What to do if your Business is Failing?

what to do if your business is failing

Starting and running a business is unquestionably tedious and overwhelming. According to statistics, 30% of new businesses fail during the first two years, 50% within the first five years, and around 70% within the first decade. But can you guess what the number one reason for a company’s failure is? Insufficient cash flow is the biggest reason why your business is failing.

You’ve tried everything, you’ve spent your budget, you’ve worked hard but have nothing to show for it. Well, what to do if your business is failing? 

That is not to say that failure is easy. Financial hardship, damaged relationships, and a strong challenge to your confidence are all common outcomes of business failures. When your business is failing, it’s time to make some difficult decisions.

In this blog post, we’re going to talk about:

This is the situation that I’ve been in over and over again.  Maybe it’s just me so if you can’t relate, feel free to ignore this e-mail. But this is something that’s always been extremely challenging for me to get my head around and honestly, I don’t have it fully worked out yet. 

There are so many times where I’ve just put hundreds of hours of work into something, I’ve spent a ton of money on it. In some cases, I’ve even hired other people to help me do it. At the end of all of that, there have been times when I haven’t even broken even. I feel like I haven’t helped anyone. And then I’m in that spot where I agonize about what to do next. 

Do I keep trying to push with this project? More money, more time, more effort? 

Or do I start yet another new thing and throw out all of that blood sweat and tears? 

To be honest I don’t have a good answer for you today. For myself, I’ve gone both ways. I’ve completely scrapped a consulting business that I started. I actually did break even on that but it ended up being so labor-intensive for me that I didn’t want to keep pushing for something that could never stand on its own two legs. 

Months and months of work and getting clients and everything down the drain. 

I also started a website about fine art. Painting is a passion of mine and I wanted to express that on a website. It was the very first website I ever made and I didn’t know what I was doing. That website is still out there, half-finished with so much work to be done on it getting a slow trickle of traffic every month with terribly high bounce rates. I tell myself one day I’ll go back and fix it. 

I’m sure you have some half-finished projects sitting somewhere? Or maybe you’ve finished them and they’re not giving you the results that you want. 

3 Common Reasons Why a Business is Failing

To protect a new or established business, it is necessary to understand why a business is failing and how each obstacle can be managed or avoided altogether. Aside from cash flow issues, which are the most common cause of why your business is failing, there are several other common causes of failure. Let us now take a closer look at those.

  • They don’t understand their market and customers

Failure might result from starting a business without carefully doing some market research and studying customer buying behaviors and the target market.

  • They don’t have a pricing plan that is well-defined

Setting pricing that is too high or too low will have an impact on your sales. A business is failing if it does not have the right combination of market trends, product quality, consumer demand, and proper pricing.

  • They’re growing too quickly and can’t keep up

While continuous growth is desirable, slow and steady wins every time. While it’s tempting to go for it all, steady, predictable growth that’s properly managed is healthier than uncontrolled jumps and spurts in business.

So, what to do if your business is failing?

Some of the difficulties in running up a business are unavoidable and uncontrollable. That is why it is critical to take a deep breath, concentrate, and persevere. If your small business is failing or struggling, you’re probably feeling down, and your self-confidence has taken a hit. It’s difficult not to be depressed when everything you’ve worked so hard for isn’t working out. Doubting your abilities, on the other hand, will harm your business and any chances of a comeback.

Be passionate about the things you do

What I’ve learned is that you naturally end up persevering at the things that you’re passionate about. I’m passionate about helping other people make it through the minefield of online business and investing. That’s why this website survived. 

I’m passionate about horses which is why my horse blog is doing well

Believe it or not, I love the world of stock trading and advertising which is why I’ve continued to invest and learned about all sorts of affiliate marketing. 

I did not like doing social media and brand consulting. I’m actually not a big fan of bitcoin but it’s similar enough to invest and I do think that it’s a good enough place to be right now that it works for me. I really don’t like Instagram anything which is why I don’t write about it anywhere on my blog almost. 

Do what’s BEST for your business

I’ve realized that there is no point forcing myself to do things that are more lucrative (or I think will be more lucrative) that I don’t like. Because when the going gets hard, which it always does in the world of making money for yourself, I will not “get going” if I don’t care about what I’m doing. 

Remember that starting and sustaining a small business can be one of the most demanding and gratifying endeavors you can do. Failure is an inevitable aspect of starting a business, but it hasn’t stopped entrepreneurs before, and you shouldn’t let it stop you.

Is Failure a Devastating Thing?

The only people who fail are those who take chances, and you should be proud to be one of them. Don’t let failure erode your self-esteem or demolish your lofty goals. If you want to truly succeed, you will need to take more risks.

Fear of change causes us to be concerned about the future, which will almost certainly lead to a closed mindset in which we fail to make adjustments or anticipate what is to come. You can’t avoid change indefinitely. But you can avoid these inner conflicts in your business in whatever stage your company is in, as long as you’ll find ways to embrace and harness innovation and advancement.

Don’t set goals for yourself or set expectations for HOW MUCH you should accomplish. Instead, set good goals that can help you easily stay motivated, enthusiastic, and feel productive in the direction of your desired outcome until you get there, regardless of how long it takes. Your sole task is to START at the time you specify and to concentrate completely throughout the little period you have.

Let me know if you agree! 


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9 thoughts on “What to do if your Business is Failing?”

  1. Hey Great post!

    I thoroughly enjoyed reading this as I’m currently trying to run a business and I wouldn’t say it’s successful at this moment but hopefully will be soon! 

    I believe passion is definitely one of those features you’ll need to succeed, if you don’t have the mindset to continue then you can fail however if you are truly dedicated then even failure will be lessons for you to learn from.

    Thanks for this information!

    • Hi, Sariyah! I really appreciate your thought-provoking comment. Aside from passion, I would love to add that persistence should also be one of the good features someone should have in order to manage a business!

      I look forward to hearing more from you!

  2. Insufficient cash flow is a serious problem with small businesses. Every type of businesses have high and low points and of course being able to pay for ongoing bills is needed if one is to survive. Part of the problem stems from the fact that people can easily envison that the business is on the verge of a breakthrough. If only they can mange the storm; greater days are ahead. To be passionate about what you are doing and a focus on your dreams does not mean the business will be successful. Failure is learning, and if we can apply what we have learned, our future endeavors might just be the huge success that we strive for!

  3. An interesting article and one that is very relatable to many of its readers.

    I do think that so many people go into business, whether it be online or not, believing that all will be fine and rosy in the first 6 months. The truth being that this really isn’t the case.

    I have been in business for over 35 years in one of my businesses and it definitely wasn’t an easy ride or path to walk along.

    People give up too easily when they don’t see instant results or earnings. I’ve been there too. Talking our way out of it because it’s taking longer that we thought to reach our final destination.

    Slow and steady does win the race and I think that so many people share their successes online and never their failures so we are always lead to believe that they haven’t had any hard times in becoming successful.

    Reading about the successes can have a huge impact on those starting out so we constantly have to remind ourselves that they too have had many a failure but never shown it.

    A great article, thanks for sharing.


  4. It is so hard to change our approach about failure. But if we digest it as part of the process of trying something new it can enable us to keep going when we feel it’s time to quit. When we feel, we feel upset about ourselves. But failure should be a stepping stone for us to continue growing.

  5. Running your own business is never easy. It takes a huge amount of time, perseverance and dedication to make it succeed. And invariably one needs money and the financial means to sustain it.  And then when you don’t succeed, it puts a huge strain on emotional wellness, financial constraints and relationships are put under huge strain.

    But I think it is the way that you deal with the failure, and whether you have learnt something from your experience, that makes a difference. Do be realistic in your expectations and goals. It is still better to start and fail, than never even starting at all. 


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