In business, at least some failure is inevitable and you should expect losses. Failure may come in form of small losses such as losing a deal to a competitor or losing a successful employee. There may also be big losses such as being unable to make payroll.
However, the key to a successful entrepreneur is not the ability to completely avoid these losses but rather the ability to deal with them both externally and internally.
While it is not practical to have full-fledged contingency plans for any type of failure, it is important to be mentally prepared to fail. As an entrepreneur, you will be able to better handle difficult situations if you do not feel like a failure by having an unexpected an inevitable set-back. Being mentally prepared for a loss will prevent you from making emotional decisions that could potentially be detrimental. Making rational decisions over emotional choices is always preferred in business.
While your business venture may have small failures, this does not mean that you are a failure as a person. Understand that although you may have some responsibility for the loss, it does not mean that you are 100 percent to blame. Every entrepreneur deals with failure in business at some point and becoming too attached to these failures will make handling them much more difficult. Instead, it is worth it to understand the failure and recognize it while continuing to run your business or pursuing new business ventures.
Surrounding yourself with a strong support network will help you be able to stay grounded and remember that you are more than your business. Keep yourself connected with friends, family, and mentors as a way to remember who you are outside of business and when you have a failure you will be able to be reminded that you are not a failure yourself.
The recommendation above is to move on and not dwell on the failure. However, learning from failure is important as it will serve as an opportunity to use this experience to minimize failure in the future. This is one of the most difficult aspects of failing as it forces you to take some responsibility for the failure which can lead to the dwelling.
This is an opportunity to re-evaluate your situation, are you where you should be? Is your line of business the best fit for you? Are you putting in the necessary work? Failure could be a sign that what you are doing is not for you and this is okay. It is important to ask yourself these difficult questions and then make objective decisions to correct your path.
As an entrepreneur, failure will be a part of your work life. If you are looking for a lifestyle that avoids ups and downs and/or you have a hard time handling failure then starting a company or brand may not be for you. Setting your expectations and setting your mind up for what you are getting into will allow you to better handle the inevitable failures and challenges.