Interestingly, startups often face situations in which they combine a lot of risk-taking, uncertainty, and innovation to create a unique business world. While this may look so attractive, it’s impossible that they won’t face setbacks and failure during their journey, and it may sometimes be frustrating; they’re all part of the road to success when operating a business. At times, when you have setbacks during business, it may spur your actions to become more improved and better to achieve better results.
When individuals fail in their endeavors, they can take hold of some opportunities to help them learn effectively, prepare strategies and plans towards accomplishing business results efficiently, and find it easier to grow and develop personally and professionally.
There is a beloved quote that says, “It is good to have a failure while you’re young because it teaches you so much. For one thing, it makes you aware that such a thing can happen to anybody, and once you’ve lived through the worst, you’re never quite as vulnerable afterward.” – Walt Disney.
That means experiencing failure earlier in business helps you to build strength and character over time, which inevitably makes your company able to withstand tough times and adapt to challenging situations. Moving forward in this beautiful piece, we’ll be looking at some ways through which setbacks help heighten startup growth.
Reasons Why StartUps Experience Failure
Before moving to learn about how startups develop from their setback experiences, don’t you think we should talk about why they fail in the first place? It’s essential to note that there are so many reasons why startups fail, and their understanding of it helps them to be more cautious and approachable when they decide to forge on from these mistakes.
Some of these reasons responsible for their failure include the following:
1. Availability of Little or No Resources
In some cases, startups may find it challenging to follow through with their plan when they don’t have the complete package or lack inadequate financial and human resources. And that’s why you sometimes see them resort to implementing lean operations just to maximize the little resources they have. However, escaping this situation is possible by securing enough funding, planning financially, and possessing a team of astute individuals.
2. Presence of Intense Competition
Without a doubt, we are in a world where businesses are many, and before they can reach the highest height, they have to make plans to achieve such a possibility. In a place with intense competition, startups can find it challenging to develop innovations and have product differentiation, which can inevitably result in a loss in business. That’s why startups need to develop creative ideas and specific value propositions to overcome the competition.
How Setbacks Lead to Amplified Growth for Startups
Do you know that when startup owners experience failure, it’s always an easy thing for them to develop a mindset that is centered on growth? Rather than view setbacks as significant obstacles, they see them as a chance to improve, leading to situations like adapting excellently to challenges and learning continuously while following an already set goals for their startup growth.
Well, that being said, let’s take a brief look at some of the following ways through which setbacks lead to amplified growth for startups.
1. Improving Decision Making and Risk Management
One thing you should know is that when failure occurs, it often depicts a reality check. This reality check makes you look at some of the decisions you’ve made in business and identify the errors made in planning and execution. When this occurs, you can think strategically, manage risks effectively and improve decision-making.
2. Promoting Innovation By Experimentation
In a business where failure is often expected, there’s usually a culture of experimentation that celebrates success and predicts setbacks. In fact, in startup environments where risk-taking and experimenting with new procedures are often encouraged, innovation occurs most of the time. Immediately, they experience failure; it becomes easier for them to produce products that make their standing in the market firmer.
3. Developing a Tight Team
Have you ever heard of the adage that says, “Divided we fall, and united we stand?” It applies to startups experiencing setbacks, as overcoming a failed situation often brings the team together with a sense of purpose. Often, setbacks make teams much more united and build trust in themselves. Aside from the fact that they can experience growth through their belief in themselves, it also allows them to adapt to intense business situations and work together to accomplish the goals and objectives of a business.
What to Do Next?
Although setbacks can be a daunting experience for startups, embracing them is never a weakness. Setbacks do make startups sit tight with their operations and look for creative ways to improve the mode of activities and the chance to gain a more competitive edge in the industry. Setbacks can help your startup experience heightened growth by improving decision-making, promoting innovation by experimentation and developing a tight-knit team.