23/11/2016
Lessons I Wish I'd Known Before
My Business Failed
1. Don't rush into partnerships.
It was only after my original partner
and I parted ways did I recognize that
we should never have had a professional
partnership in the first place. Just
because someone is your best friend,
long-time coworker and / or significant
other hardly qualifies them as the
perfect candidate for maintaining a
business. I say “maintaining” because
it’s far easier to get excited about the
prospect starting a company than being
able to handle the day-to-day reality of
running it efficiently.
The best partner is typically someone
whose skills and approach are the polar
opposite of yours. The first ensures the
you are able to cover a lot more ground
without additional employees. The
second may create conflict, but it'll force
you both to defend your business
instincts and w**d out lesser ideas
before you waste resources.
2. Don’t get discouraged.
Running a company isn’t a goal -- it’s a
long, winding road. Enjoy the process!
Unless your goal is to cash out, and
you’ve got some built-in exit strategy,
chances are you want a long-term
entrepreneurial career. You will have
ups, and you will have downs -- possibly
in the same week or even day. You will
gain amazing clients and lose others for
reasons fair and unfair. That’s all part of
having a business.
I’ve yet to encounter a single business
owner who’s reached some grand, stable
plateau beyond failure, disappointment
and doubt. We all experience it. Instead
of discouragement, focus on becoming
more resilient, on learning how to
handle stress productively.
Related: 5 Mistakes to Avoid as an
Entrepreneur
3. Don’t forget why you wanted to start a
business in the first place.
Whether it’s following a passion or
having more control over your time to
devote to family, always remember why
you started down this road in the first
place. It’s easy to get carried away and
forget what it was you wanted from your
own business. I, for example, was driven
by quality-of-life factors, especially time
off for my other passion -- travel. At
times, temporary sacrifice may be truly
necessary, but it pays to be conscious of
when you’re in danger of permanently
shelving the very thing you wanted most.
4. Don't try to do everything yourself.
I started my first company with $500 --
barely enough to cover the costs of
incorporation. So, right away, I
developed an addiction to doing
everything myself. My partner was only
capable, willing and able to do so much,
and I found myself doing a lot of admin
tasks I never anticipated. Those tasks
came with learning curves, and they
took up valuable time and energy --
energy that could have been directed at
helping the business grow.
I didn’t make this mistake twice. With
my second, far more successful attempt, I
contracted my business half just a couple
of months in. Although my expenses
grew, now I could focus on doing
better work as well as devote time to
business development. Both actions
helped to grow the company far quicker
than my former money-saving attempts
at being my own bookkeeper.
So, resist the urge to cover all the ground
alone. Saving financial resources is
important, but don't let your task list
undermine your big goals.
5. Don't stop evolving.
Your strategy, your marketing plan, your
target market -- nothing is set in
stone. The world is changing more and
more rapidly each day. Your industry
will likely experience a shift, whether
slight or monumental, at some point. As
a small business, you are at a
disadvantage, because your resources are
a lot more limited. But you have a
priceless advantage in ability to change
course and adapt far quicker than a
larger organization.
The best way to remain relevant is
keeping your eyes open for changing
tides, your mind open to new ideas and
staying flexible.
And, of course, don't be too afraid of
making your own mistakes!
