How to Act If Your Startup Fails

In a risk-averse environment, the UAE is a market that is ripe for entrepreneurs ready to go above and beyond to buck the trend and make it through the first year of operation. Everyone is aware of the top-notch infrastructure, frameworks for supporting businesses, and favourable tax systems in the UAE. On the strength of its successful handling of the epidemic and audacious switch to a four-day workweek, more global companies are considering the UAE as a focal point for their operations.
The UAE has always been hospitable, open, and accommodating, in contrast to many other countries that now have abrasive anti-immigration policies in place. More visa kinds than ever before are available, each with a unique set of benefits. Current visa categories include the three-year firm work visa, the ten-year investment or partnership visa, the property ownership visa, and the Golden Visa, which is given to investors or those who have made remarkable contributions to or impacts on the UAE.
Following the massive success of Expo 2020, the area is currently being transformed into a cutting-edge business, cultural, and residential district — a futuristic city-within-a-city — where startups can take advantage of a variety of benefits, including free office space, straightforward visas, and tax breaks. Expo City Dubai, dubbed a green, futuristic, tech-enabled city, already has a startup innovation programme in place, called Scale2Dubai. It is driven by sustainability, innovation, education, and entertainment.
There are only a handful of places on the planet where so many people from so many different nations coexist together. The UAE has established itself as an ideal testing ground for new goods and services, boasting 0% unemployment and a population that is young, educated, and wealthy.
An estimated 10,000 SMEs have grown as a result of this melting pot, together with Dubai and the UAE’s long history as a major trading hub. More than 250 scaleups have reportedly raised $5.4 billion in venture capital funding, according to data from the Dubai Chamber. It should come as no surprise that efforts are being made to develop, promote, and draw in 20 unicorn firms by 2031, which are startups valued at at least $1 billion.
Naturally, investors will always be drawn to locations with strong economies and vibrant business environments. Additionally, the area is well known for being a hub of international trade, from the early Silk Road merchants to the modern-day bitcoin apps.
Corporate investors and astute people who choose to live in the UAE to take advantage of the lax tax laws and high incomes make up a significant portion of the country’s wealth. Start-ups with a winning concept and a strong business strategy have a great chance to find investors of all types and sizes.
Emirates Angels is one such investment group. It was established in 2020 with the goal of positively impacting the country’s early-stage investment ecosystem through its active investor network, with a focus on tech-based startups. It provides money, events, networking opportunities, and education.
So, suppose your startup failed and you’re looking for your next job. Where do you start? Even if you’re not immediately ready to launch another business, your expertise as a founder can still be useful in other jobs, even if it takes some time to identify what those roles are.
Consider your options and go into the job search with confidence
Confidence is one of the main obstacles former startup founders encounter when beginning a job search. It might be disappointing and difficult to shut down your business. It is beneficial for an ex-founder to remind themselves of past accomplishments and times when they have been at their best because the sensation of failure may frequently undermine people’s confidence.
Founders frequently take on several responsibilities in areas like as product development, sales, and marketing. They may need to take some time to decide what position they want to fill if they’re looking to join a new organisation because of the breadth of their skill set.
However, they also have a special edge wherever they go because previous founders have experience in a variety of job roles, so they can relate to their new team members in different departments, whether they work in product, growth, or some other capacity.
Consider your investors first
Leaning into your network is likely to be more successful than applying to internet job advertisements, as is the case with most job searches. You can recommend founders to emphasise their story to their network and to not be averse to discussing what transpired at their unsuccessful firm as they continue to network. Begin your search for a new opportunity with board members, investors, and “anyone who believes in you.”
Create a narrative
Entrepreneurs should emphasise their successes in order to shape their story when networking or in job interviews. Even if your business had to close, that doesn’t mean there weren’t real victories along the road.
One of the coolest things about founders is that they frequently have a wide range of skill sets and a wealth of experience to pull from, allowing them to tell their story in a variety of ways to highlight their competence in a particular area.
Early development is not everything
After closing your business, joining an early-stage startup is usually simpler than joining a larger organisation. This is partly because joining a smaller organisation involves less administrative work. But even after operating an early-stage business, working for a startup may still be exhausting.
Place to Rebound From a Failure
If additional funding isn’t forthcoming, the founder will probably try to sell the business, dealing with interested parties who will play a waiting game in the knowledge that the startup’s deal terms will get better as it gets closer to its “fume date,” or the point at which its bank account is zero. Parallel to this, it’s likely that the entrepreneur will begin to fire staff members while weighing how much to reduce costs.
Additionally, a shutdown is almost about to begin. As soon as it is obvious that new owners and investors won’t be able to save the firm, things only grow worse. After that, there is a disputed asset auction to pay creditors, followed by liquidation.
When something goes wrong, it’s natural for people to place the blame somewhere else, like on investors who supported a poor strategy or an unforgiving universe. A founder will typically realise those first explanations may be true after some time has passed since the failure. But they’ll also understand that the failure of their endeavour was very definitely greatly influenced by their own choices and leadership flaws.
When entrepreneurs decide to start a new business, the procedure aids them in explaining their previous failures to potential investors. Unfortunately, investors are more understanding in Silicon Valley and certain other startup environments than they are in many other parts of the world, where unsuccessful founders are stigmatised.
When people are aware that failure is a necessary component of the process, it becomes simpler. It also helps if the individual who oversaw a failure can calmly articulate what actually transpired, what they learnt from it, and how they’ll manage their next venture.