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It’s a sad reality that many businesses will fail — in fact, around 18 percent of businesses tend to fail within their first year of operation. However, a failing business doesn’t have to be a total loss for an entrepreneur. There are often many valuable lessons to be learned from a failed business — whether it’s your own or another brand’s. The key is figuring out what those lessons are and how you can apply them to your next business venture.
As leaders in the culture space, the members of Rolling Stone Culture Council have seen many businesses come and go. Below, they share the notable lessons they’ve learned from the failure of a business and how that has impacted how they lead now.
Slow Down and Listen
I’ll never forget this as long as I live: Thinking you are the smartest one in the room or know it all can ruin a project or collaboration and, more importantly, destroy culture. I remind myself daily that we have two ears and one mouth for a reason. I try to listen better and more intently as well as slow myself down before cutting people off or getting distracted if it is something I think I already know. – Matthew Forster, CMS Nashville
Try Not to Take Things for Granted
As simple as it sounds, never take anything for granted. Appreciate the customer and the opportunity you have to control your future. Stay focused, stay informed and stay current. Also, share your vision with your team so your customer experiences exceptional service — not just from a few, but from all. – Mike Parham, Bearly Awake Coffee and Adventure
Stay True to Your Core Business
Never try to be everything to everyone. Straying from your core product dilutes resources — both in terms of bandwidth and money. Every time my company has created auxiliary product lines, we have ultimately backed away from them because they take attention from our primary business. The first question that I now ask of new initiatives is, “How will that add to or subtract from our core business?” – Vanessa Nornberg, Metal Mafia
Consider Your Customer’s Point of View
I used to get very frustrated with challenging clients, and that created a barrier to delivering great work. Now I try to see the world through their eyes, and this has been very helpful. Also, using challenging situations as learning tools even when you know the problems are not your doing is a game changer. Empathy and kindness are amazing relationship builders! – Michael Newman, The Bureau of Small Projects
Show Up as a Leader to Drive Engagement
“Culture reflects leadership” — employees follow the leader. In a past role, poor leader attendance led to widespread absences during critical customer care windows. By showing up, listening and engaging, I drove a cultural shift where people felt valued and wanted to contribute in person. Now, even in a hybrid world, true engagement with teams — virtually or in person — makes all the difference. – Marissa Andrada, Marissa Andrada
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Build a Solid Foundation First
Early on, I thought bringing in partners with complementary skills was a solution. With too many cooks in the kitchen, we couldn’t agree on anything, and that stalled our progress. I recommend you focus on building a solid foundation for your business first. Then consider bringing in partners — or better yet, hire skilled professionals to fill those gaps. – Kice Akkawi, Treblemonsters
Create Space to Realign Your Feelings and Objectives
The first time I finished a half-marathon, I felt awful. I had undeniably succeeded at my goal, but I sure didn’t feel like it. Those moments of emotional disconnect are tricky to navigate, and I have seen leaders ruin their successes because their feelings had not yet caught up. Creating space to realign our feelings and our objective realities is critical for charting an effective path forward. – Jed Brewer, Good Loud Media
Prioritize Innovation and Agility
Failing to adapt to market changes can doom even the strongest brands. This taught me to stay agile and prioritize innovation, ensuring my leadership fosters flexibility and forward-thinking. – Francis Hellyer, tickadoo
Ensure Goals Are Ambitious but Achievable
A key lesson I’ve learned from business failures is the danger of overpromising and underdelivering — whether to consumers, partners or investors. Expectations shape perception, and failing to meet them erodes trust. This has taught me to lead with transparency and ensure goals are both ambitious and achievable, prioritizing consistent delivery over fleeting hype. – Calvin Rasode, Brains Bioceutical Corp.
Stay Updated on Customer Needs
Stay current with customer needs to maximize user satisfaction. To prevail in a constantly changing business environment, you need to be open-minded and adapt to shifting preferences in real time. Those who don’t embrace change lose control over their future and endanger their market share. Someone is going to disrupt your business — make sure it’s you. – Dustin Eide, CanPay
Train All Execs and Managers on Financial Literacy
One critical lesson to be learned from failed businesses is the importance of financial literacy for all executives and managers, regardless of their role. A strong financial understanding throughout the organization can help identify and prevent potential financial issues. This shared responsibility for financial oversight can significantly reduce the risk of mismanagement and ensure the success of the company. – Jason Peterson, GoDigital Media Group
