My business failed. How do I cope and move forward?

Each week, the Indie Hackers editorial team tackles a reader’s question about the challenges of entrepreneurship. Got a question? Email Dan Marzullo at [email protected].

I’m writing to you as a 32-year-old entrepreneur who recently faced the crushing blow of business failure. I launched a boutique fitness studio last year, convinced that my passion for wellness and community would translate into success. I poured my savings into it—everything I had—and for a while, it seemed promising. The first few months were busy, but then the reality hit: the market was saturated, my marketing efforts fell flat, and I couldn’t keep up with the competition.

Now, here I am, dealing with the aftermath. The studio closed its doors last month, and I’m left with a mountain of debt and a sense of personal failure that’s suffocating. I feel like I let down not only myself but also my loyal clients and the instructors I believed in.

What’s worse is that my friends and family have been supportive, but I can see their pity in their eyes. Some even suggested I take a break and “find myself,” which feels patronizing. I don’t want to be known as the entrepreneur who failed; I want to be seen as someone who fought hard for a dream. But now, I’m filled with self-doubt, and I can’t shake the feeling that I’ll never bounce back.

Some of my peers who have failed have moved on to new ventures quickly, while I feel paralyzed by shame and anxiety. Should I take a break to heal and regroup, or should I jump back into the entrepreneurial game as soon as possible to prove that I’m resilient?

I’m torn between embracing the “failure is a lesson” mindset that everyone preaches and feeling like I’ve wasted my time and resources. How do I cope with this failure, and what’s the right path forward?

—Cassie S.

Dan's Advice:

Just because this business didn’t work out doesn’t mean you have to give up on being an entrepreneur. On average, success comes after an entrepreneur’s third attempt—it takes practice and persistence to get it right.

There’s no shame in taking a job to rebuild and gain some breathing room while you plan your next move. Closing the chapter on one venture, like the fitness studio, isn’t wasted time or effort. It’s a valuable learning experience, giving you insights into what worked and what didn’t. 

A failed business is often the best teacher—it provides real data on how to approach things differently next time.

You have two great paths forward

A) Take a temporary job to give yourself space to plan your next venture.

B) If you already know what you want to do next, focus on launching it, securing clients, and generating enough revenue to validate your idea and cover your expenses.

Many people think that if their business fails, they have no choice but to get a job, assuming it's easier to find a steady income than to start another company and make it profitable quickly.

Speaking from personal experience, that’s not always true.

The job market is highly competitive. Landing a role can take time. The same time you spend job hunting could be used to close deals and land clients for a new business—often even faster than finding a job. Plus, starting your own business offers unlimited income potential compared to the fixed salary of traditional employment.

No matter which path you choose, here’s what I’d recommend to make it easier

First, you need to address your business “failure” (and I put failure in quotes because it’s not a failure unless you quit) and learn to cope with it in a healthy way. If you don’t take time to acknowledge what happened and rewrite the story you’re telling yourself, it will be much harder to move forward. You’ll be held back by self-doubt and a lack of confidence.

If you’re feeling “paralyzed by shame and anxiety,” that’s the first thing to work on. Once you’ve processed this setback, you’ll be better prepared to move on to your next venture—just like the peers you’ve mentioned.

Rushing back into something without dealing with this loss could lead to burnout and more struggles down the road.

Rewrite the narrative you’re telling yourself

The way we think affects how we feel. For example, thinking "I'm a bad husband" can make us feel sad or disappointed. Changing negative thoughts can change our emotions.

Coping thoughts are positive and help us better handle difficult emotions. This exercise from positivepsychology.com helps people recognize and replace negative thoughts with positive ones, creating personal mantras for future challenging moments.

Here’s how to do it

First, identify the negative situation you’re struggling with. In your case, it may be the failure of your fitness studio.

Second, notice the automatic negative thought that comes up as a result. Based on your writing, this may be "I let down not only myself but also my loyal clients and the instructors I believed in" or "I wasted my time and resources." Or it could be something entirely different, something deeper.

Third, replace it with a positive coping thought, such as "This was a great learning experience. Now I know what to do differently to make my next business successful." Your positive coping thought should be personal, specific to you, and truly resonate.

Finally, think of one helpful thought that can become your personal coping mantra. This is a meaningful phrase you can rely on whenever you need support. Take your time—this mantra should stick with you for a long time. When you're ready, write it down.

The bottom line

Entrepreneurship is filled with challenges, but it's important to remember that setbacks don't define you. Each experience—success or failure—contributes to your growth and knowledge as an entrepreneur. 

Embrace the lessons from your previous venture and use them as stepping stones toward your next opportunity. By doing so, you'll build resilience and confidence, empowering you to navigate future challenges with a renewed sense of purpose.