Turn Failure into Opportunity

Posted by: Today's Tip Contributor on March 25, 2010

All companies are concerned with failure and are hesitant to fail, but often it’s through failure that a company can grow and be stronger. History is filled with businesses that failed on their first attempt with a new product or service, but regrouped, went back to the drawing board, reevaluated, and came up with something that met the needs of their market. When your company is faced with failure, consider the following key points before starting over.

1. Listen to the explanation of why your product or service wasn’t accepted. If you can get past the initial disappointment and look at it as an opportunity to improve, the clients, potential customers, or businesses you’re pitching to will more often than not tell you why they didn’t like your product.

2. Don’t defend; ask questions. Put your ego aside for a few minutes and ask what would have compelled the client to purchase the product. Be open to criticism and suggestions.

3. Have the end goal in mind. Don’t be so concerned about who gets the credit or who’s going to look good. If the goal is to provide a product that will sell, don’t worry which department is the one that comes up with the winning solution or improvement.

Having passion about a product you’ve worked hard to develop is a valuable trait—but it’s not the only one that will lead to an abundance of sales. The ability to adjust to and adapt to constructive criticism is just as valuable. It will allow your company to see past a rejection and view it as another opportunity, as opposed to a final answer.

Steve Jones
General Manager and Vice-President of the CodecSys Division
Broadcast International
Salt Lake City

Reader Comments

Prof.P.Madhu Sudana Rao

March 26, 2010 1:19 AM

In any business there is bound to be a failure, however experienced a person may be, or however hard work that he may do. There are ways and means to overcome the problem without compromising on ethical and moral values. The first thing in the process is to never to lose heart over it. One has to take success and failure equally. The possibility of failure is more in speculative businesses. While selecting a type of business one should think over and have a well experienced guide, by his side to take necessary advises on crucial decisions. Parents are the best guides for the purpose.
If a person cannot take risky ventures, it is better to concentrate on a business where there is always a trading margin. The principle of risk return trade off should not be forgotten. Even in spite of all these cares, if it results in a failure, and some partners want go out, there is no need to feel for it. By disposing less rewarding assets, the outgoing partners must be paid their due share of money. Ultimately a business must reach a stage where it is run with own funds without any outside finances. If excess funds are there they must be invested outside, where there is safety. The income of a person should consist fifty percent fixed incomes and fifty percent variable incomes. If at all any partner is to be admitted if there are no enough finances, the condition should be no payment of interest on his finances and the resultant profits have to be shared as per predetermined ratios.

Erin Kirby

April 5, 2010 11:54 AM

A Must read re: "Turn Failure Into Opportunity."

"How to Be a Fierce Competitor: What Winning Companies and Great Managers Do in Tough Times" by Jeffrey J Fox.

ultrasound technician

May 31, 2010 11:42 PM

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