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Tips for overcoming business setbacks
No business will have a seamless journey to growth. Setbacks can happen at any time and come from a variety of directions. How you deal with those setbacks will be a good indicator of whether you can turn your business into a success. If you simply sit back and accept failures as part and parcel of doing business, then you risk not learning and adapting to those setbacks. The right mindset alongside the best in business practices can mean that setbacks don’t harm your future. If your business has suffered from an unexpected setback, then here’s what you need to do next.
Identify Causes
Setbacks can hit at any time. You need to learn how to react quickly and deal with them effectively. One of the best methods for tackling and addressing setbacks in business is the Six Sigma methodology. This method changes the way that enterprises tackle their processes and limits setbacks. An expert in Six Sigma, Peter Peterka, calls what they have developed as “statistical analysis rather than guesswork,” and it is this practical approach that lies at the heart of Six Sigma. The DMAIC steps prioritize defining, measuring, analyzing, improving, and controlling business processes. If you get hit by a setback, then having a step by step guide to overcoming it is vital.
Learn how to Learn
Mistakes are easy to make, and can sometimes even be beneficial. Learning from your mistakes makes you a better entrepreneur. You need to discuss what went wrong, get feedback from your team and your customers, take responsibility for the error, and then learn from it. The more that you learn from your mistakes, the less likely that you will repeat them.
Go High-Value
Cash flow needs to be secured if you suffer a setback. Even if your issue is not specifically a financial one, any setback can potentially hinder your potential to make money. Whether it’s a bad review on Yelp, a slow supplier that has hindered your delivery process, or any of the countless business setbacks that can occur at any time, you need to ensure that your bottom line is not negatively affected. A break in your sales figures does not have to be the end of your business. Retarget your strategies so that they focus on the customers that have proven to be of high value. Even if your conversion rates drop overall, with the right approach you can still meet sales targets by ensuring that high-value clients are prioritized.
Look for Opportunities
According to former US President and founding father John Adams, “Every problem is an opportunity in disguise.” If you want business success, then you need to adopt this mentality. When your business is affected by an unexpected setback, it can be very challenging to view it in a positive light. Use those setbacks to motivate you and to escape your comfort zones. You might find that you have been targeting the wrong audience or selling a product that isn’t as high-quality as you thought. This gives you the chance to explore new ideas and build collaborative strategies with your team. Find opportunities in your mistakes and your business will be far more secure.
No matter how well your business plan is researched and executed, no matter how experienced you are at running a business, and even if you have a huge financial safety net, setbacks can be fatal for a business. Adjust your mindset and use the available resources. Turn your setbacks into motivation, and you could end up with a stronger and more secure business model than you started with.
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