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Why Failing Is Important For A Startup


October 26th, 2021 21:24

Why is failing so important? Especially for a startup?

The word startup itself suggests the starting up phase and everyone is aware of the fact that in every kind of field downfalls exist. A startup can be launched in any field but it is not always an easy path. But, it would depend on a company's ability to overcome these hardships and overcome them. So, is failing important for a startup?

Even if one has a good idea for a startup and has planned everything well, one would have to prepare for the minute failures as well. The way a company handles such situations and promptly works on them to become better would matter the most.

Why is failing so important?

It is important to note that not every startup fails but not everyone has a smooth ride to success. The higher number of challenges that a company would handle, the stronger it would be able to emerge in today's competitive market and boost the growth the company would be seeing in the future years.

What will happen if the startup won’t fail?

If a startup does not fail, there are some lessons that they would not be able to learn, especially in the nascent stages. These lessons can help a startup be prepared for future challenges.

  • A startup will not learn with every passing day

Failing teaches us lessons on how to become better. With every passing day, every company should grow internally as well as with its customer base. The products, services, and advancement in products should be enriched with passion and dedication by team members.

The entire startup failing can certainly be a shock and could lead to discouragement but it teaches the ways in which the idea would not work out. So, with better dedication and planning, the startup would be able to rise again.

  • The learning curve would be limited

If a startup faces no challenges, the days would end up becoming monotonous and end up causing boredom to the employees. The growth factor would be close to zero in such cases. Individuals will not be able to learn something new which could cause them to feel exhausted and a lower employee retention rate in the company.

Therefore, failing is important for both individuals and startups as it can help them build a healthy image and work towards being more creative when overcoming challenges.

  • A startup's team's growth will remain stagnant

Without challenges, a team's growth will remain stagnant. Everyone tends to make mistakes and when something does not work out as planned, one can work towards making it a success with a new mindset. This will help boost growth among the team.

It will also help build a new path for everyone on the team and encourage them to get up and get going!

  • Both employer and employees might lose focus

As mentioned above, without any challenges at all, a workday might simply become monotonous and could discourage both the employer and employees. This could also lead to both parties losing sight of their startup's long-term goals.

This can also be the main reason behind a business failure as well, but if they overcome this, they could work together to finding creative solutions to overcome any hardships their startups may be facing.

All in all, if one can learn from any past mistakes and ensure to take the appropriate steps to not let them reoccur, the chances of failure would reduce drastically and it will contribute to progress.


A startup failing is a good thing. In the words of Thomas Edison, "I have not failed 10,000 times. I have successfully found 10,000 ways that will not work.” If failure is approached with a positive outlook, it would help build a stronger foundation for the startup.

Frequently asked questions

1. What are the reasons for the failure of startups?

  • Various start-ups fail with their business idea in the first few years; the main reasons include lack of market demand and insufficient financial resources. 

 2. What is the number one reason why startups fail?

  • The number one reason why startups fail is no market need (around 42% of cases). A “no market need” company is defined as that which address problems that are interesting rather than those that serve a market need. 

3. Why is failure important in business?

  • Failures of all sizes provide a valuable benefit; they help to develop an entrepreneurial mindset that allows us to keep pushing forward. Every successful entrepreneur has experienced failure.

4. How can one prevent startup failure?

  • A unique proposition is one way of preventing startup failure. However, one would need to do effective calculations and invest in the right team. There are several other ways, but none are 100% effective. In the end, it is a hit-and-miss approach. 

5. What is a successful startup?

  • A startup that makes a positive impact on the world is often considered as successful.

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