Don’t use the f-word. Failure is just learning in business
by Startacus Admin
Don’t worry if your business died. You just got a step closer to entrepreneurial heaven says Richard Myers, Commercial Director at Transmit Start-Ups.
So, your first business didn’t work out the way you planned? You’ve had to call it quits or change direction? You’re back at the drawing board planning your next move?
Congratulations – you’re now a fully-fledged member of the Entrepreneurs’ Club. Don’t beat yourself up and definitely don’t categorise your experience as failure.
What just happened to you was an important part of the continual learning we all have to do in business to reach success.
If you’re keen to brush yourself off and try again then you’ve passed the acid test – you’re a born entrepreneur.
There’s no substitute for this kind of experience.
You can’t learn this from a text book and from a college course. It’s the kind of wisdom you only get from the hard knocks and the big wins. The kind that makes you hungry for more.
What matters now is what you do next.
It’s important to take a step back and work out why things didn’t go as planned, so you can work out how to go forward.
That can be harder to do than it sounds because things are rarely black and white, so don’t do this on a hunch. Use data and real knowledge to build an accurate picture.
The most common reason businesses fail is because they run out of cash. If that’s the case then ask yourself why this happened.
- Were you over optimistic about how much cash you’d make? Next time be sure to do your homework so you can be absolutely realistic about your projections 
- Was your pricing right?
- Your idea might have been right but were the timescales realistic? At Transmit Start-Ups we always advise entrepreneurs to estimate how much time they need to get something started – and then double it. That’s usually the most realistic timescale to expect.
- Did you manage your debtors’ book right? Did people take too long to pay you?
- Did you pick the wrong clients? It can feel counterintuitive when you’re starting up to turn down work but next time around trust your gut. When someone doesn’t feel right, then don’t do work for them. When the dust has settled take a look at your client list and draw some conclusions
- Was the market wrong? Sometimes people embark on a journey but find the market isn’t big enough or isn’t ready for them yet. There’s no shame in that. The trend is to ‘pivot’ in these circumstances – to change the direction when you realise your business model isn’t working. The trick is to not get too emotionally invested in an idea. That way you can change accordingly.
I’ve asked myself these questions over the 25 years I’ve been running start-ups and the answers are what led me to where I am today.
When people come to Transmit Start-Ups for Start Up Loans and tell us they’ve already tried company number one and now they want to start company number two they always pique our interest.
Not because we think they’re a failure or look like a risky prospect but because they’ve already proved their resilience and the spirit they need to succeed. And that makes us want to back them even more.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Startup funding is never easy, however here are a few of the options that can help you fund your startup without going broke in the process
Innovative startups are currently being sought by BMW Group Financial Services UK which has just launched the third instalment of its Innovation Lab
Starting a business can be a lot of hard work, so here's a few ways to avoid burnout and find a healthy work life balance.
The child health app on a mission to become the first nationwide digital redbook, just got a step closer to making their mission a reality...
The Cambridge-based startup that has created an empowering tool to drive the next wave of biological innovation
At one-day event Ideation NI Thon, students will get the chance to solve global and local sustainability, environmental, city and health problems.
NI startup ESTHER, a peer-2-peer giving platform allowing charitable donors to give money directly to people living in poverty, head to New York for a 4-day fact finding mission.
The lowdown on how an Australian startup generated global sales for their innovative product, "weighted blankets"...
At 82% the UK takes 4th place in the list of countries being most ready for automation and robotics, whilst 30% of UK population’s jobs are at risk of automation.
The innovative game, eQuoo that helps users build their emotional fitness and thereby help fight their mental illness
Published on: 17th July 2019
.png)
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.
- Ideation NI Thon at NI Science Festival sets out to solve global issues 17th Jan 2020 At one-day event Ideation NI Thon, students will get the chance to solve global and local sustainability, environmental, city and health problems.
- NI startup ESTHER takes flight to New York 16th Jan 2020 NI startup ESTHER, a peer-2-peer giving platform allowing charitable donors to give money directly to people living in poverty, head to New York for a 4-day fact finding mission.
- 2019 stats show that the gender pay gap continues 14th Jan 2020 Recent research by Starling bank shows that in 2019, women earned up to £12,319 less per year than their male colleagues of the same age and within the same industry
- Digital DNA Awards 2020 nominations now open 13th Jan 2020 The Digital DNA Awards, held in partnership with MCS Group, celebrate the best tech talent, from companies of all sizes, excelling in the world of Digital and Tech and not just in NI...
