The million dollar question that all companies must face is – why do businesses fail? It's important to turn this question over in your mind if you have even a modicum of interest to go out on your own. Ignoring the hard truth that you might not succeed prevents you from learning from other people's mistakes.
Signs of failure
According to Forbes, some companies go under while others thrive for several reasons – many of which are multi-faceted. Here are a few reasons why businesses fail:
- The inability to teach clients about the product, if it does something that's new and innovative.
- Failure to launch an idea because you've waited too long.
- Keeping quiet during opportune times to sing praises about your company.
- A lack of flexibility – oftentimes new ideas need to be molded to work.
- Squandering funds that should be spent elsewhere.
If you've fallen victim to one or all of these mistakes, then you've learned the hard way. Luckily, you can still consider them a win so long as you've learned a lesson. Some people even say that failure is crucial when paving the road to success.
The silver lining
Inc. Magazine pointed out that Barbara Corcoran is a firm believer in failure. She urges people to set aside a cache of funds for failures. She also explained that business owners should go and have fun from time to time because epiphanies occur once you step away from your desk.
"All the small changes that helped grow my business happened when we were playing outside and/or spending money that we had no business spending," she says. "I never had a good idea sitting at my desk nor did I harvest a big, game-changing idea around a conference table."
Allow yourself to make mistakes, but learn from them too.