Nobody starts a company thinking there is a chance they will fail. This just simply does not happen. Every founder thinks they ultimately will be very successful. Failure is not an option. Unfortunately, it happens. This should not deter a company looking for talent. A failed founder is the best hire for their knowledge and character alone.
Companies typically don't shut down for many different reasons. In the end most founders had good ideas and could scale a business but they could not find the necessary money to make it stick. The reasons companies shut down are simple for the most part.
- Great idea but ran out of funding
- Bad idea and ran out of money
- Not cut out to scale a startup and, therefore, ran out of money.
In the end, it comes down to running out of money. As a company is running out of money founders, begin to change their thought process to what am I going to do if this falls apart? While we can pretend this does not happen, it does because that is human nature. It is a question that comes across every founders mind as it is a pertinent question of survival. Bills still need to be paid, food needs to be put on the table, and people need to continue to function and that takes money. One of the biggest questions that cross a founders mind when they see that their dream is quickly becoming a nightmare is what will people think of me? Will this affect my ability to get a job? Will people look at me like a failure? I have this question run through my mind all the time. Human nature states we have a very short-term memory when it comes to success or failure. We are all as good as our last win. When I think about this I wonder will I be judged on my complete body of work or the last venture I participated in? It is a valid question. If I am to fail then does the fact that I have had a successful career make up for that? It should, but I think everyone sees things differently. You cannot ever learn if you don't try and fail. Failing is a critical part of growing a s a person, and the most successful people in this world have all failed miserably time and time again, but they don't quit. This is a question many founders are trying to answer today as every day there are companies that cease to exists. Having the understanding that a failure is a tool that can be used in other ventures is what makes a leader great. Great leaders hire founders who have had failures because they know they understand what it means to strive for greatness and how they have dealt with a failure shows they can get back up dust themselves off and try again. This is a great quality to have in a person when hiring for a job.
While a founder who fails can be a great asset, it depends on and what they did with it. I believe that the answer lies in how the company failed.Click to tweet