What are your next steps after a startup fails? (2024)

After experiencing a startup failure, my personal approach is to view it as a valuable learning opportunity. It's crucial to reflect on what went wrong and why. In my case, when a content platform startup I was involved in didn't gain traction, we analyzed user feedback and market trends.The next step involves leveraging the lessons learned. I've found that many successful entrepreneurs have faced setbacks before achieving success. Using the knowledge gained, I pivoted to a new venture that addressed a different market need, and this ultimately led to a more successful outcome. So, my advice is to stay resilient, adapt, and consider each failure as a stepping stone to future success.

When your startup journey hits a roadblock, it's crucial to wrap things up effectively. Here's how:👉🏻 𝗡𝗼𝘁𝗶𝗳𝘆 𝗦𝘁𝗮𝗸𝗲𝗵𝗼𝗹𝗱𝗲𝗿𝘀: Immediately inform investors, employees, and customers. Transparency builds trust and can open future opportunities. It's a small world, especially in startup ecosystems!👉🏻 𝗦𝗲𝘁𝘁𝗹𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀: Prioritize paying off debts and outstanding invoices. This step is vital to maintain a good reputation and avoid legal complications.👉🏻 𝗗𝗼𝗰𝘂𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗥𝗲𝗳𝗹𝗲𝗰𝘁: Capture lessons learned. This isn’t just about acknowledging failure but preparing for your next venture with enhanced wisdom.

After a startup fails, it's essential to perform a detailed analysis to identify the root cause of the failure. This should involve reviewing different business areas, such as operations, marketing, product development, technology, and sales. By examining each department, you can pinpoint where the shortcomings occurred. This comprehensive evaluation helps in understanding what needs to be corrected, ensuring that similar issues are not encountered in future ventures. The aim is to learn from these mistakes for better decision-making and strategy development in subsequent endeavors.

It's a tough blow, but the key is turning that setback into a setup for future success. Here’s how:👉🏻 𝗘𝗺𝗯𝗿𝗮𝗰𝗲 𝘁𝗵𝗲 𝗣𝗼𝘀𝘁-𝗠𝗼𝗿𝘁𝗲𝗺: Dive deep into what went wrong. Was it the market fit, financial management, or something else? Honest reflection paves the way for growth.👉🏻 𝗚𝗮𝘁𝗵𝗲𝗿 𝗙𝗲𝗲𝗱𝗯𝗮𝗰𝗸: Talk to customers, employees, and investors. Their insights can reveal blind spots you missed. Remember, it's not personal; it's educational.👉🏻 𝗦𝗽𝗼𝘁 𝗣𝗮𝘁𝘁𝗲𝗿𝗻𝘀: Look beyond this single failure. Are there recurring issues in your approach to business? Identifying these can be crucial for avoiding similar pitfalls in your next venture.

Your startup tanked. What's next? Change your mindset first. Treat failure as a lesson, not a disaster. Ask, "What worked? What flopped?"Mental health? It's crucial. Beyond chatting and yoga, dive into CBT. Mind strategies to combat stress. They're straightforward and effective.Sum up your flop and its whys on a single sheet. Make it your daily view. Aim to learn quickly and avoid repeat mistakes. Keep it clear and factual. Note down the missteps and their causes. Let it be a daily lesson, not a source of regret. Choose action over mulling. Advance smarter.

Talking to family can backfire on you. Talk to people who understand you, and those might not be family and friends but other founders and entrepreneurs. The least needed thing during that stage is the judgement or someone telling you “I told you so”. I was not able to get any support from family, but random strangers who have been in my shoe before. Avoid any toxic comments or criticism at this stage. That can cause the situation when you feel stuck in that traumatic experience, as instead of support you have been judged and criticized for trying.

Founders rarely can go back to working in 9-5 job. Network with other founders and entrepreneurs. Startups value hand on experience and respect people who have previously went through that journey. Tap into your network and see where you can utilize your skills the most.

Traditional resumes are for people who want a job. Most entrepreneurs I’ve met never want to go back to being just an employee (if their financial situation allows). Focus instead on networking, and just make sure your LinkedIn profile reflects your recent startup experiences and the learnings/insights you took away from them.

Transitioning to your next opportunity after a startup can be a smooth process with a well-structured resume. Here's a step-by-step guide to effectively showcase your experience:•Analyse and Reflect•Define Your Role•Quantify Your Achievements•Highlight Skills and Tools•Showcase Credibility•Recognize Accolades•Craft a Strong Summary•Target Each ApplicationBy following these steps, you can effectively update your resume after a startup experience and position yourself for success in your next career move. Focus on the valuable lessons learned and skills gained, demonstrating a positive and growth-oriented mindset.

👉🏻 Leverage Your Network: Your previous venture likely introduced you to a plethora of individuals, from investors to fellow entrepreneurs. Reach out, not just for opportunities, but for insights and mentorships. 👉🏻 Dive into Emerging Fields: Keep an eye on industries that are gaining momentum. Whether it's AI, renewable energy, or biotech, immerse yourself in learning and identify how your skills can contribute. However, avoid jumping in solely based on trends; passion and expertise should guide your choice.👉🏻 Consult or Freelance: Utilize your accumulated skills by consulting for other startups or freelancing. This not only keeps you in the entrepreneurial ecosystem but also offers flexibility to explore new ideas.

Even if your startup is successful, you will have learnt more from your mistakes than your successes.9 out of 10 startups fail! There are so many reasons why it might not have worked out the way you hoped, but the most important thing is to not feel too down about it. Failure is a huge part of the founder journey! As a first time founder, there's so much you don't know and some things, such as economic downturns, pandemics etc. are out of your control.Start looking at the positives. The skills, experience and network you've acquired through your journey. How can you best utilise those skills in your next opportunity?

When a startup fails, it’s not a personal failure. Pick yourself up, dust yourself off, rewatch Carol Dweck’s Ted talk, and get back to work. You got this.

Failure doesn't define you. It's a stepping stone. Approach your next venture with the wisdom gained from this experience, but also with the same spirit of innovation and drive that fueled your startup dream.

When I was CMO at recruiting software company Lever, one of the other players in our space was struggling to scale its client base and ended up being acquired by an entity which took its software off the market. Rather than leaving existing customers high and dry, the startup leaders reached out to us to ensure that we were on standby to migrate any of their existing customers over in a timely manner and at favorable rates. A lot of leaders talk a good game about being customer-centric. I thought it said a lot that in the midst of a stressful transition, the leadership team at a rival company were still thinking about the customer experience and wanting to leave their customers in a good place.

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Cuando fracase, tome una decision clave y fue un día decidir que era el ultimo día de esa compañía y al otro día empezaría nuevamente.Para los emprendedores, es difícil encontrar trabajo en empresas tradicionales (en mi experiencia) por lo que el único camino que tenia era volver a empezar.De modo que mi concejo es pasa la hoja rápidamente, aprende del fracaso y crea un nuevo plan. Solo los que intentan fracasan, así que a volver a empezar.

Translated

After your startup fails, ask yourself WHY you were doing what you were doing. It's super enlightening when you do. 🧘♂️And for many founders, they realize that the things they actually WANT to do are now possible with the blank slate. 💡For example, when I ran my last company, by the end, I was just still doing it because it's what I was already doing but I was burnt out and done way before I was out. 😫For many founders (not all), by the time their company fails, momentum or a desire to not fail was driving them and not passion. 🥺Bright spot. It sucks when a company fails but often for anyone with the founder traits it's extremely possible to turn lemons 🍋 into something sweet 🍯Keep at it! For many it's a new beginning.

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While experiencing a startup failure can be discouraging, it presents a valuable opportunity for learning and growth. Here are some key considerations for navigating this situation:•Reflection and Analysis•Learning from Mistakes•Financial Assessment•Stakeholder Communication•Well-being and Support•Next Steps•Networking and Relationships•Upskilling and Re-evaluation•Persistence and Resilience•Seeking GuidanceBy effectively responding to failure, you can shape your future success. Embrace the learnings gained and utilize them to propel your growth and resilience on the path towards achieving your goals.