Why do failures tend to disappear from business education curriculum? Information about business failures is often scarce or ignored completely, yet it is inevitable.
On the other hand, information on successful companies and their success strategies is in generous supply.
Companies that pursue unsuccessful strategies either learn to change their business strategies or they go out of business. A successful company is described as having used visionary management and innovative marketing strategies while a failing business is accused of poor business management and overall bad business skills.
So why don’t we teach future entrepreneurs more about failure?
Wouldn’t that save you a ton of money learning from mistakes that could have been avoided in the first place?
Can you imagine telling your banker to add an additional $20,000 for the mistakes that you plan to make in your new business venture?
Your banker would think you were crazy! Yet that is exactly what is going to happen while you develop the business. You simply must make mistakes to see what works and does not work to attract new customers.
It is necessary to make mistakes as any business grows.
The reason why franchises have a larger success rate than independent company start-ups is because they teach how to avoid making mistakes. For the most part, franchises come with proven success systems that were created out of learning from past mistakes.
You’ll learn more about systems and how to create your own later on in a future post.