When starting a business, we often hear words of encouragement, motivation and prognosis of our inevitable success. The mere hint at possible failure is chased away and frowned upon.
True, it is essential to stay positive. But should we ignore the idea of failure altogether?
After all, more than 90% of startups DO fail. And recognizing this right off the bat can prepare us (emotionally and financially) for the worst -case scenario.
Planning for failure doesn’t make you negative or paranoid. It makes you smart.
There is a big difference between being prepared for failure and actually thinking you will fail.
The latter is highly discouraging and curtails growth. The former, on the other hand, is about being practical and thoughtful about all of the possibilities that may occur. In some ways, it can even encourage entrepreneurs to progress because being prepared quells fear and prods you to keep going. for failure helps me anticipate challenges so I can prevent them from happening.
Additionally, being honest with yourself and thinking about potential failure enables you to identify mistakes that you’re making in your business, so you can correct them more quickly along the way.
It helps you be more objective.
How often have you heard people calling businesses “their babies”? Too often, probably. The truth is , we do get attached to our projects and start thinking of them as flawless and perfect. Allowing yourself a possibility of failure, pushes you to look at the facts, consider unpleasant moments and enables you to be more analytical and objective.
Recognizing that you might fail keeps you on your toes.
Remember when Steve Jobs told us to “stay hungry”? Acknowledging the possibility of failure does just that. Knowing that at any point your venture could take a wrong turn keeps you being self-satisfied and lazy.
Remember it takes years to build a company and one simple mistake to bring it all back to nothing.
Planning for failure makes it easier to move on. Preparation can help soften the blow in the event that your company hits the rocks. And if it happens, you will have a plan-B and will be prepared to handle the consequences. And because you were prepared, you will not be discouraged from embarking on a new business projects when the time is right.
No one wants to face the dreaded “F” word, but even the most successful entrepreneurs experience their share. It’s simply part of the game. And, who knows? It could even serve as the foundation for something far bigger and better.