I do not mean to be negative with the following statement. It is just realistic.
Not everything that you do in your property investment business will be a success!
You are going to be working in the property market which is always volatile. Property prices go up and down all the time. One week a specific area of the country is the hottest prospect for investment. The next week it is somewhere else.
I have experienced a number of property investment failures and always bounced back. Let me give you an example.
A few years ago a good friend of mine who was also in the business recommended that I invest in some properties in an area of the country I was not familiar with.
“You just can’t lose” he told me.
This guy had always been on the money in the past so I went ahead and made the investment.
It was a disaster. I still have some of these properties and they barely break even. Some of them are making a loss. I can’t sell them either.
At the time this devastated me because I had not experienced failure in my property investment business before. But I used a number of techniques to deal with the failure and move on. I have never looked back.
You need to Prepare yourself for Failure
Without a doubt the best way I have found to move on from failure is to plan for it in advance. This might sound a little crazy but trust me it works. Nobody wants to experience failure, but if you don’t plan for it then when it arrives it can have a catastrophic effect.
I have said a number of times that real success in property investment comes from taking risks. Doing those things that others are not prepared to do. When you find these kinds of projects it is normal to have an emotional attachment to them. This is not a good idea as the pain from failure can be excruciating.
You just need to accept that failure is a stepping stone to success. It is important that you change the way that you perceive failure. Don’t go around thinking that you are doomed to bad luck and nothing good will ever happen to you. This is nonsense.
Things go wrong and something unexpected usually happens. The perfect property investment business doesn’t exist and nor will it ever exist. Get your escape plan ready. You need a contingency plan if things go really wrong. Develop your mindset to handle the worst situation. Never be afraid from starting again at square one if you have to.
Don’t take it personally
This is easy to say but hard to do. When you experience a failure in your business it is very tempting to blame yourself for getting involved in property investment in the first place. Avoid beating yourself up over this or physically beating your head against the wall. Neither of these things will help you to think clearly and move on.
Avoid the trap of thinking that failure and bad luck are your destiny. The fact that you had the courage to start your own property investment business and take risks speaks volumes about you. Most people would never have the guts to do what you have done so feel proud about yourself. The majority will die poor and never experience the highs that you have had.
Be Responsible for your Failures
You will only fail because you took action and it didn’t work out as you had planned. Average people never take this kind of action and are always the first to criticize. Don’t listen to them.
When you take responsibility for your failures it is a giant step towards handling them and moving on. Don’t start a “witch hunt” looking for someone else to blame. If you made the wrong decision about a property like I did then admit it. I didn’t blame my friend for this failure. I didn’t check everything out as I normally do. It was my fault so I moved on.
Let the Emotion out
Don’t try to suppress your emotions if you fail. If you need to hide away and cry then do that. Just let all of your emotions out and bear in mind that the point in time when you experienced this pain will be very inspiring for you in the future.
Find out why the Failure occurred
When you have calmed down you need to analyse the failure and find out what went wrong. This can be painful at first but just do it anyway. Where did it all go wrong? What could you have done to prevent the project from failing?
You need to ask these and similar questions and find definitive answers. This will be invaluable for you going forward. Everyone makes mistakes and smart people learn from them.
What Lessons can you Learn?
When I failed with the properties that my friend recommended the biggest lesson that I learned was to never make a property investment without thoroughly checking everything out first. You need to find out what lessons your failure will teach you.
It is really important that a failure teaches you at least one lesson. Why? Because if you cannot answer the question “what did I learn from this failure?” then it is much more likely that you will experience similar failures again.
Use Failure to strengthen your Resolve for Success
You can either use a failure in your property business to strengthen your resolve for success or you can see it as the beginning of the end. I know which one I prefer! Don’t feel doomed by a failure. Make a commitment to yourself to be smarter and more diligent in the future because of it.
Use a failure to inspire you to succeed. See the failure as a positive thing. Don’t let it become a millstone around your neck that weighs you down. It is something that happened in your past. Learn from it and move on.
Use Failure to drive you to Start Again
If I had let my failure weigh me down then I wouldn’t still be in the property investment business and I wouldn’t be sharing this with you either. OK the failure hurts financially and emotionally. So do you have the courage to carry on after this?
In the property investment business you are not defeated until you give up. So don’t give up. It may take you a while to recover from the failure but you can always start again. Do what you have to do to get back in the saddle and move your business forward.