oversights, or maybe it was out of your control. Your start-up will only become more resilient as it grows, so now that you’ve overcome a setback, use the experience to your advantage to navigate future hurdles and protect your business from further damage.
Conclusion
Whether you have hit your first setback or experienced one or two in the past, launching a start-up is not a smooth or easy journey. If this has happened to you, the first thing to remember is that there are countless other business owners in the same boat.
But don’t let a setback hold you and your start-up back from evolving. First, acknowledge the problem. Identify its causes, what you could’ve done to stop it, and how you’d approach the situation again.
Then, speak to people that you trust and ask them for any support you might need to regain your confidence. When you’re ready, make proactive changes to fix the mistake and strengthen your start-up.
Finally, to remain on an upward trajectory, practice regular goal setting to visualise success and stay on track and learn from previous mistakes when future setbacks arise.