Dear Entrepreneur,
There is nothing wrong with planning for failure. It doesn’t mean you’re paranoid or negative, rather, it means you’re smart. First of all, there is a big difference between thinking you’re going to fail and preparing for failure. Thinking you’re going to fail is very discouraging and it inhibits growth. On the other hand, preparing for failure means you’re practical and thoughtful about the endless possibilities that may happen during your entrepreneurial journey. In some ways, preparing for failure can help you progress as it takes the fear away and pushes you to keep moving despite the challenges ahead.
For me, I always plan for the worst-case scenarios. I think about how they may affect my teammates, their personal lives, the progress of the business, and ultimately, how I could mitigate them. “What if we lose our biggest client today?” How does that affect our cash flow, the momentum of the business, and the outlook of our investors? Though we don’t wish this on our business, it’s important to plan for it. Planning for failure helps me anticipate unforeseen challenges so I can prevent them from happening.
Be honest with yourself.
Think about potential failures.
Identify the mistakes you’re making.
Correct them as quickly as possible.
With love,
Chidi