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How to Recover from Small Business Mistakes


According to the U.S. Small Business Administration, nearly half of all new businesses do not survive past their fifth anniversary. This is why it is so critical for entrepreneurs to learn about the major pitfalls that may be prohibiting them from running a successful small business, as well as find ways to effectively avoid these difficulties in the long run. These small business mistakes include everything from a lack of sufficient funding, burnout from inflated expectations about starting your own business, believing you’re invincible, hiring friends and family, and others. AtOrganizers Direct, we know how easy it is to make mistakes when starting a business and how frustrating it can be to try to fix those errors. Here are some easy steps to take when you face drawbacks while starting your own custom closet and garage business.

Admit the mistake and move forward. While you may be tempted to deny the blunder or try to forget that it happened in the first place, it is much better to own up to the mistake and take responsibility as soon as possible. It’s important to be honest, but not beat yourself up over it. Nurture a culture of openness, honesty, forgiveness and responsibility in your company by setting a good example, acknowledging the error, and responding by moving forward when a mistake has been made.

Figure out what went wrong. When mistakes are made, try to narrow down the cause of the issue.

  • Was this a problem of unrealistic expectations?
  • Was this a problem of a lack of training or knowledge?
  • Was there a miscommunication, or were decisions made based on incorrect assumptions?
  • Did you make the right decision, but fail to execute it properly?
  • Were you adequately prepared to take action?

By asking these types of questions, you can better understand your thought process and company procedures. You can retrace your mental process and look over your actions to identify any gaps in your decision-making process and work to eliminate them in the future.


Look at it from another point of view. It can be difficulty to objectively judge your own actions. Take a step back and view the situation from the perspective of an outsider. Imagine you are critiquing the performance of a competitor or employee. This allows you to be more honest and use a different strategy in the future.

Don’t try to do it alone. You cannot be everywhere at once, so stop trying to be. You can only control so much and there are only so many hours in a day. Instead of trying to make your business a one-man show, delegate tasks to others. If you excel at sales, but don’t have the time to keep up with your website, run marketing campaigns or handle the taxes, consider hiring help or outsourcing these tasks to firms that can assist you.

Learn from others. You can bet that the most successful entrepreneurs learned from their own mistakes as well as the mistakes of others. Make use of these mistakes to learn something for your own business. The wisdom gained from others can be a powerful asset for your own personal and professional success. As the original founder of California Closets and the founder of Organizers Direct, Neil Balter has been in the business of starting businesses since the age of 17. He writes:

At age 17, I was as improbable a candidate to start my own business as there ever was. Not only did I have zero experience, but I was struggling just to make it through high school. In retrospect, I did have a few things going for me: I had desire, enormous energy and I was too naïve to know how much the odds were stacked against me.
Thirty-five years later, after founding, operating and then selling a company, I’ve completed the full cycle. Though I am now years into this new venture, it hasn’t always been easy. I have had my share of ups and downs, and along the way I’ve gained wisdom and a passion for sharing it.
I’ve learned as much from success as I have from failures, which makes me an enthusiastic mentor. When consulting with our dealers, I am always candid about my mistakes and I’ll call out the pitfalls, hoping they won’t fall into them, too. I am deeply committed to helping those around me succeed.

No matter your mistakes when starting your own business, always be ready to get back up and move forward. If you have ever dreamed of owning your own custom closet and garage business, or if you already have a business and are looking for a new perspective, take the next step towards an exciting opportunity with Organizers Direct.

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