Many would be entrepreneurs don’t start their own venture because they are afraid of failure. And quite frankly, they have every right to be afraid. After all, we are constantly bombarded by vague sayings like “9 out of every 10 startups fail” or “chalk up your first startup as a learning experience”, or my favorite, “most relationships and marriages can’t survive a startup”. After you hear enough of these cliches, you soon start believing them.
The problem is that these ideals are further reinforced by the various entrepreneurship blogs out there that are telling everyone to fail early and fail hard because that is how you learn. Everywhere we turn, we are constantly reminded that statistically speaking, there is an extremely high probability that your first startup is going to die so it’s better to get that first failure out of the way.
Seriously folks…If I went into a startup believing that it was going to fail, then why the heck would I risk the money and heartache in the first place? Would I really want to spend all of my time on a business, potentially destroy my social life and personal relationships just so I can gain a new learning experience? No way! If I’m going to do something, then it’s going to have a high probability of success.
Failure Is Misinterpreted
The main problem is that the term “failure” is way overused and rarely defined. To me, the term failure in an entrepreneurial context is far different than that of failure in a more traditional sense.
For example, outside of entrepreneurship, failure simply means to give up or to be unsuccessful. Sally opened a flower shop, didn’t make enough money and decided to close up her shop. Game over. She failed.
Rick challenged Gary to a game of 1-on-1 basketball and lost. Rick failed to beat Gary.
In any case, you get the picture. Failure in a traditional context is just that…you are unsuccessful at something you have tried to do. But something magical happens when we talk about “failure” coupled with entrepreneurship. Failure becomes a good thing and you know why? It’s because failure has a different definition altogether in the world of entrepreneurship.
Failure Means To Experiment
Failure is just a way we entrepreneurs gather data. When my wife and I were trying to decide what to sell, we tried selling many different things on Ebay and Craigslist. I went through this phase where I was buying computers on Craigslist, stripping them down and selling each part piece by piece on Ebay. This little experiment netted me very little money for the effort I was expending so in fact it was a “failure”. It just wasn’t worth my time so I stopped doing it.
When my wife first wanted to sell embroidered goods, she tested out over 30 designs, but very few of them ever sold. So you could say that roughly 90% of her designs failed.
When my wife and I made our first inventory purchase for our online wedding linens store, 50% of the items we bought never sold and are still gathering dust on our shelves. Our first purchase was a failure because we bought too many items that were undesirable to our customer base.
Even though my first venture was a 100% failure, my wife’s designs failed at a 90% rate and 50% of our inventory was unsellable, these didn’t feel like real failures to me. It’s because as an entrepreneur, I considered every failed experiment a success because it brought me that much closer to finding out the right thing to do. By finding out what didn’t work, my wife and I could stop wasting time going down the wrong path.
Failure Means To Adapt
When an entrepreneur fails, it’s not the end of the business but merely a detour. When one path is blocked, entrepreneurs adapt and find new ways of doing things.
My wife and I hit so many roadblocks with our online store that I’ve since lost count. But looking back, probably our biggest failure was that we targeted the wrong set of customers and the wrong target market when we first launched. This was a big deal because we tailored our entire website towards these customers who didn’t want to buy from us.
Without going into to much detail, we initially targeted our linen products towards embroiderists looking for materials for crafting projects. Because we wanted to do as little manual work as possible, we tried selling our goods with no value added to the end consumer. In a nutshell, we simply repackaged the goods from our vendors and tried to sell them directly just like every other store.
Turns out that most embroiderists prefer to purchase their embroidery materials from one stop shops. Sure, we had the largest selection of handkerchiefs but we couldn’t compete because we didn’t sell anything else. In addition, the margins for embroidery supplies was not very high either.
In any case, when we found out that targeting embroiderists wasn’t working, we did a 180 and positioned ourselves in the wedding market which worked out much better for us.
Failure Means To Bounce Back
Nothing ever goes according to plan. You can’t predict the future nor can you anticipate all of the little things that will happen. The most important thing that defines failure is the ability to bounce back.
The marketing plan for our online store was a textbook example of failure. We kept trying every method to get traffic to our store, and when one method stopped working, we simply went onto the next. Looking back, there were many dark days when we both wondered whether we were wasting our time, but gradually, our business eventually picked up. While it is difficult to quantify exactly which marketing tactic was the most effective, I can say that collectively, all of our marketing efforts did make a difference.
Especially with web based businesses, websites need time to sink in and to be indexed by the search engines. Sometimes, all it takes is perseverance and faith.
Think Like An Entrepreneur
When failure is cast in a different light, it doesn’t seem so bad right? Instead of listening to the statistics or falling for the negative hype, go in with right attitude and you’ll eventually discover what works.
- Entrepreneurship: What Is Your Definition Of Failure?
- What Type Of Entrepreneur Do You Want To Be?
- Dealing With People Who Doubt Your Business Ideas
- Are You Cut Out To Be An Entrepreneur?
- The Ultimate Small Business Startup Guide
Have you read these?
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- 12 Things I Learned From Starting 3 Successful Lifestyle Businesses
- Your Habits And How One Simple Change Can Lead To Long Term Success
- Small Business Trademark Issues – The Ultimate Small Business Startup Guide Part 2
- Making A 6 Figure Income With Our Online Store – How Much Work Does It Take?