Recently we closed down some of our businesses. These closures were pure because the business model and products that we were working on were just not working. That is life. Things work and things don’t. However, what was interesting for me was that one of the blogs picked up that we had closed some of our businesses and many of the comments were negative and critical of us failing. It was then that I remember the Thomas Edison quote of “I failed my way to success”.

The business we closed down was called SoBox – short for social media in a box.  It was aimed at providing the real estate agent market with an out of the box social media solution.  In launching the product we discovered a few things.  Firstly that most real estate agents really dont have much of an idea about social media and more importantly have almost no desire to leverage it.  Secondly, even when we did sell the product to agents, the cost of sales didnt meant we were losing $ on each sale.  So naturally we closed the business but took the learns and leveraged them into another product.

Now some of the pundits out there called this a failure.  Technically they are correct however from the failure came learnings and from learnings came new business opportunities.  So, overall, it is possible to turn failure into success – but only as long as we plan to fail and plan to learn.

So how should businesses approach failure?

Firstly, lets get real.  People fail.  Businesses fail.  No one is perfect.  It is only through trial and error that we are able to develop new and innovative products.

When planning the launch of a product, don’t be afraid to fail.  Put in place clear milestones / expectations of how the business will perform and then track performance against these targets.  If you are not meeting expectations, then look at why this is happening.  Is it the product?  Is it the customers?  Is it the general market?  Is it your go to market approach?  What ever the reason roll up the sleeves and find out what is happening otherwise you will continue to fail to meet expectations.

Often any brand damage is reduced by small market trials where you can enter and exit the market without much noise.

If the product or go to market approach cant be fixed, don’t be afraid to pull the product.  You are better to take a product off the market to fix it than to try to fix it while still in the market.  And if you come to the conclusion that the product or business model just doesn’t work, close the business. This better than pouring good money after bad.

Hold post mortems.  Look at all aspects of the business and find out why things arent going to plan.  Talk to customers, sales people, anyone who will listen and has an opinion.  Learn learn learn!

Finally look at what you have achieved and what you have learned and then see if these learnings can be applied to a new product or service.  Too often large businesses lose the knowledge they have gained purely because different parts of the business are involved in the project.  Therefore having cross business project teams is also important so that knowledge is not lost.

The greatest crime for any business is not failing but failing to try!

I want to become an entrepreneur but I have no prior business experience. I have been researching possible business products and ideas. What is the best advice could you give to people like me with burning desire to become an entrepreneur but have no prior business experience? What are the things I can do to accelerate my learning curve?

Having been an entrepreneur for a while, here are my ideas about what it takes to become one.

First and foremost you need to have an idea. The idea needs to be based on some sound business practices and have a chance of being successful. The idea needs to be fairly well thought through but not analysed to death. If you do this, you are definitely not entrepreneurial.

Once you have an idea which has a chance, you need to get on and do it. Entrepreneurs don’t wait to be asked to run a business, they just make it happen. They take their idea, work out what they need to do to make it happen, and then get on with it.

By default, entrepreneurs take risks. They often run where angels fear to tread. They take their ideas and throw themselves into them. They go to potential customers and start talking about their ideas, even before they are born. They realise that they may fail but plough on never the less.

One thing that clearly differentiates entrepreneurs from run of the mill business managers is their passion. They passionately believe in their product or service and can’t understand when people don’t see the same potential as they do.

Entrepreneurs come from all walks of life. Some have been in business before while others have no formal business training. They all share the same common belief in their products and services.

Anyone can be an entrepreneur. They just have to start following their dream.

However for every one successful entrepreneur, there are hundreds who fail. The difference between those that are successful and those that are not, is a number of things. Successful entrepreneurs keep modifying and changing their products until they get it right. They listen openly and honestly to criticism and take it on board. They have a head for business and understand the realities of running a business – both the cost and revenue sides. They realise what their strengths and weaknesses are and put people around them to compensate where they need help. They are well funded or are able to raise funding. And finally, they have a heap of luck.

Therefore, the best way to accelerate your learning is to jump right in with your idea. Don’t be afraid to fail – it is all part of learning. Anyway, you never know, you just may be successful.