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Whereas risk is necessary for any entrepreneur to deserve the label, the management of the risk and also the possible failure is just as essential.
No matter how much research or experience a potentially successful business launching a new idea may have, the proof is in the market reaction.
Not only does stepping up to already established enterprises require business skill (and they say experience often comes after most needed), but also the ability to manage the curve balls of setbacks any service or product might be faced within the course of establishment.
Whereas failures are often connected to shame, labelled of ‘not making it’ and even in extreme cases seen as a ‘write-off’, these unsuccessful mishaps should rather be viewed as a step to success.
Firstly, it is important that the idea, rather than the person is connected to the collapse.
Although the role player driving the idea carries the responsibility and the authority, it is the idea that has not succeeded in penetrating the market victoriously.
The person or people involved in launching this idea are still capable of making it, their chances increased by the experience of failure – permitted that mistakes are learnt from rather than repeated.
Speaking at the Unreasonable at Sea conference last week, successful entrepreneur and co- founder at Global Catalyst Partners, Kamran Elahian, pointed to the significance of cultural approaches to failure, referring to its suicidal meaning for Asians, as an example.
“We need to develop a culture of failure,” Elahian, the proud founder of ten successful businesses, believes.
Although it is also said the only good losers are those not used to winning, it is necessary to maintain perspective on the role of failure in the journey to successful market entrance in a sustainable, organic manner.
Speaking to HumanIPO, Wordpress founder Matt Mullenwag revealed his take on new approaches which does not turn out as expected as part of a learning process.
Emphasising the importance of continued motivation of his team, Mullenwag believes in “the freedom to execute” new ideas regardless of its outcome. He deems failures part of the process of “mastery”.
Society is often attracted to success stories where an entrepreneur went from rags to riches, not considering the sacrifice of earning procrastinated respect in the eyes for the public while gaining experience.
If the natural occurrence of failure is seen as a step in the ladder to success rather than a snakebite to business death, a more sustainable startup culture of realistic perspective with the odds of the market dice can be established.
Experience should earn respect even before the acknowledgement of success as failing to reach a goal on paper can mean accomplishing valuable insight which may lead to a better idea.
Though perhaps a necessary ingredient to the recipe of eventual success, failure should never be a goal or accepted as the obvious outcome of a first-time startup.
However, the road to accomplishment may have cul-de-sacs along the way. The key is the comeback to the main road and the approach to keep on track.
As Thomas Edison once said: “I have not failed. I've just found 10,000 ways that won't work.”