Setback is an unanticipated, undesired, or unwelcome phenomenon, or reversal of fortune. It is an obstacle or impediment that stands in the way of progress. In the legal context, a setback is a law or regulation that restricts the use of private property.
Types of Setbacks in Business
Setbacks can occur in any area of business, from reducing profits to putting deals on hold or blocking new product launches. One example of a business setback is when a disruptive technology or legislation puts a business at a competitive disadvantage. Many companies in the finance sector have experienced setbacks due to the coronavirus pandemic. Many startups have been forced to lay-off or furlough staff and cancel investments.
Tips for Overcoming Setbacks
Setbacks are never welcome, but they don’t have to spell disaster. Having a plan and taking a few proactive steps can help you bounce back quicker:
- Take time to understand the setback: Make sure you are fully aware of the implications of the setback, including potential impacts on your business operations and finances.
- Keep communication channels open: Reach out to key stakeholders such as suppliers, customers, and other partners to ensure they are kept informed.
- Develop a crisis plan: Put in place a set of contingency plans that will ensure operations can continue with minimal disruption if the setback worsens.
- Stay positive: Focus on the positive aspects of your business and use this time to generate new ideas and innovations.
Summary
Setbacks can be devastating to businesses and require a thoughtful response. Understanding the cause of the setback, keeping open communication, developing a crisis plan and staying positive can help businesses overcome the setback and come out stronger in the end.