Failure is inevitable, however it is how we handle this failure that shapes our future. “90% of startups fail,” yet many entrepreneurs who experience failure would rather bury their head in a pillow, sweep it under the rug and move on. While this is human nature, taking time to reflect on the failure is essential for future success. With failure there are always lessons to be learned, and as we see it, failure is just a hurdle on your way to success. Below are three types of failure that entrepreneurs experience but rarely want to talk about.
Product Design Failure. Product development is a complicated process and design failures happen for a number of reasons—the solution is to minimize failures through prototyping and testing. The last thing you want to do is find a defect once your product has been manufactured. Avoid this costly mistake by taking the time to design, prototype and test your idea. Rushing to the manufacturing stage before the product has been adequately tested by your team, and market test group, significantly increases your potential for failure.
Funding Failure. The simple truth is that not all crowdfunding campaigns are successful and not all investors are going to believe in your project. If you plan to pursue crowdfunding for your idea, then take the time to set up a campaign that creates momentum, excite people with a superb video and provide incentives that people actually want. The great thing about crowdfunding is that it is forgiving, and if your first campaign fails—reevaluate, redesign and relaunch a few months later. Remember the Coolest Cooler? The first campaign for it was a total flop in 2013, but in 2014 they tried again and the campaign raised a total of $13 million (26x their funding goal)!
If you plan on meeting with investors to help fund your startup, keep in mind that it is rare to find the perfect investor during your first pitch. Research investment companies that are interested in your product offering and target investors that have similar business interests as your own. Master your pitch and present a flawless presentation to get investors excited about your idea.
Startup Failure. Out of the three types of failure we are discussing, this is the hardest one to move on from. Entrepreneurs pour their heart and soul into their startup, so when it fails, it is particularly devastating. While startups fail for a variety of reasons, the top reason startups fail is that they are making a product no one wants. “A careful survey of failed startups determined that 42% of them identified the ‘lack of a market need for their product’ as the single biggest reason for their failure.” If you are going to spend time and energy making a product, make sure it’s the right product for your target market.
Business failure in any capacity is not particularly enjoyable, however it does not mean that it is the end. While success is easy to talk about, keep in mind that no great success was ever achieved without failure.
3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.
Startup Connector is a Manufacturing Accelerator helping companies commercialize—turning ideas into products.