Napoleon Bonaparte famously said that “He who fears being conquered is sure of defeat.” And many as business owners we are often terrified of failure. Imagine what you could achieve if you weren’t afraid to fail? If you took those big chances – and reaped big rewards.
While we may not admit it outright or be even conscious of it, many of us allow fear to stall our attempts at success. As a result we spend a life time ‘playing it safe’, yet quietly desperate as we sit on the sidelines and watch others succeed.
Sometimes the fear of failure is so potent that people stall on their dreams and fail to pursue them. They forever wait for the ‘right opportunity’, not realising that sometimes in life, the only opportunity we get are those we create for ourselves.
The bad news is that everyone fails at something at some point in their lives. The good news is also that everyone fails at something at some point in their lives. It’s not the failure in itself that is important, it’s how the failure is perceived and the lessons one learns from the experience that have far greater importance.
Look, I know it’s tough. You’ve failed big time, things didn’t go as planned, you’re under tremendous emotional and maybe even financial pressure as a result of your plans not working out; and at that point you just want to curl up and wish everything away. The last thing you want is for someone suggesting you examine your mistakes and learn from them.
I’m not one to pretend and I’ll be honest that even I have experienced some catastrophic failures that I felt my entire life had come to a grinding halt and felt completely deflated (tough place to be if you make your living as a professional motivator).
I went through all the emotional motions. I felt the disappointment from my crushing defeat. I felt the fear. I felt the emotional and financial pressures. I knew people would talk and dreaded what they would say. My self-belief was put to the test and at some point I even doubted if I was ever going to recover.
Walk the talk
I allowed myself to feel the emotions however. I realised that dwelling indefinitely on the event would not change things one bit. If anything, focusing too long on the event itself would only incapacitate me, discourage me further and make it impossible to make rational decisions.
The event occurred. I could not go back in time and change that. Period. What I had to do was to start ‘walking the talk’ and do what had to be done. The faster I got over my emotional upheaval and learnt my lessons, the quicker I could begin to take corrective action and the quicker I could get back to pursuing my dreams.
Feeling the emotions is important, it makes you humble and it makes you smarter the next time round; however, dwelling too long on them and using as a reason to give up and doubt yourself for the remainder of your life is inexcusable.
Also, what helped a great deal was putting the whole event in perspective – so I failed now, but I still have 20 or 30 odd years ahead of me to rectify things and achieve even greater success. Or, I could just lie here, give up and waste away the next 20 or 30 years of my life making excuses for a mediocre life. I could stop taking risks, going after my dreams, believe that the world is unfair, become bitter, pack it all in and just settle for the mediocre.
I realised that if I did that, I would end up being one bitter old man and I would have no one else to blame for a unexceptional life but myself. From where I stood, a six month or 12 month setback was really nothing in the context of the remainder of my life. Regardless of the consequences of our failures, life will carry on.
Believe me, life will not come to a sudden grinding halt just because you messed up. It might destabilise things initially or even for some time, but eventually people will carry on with their lives and you will have to as well. So what’s the point of wallowing in regret?
Using failure to your advantage
It sounds clichéd, but in all honesty, no experience is ever truly a failure if one begins to make a habit of viewing ‘failure’ as learning opportunities and life’s way of making us better. The true failure is when we fail to learn from our mistakes and instead cling on to the emotional pain – thus dooming ourselves to repeating the same mistake again.
The more you learn from your failures, the less likely you are to repeat them the next time round, and the better you will be. Strong people turn their failures into lessons. Weak people turn their failures into excuses.
Afraid of failing? Here are a couple of things to remember:
First, it’s a fact that just about everyone who ever accomplished anything great experienced some form of failure or another before accomplishing their dreams. More often than not, it is only their achievements that get noticed with little or no attention given to the numerous challenges, failures and disappointments they endured on their road to success.
Everyone fails. It’s what you do with it that makes the difference. Successful people also know all too well that success and failure are like the two sides of the proverbial coin. The more times you failed in the past, the better your chances of success in the future – provided you learnt from the past failures, refined your approach and did things differently the next time round.
Second, I sincerely believe that failures need not be an end in themselves unless we choose to make them so. Yes, it’s a choice. You can choose to learn from it or choose to be licked by it. By choosing to develop a mind-set of learning from our failures, not only do we establish what works and what does not; we are also better positioned to do things better the next time round.
Finally, there are countless examples of people like you and me who lost everything; and I mean everything. However through hard work, determination and self-belief they made a choice to elevate themselves from their dire circumstances only to achieve levels of success that far exceeded their pre-failure experience. If they could have nothing makes you or I less capable of doing the same thin and turning our failures aroundg. The difference is whether or not we believe we can.
Failures never leave you unchanged, they either can make you better or worse. You either become stronger as a result or you are left weakened. How you end up after a failure always depends on how you view it and how you choose to use the experience – as an opportunity to learn or as a life-long excuse.
Should Entrepreneurs Lie? It’s A Tricky Question
In the hustle of the startup world, entrepreneurs often drop little white lies – and don’t even consider them to be lies. Where’s the ethical line?
Gary Hirshberg knew the exact amount of money he needed to save his company: $592,500. It was 1988, and his fledgling yogurt brand, Stonyfield Farm, was near collapse – rocked by the closing of its third-party manufacturer, hemorrhaging money as it struggled to fulfill orders and unable to find new investors. But with that exact amount of cash, Hirshberg and his co-founder, Samuel Kaymen, calculated, they could open their own facility and regain their footing.
So Hirshberg drove down to his local SBA office with an informal proposal. “We’ve got a bank willing to provide the loan,” he told an officer, and he said his shareholders agreed to put up $100,000. All he needed from the SBA was its 85 percent loan guarantee, which would make the bank comfortable executing the financing.
The SBA liked what it heard, and that positive response set in motion the funding that would save Stonyfield Farm and enable it to grow into one of today’s most recognisable yoghurt brands. But in truth, the SBA didn’t know the whole story. Hirshberg didn’t have a bank lined up. His investors hadn’t committed the money. All he had was a vision for his company, a plan to save it…and, ugly as it may sound, a lie that would pull it all together.
Let’s put it bluntly: This is common. Entrepreneurs lie. It’s not like they regularly drop Theranos-level falsehoods to defraud customers and investors, but the scrappiness of entrepreneurship inevitably leads to some kind of deception. People say their company is bigger than it is, that they’re more prepared than they are, that they know how to do something they don’t. They spot an opportunity and they lie to get it, and that becomes part of their story – an origin that may one day even be celebrated, like how Steve Jobs famously faked his way through the first iPhone demo at Macworld even though the device itself was a buggy mess.
But here’s a question the entrepreneurship community has been struggling with for centuries: Is it OK to lie? And when does a lie go too far?
It’s tricky, because most entrepreneurs don’t see their deceptions as lies at all. Hirshberg doesn’t. “I mean, look – you beg, borrow, steal, stretch. You do what’s necessary,” he says today. In truth, the editors of Entrepreneur can get drawn into this logic. Just recently, this magazine ran a series of articles on bootstrapping, which featured a number of stories about entrepreneurs stretching the truth. One of them, for example, was about Anthony Byrne, the CEO of a Dublin-based company called Product2Market.
In the start-up’s early days, Microsoft considered hiring it but first wanted to conduct a site visit to make sure Product2Market had the necessary manpower. In reality, it didn’t. So in advance of Microsoft’s site visit, Byrne brought friends, family and neighbours into his office, having them pose as employees to make his startup seem twice its size. It worked. Microsoft signed on.
After that story ran, an Entrepreneur reader emailed an objection. “I don’t think the magazine should be promoting people who got ahead by lying as an example for others to follow,” he wrote. But Byrne doesn’t think of his action as lying; he sees it as a simple act of survival. In a crowded industry dominated by big players, he needed to look larger and capable.
“As soon as we got our first big deal, I did in fact hire the right number of people to fulfill the contract,” he says.
This is also how Hirshberg of Stonyfield Farm sees his own circumstance. Rather than lying, he was creating an opportunity he knew he could fulfill. True, he didn’t have a bank or his investors on board with his plan. But he knew a banker that was interested in his brand and figured that if the SBA seemed on board, the bank and investors would follow. And that’s what happened. “It’s OK as long as you ultimately do deliver,” Hirshberg says.
But context is also important, he thinks. If entrepreneurs lie for the sake of lying, or for their own personal gain, that’s a problem. But what if it’s for a common good? Consider his plight, he says: Stonyfield Farm may have been small at the time, but it was employing people and supporting their families. Hirshberg’s wife was pregnant, and his mother-in-law and other family and friends had put significant money into the company. He’d tried repeatedly to save it by more direct means. He even found a potential manufacturer that promised to step in and help – but at the last second, the manufacturer tried changing the contract to steal the brand away.
Hirshberg and his co-founder nearly gave up. Then they made one last-ditch effort — going to the SBA. “I believe that determination is the most undervalued and essential ingredient for success,” he says. “More than a great product. More than financial acumen. More than great marketing. It’s just absolute determination, and as a corollary, believing in yourself when no one else does.” If they went out of business, lots of people would lose. He was determined for that to not happen. The lie was worth it, he says. It was just an entrepreneur doing what was necessary.
Not everyone is going to accept this. Purists will surely say Hirshberg and Byrne and others are just liars justifying their actions. But Tomas Chamorro-Premuzic, a professor of business psychology at University College London and Columbia University, who has written about lying in entrepreneurship, thinks they’re onto something.
“If you can somehow measure harm to others, that is the limit,” Chamorro-Premuzic says. He believes most entrepreneurs tell lies when they think the falsehoods will do no harm. Had Hirshberg failed to get bank financing, the SBA simply wouldn’t have offered the loan guarantee. Had Byrne been caught, his deal with Microsoft would have fallen through. They were largely victimless crimes, wasting little more than someone’s time.
The way Chamorro-Premuzic sees it, the greatest lie we all tell is that we don’t lie. “There’s a reason why we have to all pretend the world is more honest than it actually is,” he says, “and that’s because we’re part of the same world that thrives with at least a certain level of getting away with some deception.” And he says creative people — the kind of fast-thinking, big-dreaming people who often become entrepreneurs – tend to lie more than others. The truth, he says, is that people in business expect some kind of transactional lie – whether it’s from a job applicant, a potential partner, or someone else.
“The system is encouraging at least some form of fact distortion, and rewards it,” he says. “If you ask an interviewee if they enjoy working with others and they say, ‘Most of the time I don’t,’ they won’t get brownie points for being honest. You’ll say, ‘This guy is antisocial.’”
So what’s an entrepreneur to do? Simple, says Chamorro-Premuzic: Treat lying as a tool to be used in very particular moments. It cannot result in harm to individuals. It must lead to an opportunity you can genuinely succeed in. And very critically, it cannot become a foundation you build on with other lies. “The brands that people trust, the products that people trust, clearly are created and run and owned by cultures that respect the customer,” he says. “Long-term focus requires honesty.”
Seen this way, a lie is a gamble – a slight tilting of the odds in a critical moment. But what follows must be truthful, because, as our liars say, that’s the only way to build an honest company.
This article was originally posted here on Entrepreneur.com.
The ‘Anything’ Entrepreneur
Most entrepreneurs are told to ‘stick to their niche’ but what happens when you make diversification your key to success?
Traditionally, entrepreneurs are told to stay focused and stick to their niche. But what if this advice isn’t always the right thing to do? What if this isn’t the perfect plan for your business, especially when you are facing a mercurial economy and a complex market? The instructions to build a thriving business aren’t set in stone, they’re as fluid as the customers and markets that inspired their creation in the first place. So, instead of hugging that niche rut, here are seven steps to intelligent diversification that could make a huge difference to your business…
1. The price tag
Having a niche business can become expensive, especially if you purchase stock from a specialised or niche supplier. They tend to charge a premium as they have the expertise and market position that allows them to do so. If you instead look to selling a variety of products and solutions, you can reduce the prices for your own bottom line as well as that of the customer.
Often, you are paying for a brand and not the deliverables so ensure that you’re investing into solutions that add value to your business not weight to your bottom line.
2. Variety is key
To survive in this economy, small business owners can no longer afford to only offer single product lines. By adapting and diversifying, you ensure your business isn’t the one left behind. Your competitors may very well be planning on introducing complementary products and services that boost existing offerings or add value. Don’t be the business that hasn’t been paying attention to the customer’s need for more bang for their buck.
3. Bolt on is bolting in
Offer your customers bolt-on extras where you can. This furthers the value you can add to your service and the value that the customer perceives you are offering to them. Extended warranties and value-added services not only add value, but they add longevity to your customer relationships. This means that you build depth with your customers as opposed to a hit and run sale.
4. Build a fence
When you diversify into a variety of solutions and services, you are giving yourself the opportunity to ring fence client spend. They won’t need to go to a multitude of suppliers as you will become their trusted one-stop-shop. You can then use this as an opportunity to showcase other products and services and to use your relationships to pitch clients into new areas of your business.
5. Client retention
When you have a rich pool of resources and strong client relationships, then you build trust and you prove to your clients that you have what it takes to get them what they need. When you’re trapped into single product lines you can’t offer this level of depth to your clients and they will simply go elsewhere.
6. Communication and collaboration
Diversification also offers you the opportunity to communicate more regularly with your clients. Instead of only selling to your customers seven or eight times a year, you can talk to them several times a week. Instead of just supplying products, you are helping them to deal with their day-to-day challenges and requirements. This allows for richer upselling and even more opportunities to engage.
Read next: 21 Steps To Start-Up Success
How To Forge Your Own Path In Business
Finding your own way doesn’t require reinventing the wheel.
You don’t need to be a visionary to forge your own path in business.
Honestly, you don’t even need to be a business owner to forge your own path. It’s more about a state of mind where you’re able to think for yourself professionally. To clarify, that doesn’t mean you’ve got to be a lone wolf: ideally, you want to be able to to work with and even for others, but without being a follower.
The ability to balance being an independent thinker yet simultaneously remaining accountable for your actions will make you a much more valuable worker, no matter what field you’ve chosen. The good news is that with targeted effort, anyone can adopt this mindset. Here are some of my tips for how to forge your own path in business, and why it matters.
Learn the rules first
This might sound out of place in a post about how to forge your own path in business. After all, aren’t we talking about independence?
Here’s the thing. Before you want to break the rules, you have to actually learn what they are. Take the time to learn the “rules” of your trade before you start trying to reinvent the wheel. You’re likely to pick up wisdom that will serve you, even if you intend on using the rules to inspire new and creative ways of breaking them.
Once again, you might find yourself thinking: Why should I seek out guidance if I want to forge my own path? Picture a cliche movie scene of a parent teaching their kid how to ride a bike. There’s that magical moment where the parent lets go of the back of the bike, and the kid is doing it on his own.
In business, you often need that initial helping hand before you can ride smoothly on your own. Before you can think for yourself, it can be helpful to absorb all of the wisdom you can from others.
One powerful way to do this is to find a mentor, or someone established in your field or a similar field who can give you words of advice and help you avoid making mistakes. Another is to make sure to take part in networking groups and to engage with other entrepreneurs. The more people you connect with and the more knowledge you gain, the better!
Set realistic and specific goals
If you want to gain confidence, become an independent thinker, and a better problem solver, do this one thing: Set realistic and specific goals.
Say that you want to increase sales for your business. It may not be realistic to say that you want to double your sales, but to simply have a goal to “increase sales” isn’t specific enough. However, setting a goal of increasing sales by 20% this year might be more realistic and is definitely more specific.
A goal like this is motivating, as it gives you something specific to work toward. It also allows you to break it down into actionable steps. You can begin to problem-solve, making specific plans for ways in which you could make your goal a reality. As you reach these milestones, you’ll gain more confidence in your abilities, which can help you move forward more confidently in your career.
Observe, but don’t copy
It can be very helpful to look at what your competitors and other entrepreneurs are doing. It keeps you relevant, gives you ideas, and can help keep you nimble in your chosen field.
However – this is important – you should never copy what others are doing. For one thing, it doesn’t work. Say you see someone killing it with a brand new hummus restaurant start-up. You can’t just start crushing chickpeas and expect success. There are lots of inner workings to the business that you’re not privy to, so even if you were to try, you couldn’t quite replicate someone else’s success.
Further, by the the time you copy, you’re already a follower and behind the curve. It’s better to use the information you observe as data, so that you can gain insight on things like effective marketing techniques and aesthetics, and apply these things to your own original ideas.
Think for yourself
You probably already guessed this one, but to forge your own path in business, you need to learn to think for yourself. So…how do you do that? Education is key. You need to absorb all of the knowledge you can, talk to as many people as you can, and observe as much as you can.
It’s almost like you’re forming your own personal library of data and resources. As time goes on, you’ll become better able to use this knowledge that you’ve gained to put your own unique ideas out in the world. You’ll be better able to generate ideas and to come up with intelligent solutions.
Let yourself grow over time
Ultimately, if you want to forge your own path in business, you need to be patient. Expertise, independent thinking, and autonomy won’t all happen overnight, so take the pressure off of yourself.
Remember: Patience is a trait of some of the most successful people. Focus on progress, not perfection. If you want to be successful for the long haul, allow yourself to learn and grow and continue to improve over time. Slow but steady, right?
This article was originally posted here on Entrepreneur.com.
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