Evan Williams, a former CEO of Twitter, has a tough story behind his success. Before running Twitter, Evan was building a podcasting platform called Odeo. However, the project didn’t take off because Apple announced the podcast section in iTunes store at the same time. Unable to compete with the rival, Odeo was folded shortly afterwards.
James Dyson, a British inventor and founder of Dyson company, is the man who created Dual Cyclone bagless vacuum cleaner. In his long journey towards success, James took 15 years and kept all of his savings to develop prototypes of a vacuum cleaner. Before inventing one machine that finally worked, he had to go through 5,126 prototypes that failed first.
Momofuku Ando, the man who invented instant noodle, had a small merchandising firm in Japan. Ando was coming up with the idea for instant noodle which is loved by millions of people around the world today. Yet, in 1948, Ando was convicted of tax evasion and spent two years in jail. Then, he lost his company due to chain reaction bankruptcy.
Learning from three successful entrepreneurs above, we can see that starting and running a business is a tough challenge. The chance of facing a failure is always there. In fact, only a few entrepreneurs ever make it big without experiencing great loss. Be it falling down into the ground, getting fired from a job, or even dealing with bankruptcy, almost all businessman experience massive failures before accomplishing their dreams.
As Albert Einstein once said, “Failure is success in progress”. This means that instead of mourning your loss about the collapse, you should rise again and never give up. Anticipation can also be one of the ways to not experience great failure – or at least minimise it. Hence, knowing these 3 best tried and failed business can help amplify your chance of achieving success.
01 Direct sales
A data shows that only 20 percent of retail products are purchased through direct sales reps, while a staggering 99 percent of direct sales suffer significant financial loss. Why? Direct sales is a business where the owners should have exceptional sales ability, stamina, and drive to succeed. And if you lack any of that, you will likely to fail in direct sales marketing. Improper training and lack of motivation are also two factors that lead to an unsuccessful business.
02 Independent restaurant
Usually, restaurant owners are skilled with their craft but not at a business. In independent restaurant, owners often think to be success alone. Therefore, it often fails. A data shows that there are up to 59.4 percent failure rates for independent restaurant due to improper marketing. The data also show that failure rate is higher in areas with a higher concentration of restaurants. Too tight competition among business rivals could be among the reasons behind this finding.
03 Retail stores
Retail stores are more vulnerable to failure due to fierce competition. Data shows that 80 percent of retail clothing stress fail in the first 5 years. The failure is caused by poor management, tough competition, and poor marketing. However, you could succeed in retail stores as long as you have a good marketing strategy as marketing is key to consumer interest. You can rent a high traffic location which is important to easily get consumer but often too expensive for business owners. Owning a retail store also means you should have a significant initial investment.
Read also: 3 Signs You are Your Own Business Enemy