5 Tips to Recover from a Business Disaster

The worst thing that you can do to your business when you make a mistake is to ignore the error. As a business owner, you will run into roadblocks, you will have setbacks and you will commit some unforeseeable bungle! But, do not allow this to be a disastrous situation for your business. How can you overcome what may seem to be an irreversible catastrophe? If you do not take decisive action, you could lose customers, trust and likeability. Below you will find 5 corrective action steps that will save you from a business disaster.

Tip #1 – Own it and apologize.

Mistakes tend to come in two forms, 1) Your fault and 2) Not your fault. However, when you are providing a service to your customers and clients, any blunder that falls under your business name is in essence, Your Fault! Consequently, it is best if you own the mistake and apologize for it. Please don’t make excuses because they will only exacerbate the aggravation. When you admit that any blame rests on your shoulders, you will gain immediate respect and likeability from all parties involved.

Tip #2 – Explain the problem and the solution.

The problem has occurred and you have apologized. Then what is next? The following step is to determine what the problem is, access resulting damage and figure out the solution. It is important for you to explain all three of these components to your clients. Let me give you an example.

You have invoiced a client for $85.00 and she has approved the invoice to be billed. You, however, charge the client $850.00 and do not recognize the error until the client gets her banking statement. She is furious and you are embarrassed. How do you handle it?

Follow the steps: 1) Own it and apologize. 2) Explain the problem, damages and solution without any excuses.

Tip #3 – Take action to solve the problem.

This is the phase where you will work to resolve the problem that has occurred. There isn’t much to say other than “fix it.”

Tip #4 – Apologize again.

People really value a sincere apology. Even if they are mean and resentful towards you, they will always appreciate the fact that you owned your mistake and had the humility to say, “I’m sorry, I will do everything in my power to ensure that this does not happen again.” At the same time, you do not want to grovel. While being apologetic, you still need to maintain the dignity of your professional relationship. You are not subservient to your client. You simply made a mistake. After your apology is accepted, let the matter go and move on!

Tip #5 – Follow Up with those involved.

Tie up any loose ends. Remember that you have to do more than apologize and fix the problem. Follow up to make sure that your client is satisfied with the solution that you provided. Now would be a good time to demonstrate how you will avoid making that error again.

Within the last six and a half years, we have started and operated 4 different businesses. Each of those businesses has had their share of mistakes, technical foul ups and problems. However, when you operate your business from a place of integrity by using the 5 tips in this article, your clients and colleagues will continue to trust you and you will continue to be successful as an entrepreneur.