Starting a business is tough, staying in business, even tougher.
The harsh truth is about 33 percent of all new ventures fail within two years, and about 50 percent are out of business within five years, according to the U.S. Small Business Administration.
In fact, just one out of four is still around 15 years after opening. However, studies also show that failed entrepreneurs are far more likely to be successful in their second go-around, provided they try again.
Tyler Perry recently wrote to that effect in an email letter he sent to his fans. “Do you know how many times I tried to be successful at doing plays before it finally worked? From 1992 until 1998, every show I put on flopped. No one showed up, and I lost all my money. I wanted to give up. I thought I had failed, but the truth is, I never failed. Each and every time the show didn’t work, I learned something new. I learned what not to do and what I could do better,” wrote Perry. His first staged play, “I Know I’ve Been Changed” was considered a financial failure when it first debuted in 1992 before he revamped it and found success taking it on the road and touring from 1998 to 2000.
The gospel playwright made his foray into films transposing many of his straight-to-DVD stage productions into screen gems, dating back to 2001 when he introduced his play “Diary of a Mad Black Woman” to wide audiences via DVDs that were sold on his website. It was the $50.7 million box office success of his 2005 debut “Diary of a Mad Black Woman” that landed him a lucrative first-look, multiyear distribution deal with Lionsgate Entertainment.
The rest is history, with Hollywood writer/director/producer powerhouse churning out 17 films in 10 years, which have a lifetime gross of about $845 million worldwide, and six television shows.
“You have to understand that what you may perceive to be a failure may very well be an opportunity to learn, grow, get better, and prepare for the next level. If you find the lessons in what you perceive to be failures, then you won’t ever fail at anything,” said Perry. “Everything I learned during the ‘learning’ years (that’s what I call them now) has helped me in the ‘harvest’ years (that’s what I’m living in now). Don’t be hard on yourself. You haven’t failed. Find the lesson so you can use it when you get to your harvest.”
Perry is not alone. Many entrepreneurs feel the same, including members of the Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.
Here’s what some YEC members believe is the best way to get past the fear of failure.
1. Know that you can bounce back
“Donald Trump famously filed for bankruptcy four separate times. By no means am I saying this should be part of your business plan, but as a worst-case scenario, it’s affirming to know that you can bounce back,” says Matt Ehrlichman, founder and CEO of Porch, a home improvement network.
2. Don’t be afraid to reach out for help
“Entrepreneurship can be a struggle, but you don’t have to go through it alone. Knowing who to turn to when you need advice will help make the lows more bearable. When co-founders and investors may be unable to help, try to seek out an experienced entrepreneur distant enough from the business to offer the advice you need (whether it’s personal or professional),” says Tyler Arnold, founder and CEO of SimplySocial Inc., a social media software tool.
3. Learn from your mistakes to prevent failure
“The only time you fail is when you don’t learn from your mistake. If you’ve learned a lesson in defeat, then go back out and apply your new knowledge. I’ve made tons of mistakes, but I’ve had very few ‘failures’ because I make those missteps valuable experiences,” says Nick Friedman, president and co-founder, College Hunks Hauling Junk and College Hunks Moving, a junk removal and a moving franchise business.
4. Fail fast
“There are two big benefits from trying and failing quickly. Number one is that you can quickly figure out what isn’t working and iterate to find a new solution that is better. Number two is that each failure lessens the sting a bit, so the quicker you can get acclimated to the idea that not everything will work, the better,” says Patrick Conley, founder of Automation Heroes, a marketing strategy firm.
5. Talk about it
“Too often, entrepreneurs feel they must be eternally optimistic, particularly in front of employees, customers and investors. It’s essential to have trusted confidantes with whom you can be completely honest—for better or worst—and talk through some of your biggest challenges and deepest fears,” says Martina Welke, co-founder and CEO, Zealyst, a curated networking service.
