Failure is almost synonymous with businesses. A report by the US Bureau of Labor Statistics says about one in five businesses in the US fail within a year. In fact, there are many entrepreneurs who think failure as the normal way forward to succeed. They celebrate failure because they think learning from mistakes firsthand is their greatest source of knowledge. Here are some important lessons one can learn from failing in a business…
Failure Helps Build Resilience
Failure teaches entrepreneurs the power to recover quickly, which builds resilience. Every failure teaches entrepreneurs to learn tenacity and perseverance, the major characteristics of resilience that are vital to steer them through wrong moves and fight the urge to give up.
Research reveals how building resilience helps businesses succeed. Another study found that resilient entrepreneurs view business setbacks as puzzles they were capable of solving and dealing with fully. The researchers also saw that entrepreneurs who were ready to face these challenges were more motivated and proactive in identifying ways to improve business processes and adjust the results on the go. The reports even found that resilience was an important skill that helped business owners respond to unforeseen challenges and businesses owned by such entrepreneurs were more likely to survive.
Failure Helps Instil Fearlessness
Every one of us reacts to failure in a different way. Entrepreneurship is risky, as well as full of challenges and this adds to the fear of failure, along with rejection. These fears can prevent aspiring entrepreneurs from taking risks and following their dreams. A survey found about three in five Americans had ideas for starting a business. It showed that 92% did not convert their ideas into business. For 33% of the survey respondents, the fear of failure kept them from following their dream into business. But we should remember that failure teaches us some of the most significant lessons in life.
Over the past decade, we have seen many instances where venture capitalists invested in businesses that failed. Successful entrepreneurs do not allow fear to stop them. Instead, they see failure as an opportunity to learn and use that information to move forward. Moreover, it also helps them explore the changes they have to implement to succeed. Through failure, one discovers the shortcomings in one’s business and team. It teaches an aspiring entrepreneur where his/her weaknesses lie and what needs to be improved. The knowledge and practical experience that come from failure instil a fearlessness and confidence in entrepreneurs that drives them to keep trying.
Failure Helps One Adapt to Change
Failure also teaches adaptability. When an idea or approach fails, entrepreneurs have to adjust to new situations and be open to experiments and new ideas. Being open to change and keep agile are part of adaptability that allows entrepreneurs to overcome barriers, learn and innovate. When industry, market and customer preferences change, this adaptability helps entrepreneurs navigate these new situations and work an idea into problem-solving or come up with new ones.
One example of huge success is Netflix. Founded in 1997, it focused on allowing consumers to buy and rent DVDs. Two years down the line, it included a subscription model that helped people rent as many DVDs as they wanted to by paying the rent on mail. Then, taking advantage of new-age technology and streaming content over the Internet, the company re-optimized its business model in 2007.
About the Author
Mr. Harish Jagtani, a philanthropist, visionary, businessman of Indian origin, currently based in Democratic Republic of Congo for more than 20 years now, is one of the most reputed business owners in the Indian diaspora as well as the entire expat business community in DRC. The business house caters to multiple domains, including but not limited to Domestic as well as International Air Cargo, real Estate and infrastructure development, healthcare, hospitality as well as CSR.
Coming from humble beginnings from Jaipur, Rajasthan, Mr. Harish Jagtani has come a long way in building this conglomerate with a strong and clear vision, sheer dedication and grit. Starting with a small job in sales, Mr. Harish Jagtani today is a proud and righteous owner of a fleet of airplanes and multiple businesses that cater to the basic and advanced needs of the people of Dem. Rep. of Congo in different sectors