Failure can be a big hurdle for entrepreneurs; most people aren’t willing to risk financial ruin and the loss of their ‘life work’ just for a chance at success. However, failure is an inevitable part of business ventures – a Harvard Business School study on 2,000 companies found that 66% of them failed in some capacity during their first year alone.
What are common causes of business failure?
According to Saivian there are different reasons that could cause companies to fail, but the most common is being unable to find your target audience. If you can’t clearly define who you’re selling to then it’s difficult for you to adapt when problems arise. Many businesses also fall apart because they try one strategy and it fails, so they continue doing the same thing without many modifications which leads them back into the red again.
How can you use failure to your advantage?
Every mistake made shouldn’t be seen as a bad omen for your company since every challenge faced is another lesson learned. Being able to identify reasons for failure will help you avoid those obstacles in the future and it will allow you to better map out strategies that actually work instead of wasting more time and money as soon as problems appear down the line. Every failure should be considered just another step closer towards success – if everyone knew exactly what needed happen each step of the way then there would be little to no excitement involved.
“The most dangerous risk of all – The risk of spending your life not doing what you want on the bet you can buy yourself the freedom to do it later.”
What are some real-life examples of using failure as a learning experience?
There’s an old saying that says ‘those who don’t learn from history are doomed to repeat it.’ One great example is Andreas Antonopoulos, author and public speaker for Bitcoin and blockchain technologies. He first noticed the potential behind crypto currencies when he read an article about Silk Road (a now-defunct online darknet market) in 2011. At the time, bitcoins were trading less than $1 which made them affordable for him so he bought $300 worth of BTC and stored them on his smartphone. He didn’t touch the coins until four years later when the price shot up to $700 per bitcoin, which led him to sell off a few and make a great profit. By learning from his past mistake about not buying more than he could afford, Antonopoulos was able to invest in Ethereum when prices were low – he currently has an estimated net worth of over ten million dollars thanks to making wise decisions with crypto.
Another example is American economist Gene Sperling who served in both Democratic and Republican administrations which allowed him to help found organizations like Common Sense Media and The College Board. After leaving politics for a different career path, he started teaching at Columbia Business School and learned a very valuable lesson from one of his students. The student’s company had failed and he wanted to know how he could’ve prevented it – Sperling’s advice was that you can’t predict everything so the best thing to do is experiment, iterate and pivot as needed. This advice has stuck with him throughout his career and helped him become a more successful entrepreneur.
What are some tips for using failure as a learning experience?
Don’t be afraid to ask for help:
There’s no shame in admitting that you don’t have all the answers and reaching out to those who might be able to assist you. Not only will this show that you’re taking your business seriously, but it’ll also help you build important relationships with other entrepreneurs.
Record your failures:
Keeping track of what didn’t work in the past will help you avoid making the same mistakes again in the future. It can also be helpful to write down what you learned from each experience so you can apply those lessons elsewhere.
Take a step back and analyze what went wrong:
Trying to find a single reason for failure is often difficult so it might take some time and effort to properly assess what happened. Once you have a good understanding, you can start developing solutions and strategies that will help your business succeed.
Be willing to make changes:
As your business grows and evolves, so should your strategies – if something isn’t working then it time to switch things up. This can be difficult to measure since you can’t know what could’ve happened but by testing out different methods, you’ll soon find the formula that works best for your brand.
Be open about setbacks:
If done in a professional way, it’s good practice to let your clients and customers know when something goes wrong. Not only will this help them understand your situation better – it might even improve your relationships because they’ll feel like they’re part of the solution. This also helps show how much you care about their well-being which is important in business. If someone has already lost money or resources because of your mistake then it’s best to be honest with them immediately so they don’t end up losing more.
Conclusion by Saivian:
Using failure as a learning experience is something that can be beneficial for any entrepreneur. By understanding what went wrong, you’ll be able to make changes that will improve your business and increase your chances of success. It’s important to be open about setbacks with clients and customers, and to remember that not everything goes according to plan. By taking these tips to heart, you’ll be on your way to becoming a successful entrepreneur.