Failure: The Quickest Path To Successful Entrepreneurship
Entrepreneurs find solutions to gaps in the market. For this reason, an entrepreneur may move through many business ideas and industries in one lifetime. The coronavirus pandemic shed a blinding light on these gaps and 2021 has seen the highest investment rate in start-ups in the last five years. However, not every idea can develop into a successful venture, or be profitable in the long run. The pandemic saw the rise of many new tech companies but also the end of long-running businesses. Whether a venture succeeds or not, failure is a stepping stone for all entrepreneurs as it was for some of today’s industry leaders.
Alok B Shriram was born into a business family, this meant he had a lot to prove. Working at every level, starting from the shop floor and up, to gain experience. “I was fortunate to start in a business that was not doing well because then you can experiment” states Shriram. The challenge of the time was to make their factories profitable, which Shriram was able to do, which included making tough decisions. He shares, “I had the unpleasant task of telling my grandfather that this technology was far too sophisticated for us at that time and we had to dump it.” The decision did eventually lead to the company selling for a profit. He advises young entrepreneurs, “You are a risk-taker, you cannot be defensive and be an entrepreneur. If you are not able to roll with the punches you cannot be a businessman.”
At the age of 18, Nirmal K Minda found himself studying and working to help the family business. A business that his father has started from scratch with 30 employees. Minda went through the cycle of borrowing money with high-interest loans while keeping the business afloat. The motivation to not give up was simple, it was not an option. Minda talked through anecdotes of waiting for hours to see potential dealers, being turned away from his higher-ups for not bringing enough revenue and losing deals with major corporations. Repeating the popular mantra “Where there is a will, there is a way” and “have faith”, as the losses or ‘failures’ only paved the way for more opportunities. “Failure is a learning opportunity and a challenge and we must always look at the countermeasure, never compromise your ethics, have patience and have optimism and simplicity” Minda advises.
Surendra Kr. Arya also found himself in his family textile business during and after his graduation. Wanting to experiment and take risks, he decided to venture into LPG Cylinder manufacturing. Initially, the business saw growth, but due to a policy change, Arya lost all his clients overnight. He expressed, “I was not losing hope, I asked: what else can be done with the capacity created by me?” Having to choose between returning to the family business and trying to salvage his business, Arya chose to venture into auto part manufacturing. This worked as most industries were looking for localisation. Arya also reminiscences over a failed diversification project they took on in waste management that had to be closed down in three years. Arya emphasises the lesson from this failure, “We used those learning in Sonipat, where we put up a new plant which is waste-to-energy”. Arya’s approach is to expand the business by asking: ‘What else can be made with the material we already possess?’ and ‘what do we need that we can produce ourselves?’.
There are challenges at every level of a business, getting started is just the first step. Global leaders still agree that there is a lot to learn and many different directions to move in. While no one can predict the future, entrepreneurs must do their research, know their market, take risks and trust their instinct. As Arya asserts, “Milestones are not the destination; we need to keep redefining these. Everyone needs to rise for themselves. You must also have empathy, everyone should be ready to walk an extra mile.” Hard work and perseverance will get your business off the ground. Maintenance of the business, managing staff and creating a safe work culture are ongoing challenges. Minda concludes, “Keep hard-working, with honesty, passion and optimism. Do your best and leave rest to god”. Shriram further adds, “ I have great faith in the next generation. We have to push to get rid of laws so that the youngsters do not have to fight the way we did.”
Anil Khaitan, Chairman, Sunil Healthcare Ltd sums up, “Perseverance, Patience and Passion” are the soft skills needed to succeed. He adds, “Proper prior planning prevents poor performance.”
Failure can occur due to many reasons. It may be poor planning on the entrepreneurs part, an external factor like changes in law, policy or even an unprecedented pandemic. Whatever the situation may be, failure is a roadblock not the end of the road. Most successful businesses are built from those willing to learn from their circumstances and adapting. Taking risks is important but so is knowing one’s strengths, the market and planning. With more investment in the market, this is the golden period for entrepreneurs to experiment and find the supply gaps in the market.
