The Benefits of Failure: The problem isn’t failure itself- it’s the failure to learn from hard times.
Failed companies are often regarded with suspicion: “Look who didn’t make it!” But the problem isn’t failure itself: it’s the failure to learn from hard times.
A good friend of mine once founded a company and ran it headfirst into a wall. But when he talks about his experience today, there’s not a hint of frustration in his voice. He learned a lot, he says. Complete failure was a benefit. After declaring bankruptcy, he completed internships in several other companies, gathered experience, and talked to seasoned entrepreneurs. And he learned. Eventually, he founded another company, build up a multi-million dollar business and successfully sold it. He invested in companies - not only money, but also time and know-how - and received good returns on his investments.
Not everyone has a learning curve that is as steep as my friend’s. He shall remain unnamed here, suffice it to say that he is now regarded as one of the bright stars of the German start-up scene. The moral of the story: every failure is also a chance.
To make it clear: failure must never be the goal of entrepreneurialism. Nobody wants to fail. Nobody should plan towards failure - especially when the money at stake belongs to others, who have worked hard for it elsewhere. I have never met a company founder who held a different opinion.
But failure isn’t just a product of the decisions and actions of the founding entrepreneur. A company can be well-positioned but face a competitor with deeper pockets and faster development cycles.