Being defeated is no big deal. Take a breath, do what you have to do to build up your life again (keep your mana bottles full !) and go back. Ironworks is a dungeon so you need to return as quickly as possible in order to skip all you've done before him. But sometimes coming back and running straight through everything to get to your target is all the psych you need to defeat him the second time. Go to the Central site and you can see how "big" he is. You should be fine.