Failing Faster Enhances Growth!

In today's episode, we dance along the delicate line between safety and the unknown, navigating the business terrain where failing isn't a misstep but a strategic move. Pete Mohr delves into the concept of failing fast—not as a sign of defeat but as a catalyst for growth and innovation. It's a tactical embrace of risk, reshaping failure as a tool for learning and swift adaptation. Through real-world examples like Uber and Airbnb, we explore how rapid responses to failure forge paths to success.

Here are a few things Pete covers:

• The strategic advantage of embracing failure in business.
• Calculated risks: balancing gut instincts with informed decisions.
• How failing fast serves as a learning tool and promotes agility.
• Case studies of Uber and Airbnb: learning from rapid pivots.
• Cultivating a company culture that values innovation and quick feedback.

It's time to take action
After soaking in the insights from this episode, your next move is to assess where you could implement a fail-fast approach in your own ventures. Look at potential new initiatives and ask yourself: Are you prepared to test, learn, and adapt quickly? Remember, it's about making informed leaps, not reckless jumps.

Are you looking to make some changes in your business and your life in 2024?  Head over to speaktopete.com and book a chat with me to see if we're the right fit!

Transcript

Pete Mohr: 0:35

Today we're going to venture into territory that might seem a little unconventional at first, we're going to talk a little bit about the concept of failing fast in business. Now I know it's probably thinking, failure and success, they're supposed to be on opposite ends, right? Well, in the entrepreneurial journey, the lines are maybe sometimes a little bit more blurred, right, and we're gonna explore a little bit about how embracing failure and doing it quickly can actually be a powerful strategy for growth, for innovation. And for long term success for you and your business. Remember, you're in business to have a better life, right. So it's a topic that gets often overlooked, but one that holds the key to unlocking potential and accelerating progress for you and your business. It's really about learning and adapting, it's about taking risks. In business, it's almost like a careful balancing act between the safety portions and the unknown portions of any decision. And when you're leaving a company, every decision carries weight, right? Whether it's launching a new product line, or maybe experimenting with a marketing strategy, it doesn't matter really what it is, but something that you've never tried before, maybe you're revamping your entire business model. As the New Year turns over here, really each choice comes down with its own sets of risks and rewards. But here's the key. These aren't just random shots in the dark, we're talking about calculated risks for you, right? You've been at this a while. This means that you're doing your homework, you're understanding the market, you're knowing the audience, and then making an informed decision, right, it's a little bit about data, all of this stuff. It's not really about diving headfirst. Without looking, it's about looking carefully, and then taking the lead with all of the knowledge that you've gathered as a business owner thus far, right? That's where the concept of failing fast really comes in. It might sound counterintuitive at first, why would anyone want to fail, and let alone fail quickly. But when we peel back these different layers, it's actually a strategy of resilience and agility. failing fast is about testing the waters, really trying out these new ideas and being prepared to quickly step back if things aren't working, as you had expected them to. And that often is the case in business, right? Imagine you're trying a new marketing campaign, and you've done the research and you think it's going to be a hit. But there's always that element of uncertainty. I don't know about you, but we often will A B test stuff. And I expect you probably do too. But with a fail fast approach, you'd launch this campaign in a small scale, first monitor results and then gauge customer reactions. And if it's not hitting the mark, you've got the insights to quickly adjust your strategy or even pivot to something entirely different. The approach really turns failure into a learning tool. And that's what we have to look at it all these little fast ups. It's all about learning. And instead of pouring resources into something that is uncertain for months, or maybe even years, you're identifying what doesn't work early on. This way, you can save time, money and energy, and the resources that you can then redirect into more promising avenues. That's the beauty of being a small business owner is that you can make these changes ever so quickly. Right? failing fast isn't about recklessness. It's about smart and strategic risk taking. It's about being bold enough to try your new things, and wise enough to see when they're not working really agile enough maybe to change the course quickly. This really is how businesses stay ahead in the game, not just by taking risks, but by taking smarter risks. Even better risks. It's one thing to talk about theories and strategies, but it's another thing to see them in action. And if we think about Uber, for example, today, Uber is known as a household name. It's synonymous with ride sharing, and but their journey wasn't always a straight shot at success. In the early days, they faced a lot of challenges, there was legal hurdles, there were pushback from traditional taxi services. In fact, there still are all of those today too, and they're pushing through them continuously and logistical issues. However, whatever set them apart was their willingness to fail fast and adapt. They quickly adjusted to the regulatory challenges and all the different towns and provinces and cities and countries that they worked in, experimented with all sorts of different pricing models, and expanded their service offerings and the agility turned into early failures. But those failures were really a blueprint for global success. Another fascinating one that I use a lot too is Airbnb. And when Airbnb started, the idea of renting your home to strangers was pretty unconventional at the time to say the least. They faced all kinds of skepticism, lots of trust issues, and safety concerns too, from both the owner of the property and the renters. But the founders of Airbnb didn't let those setbacks deter them. They iterated their platform by enhancing user trust through verified profiles and all sorts of reviews, right? They also tested various marketing strategies, learning what resonated with their audience and the ability to fail fast learn and pivot really transformed Airbnb, from a quirky idea into a revolutionary travel industry, disrupter really. So these couple of stories really aren't just about companies that succeeded. They're about companies that learned from their failures. And I think that's the key point here. They didn't dwell on the setbacks. Instead, they use them to create opportunities to refine and redefine their business models. The approach was crucial in helping them navigate the unpredictable waters of startup growth. And what we can learn from both of these companies. Ubers and Airbnb is clear success really isn't about avoiding failure. It's about how you respond to it. These companies didn't just embrace the fail fast philosophy. They made it sort of a core part of their business strategy and culture. And it paid off in a big way. They are absolutely market leaders in their territories now. And let's shift gears and consider on the flip side of this, the consequences of not taking actions and not failing fast. In the business world hesitation to sticking rigidly to the status quo can be just as risky as taking the wrong turn, right, it's a bit more like being on a train track. And if you're not moving forward, you're potentially in the way of progress. And that can lead to being sidelined. If we think of blockbuster for an example. At its very peak, Blockbuster was the giants in the movie rental industry. But as the digital age dawned, and streaming technologies emerged, they really missed a critical opportunity to evolve. And they stuck with their ways in their traditional model. And they stuck with it for too long, ignoring the shift towards online streaming. And you know, we all know Netflix and Amazon Prime have taken over that space. Now. It's a move that ultimately led to their declined to the decline of blockbuster. That is, it's a stark, really reminder for all of us in business, the world is changing rapidly. Refusing to adapt can be a recipe for obsolescence and whether it's adopting new technologies, shifting customer trends are changing market dynamics. Being responsive and proactive is really the key here. Keeping your business dynamic and open to change, and ready to pivot at the right moment is not just a strategy. It's a necessity in today's fast paced business environment, especially in small businesses like most of the people listening to this particular podcast. Firstly, failing fast accelerates learning. When you try something new and it doesn't work out. You gain invaluable insights, what went wrong, what could be improved, these lessons really are gold mines of information that can guide your future strategies and decisions for your business. Right. It's about turning every setback into a setup for a comeback. And another key benefit is fostering a culture of innovation and creativity within the team. This is such a key piece when your employees know that it's okay to take calculated risks. And that failures aren't frowned upon, but rather seen as learning opportunities. They're more likely to think outside the box and bring forward ideas that could be game changers for your business. This is what we need. We need game changers for our business and you have to foster that culture. A fail fast approach means you're constantly testing and learning and adapting the agility can give you significant competitive edge really, when you think about it, allowing you to respond to market changes more swiftly, then your direct competitors, who might be slower to recognize their missteps, or maybe too cautious to take bold steps or even to try by identifying what doesn't work early on, you really avoid sinking more time and more effort into these unfruitful venture. So how do you go about implementing this fail fast mentality in your business? It's one thing to understand the concept but putting it into practice? Well, it's where the real transformation happens. And first and foremost, it's about creating a company culture that embraces this experimentation like we were chatting about before. It means encouraging your team to step out of their comfort zones. And to try these new ideas. It's important to communicate that failure isn't just accepted. It's expected. I'll say that again. failure isn't just accepted. It's expected as part of the growth process for the business right? I removing the stigma around failure, you're foster the environment, where creativity and innovation can flourish in your business. Next thing is to set up a framework for quick feedback and iteration When trying new initiatives, establish clear metrics and measure the success and timeliness for evaluation. This approach ensures that you're not just feeling fast, but learning fast to use regular team meetings to review what's working and what's not encourage open and honest feedback. One of the things that we do at utopia is we have a weekly meeting with the management team, and then daily little power ups, where we just say the three things that we're working on, and we can sort of be back and forth for quick iterations along the way, regular meeting rhythm or long this sort of framework is a big important crucial step on the communication of the process and accountability of all the things that you're working towards right. Another crucial aspect is empowering your team to make the decisions without your involvement. A fail fast environment thrives when team members at all levels feel they have the authority to test new ideas and pivot when necessary. And this empowerment really is not only accelerates the process of innovation, but it also builds a sense of ownership and responsibility amongst your staff. It's vital to bounce failing fast with strategic planning as well. It's not just about taking random risks, but about taking calculated ones. Encourage your team to research and present the data backed rationales for their new idea. And this way, even if the initiative fails, it fails for a reason that contributes to your collective learning. Lastly, remember that failing fast should be a means to an end, not an end in itself. The ultimate goal is to learn, adapt and find the most efficient path to success for you and your business. By implementing these strategies, you're not just preparing your business to handle failure, you're really gearing it up. For greater innovation, agility, and even long term growth. It's vitally important that you recognize that failing fast is not just a sign of weakness, or mismanagement. It's quite honestly the opposite. It's a sign of strength, courage, and forward thinking leadership. It's about making the most of every situation, learning from every outcome and using those lessons to refine your strategies and operations. So I challenge you, as business leaders and entrepreneurs to adopt this mindset. The fill fast mindset. Encourage your teams to experiment to not fear failure, but to learn from it and create an environment where taking calculated risks is just part of your business DNA. Most importantly, remember that each failure is a stepping stone towards the next big success. If you found value in today's episode, I'd love for you to share it with your fellow business owners and entrepreneurs. Your support really helps spread these messages and insights and strategies. And don't forget to subscribe to our podcast for more episodes like this, where we delve into the tools and mindsets needed for business breakthroughs here on the business owner breakthrough podcast. And if you have stories of how a fail fast approach has transformed your business in some way. I'd really love to hear from you. And you can reach out to me most often I hang out on LinkedIn or you can catch me on Instagram as well. Let's continue this conversation and together will embrace the journey of learning growing and succeeding in the dynamic world of small business. So keep innovating, keep failing fast, and keep moving forward. Now go and make it a great day.

Buzz Burbank: 14:12

An ironic media production visit us at our ONICK media.com