Failure is a scary thing – especially when it’s tied to your livelihood like your company. However, many new and seasoned entrepreneurs fail at some point in business, including Chad Kagen himself. In fact, most new businesses fail within the first decade after starting. Therefore, if you fail in business, instead of focusing on your failure, focus on how it can set you up for future success as an entrepreneur.
The first thing that you need to understand about business failure is that it’s actually very common. For example, nearly two-thirds of new businesses fail within the first 10 years. Even the most successful entrepreneurs like Elon Musk have failed. Don’t make the mistake of thinking that failure won’t happen to you. Instead, prepare for it, so it’s not as devastating.
If you do fail in business, understand that it doesn’t have to be the end of your entrepreneurial career. There would be no Apple if Steve Jobs had given up after failure. Finding the right business niche – and learning how to run a successful business – can take time. Just remember, you only truly fail as an entrepreneur when you give up your dream of being an entrepreneur.
Those who succeed in business are the ones who can learn from failure. As an entrepreneur, you can learn from everything that leads up to your failure. For example, let’s say your first company fails because you didn’t have good cash-flow management, and you were unable to pay your bills on time. When you start your next company, you implement better cash-flow management practices, so you don’t get behind on bills. That’s an example of learning from a past business failure.
Failure helps you become a stronger (and better) entrepreneur. Failure shows you what you can and cannot do. For example, maybe you weren’t cut out for a certain industry. That’s fine; find the right industry for you. Therefore, if you fail in business, instead of seeing it as a shortcoming, look at it like a challenge on your path to entrepreneurial success.
Lastly, the best way to set yourself up for entrepreneurial success after failing in business is to find help when you need it. As an aspiring entrepreneur, you should seek out someone who has been in business a while who can be a good mentor to you. Many colleges and universities run small business centers that offer free assistance to entrepreneurs. Take advantage of any programs like that in your area. Another good tip for business owners is to hire a CPA to oversee your company’s finances – especially if you have trouble managing finances.
In short, if you fail in business, understand that you are not alone. Furthermore, understand that failing doesn’t have to mean the end of entrepreneurship for you. Almost all successful business owners have failed at some point. Take a page from Chad Kagen’s book and turn your failure into an opportunity to learn from it. Become a better entrepreneur by avoiding the mistakes that hurt you the first time. Find people who have also failed in business before, who can help you succeed in the future.
Visit Chad Kagen’s blog for more valuable insight on entrepreneurship!