Failure Is Hard
- Posted by Jeff Carter
- on November 21st, 2012
One of the things about being in a start up is there is a high failure rate. As a matter of fact, and statistics, most fail. Learning from failure is one of the tricks of the game. Marc Pincus failed time and time again before Zynga ($ZNGA). The companies challenges since going public are just a different version of failure.
But, when companies fail, there is a last day. A finality. Coming to grips with it can be rough. There are a lot of trite sayings around failure. “It’s darkest before the dawn.” Blah blah blah. Easy to say, but tougher to internalize. Although, sometimes a good quote can get you pointed in the right direction.
For me, failure later in life was rougher than earlier. Maybe it’s because I had more on the line. Mentally, as you get older, failure sometimes feels tougher-except if you have failed enough in life you learn to roll with the punches and get going quickly. The other problem with failure as you get older, you have less options. Doors have been closed due to life experience or age. When you are young and fail, you have the ability to try new things or remake yourself.
The worst thing you can do with your life is fear failure. Taking calculated risks should be taught to everyone at a young age. That’s one of the reasons I detest the “everyone gets a prize”, “everyone is special”, mentality. Yes, everyone is a unique individual-but until you execute and do something not everyone is special. Our society has taken that to an extreme where it becomes harmful to people’s psyche later in life. You have to learn how to overcome loss in order to succeed and learning it with small losses early in life toughens you up for what comes later.
When I was trading, I never really thought about going broke. It could have happened just about every day I guess, but there were only a few days in my life that it was a reality. I failed a lot when I traded. Literally, everyday. Not everyone was a winner. It wasn’t luck. It was hard work. As I progressed in my career, I wound up even having losing years. Have you ever gone years without making a penny? I have. It’s not fun. I am reminded of a John Wooden quote, ”
Failing to Prepare is Preparing to Fail
You have to prepare. If you have done all that you could do before entering, and you still fail-make sure that you have created some sort of support system for yourself so that when you fall it’s not fatal. That support system allows you to bounce back more quickly and move on.
Running a business is tough. I guarantee that not everything will work. Hypothesis are formed, and tested. Some work, most don’t. Listening to the marketplace is an extremely tough skill to acquire. Tougher still is anticipating change, and preparing for it. Another great Wooden quote,
Failure isn’t fatal, but failure to change might be.
In this day and age, things move really fast. It’s not only trading that has been speeded up, it’s life in general. Companies form, and disintegrate quickly. New markets are created and exploited with lightening speed. Learning how to fail, roll with the punches, and then seizing opportunity is a skill that you need to have.
If you have little kids, let them fail. Let them make mistakes. Then counsel them about how they could either prepare better the next time to have success, or change what they are doing to make them successful. They’ll thank you when they are older.
With employees, you have to give them a certain amount of rope. Not everyone will accomplish tasks the same way. Once you find something that works, spread the practice throughout your company. As CEO, your role is to chart a vision, not necessarily the exact path on how to get there. Let the marketplace of ideas, and the cold hearted customer tell you the way.
Doing what I do now, I listen a lot. Instead of being a gladiator in the arena, I am more like Coach Wooden. A lot of coaching is helping your players bounce back and keep their chins up. Because you know that when they are in the arena, not every thing will go as planned.
When did you fail? What did you learn? How did you change? What did you change the next time you took a risk?
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Jeffrey Carter is an angel investor and independent trader. He specializes in turning concepts into profits. He co-founded Hyde Park Angels one of the most active angel groups in the United States in April of 2007. He previously served on the Chicago Mercantile Exchange Board of Directors. He has done market commentary for (More...)
Tags CloudAnti-Semitism BCS Beef Carly Fiorina Cass Sunstein Certified Public Accountant Compromise Crude Oil Dabble David Meerman Scott Employer Identification Number Federal Debt Financial Aid Financial Regulation Florida Forbes Fractional reserve banking Gawker Media Government Regulation Group Think Iowa Primary James Brinkley Jimmy Buffett JOBS Act KORUS Krugman Labor Day Overpopulation Patti LuPone Planned Parenthood Ploesti powerline contest President Property tax Reel Seed Stage Tesla Thai The Ventures Thomas Jefferson TSN United States Treasury security Van Gogh Wallet ZS_F
Becker Posner Blog
Ben Horowitz Blog
Betting the Business
Black Line Review
Blue Sky Innovation
Both Sides of the Table
Business News Network
Chicago Booth Graduate School of Business
Cooler By The Lake
Daily Economic Release Calendar
Doug Ross @ Journal
Economics of a POW Camp
Foundation for Families
Garden and Gun
George Stigler Institute
Good Beer Hunting
Great Food In Chicago-Steve Dolinsky
Hyde Park Angels
Illinois College of Business
John Taylor's Blog
Legal Issues in Angel Funding
Macroblog-Federal Reserve Bank of Atlanta
Microbrews in Chicago
Mike And G
Milton Friedman Institute
National World War Two Museum
Notes From Underground
Ronald Coase Institute
Senate Banking Committee
The Alpha Pages
The Big Picture
The Clubber Fund
The Daily Crux
The Grumpy Economist
The Jack B Show
The Minimalist Trader
The Musings of The Big Red Car
The Polsky Center
The Streetwise Professor
Tough Love Marketing
US Federal Reserve Bank
US House Financial Services Committee
World War Two Blog