We all have had setbacks in business – the challenge is to learn from each one to improve skills and decision making, rather than let failures get you down and reduce your chances of ever achieving success. The best entrepreneurs and business owners have experienced failure multiple times before bouncing back to a level of achievement they only dreamed of.
For example, most people don’t realize many billionaires, including Mark Cuban, Jack Ma, and Richard Branson experienced multiple business failures before becoming recognized business leaders. According to the well-known motivational speaker and writer Steve Harvey, Warren Buffett said that he would not invest in any business where the owner hasn’t failed at least twice.
I found some real practical insights on how to turn your failures and fears into success in a new book, “Fail More: Embrace, Learn, and Adapt to Failure As a Way to Success,” by Bill Wooditch. For over 25 years, he has failed his way to success in his own businesses and helped transform large and small companies along the way. I’ll paraphrase several of his guiding principles here:
- Recognize when fear is disguising itself as procrastination. Too often fear of failure is rationalized as waiting for the perfect opportunity, a better time, or less risky idea. Whether you are seeking to build a startup or advance in your career, you can’t succeed without starting, and you need to embrace failure as the key way to learn and adapt.
- Don’t let “fear-of-failing” inhibit your decision making. Fear can cause you to avoid making a decision, which more often results in lost options than better outcomes. Also by not making decisions, your decision-making abilities can never improve, causing every decision to increase self-doubt. Commit to learning from every decision, good or bad.
In business, often the stakes are high, the information incomplete, and the environment volatile. In these cases, such as new product development, it helps to break down the big decision into smaller steps, and learn from success or failure on completing each step.
- Build relationships with advisors who see your blind spots. One of the best ways to improve as a decision maker and leader is to ask people you trust to analyze your failures and guide your learning. Also, you must accept feedback with humility and without defensiveness, with a commitment to finding a pocket of success in every failure.
- Remember to approach “risk-of-failure” intelligently. Every time you make a choice in life, even non-choices, you are taking a risk. Use past failure experience to inform the present and positively influence the future. Start out with small steps that lean into your uncertainty and discomfort. Make uncertainty and discomfort your growth indicators.
Carrying out small “experiments” is a great way to evaluate “risk-of-failure.” Test interest in a new product, before you spend money building it, by presenting it to the market in a blog or through crowdfunding. If you see no interest, you can fail quickly at very low cost.
- Determine worst-case and best-case results before decisions. Failures teach you that you must understand the worst case, before you jump to a decision based on your best case assumption. Suppress your ego, and bring in advisors and experts to test your assumptions and improve your decision-making skills. Always manage the downside first.
- Use emotions, but don’t bypass logic, in making decisions. As a human, you will always feel emotions, both negative and positive, but they must be only one tool in a decision. You always have to move beyond emotions, to include logic in making successful decisions. Analyze and learn from failures, to separate logic from emotion.
For example, I deal with aspiring entrepreneurs every day whose emotion is so strong for a new idea that they forget to evaluate the business viability. You may be positive you have a cure for world hunger, but don’t forget that hungry people rarely have any money.
Use these principles to capitalize on “failing more” as “trying more.” Experience is the residue of failure, more than success. Failing is the strategic way to collect and apply tactical knowledge and methods you can use for future benefit along the path to a more successful business, career, and life. Always celebrate your failures, as well as your successes.