Did you fail at your first startup?
Well… then fasten your seatbelt and get started on launching your second venture soon.
This is because there is a higher chance that you’ll succeed the second time around.
It’s true; I’m not just saying it!
This is according to a research conducted by the economists Kathryn Shaw from Stanford University and Francine Lafontaine from the University of Michigan.
Even so, your success will not be certain, unless you use the lessons learned from your failed startup. So, you can only succeed when you see your former failure as a valuable experience.
Also, the research didn’t just focus on tech startups, which appear to be the norm these days. Instead, it studied the successes and failures of small retailers.
Instead, it studied the successes and failures of small retailers.
So, you need not say to yourself, “Ah, no, it’s about tech startups again and not me,” if you haven’t bitten by the tech bug.
So, let’s take a look at what the reports say:
- The research examined 22 years of records of 2.8 million Texas-based retail entrepreneurs.
- They found that a total of 2.5 million retail businesses were started and 2.2 million businesses were shut down over the period.
- The median length of time a business survived was only two years and the average length of time was around 3.5 years.
- First-time entrepreneurs founded three out of every four retail businesses that were started during the period studied.
- Only a quarter of the failed first-time entrepreneurs opened a second business. But, they were more likely to succeed with the second business.
- Serial entrepreneurs found success mostly with a new line of business. For example, a clothing store owner got more success when she opened a hair salon next.
Well… it’s just not the research report.
Look around and you will find plenty of examples of second-time successful entrepreneurs.
One such example is Bill Gates.
His first company was Traf-O-Data and it was a failure. But he and his partner, Paul Allen, applied the lessons they learned in Microsoft and that’s what made Microsoft one of the largest software companies in the world.
This is proof that you should never give up.
The people you see on the Forbes list of billionaires also went through a lot of failures over and over again, whether it is Sir Richard Branson or the Oracle of Omaha, Warren Buffett, or the Steel Legend, L.N. Mittal.
And, even if you don’t find success with your second business, keep trying and trying!
Who cares? Life is about moving on and so is the business!
Remember the famous quote of Thomas Edison?
Here’s another quote to get you going:
People fail if they give up when they are very close to success.
So, are you going to launch your second business now or give up? And, if you are starting your first venture, don’t worry and take the leap.
Featured Image Credit: Phi Delta Theta under Creative Commons 2.0. with minor changes (quote addition) by the Flop2Hit team.