Strategies from Top CEOs for Overcoming Business Setbacks

Running a company involves navigating various phases: the prosperous, the challenging, and occasionally the dire. Moments of prosperity occur when business booms. Challenges tend to be more covert, such as allocating funds for hefty marketing activities or enduring extensive hours managing employee wages. Dire circumstances might involve grappling with initial growth hurdles of a fledgling venture.

CNBC Make It connected with a set of adept company leaders to discuss their methods for bouncing back from significant setbacks in their professions. The following are key pieces of advice for handling unforeseen difficulties:

Embrace Your Intuition

If you possess confidence in your business concept's eventual success, don't surrender hastily under pressure. This belief aided CEO Kim Vaccarella through a substantial inventory mishap. Launching her business as a supplementary pursuit in 2008, Vaccarella's waterproof tote bags experienced initial positive demand, prompting her to order a large stock in 2012. Unfortunately, the shipment arrived defective, marked by undesirable black stains that rendered them unsellable, and she found herself financially strapped.

Taking a risky leap, she invested her children's tuition funds into purchasing a large batch of bags, all of which were faulty, leaving her desolate. Aiming to salvage her situation, Vaccarella generously donated these products to Hurricane Sandy survivors. Surprisingly, this gesture sparked interest among recipients, who inquired about purchasing more.

Consequently, she sought out a new manufacturer and secured a $120,000 loan from an acquaintance, revitalizing Bogg Bag. Today, her business achieves substantial revenue, a testament to her ever-present self-assurance. She affirms, "I've always believed, on some level, that I can achieve anything."

Consider Alternative Routes

When obstacles arise, adopting a fresh perspective or strategy can prove advantageous. For instance, Karen Robinovitz and Sara Schiller introduced an innovative interactive slime initiative—a crossover between a museum and a playground—in October 2019, inspired by the calming properties of the vibrant mixture.

Investing $600,000 to kickstart their business, they successfully generated $1 million in ticket sales during the first week. However, the onset of the COVID-19 pandemic shortly thereafter necessitated significant layoffs, reducing their team to a skeletal crew.

Rather than shuttering operations, Robinovitz and Schiller adapted by marketing slime kits online, conducting virtual slime workshops for children, and organizing corporate events for companies like Google and Pfizer until they fully reopened in 2021. Currently, The Sloomoo Institute amasses about $4.3 million in monthly physical ticket sales across five U.S. venues, underscoring the effectiveness of their resourceful approach.

Step Aside to Progress

Entrepreneurship rarely succeeds in isolation. Shizu Okusa, leading the wellness brand Apothékary, discovered this after her initial business venture, a fresh juice company, faltered. She cites the perishability and expense of ingredients, coupled with her reluctance to delegate, as contributing factors.

Okusa reflects on a pivotal lesson: "Recognizing my limitations, I now focus on empowering team members who surpass my expertise in particular sectors, while committing to my strong suits."

Endorsing this approach, notable entrepreneur Sheryl Sandberg once advised not to micromanage but rather fix processes that aren't working. Following this philosophy, Okusa empowers her team at Apothékary, leading to impressive yearly earnings of over $20 million.