Fail fast and frequently in business
In this series of 19 short articles, StratPad’s founder discusses the fundamentals of starting and running a small business.
Today he discusses failure and the entrepreneur’s mindset:
Q: I want to start a business, but I’m terrified of failure. How do you work through it?
A: That’s a great question. What happens if you build it and no one comes? What happens if you fail. The good news is that failure in business has been transformed over the last number of years. We now know that any business is simply doing an experiment. We have a hypothesis that if I build this, that this group of customers will buy it for this much. Sometimes you’ll get into the marketplace, you find that’s not true. That’s actually great.
Pause, try to find out why, adjust what you need to adjust in your product or your service or your marketing plan, and then go and try that again. This fast, frequent failure is a great way to uncover a business model because if you do that two or three times, you’ll be getting closer and closer and closer until boom, you’re going to have a profitable business model and then away you go.