Tag: Business Failure

How To Grow Your Startup With Rapid Experimentation | Entrepreneur
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Many concepts get pounded into us from well before we’re entrepreneur cubs. One example is: “Money doesn’t grow on trees, so be careful with it.”

Later in life, we learn about the wonders of leverage. In business school or elsewhere, we’re introduced to the seductive benefits of bringing on lenders and private equity partners to accelerate our dreams.

If we need to be careful with our own money, we learn that we better be doubly careful with others’ money. We’re continuously answerable to them, and they can sink our business.

When building Warrior Trading, I instead chose the self-funded route. I had been subject to anxiety attacks since I was young, and the last thing I needed was to skyrocket my anxiety by worrying about investors.

There are two sides to having investors: their money does offer the potential to grow faster. But it also creates drag. Startups funded by investors can find it difficult to pivot and change course when needed. To me, self-funding has equaled freedom. Working within the constraints of my limited funds gave way to resourcefulness, creativity and innovation.

Related: How Entrepreneurial Creativity Leads to Innovation

Creating a culture of rapid experimentation

In my startup, I created an engine of rapid experimentation to find products that matched demand in the active trading community. I had to be smart about where I invested my time and money, but I knew that quick experiments and quick decisions could lead to quick progress.

The SaaS world has the concept of a minimum viable product. That implies a deliverable, an “alpha” or “beta” test that’s at least semi-packaged for others’ consumption. I take the concept further: When I start to develop a product, I want to see the most primitive product that performs at least one new function. You might call it “most primitive improvement.”

I’ll caution that rapid prototyping is not for everyone. You need a team accustomed to bootstrapping and thrives under that pressure. Of course, there is no other option for the self-funded startup. So, it comes down to assembling the right team for your company.

Related: What I Wish I Knew Before Bootstrapping My Startup

How rapid experimentation gives way to product iteration

My team engages with developing new products by testing a thesis. We have a belief based on consumer behavior and looking at the marketplace that there is demand for a specific product. We begin the development of that product, but instead of keeping it hidden until it’s perfect, we put customers into beta testing as soon as it meets the standard of “most primitive improvement”.

Here’s something really interesting. Every single time we’ve done this, we get feedback from beta testers that we didn’t expect. Whether it’s a common request for a feature we overlooked or an element we thought would be highly valued but is not being utilized at all, we can quickly take this feedback and roll it into the next release.

I find this process especially exciting. One might even say, thrilling.

The final product will often look and feel much different from our initial mockup, but that’s a good thing. We will have created a product that is an exact match for our target customer.

Throughout my years in the investing space, I’ve seen companies backed by investors spend incredible sums of money building platforms that sadly completely missed the mark in terms of delivering what traders are really looking for. I believe this happens when development occurs in isolation from the intended users.

But truth be told, rapid experimentation does not always lead to a success story.

Rapid experimentation helped me pull the plug on a doomed project

A few years ago, I wanted to see if it was worth starting a free service for traders similar to Twitch; in other words, a platform where people can easily stream their trading activity but where they’re in a tighter community of active traders. We got a few dozen people streaming at first, and they, in turn, had modest followings. But it didn’t take long for me to come to a difficult conclusion. Twitch and YouTube are successful because they attract a massive audience, attracting advertisers.

My new platform was too niche. Even though it was free, our total available market was too small to bring in the advertising revenue we needed to keep that platform running. No amount of product iteration was going to change these dynamics, but the good news is that I was able to pull the plug while we were still in the early stages of development.

I wrote off that project as a loss. But every loss is a lesson. There’s a saying in Silicon Valley: You don’t learn until you ship. I would expand on that to say: Ship fast. Fail fast. Ship again. Just like in trading, in business, we must be willing to take risks, but we must also cut losses quickly.

A few takeaways:
1. Think hard before seeking external funds for your venture. Self-funding doesn’t earn commissions for anyone, so you hear less about it, but it can potentially take substantial pressure off you.
2. Focus on ROI, but also focus on ROT: Return on Time. Rapid experimentation, along with rapid decision-making, can not only save money but can gain you a first-mover advantage. You can be on version 4.0 — or be done with an unworkable experiment — before the competition has finished suiting up.
3. Be proud of the money you raise and even prouder of what you rapidly ship. Many fortunes have been made with external capital, but even more great, young businesses have been snuffed out by the constraints and risk-aversion that the capital brought. By all means, do a round of high fives if you close a round of financing. But save your biggest celebrations for when you rapidly confirm your failed experiments and ship your newest winner.
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Ross Cameron

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September 26, 2023
3 Ways To Overcome Rejection and Turn It Into Power | Entrepreneur

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Throughout the journey of starting, launching and growing a business, you’ll feel like you’re on a never-ending rollercoaster of highs and lows. One day you’re jumping for joy because a big customer says yes to launching your new product in thousands of stores, and then the next day, you’ll be slammed in the face with yet another disappointment or stress-inducing challenge. And so goes life as an entrepreneur… but the good news is, you have the power to decide how to respond to every curveball life throws at you.

So, to help you become a superhero in business, here are a few words of wisdom to live by.

As an entrepreneur and an executive with over 20 years of experience in business, like many people, I’ve faced more rejection than I can count. From being ghosted by retail chain buyers to hearing no from customers I’ve worked hard to earn, rejection is an inevitable part of this experience. However, in moments like these, we truly find out what we’re made of.

But, on the flip side of all these disappointments, I’ve been fortunate to experience great success and amazing opportunities in various facets of my businesses (including working with hundreds of the top brands and retailers on the globe). So I know both sides of the coin and am grateful for all the pivotal moments on my path to success.

Related: 5 Ways to Turn Rejection Into Resilience

I believe that we’re drawn to entrepreneurship because we have a vision of a better life — for ourselves, our families and the world around us. That said, my father was one of the men who inspired my entrepreneurship journey.

My father was a self-made serial entrepreneur and a true example of the “American Dream.”

As a high school dropout from New York who had to get a job shoveling snow to help his struggling family earn a living, he ultimately ran and launched multiple businesses. In his early years, he served in the military, bussed tables and became a door-to-door salesperson. Ultimately he became the Publisher of the first single-volume African-American history encyclopedia (during the Civil Rights movement) called “In Black America.” This encyclopedia helped thousands of men and women earn a living while empowering their communities and families. My father then went on to run a successful merchandising company. He most recently built Creative Balloons Manufacturing Inc., our family-operated global business celebrating its 50th Anniversary this year, helping millions of people and brands celebrate life’s special moments with fun-filled balloons.

Over the years, he taught me many valuable lessons in entrepreneurship, especially regarding overcoming challenges and rejection.

1. Drive, determination and mindset are paramount to what we know

Since my father never had a formal education, he realized at an early age that he’d have to be more resourceful and hard-working than most, so he became street-smart and ultimately learned what it takes to start and run a global business, one that has proudly been a national supplier to major chains like McDonald’s for over 45 years.

Don’t let your education or lack thereof prevent you from feeling worthy or deserving of pursuing your passions and becoming successful. Always remember — if all else fails, just Google it (or, for that matter, just read an article by Entrepreneur). Where there’s a will, there’s a way. And as Marie Forleo says, “Everything is figureoutable.”

Related: 5 Steps Entrepreneurs Need to Take to Overcome the Fear of Rejection

2. Persistence and resilience are absolutely imperative if we want to make anything happen in life

As a kid, I vividly remember hearing my father on the phone calling one potential customer after the next, which ultimately helped him land many national accounts (including Burger King, Carl’s Jr., Mrs. Field’s Cookies and more). Whether we dream of developing a prototype for an innovative new product, landing a major client or changing the world with our revolutionary products or services, we have to believe in the purpose behind what we’re doing. Keep waking up each day to reach your goals and win. Even A-list athletes have bad days and losses, so keep striving, working hard and believing you’re a winner. You have to envision success first to achieve it.

Related: Rejection Is Part of Entrepreneurship. Here’s How to Handle It.

3. Boldly pursue your dreams, no matter how big or wild they may seem

Want to land that big chain? Go pitch them! Looking to score a key investor? Send them a presentation deck. While you might not get a positive response from everyone you contact, all it takes is one “Yes” to open the door, leading you toward the next open door. And while you’re hearing no’s, do your best to find out why — was it the wrong timing, do you need to tweak something in your pitch, etc. Look at rejection as a form of redirection or recalibration.

Just remember that Bill Gates pitched to 1200 investors, out of which 11 said yes. Because of the few who aligned with his vision, he’s now one of the world’s most influential and successful people. So, even if you’re rejected, you can still skyrocket to success.

Bottom line: Never be afraid of rejection. Yes, you will hear a no, or worse, you’ll get ignored, but unless you try, you’ll always wonder, “What if?!”. And more importantly, you’ll never hear a yes unless you’re willing to ask for what you want.

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Christina-Lauren Pollack

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August 22, 2023
How Failure Promotes Personal and Professional Success | Entrepreneur

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When it comes to personal and professional growth, failure has always been seen as something to avoid at all costs. We’ve been conditioned to fear failure and view it as a sign of defeat. Whether at school, work or home, we have never been rewarded when we fail. Because of this, we have also never been taught the value that failing holds.

That’s where the concept of failing forward comes in. This mindset embraces failure as a valuable learning experience. It’s a new movement that encourages growth over perfectionism. And it’s where you’ll find true innovative success for your companies and yourself.

Related: Why You Must Embrace Failure to Succeed in Business

A modern take on an old tale

So, how have you become conditioned to avoid failure? Traditionally speaking, we need to turn our attention to capitalism and productivity. Over time, the concept of “failing” was not seen as being synonymous with “productivity.” Rather, it’s the complete opposite. When looking back on factory workers and laborers, there was no net gain from workers failing at their jobs. What’s more, failing could mean the difference between life and death. If you failed to grow a harvest in the spring, when winter comes, you might have nothing to feed your family. The avoidance of failure served an enormous purpose in basic survival, and this is where the distinction lies.

Where perfectionism limits, failure will overcome

Ultimately, your attempts to be perfect limit you. It signals whatever objective you are trying to become perfect at is an ultimate goal in itself. It gets you to think inside the box. It restricts you and confines you to a set of thoughts and behaviors that are only prescribed toward its objective. Essentially, it is the opposite of innovation. And innovation is not exclusively for the highest levels of business — it can be deployed anywhere.

To be innovative means to look at your repetitive tasks and say, “I can see how this can be done more efficiently.” It is about going out to your field and thinking, “I can see how I can grow more produce this year, but it’s going to be different, and it’s going to need me to take a risk.”

Related: 5 Ways Fear of Failure Can Ruin Your Business

You need safety to innovate and security to fail

I want to challenge your traditional idea of what safety means. Safety is a psychological climate in an organization that allows for certain actions without harm. It means if a team member tries something new and fails, the organizational structures in place will support their growth. It also means norms and beliefs in business culture. It’s when you create a working culture that helps teams to feel secure in stepping out and taking a risk. There are systems that need to be in place to nurture the growth aspect which follows learning through failure. These are the systems you need to think about employing in your business to achieve team growth.

An acceptance of failure creates an organization of success

When we were younger, we were taught how to do anything through failure. Riding a bike, climbing a tree or baking a cake: None of us got it right the first time, and that’s how we grew. We knew if we fell off our bike, we could jump back on, and we knew more now than before how to ride it. When we try to remove the processes of failure from an organization, it creates a false reality of stagnant growth. Teams try and conceal where they are struggling, therefore, they never improve. They just try to look like they’ve got it because they feel they must get it. And this generates systemic lies. The business itself starts to operate from this place, too.

However, when you embrace failure, you embrace the humanity of yourself. You accept your imperfections. This is the real process of perfecting your skills — not the other way around! As leaders, we must create cultures in our organizations that allow and encourage failure as failure is a truth of ourselves. To deny it would be to deny a part of ourselves. When we embrace failure, we promote our teams to think creatively, take risks and start to innovate rather than replicate. It is through providing environmental safety for imperfection that we start to see superstars shine. Through this organizational flexibility, our businesses shine as well.

Related: How to Develop a Positive Relationship With Failure

Put those backward habits of yours away — it’s time to fail forward

The beauty of this approach is that it really is up to us to shape how we see it.

“Yes, that business idea I had four years ago which cost me more than my first car did not work out (failure) — but it did lead me to the idea that ignited my current organization (success).”

“It is true, I totally flunked out on that project I was assigned to years ago and humiliated myself in front of my entire department (failure) — but ever since then, I have always known how to give a successful presentation (success).”

“I know I lost that sale with one of the most important clients I ever had (failure) — but I’m stronger now and wiser, and I am more developed than I ever have been before.”

Every “failure” is another step in your journey — you decide whether you place it behind you or in front of you. Your perception will shape the outcome, and you hold the key. Go on, I dare you to try failing forward. I promise you won’t look back!

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Mikey Lucas

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July 13, 2023
8 Tips to Help Entrepreneurs Find Success After Failure | Entrepreneur

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As an entrepreneur, failure is not something you want to experience. However, it’s a natural part of any business journey, and it’s wise to learn from it. Some of the biggest success stories have come from those who persevered through various failures to become the best in their respective fields.

In this article, we’ll discuss how failure taught us, as entrepreneurs, some valuable lessons for achieving success in our ventures.

Related: 10 Strategies for Entrepreneurs Dealing With Failure

1. Embrace failure as a stepping stone

When you fail, it can be hard to pick yourself up and keep going. It’s natural to feel discouraged, demotivated and even ashamed about the result. However, as an entrepreneur, you cannot let this feeling force you to give up. Instead, use it as motivation to keep going. Failure should be considered as a stepping stone to a successful venture. It’s essential to recognize that most entrepreneurs have failed in their businesses at some point in their journey.

If you’re not failing, you’re not growing. Failure is not the end; it’s the beginning of the next chapter.

2. Find the root cause of failure

Once you’ve embraced failure, how can you improve and ensure it doesn’t happen again? Analyzing the root cause of failure is crucial for entrepreneurs. For instance, if your business fails due to a lack of market demand or limited capital, it’s essential to apply these lessons to your next venture or business idea.

It’s essential to analyze each aspect of your previous venture to have a more in-depth understanding. It would help if you had an inclusive, honest and critical view of your venture to understand the root cause of failure, avoid it the next time or improve.

3. Risk vs. reward

Being an entrepreneur requires one to be willing to take risks. However, it’s essential to evaluate the risks to ensure they are viable and worth it. Risk is inherent in any business venture. Knowing when to take the risk and when to hold back can be the key to success for an entrepreneur.

For example, starting a business without prior experience or support can be a significant risk. It’s important to consider the many challenges of starting a business and the odds of success. You must weigh the risks against the potential reward and decide if it’s worth investing time, money and resources.

4. Know your market

Your target market plays a crucial role in the success of your venture. Entrepreneurs need to invest time in understanding their market, what their customers want and what their target audience likes. Knowing your market’s trends, behaviors and preferences will set you up for success.

For instance, if a business idea is based on an unsustainable market, it’s bound to fail. Understanding what the market needs and adapting to meet those needs is essential to keep up with the competition and stay relevant.

Related: Why You Must Embrace Failure to Succeed in Business

5. Put your audience first

It’s essential to put your audience first when starting a business. Entrepreneurs need to create products and services that meet their customer’s needs. Too often, businesses are built around the founders’ ideas and not centered around the audience’s demands.

Your audience is what will make or break your business. If they feel listened to and value their feedback, you stand a better chance of creating a successful venture. It’s essential to have a customer-centric approach in everything you do.

6. Take action

There’s so much you can do with planning, research and strategy. At some point, you must take action to see if your idea turns into the successful venture you envision.

It’s okay to be cautious and measure your steps, but eventually, you’ll need to start building the business. Putting your plan into action is the only way to create something from your idea. You’ll never know how successful your venture could be unless you give it a chance.

7. Surround yourself with a supportive network

Entrepreneurship can be a lonely journey, especially when starting or experiencing failures. Surrounding yourself with supportive people can make a real difference. A supportive network can help you overcome setbacks, provide necessary feedback and encouragement, and hold you accountable for your goals.

You can find or create a supportive network by attending networking events, joining professional organizations or online communities, or contacting mentors in your field. You can also seek out co-founders, advisors or employees who share your vision and values.

Having a supportive network helps you during tough times. It gives you access to new perspectives, opportunities and resources that can take your business to the next level. So, don’t be shy to ask for HELP and collaborate with others along your entrepreneurial journey.

8. Failure is inevitable

Accepting that failure is inevitable may not sound like a positive affirmation, but it’s an essential mindset for an entrepreneur. Whatever your experience or knowledge is, there will be setbacks and failures. How you react to these setbacks and what you learn from them will make you a successful entrepreneur.

As an entrepreneur, failures are never fun, but they’re also not the end of the world. Embracing failure, understanding the root cause and taking action to avoid repeating it is essential for fostering success.

Related: How to Overcome Failure and Build a Thriving Business

Taking risks, knowing your market, putting your audience first and accepting that failure is inevitable are part of building a strong entrepreneurial mindset. The knowledge gained from these experiences puts you ahead of those who haven’t learned from their failures.

In conclusion, we hope these insights help you approach your entrepreneurial journey with renewed vigor and success. Always keep in mind: Every mistake is an opportunity to learn and improve. Go forth, conquer your fears, take risks, and don’t give up after a setback. With the right mindset and lessons learned, you can succeed in even the most challenging circumstances.

Finally, always maintain a positive attitude, even in the face of failure. It’s not easy, but negativity will only hinder your ability to succeed. Believe in yourself and your abilities. Know that with each failure, you are one step closer to achieving your goals.

Now go out there and take the business world by storm — failure and all!

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Chris Kille

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May 18, 2023
Why Failure is a Choice You Can Control | Entrepreneur

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Let’s face it. When something doesn’t go how you thought it would, it can sting. Maybe you lost money, lost a relationship, lost a business venture or some direction you were headed. Then, you had to face the people you cared most about to say it was all over — tough conversations, lots of emotions, and no doubt some level of disappointment.

What if I told you that you were the problem and were responsible for the failure? What if I also told you that because you’re responsible, you could also eliminate failure?

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Jen Sugermeyer

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March 23, 2023
6 Things You Gain By Embracing Failure | Entrepreneur

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While embracing failure does not necessarily guarantee success, it can improve your chances of success in the long run. By embracing failure, you can learn from your mistakes, adjust your approach and try again with more knowledge and experience.

As an entrepreneur, I’ve had my fair share of failures. But I never entertained the thought to stop, nor did I doubt myself. I gave my previous efforts some thought, regrouped and tried again.

The success rate of embracing failure depends on various factors, such as your attitude towards failure, the complexity of the task or goal and the level of effort and persistence applied. Some people may find that embracing failure leads to greater success because it helps them develop resilience and learn from their mistakes, while others may struggle to accept failure and become discouraged.

Related: Why You Must Embrace Failure to Succeed in Business

I’m an optimist through and through, so, most of the time, I believe that things are going to go well before giving any thought to the opposite. And when it doesn’t go as well as I believed it would, my thoughts are “oh well, now what do I do?” and “what can I do differently, or better?” Immediately throwing in the towel has never been my first thought. I want to learn from those mistakes and even build on them if I can.

We all know who Stephen King is, and a lot of us are very familiar with one of his most notable pieces of work, the novel Carrie. Carrie was rejected 30 times before it was published. In his earlier years, King talks about submitting short stories to magazines beginning at the age of 16 and hanging the rejection slips on a nail until the slips were so heavy, he had to change the nail to a spike.

Thomas Edison famously said, “I have not failed. I’ve just found 10,000 ways that won’t work.” Edison embraced the fact that everything he tried so far had not worked — and continued until he got it. That’s the key. Embrace, learn, and keep going.

Failure is a natural part of the entrepreneurial journey: No entrepreneur has achieved success without experiencing failure along the way. Learning to embrace failure and learn from mistakes is crucial for any entrepreneur because failure is an inevitable part of the entrepreneurial journey. Most successful entrepreneurs have experienced failure at some point in their careers.

Here are six reasons why embracing failure and learning from your mistakes is so important for entrepreneurs:

1. Failure is a valuable learning experience

When you fail, you have the opportunity to learn from your mistakes and figure out what went wrong. This has been something I’ve learned to embrace. Having this knowledge can help you make better decisions in the future and avoid making the same mistakes again. The more you fail, the more you learn, and the better equipped you become to deal with challenges in the future.

Related: Why Learning From Mistakes Is an Invaluable Experience for Business Owners

2. Failure builds resilience

Entrepreneurship is a tough and challenging journey, and failure is a natural part of it. When you learn to embrace failure and bounce back from it, you build resilience and mental toughness, which are great qualities for success in any field. Without failure, you may not discover new opportunities or breakthroughs.

3. Failure helps you take calculated risks

If you’re not willing to take risks, you’ll never be able to achieve anything great. However, taking risks means that you may fail from time to time. Learning to embrace failure and learn from your mistakes will help you take calculated risks and make better decisions.

4. Failure can lead to innovation

Some of the greatest innovations in history have come as a result of failure. When something doesn’t work out the way you expected, you have the opportunity to think outside the box and come up with new and innovative solutions.

5. Failure can make you more empathetic

When you fail, you can develop a deeper sense of empathy for others who are going through a similar experience. This can help you build stronger relationships with your employees, customers and partners.

Related: 10 Lessons About Failure That Every Entrepreneur Needs to Know

6. Failure helps you to identify your weaknesses

When you fail, you are forced to confront your weaknesses and areas where you need to improve. This self-reflection can help you to become more self-aware and develop strategies to overcome your weaknesses.

In conclusion, learning to embrace failure and learn from your mistakes is essential for any entrepreneur who wants to succeed. By accepting failure as a natural part of the entrepreneurial journey, you’ll be better equipped to navigate the challenges and obstacles that come your way and ultimately achieve your goals. You’ll also develop resilience, learn valuable lessons, spark innovation, overcome fear and build a stronger team.

Ultimately, our value and worth are not determined by our successes or failures, but by the self-worth we each possess as human beings.

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Athalia Monae

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March 23, 2023
6 Ways to Learn From a Failed Business Venture | Entrepreneur

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We love — no, we crave — a good origin story. Hero or villain, we want to know what circumstances lead them to where they are. Think really hard about your favorite character in a story. They probably failed at some moment along the way (it’s got to have a solid, drama-filled plot, or who’d care?) and because of it, they came out stronger. We lift these fictional stories up, and we celebrate the journey so much.

Why can’t we do this for ourselves? Failure in business can be scary, unpredictable and emotionally taxing. If you’ve started a business already, you’re aware that taking risks is an integral part of your entrepreneurial journey. And with great risk comes … great fear of the unknown! That, and many rewards. But if we’re honest with ourselves, we know that the great entrepreneurs before us have all seen their fair share of failure at some point in their careers — be it a bad initial business plan, lack of understanding of the industry or just a few bad moves (I can talk about some bad moves…). The beauty of failure is that it gives you a reason to get back up. Because, as the great Aaliyah sang, “If at first you don’t succeed, dust yourself off and try again.”

Now that song is in your head, here are six ways to learn and pivot from an entrepreneurial journey gone awry:

Related: Seeing Failure As An Opportunity To Learn From (And Leapfrog Into Success)

1. Reevaluate your business plan

Reevaluate your business plan — or completely pivot if you have to. Was your product or service not ready for market? What type of feedback did you receive? Identify what went wrong and why, and then create actionable takeaways you can use in the future. Instead of wallowing in defeat, take constructive steps towards understanding where things went awry. Was there something you could have done differently? How heavily was luck involved? Self-reflection should be part of your quarterly, annual or semi-annual review.

2. Set new, attainable goals

This is a given, and you’ve probably heard this 1,000 times, so here’s number 1,001: Set goals that are smart and attainable. Take a look at what went wrong with the project that failed, and understand why it failed. Sometimes our failures are simply viewed as such because of the goals we set. You say, “I want 1,000 users in the first month of launching my brand!” And I wish you all the best, by the way. But that might not be realistic, especially if you haven’t planned out your marketing properly or started any outside research. A smart goal would be more along the lines of, “I want to collect enough emails or contact information from my promoted post.” From there, you build a following or brand awareness that can get you to 1,000 users much easier.

3. Learn a valuable lesson

Who doesn’t love a good lesson? Is it even a good lesson if you don’t cry a little bit? After the tears have gone, it’s worth looking at the situation and considering where you can become stronger. Did you trust someone without fully vetting them? Did you not have enough money saved for your venture? Here’s the good news: It’s okay. And the better news: You’re going to be better because of it. Just remember to not make the same mistake as you move on.

Related: 10 Lessons About Failure That Every Entrepreneur Needs to Know

4. Take on new skills that will take you farther

Sometimes we fail because we haven’t got the right skill set or we need to fine-tune our skills. Once you’ve realized the areas in which you need to either improve or sharpen, use the time to pack on more knowledge. You might even find that your entire business idea changes or evolves into something you hadn’t thought of. Be flexible with yourself. Learning new skills only broadens, it never narrows.

5. Discover your true intentions and purpose

What motivates you? Failure has a funny way of prioritizing what really matters — or what things should matter. Chasing money, helping others, serving your community or a community in need, being the number one realtor … blah blah blah. Maybe your true purpose is hidden behind the mask of what you think a successful business looks like.

6. Encourage others with your story

Sharing your failure story can be overwhelming and anxiety-inducing, especially if it brings back difficult memories and emotions. On the other end, sharing your story can inspire and bring hope to someone who’s struggling with the same issues.

Look, I get it. You log onto LinkedIn and see so much success happening — new jobs, new careers, new businesses. But the honest, vulnerable moments are where we can really learn something about who we are as entrepreneurs. If you’ve failed, well, join the club. I have, too. Most of us reading this have. But if you’ve had a bad venture, don’t let it define you. Dust yourself off and try again … and again. It is what defines you as a risk-taking entrepreneur.

Related: How to Turn Failures Into Wins As an Entrepreneur

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DeAnna Spoerl

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February 27, 2023
Transforming Failure Into Success: 5 Lessons Learned From Rock Bottom

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A decade ago, I ran a business that spiraled out of control. The company’s investors were people close to me, and they got badly burned. Even though many people contributed to the company’s demise, as the company’s leader, I was found responsible (something I accepted). It was the lowest point in my professional life.

Like many entrepreneurs, I now realize that failure is often a necessary predecessor to success. Of course, I wish things had gone differently, but I now see the mistakes I made and have embraced the gift of learning from my errors.

At the time, I looked past the company’s visible shortcomings, believing I could fix them. But, there are certain truisms about running an organization that hold firm. Things that — no matter how talented or hard-working you are — cannot be fixed. These truisms seem simple, but they are difficult to adhere to, especially if you believe that most people are well-intentioned.

I lost relationships, suffered bankruptcy and weathered a nasty lawsuit along my journey. I also gained humility, self-understanding and a reclamation of my values. Painfully discovered, here are five learnings that can help you avoid failure and achieve entrepreneurial success.

Related: 5 Survival Tips for Entrepreneurs Hitting Rock Bottom

Deal in reality

Are your decisions guided by reality? Do you act on red flags (or ignore them)? How thick are your rose-colored glasses?

Embracing reality is one of the most determinative skills of a business leader. The facts may not be ideal. Hope can be comforting. Dreaming can be exciting. However, reality exists in the present. And that’s where you are, like it or not.

Reality is transformative. It enables the formulation of solutions. The ability to admit something or someone is not working out and deal with it decisively is true leadership.

Dealing in reality also requires an honest assessment of one’s talents. Choosing the appropriate lane is not just about what one likes to do. Superior leaders know themselves and focus on what they do well. They choose a lane and stay in it. Similarly, they empower and guide others to stay focused on what they do well.

Organizations suffer when the CFO wants to do branding, or the general counsel wants to do PR. Particularly in startups where people are praised for “wearing many hats,” this lack of awareness promotes mediocrity and often fails.

Moreover, not everything broken can be fixed; it doesn’t matter how much effort is exerted. The same can be said for people; sometimes, individuals are uncoachable and must be let go.

Being a fixer can be noble and impactful, but the best fixers recognize that some problems don’t have a happy ending. They know when they have reached a point of diminishing returns.

Trust, like anything else of value, requires careful maintenance

What makes someone trustworthy? Would you personally vouch for them? If not, why not?

Because trust is earned, it can be lost in an instant. Once lost, it can be difficult (if not impossible) to recover. Trust is the basis for lasting relationships, and its ephemeral nature takes work to maintain.

Trust does not flow from a great pitch, investment check or impressive pedigree. Trust arises from honest human discourse. It builds or erodes over time. No matter how you slice it, business is about people. If you want people to believe in your business, they need to trust you as an individual.

Because people’s trust in you needs to transcend your professional abilities, you must stay true to yourself no matter the context. Your integrity depends on it.

Related: How I Know Who to Trust in Business

Listen to your inner voice

Is something or someone rubbing you the wrong way? Does something you’re being told feel wrong?

Not every decision can be made based on data or game theory. Some require intuition. Listen to your inner voice. What is it telling you about a particular decision? Don’t cram down those feelings; explore them. Build a trusting relationship with yourself. If an action concerns you, trust that your apprehension has some validity and examine it.

Questioning your internal reactions and attuning to your internal warning system will make you a better leader.

Transparency is key to effective leadership, so make a habit of over-communicating

Do you share good and bad news? Is everyone being kept in the loop?

It’s counterintuitive, but bad news can create good outcomes. Communicating with others about bumps and pitfalls, aspirations and accomplishments, opportunities and successes builds trust and rallies the team around a common purpose. Great leaders share bad news — the product failed, we missed our target, we hired poorly, or I made a mistake. They appreciate that knowledge is a power that’s best shared.

Alignment requires transparency. To be on the same page, direction and purpose need to be shared with all. Moreover, quality leaders appreciate that some people are personally dedicated to an organization’s vision. In contrast, others may be narrowly focused on how a job benefits them, and that’s okay. But, assuming someone’s alignment can be a disaster. Instead, ask questions and communicate openly.

Own your actions

Did you do something wrong? Did you forget to do something important? Did you delegate something to the inappropriate person?

If you’ve done any of these things (we all have) — take corrective steps immediately.

Gravity, in the metaphorical sense, does not exist in companies. Responsibility actually rolls uphill. Consequently, strong leaders are accountable for their actions and the actions of those around them. Effective leaders are accountable when their team members fail to perform.

That being said, only you can control you. No one else gets to tell you how to live your life. No one else gets to decide what has meaning to you. Investors and stakeholders may inform your decisions, but their opinions shouldn’t be a substitute for your own knowledge or values.

Strong leaders know what and whom they value. They bring this knowledge to every decision they make.

Related: 4 Steps to Reinventing Yourself After Hitting Rock Bottom

Next steps

I’m now on a journey without a final destination. What’s clear is that continuous learning is imperative for growth, healing and improvement. I am better today because of the difficult road I’ve traveled. I am now only focusing on what I’m especially good at–business development, strategy and relationship-building guided by empathy, humility and the personal values I’ve promised myself never again to betray.

Walking your talk is important. That’s why I’ve chosen to start publicly speaking about my mistakes and owning them. On the journey to becoming a better leader, I’ve realized the importance of knowing your purpose and living it daily.

Don’t repeat my mistakes. Know that you are your own north star; trust your instincts, live your values and stay firmly grounded in the present moment.

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Seth Weiss

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October 12, 2022