How to start a business from scratch

Lesson One: The fastest way to build a successful business from scratch is to fail fast

What the hell is this guy saying! That’s usually the exclamation I hear from my protégés when I tell them lesson one. Nobody wants to fail; neither do they want to be associated with failure and maybe that’s why most people will never start a business successfully.

“Success is a poor teacher. We learn the most about ourselves when we fail, so don’t be afraid of failing. Failing is part of the process of success. You cannot have success without failure.” – Rich Dad

To build a successful business, you must be willing and prepared to fail. Even though your ultimate aim is to succeed; you must be prepared to accept failure when it comes, pick up the lessons from your fall and move on. I have not seen a successful entrepreneur without a stint of past failure. Just as Rich Dad said above, failure is part of the process of success. All great entrepreneurs have had one or two experiences of failure. As an entrepreneur, I have hit ground zero a couple of times but I don’t think I am alone in this ordeal.

“The business empires built by successful entrepreneurs were erected on the foundation of past failures.” – Ajaero Tony Martins

a) Thomas Edison failed 10,000 times before he invented the incandescent bulb and he went on to build General Electric (GE); one of the most powerful companies in the world. This is what he has to say;

“I have not failed. I have just found 10,000 ways that won’t work.” – Thomas Edison”I have not failed. I have just found 10,000 ways that won’t work.” – Thomas Edison

b) Henry Ford had two business failures and with the experience gathered from those business failures, he went on to build Ford Motor Company and became one of the richest men in history.

“Failure is just a resting place. It is an opportunity to begin again more intelligently.” – Henry Ford

C) Sir Philip Green had four business failures before he hit his first million at the age of 33.

d) Robert Kiyosaki had a major business failure when his Nylon and Velcro wallet company crashed; and with the experience from this failure, he went on to build the Rich Dad Company.

“Losers quit when they fail. Winners fail until they succeed.” – Robert Kiyosaki

e) Mike Adenuga, the second richest man in Nigeria and the owner of one of the most successful mobile network in Africa “GLOBACOM” also had his own share of failure. His first attempt to start a mobile telecommunication company failed and he personally lost $20million; but that did not stop him from buying another telecom license.

From the illustrations provided above, you will come to agree that failure is not as bad as it’s painted to be. Human perception towards failure is the major reason why I hate talking about my successes. Success stories; though inspiring, seem to attract fools and lazy bums into the world of business and investing. I believe you will learn more from my failures than my successes. Have I had my own share of business failure? My answer is a resounding yes.

“I can accept failure, everyone fails at something. But I cannot accept not trying.” – Michael Jordan

My Personal Business Failures

1. The very first seminar I organized was a flop. We advertised heavily, the response and inquiry rate was good; and my expectations were high. But on the D-day, it rained heavily and the expected attendees failed to turn up. I lost 100 percent of my invested capital including that of my partner.

2. I have lost money in a couple of online investments that didn’t yield a dime.

3. I have lost a lot of money when i started out as a stock investor; and this was due to my being ignorant about the workings of the stock market. In fact, one of the companies i was heavily invested in went bankrupt, was nationalized and my share became worthless. But did this stop me from investing? My answer is NO. I simple went back to the drawing board, get more intensive training and bounced back.

4. My first information product flopped even after investing heavily in buying ads. No single sale was made, not even a dime. But that did not stop me from creating other information products.

5. I once signed up for a multi-level marketing company. The company was great; the products were excellent and the compensation plan was superb. The company had a proven track record of success and successful distributors to show for it. Everything was perfect but once again, I failed to breakthrough. I think I will share the lessons learned from this particular experience; and if you must know the company I signed up for was GNLD, I still have their membership card with me. The card reminds me of the time i spent with great men and women, who rose from grass to grace.

6. I have been a distributor for two different companies that ended in liquidation.

7. My first major online business flopped because I lacked experience and the technical know how to run it.

8. I have being shut out of good business and investments opportunities simply because of my nationality. I want to state categorically that I am a Nigerian to the bone and I am proud of it; I love my country.

9. I have had good business ideas that i failed to bring into reality and i also had some businesses launched but they failed to break even.

10. I have been offered the opportunity to invest in some startup companies but i turned them down and these companies later became big companies.

“Get mocked at for as much as you can, fail as much as you can but don’t quit. Let every mockery, every failure, be a source of inspiration for you to reach for greatness and that greatness will silence your critics.” – Ajaero Tony Martins

Despite my massive failures, the experience i gathered from these failures is priceless. You will never know what works and what doesn’t, if you don’t fail. You will never know your limitation and capabilities until you risk failing. Am I a failure? I don’t think so because I have not quit the entrepreneurial process; I am still in the game. I alone can declare myself a failure and since I have not declared it; I am not. Today, i am a better entrepreneur and investor because of the experience i have gained over time.

“For every failure, there’s an alternative course of action. You just have to find it. When you come to a road block, take a detour.” – Mary Kay Ash

I believe these illustrations have opened your eyes to understand the importance of failure on the road to business success. Your ability to accept failure as a learning process is a way forward in the process of building a business.

“How many people are completely successful in every department of life? Not one. The most successful people are the ones who learn from their mistakes and turn their failures into opportunities.” – Zig Ziglar