Most entrepreneurs fail multiple times before attaining success.Statistics show that 20% of new startups fail within the first two years, 45% during the initial five years and 65% within the first 10 years. However, failure is not the end, it’s just a setback and it gives you a chance to learn from your mistakes. If your business struggles in the first few months or years, don’t get stressed. Here are some valuable lessons you can learn from failure.
1. There’s a Weak Link
When you fail, it’s always a sign that something is missing. Failure uncovers a weak link that needs to be addressed. You might have some bad marketing strategies, business processes, or team members that negatively affect your company’s performance.Statistics show that 42% of small businesses fail because they don’t have a market for their products and services, while 23% fail due to lack of funds. Some fail because of the wrong team. Take time to identify the real cause of failure and formulate a plan to overcome it.
2. What to Avoid
Entrepreneurs who fail learn the most. When you experience obstacles, you are more likely to look for solutions to prevent the same issue from happening. If you fail because you don’t have a deep knowledge of your industry, take time to learn industry trends and increase your knowledge so that you overcome the challenges. And if getting funding is the issue, don’t worry. Some venture capitalists actually fund entrepreneurs who have failed multiple times. The failures make them better entrepreneurs because they know which pitfalls to avoid.
3. Failure Leads to Growth
Accepting failure in entrepreneurship helps you to develop a growth mindset. When faced with obstacles, you develop the resilience that is vital for the long-term success of your business. On most occasions, failure is a sign of future success. Once you experience hiccups, you are more likely to work extra hard and address problem areas in your business.
If your business fails due to lack of cash, find out how you can get short-term loans to boost it. I Need Cash Now, a top online lender, says that most of its customers apply for cash title loans to get working capital for their businesses. Once you get the cash and the business is up and running, spend it on the processes with a good return on interest.
4. Entrepreneurship Needs Patience
Running a business means a lot of trial and error. You may not succeed on the first try; therefore, you need to be patient and stay the course. While every business is different, most startups achieve success and become profitable after seven to ten years. If you fail, restrategize and start again until your startup becomes profitable.
5. Failure Eliminates Fear
Entrepreneurship is not for the faint-hearted. If you are afraid, your ability to succeed becomes limited because you don’t take risks. If you fail multiple times, you’ll build immunity to fear and take huge risks for your business. Small business owners who have faced several obstacles understand the market better and are more likely to succeed in the long run.