Entrepreneurs Not Afraid to Fail, Survey Shows

As the saying goes, if at first you don’t succeed, try, try again. As a business owner, this is a good vibe to have.

Many people have business startups, but having one does not equal success. While roughly 80% of businesses survive their first year, that rate declines to about 50% by the fifth year.

This is the sad reality of owning a business, but the good news is that those who fail are not quitting. Founders are still launching companies at record levels despite economic uncertainty. And although the failure rates can be high, entrepreneurs are pushing forward.

A startup studio called Wilbur labs surveyed 200 startup founders and asked them about failure. According to the study, more than 80% of entrepreneurs said going through a startup failure actually made them more (not less) likely to launch a new company.

The survey also showed that 81% of founders pivoted from their original idea, with 57% making more than one pivot. More than 40% of founders said that pivoting was essential to preventing failure. The reasons for pivoting include competition and shifting market dynamics (45%) as well as technology or product issues (44%).

Many founders learn from past mistakes to increase their odds of success. For example, the founder of GoPro first launched a gaming and marketing platform called Funbug in 1999. This company later folded, but he later came up with the idea for a wearable action camera while on a surf trip and that was when GoPro was born.

That is not the only failure to success story. One man started a gaming company and had an online game called Glitch. When that shut down, his team built Slack, which is now used by many businesses for messaging and communication. Another founded a peer-to-peer file-sharing search engine called Scour but after it went into bankruptcy, he co-founded Uber, a popular rideshare service.

It is important for entrepreneurs to be flexible. Being able to pivot and try something new is the way to succeed in startup life. For example, Shopify began as Snowdevil, an online snowboard shop. Instagram began as a location-based social app called Burbn. YouTube was originally conceived as a video dating site before its founders used it as a quick way to share videos.

Aspiring business owners should not be afraid to fail, as it can be a valuable form of training. A failure gives you a chance to look at your mistakes and apply what you have learned. You should also use failure as an opportunity to seek advice from others.

Learn More About Business Start-Ups

Being a business owner means having a positive attitude. Many businesses fail, but being able to keep on going is an excellent characteristic to have.

Orlando business start-up lawyer B.F. Godfrey from Godfrey Legalis in the business of helping entrepreneurs realize their dreams. Being successful takes a lot of time, money, and effort, but we can help make it happen. Call (407) 890-0023 or fill out the online form to schedule a consultation today.

Source:

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