Tips for Entrepreneurs to Re-Group, Find the Upside, and Get Back on Track After a Business Downturn  

A downturn in business can be related to a recession, saturated markets, changes in buying habits, and so much more. Most of the time, these downturns are out of our control. We cannot always prepare our businesses for potential downturns, simply by being on our toes; quite often, we have to switch from being a proactive leader to a reactive leader, quickly dealing with the  problem at hand.

That said, it is interesting to consider the emotional and professional effect these downturns have on entrepreneurs. A common mistake that entrepreneurs make when downturns occur is to retreat from the outside world and internalize the business issues – it feels easier to escape and hide behind our armor, because we do not want to be judged or feel like a failure.  After all, entrepreneurs are expected to exude confidence; would you want to work for an entrepreneur who lacked spunk, tenacity, and mettle? Personally I like to surround myself with confident, determined, and resourceful people. So when entrepreneurs are expected to put on a brave face even when times are turbulent, the energy spent is exhausting.

And the irony is that you may feel like you had everything figured out in your mind. This often happens because we often spend our money in our heads before we have earned it, give ourselves applause before a project is complete, and pat ourselves on the back before we see the results.  So when things begin to crumble because of unforeseen circumstances, how do you keep up that resolute persona (besides acting, of course) when all you want to do is crawl into a hole?

Well, this is what I have learned from our own company downturns:

Stop Being the Lone Ranger

Don’t spend too much time like a hermit, crawling into a secluded space and shutting everyone else out. Put pride aside, and let those you trust in. Thinking that they are “feeling bad for you,” and things will be awkward if you get in contact, is only adding an unnecessary burden to your already full plate.

Solution: Choose two to three people whom you trust — outside of your partner and parents, because they are the obvious choices — into your inner circle. Start by telling them that what you need is a confidant. Ask them straight-up if they can they be that person for you. Make it clear that you don’t want to talk about your issues all of the time, you just need them to be there for you; the last things you want to hear are hackneyed phrases like “Don’t worry, things will look up,” or “This too shall pass.” A trustworthy, non-judgmental, patient, and comforting ear is really all you need. Hope that they keep the cliché, uplifting comments to a minimum, and remember that this needs to be more about venting than solutions, or getting into your psyche.

Heed the Warnings, Because They Are Blaring

Consider whether it’s possible that lack of sleep and poor eating habits are creeping into your daily routine. Are you getting signs that people feel you are in a bad mood more often than not? Like a siren in the night, the signs are all there: you are slipping into that entrepreneurial pond of “ickiness,” where everything feels like it is going wrong.

Solution: Take a step back, and recognize that this is going on with you.  Take a pause and step out of the situation, perhaps taking a day or two away to re-group. Go shopping, get a pedicure, start reading a novel, try a new sport — whatever it takes to decompress. It may take a few days or even weeks to recharge the batteries; nevertheless give yourself that time to regroup. Your team, your company, and most of all, you, need you reinvigorated to deal efficiently with what is going on.

Speed Past Pause, and Take Action Sooner

When things go wrong, it is easy to freeze. It can feel like your brain cells are clumping together and shutting down, or perhaps you feel numb, cold or frozen. Feeling stalled can also lead to indecisiveness.

If you are feeling downtrodden, how is it possible to feel confident about making decisions? You need that warmth, blood flow, and optimism to be able to make decisions and see clearly. Wavering back and forth is not what an organization needs in order to move forward from a downturn.

Solution: Write down each issue, as well as two possible resolutions for each, and then discuss it with those whom you trust. This should help you combat feeling frozen or stuck. Even if the solution ends up shaky, at least there is an action involved, instead of just lurking in a holding pattern.

A downturn does not always mean the end to a business; it is most often just a bump in the long road of entrepreneurship. If I had given up every time there was a bump in the road, I would have been in and out of countless businesses by now.

The best way to handle a downturn in your business is to start with yourself, and make sure that you are in the right frame of mind to lead your company past that bump. Take the time to understand the issues at hand, and to assess what you need to do in order to get through this time. You’ll thank yourself later!