The life of an entrepreneur is a rollercoaster ride of emotionally charged highs and lows. This amplifies with each new venture, especially if you are a serial entrepreneur constantly starting new companies. Over 20% of new businesses fail within the first year. Within five years, over 50% will falter. However, fear of failure prevents half of those with business ideas from ever starting. Many would-be entrepreneurs get trapped in analysis paralysis, unwilling to leap. For those bold enough to take action, the early days come with an onslaught of challenges.
- Validating the business idea and identifying customers
- Creating processes and structures from scratch
- Finding appropriate funding and financing options
- Competing against established players in the industry
With so many obstacles and unknowns, stress, anxiety, and self-doubt creep in. Entrepreneurs often tie self-worth strongly to their ventures. Early setbacks feel emotionally crushing.
Why failure hit serial entrepreneurs particularly hard?
While all new entrepreneurs face struggles, serial entrepreneurs must cope with amplified levels of disappointment. Each successive failure compounds, eroding optimism and resilience reserves. Many serial entrepreneurs achieve great success in building thriving companies and strong personal brands. This early demonstrated ability adds extra internal pressure. Previous wins set the expectation bar high for rapid gains with each new project.
Losing funding, missing milestones, or shutting down entirely marks a stark public failure when reputations are at stake. Imposter syndrome and questions of competence take over, fuelling depression. Additionally, many serial entrepreneurs use savings, loans, or investments from past wins to fund new ideas. Failing fast means financial ruin. Here are key strategies for bouncing back from business failure as a serial entrepreneur while retaining belief in yourself.
- Validate your idea early and often
Many entrepreneurs fall in love with their product concepts and bullheadedly pursue development without truly testing customer demand first. Building features no one wants is a wasted effort and is bound to fail. Talk to real prospective customers first to qualify their needs and interests before writing any code or creating products. Use crowdfunding sites to assess the desire for the solution. If no one is willing to commit dollars, it is time to reassess. Continually test prototypes and marketing messages with your target segments. Ensure the messaging resonates and the offer scratches an itch they will pay to resolve.
- Embrace the scientific method
Think like a scientist running disciplined experiments seeking results. Make a hypothesis about a business model, marketing tactic, revenue stream, etc. Set up small tests with appropriate controls and metrics to measure outcomes. Review the data objectively while removing emotion. If the hypothesis fails, embrace the learning and new insight gained. Adjust, and craft a new experiment. Detach self-worth from any one test by orienting around curiosity. Make progress by ruling out what does not work through objective experiments.
- Develop robust support systems
Cultivating robust David Lolis and professional support networks serves as a stabilizing force amidst tumultuous periods. Identify mentors who provide wisdom and guidance from their own experiences when adversity strikes. Ensure advisors include veterans familiar with startup ownership struggles. Foster relationships with other founders facing similar challenges. Discussing hurdles facing first-time leaders with peers normalizes doubts. Confide in personal relationships outside the company about vulnerabilities and challenges. Intimate social support systems increase resilience to depression and burnout during difficult episodes. Connecting your entrepreneurial mission to meaning beyond yourself is essential for inspiration and motivation renewal.