Entrepreneurship, Leadership

‘Failure’ is a term badly misunderstood; most people terribly fail to grasp its true meaning. In its literal sense, the word is the exact opposite of success. In reality, however, it is one of the most crucial elements of success itself. And we have thousands of actual success stories to back it up. Therefore, dealing with failure is one of the most important ability one needs in order to achieve success.

Unfortunately, failure in an entrepreneurial life doesn’t always mean low sales for a season or a marketing campaign that backfires. Things can get worse as soon as they start to look great. You can even get fired from a company you founded. The good news is, latest polls conducted by Ipsos reveal one amazing fact about entrepreneurs in general – they tend to have thicker skin. It is indeed a trait one needs in order to overcome failure. Not all of them are born with it, it is something they develop through sheer determination. Here are some of the most effective ways entrepreneurs learn to successfully deal with failure.

Meet Failure as an Old Friend

Old as in someone with experience and wisdom – someone you can learn from. Failures can teach you more than success. Failing a hundred times means learning one hundred ways that don’t work, and eventually discovering the one that would. It is important to reflect back on how you reached the negative outcome and try to discover and identify what actually went wrong. More often than not, it is one small move that turns the whole thing upside down.

Accept that Results and Responsibilities

What keeps entrepreneurs back is the habit of denial. Whether you are denying the fact that you have failed or the responsibility of that failure, it won’t play out in your favor. Accepting failure as it occurs save you from investing more efforts and resources on a lost cause; it will save you from exhaustion and frustration. Denying the responsibility will limit your ability to learn and improve. Consequently, you will find yourself stuck in the same spot or simply running around it in circles.

Overall, it is all about changing the way you perceive failure in order to deal with it. Don’t think of failure as a dead end, take it as a clear sign to make a turn. With each turn, you get closer and closer to your destination.

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Entrepreneurship

Being an entrepreneur isn’t easy. Most people end up failing at it. The reason that so many people fail isn’t necessarily because their idea was bad, they fail because they didn’t avoid the many traps that entrepreneurs face. If you want to succeed not just at starting a company but also at running a company whose success can be sustained, you need to be on the lookout for these pitfalls.

The Money Trap

There are many great entrepreneurs who never got the funding for their idea. There are also many companies started by entrepreneurs that were hurt not by a lack of money, but by an abundance of it. This trap is simple yet too many companies fall into it. When the company gets its first round of financing everyone is happy and in a celebratory mood. Entrepreneurs start spending money to spruce up the office. Suddenly the company has a chef, has an artist painting murals on the walls, and is hiring highly talented people at exorbitant salaries. Your first round of financing should be for small and smart investments. Do not end up spending and investing so much that you cannot sustain the business when the funding runs out.

The Innovation Trap

The innovation trap is when the entrepreneur is so convinced that their idea is innovative that they start ignoring signs of danger. It might seem stupid but this has happened in a lot of companies. Whole companies were shutdown and when the employees were interviewed they all say that they saw the end coming. The entrepreneur is so focused on their idea and its innovation that they think it cannot fail. Giving pitches after pitches makes them believe too much in their own words and it can be their own downfall.

The Entrepreneur Trap

Entrepreneurs have almost become legendary figures in the world of business. New entrepreneurs think they are great as well. This isn’t wrong; you need to have some ego and pride in order to compete in the world of business. The problem is that they begin thinking that they are the only people who know how the business should be run. We read all the time about successful entrepreneurs like Elon Musk, Richard Branson, and many more. What we do not read about are the hundreds of people these entrepreneurs trust to vet their idea. These people only take decisions on the basis of business intelligence. You need to do the same.

The Small Innovation Trap

The most common type of innovation is a small modification in an existing product. The only problem is that if you try to base your business around a small innovation it is very easy for bigger companies to eat you up. If you think up an idea for a toothbrush that is better than the ones being created right now, you need to come out swinging. If you start as a small company you will not be able to compete with the billion dollar behemoths in the dental care industry. They will simply change their products to be similar to yours and win. Another big reason is their low cost. Due to marginal costing the more product you make, the lesser it costs per product. The billion dollar companies will be making toothbrushes at such a low rate that they will be able to price you out.

There are many other things you need to look out for. Being a successful entrepreneur means that you need to be able to see where things are headed. You need to be realistic with your vision and choose a path that is actually viable.

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