Advertisement
*
Reproduction permitted for personal use only. For reprints and reprint permission, contact reprints@wistechnology.com.

Embracing failure is a necessary step for successful entrepreneurs

WHITEWATER – Thomas Edison invented the electric light, the central power station, the phonograph and recorded 1,000 patents, but his effort to extract low-grade iron ore from sand cost him millions of dollars and was dubbed “Edison’s Folly” in the late 1800s.

Steve Jobs was fired by Apple Computers, the very company he helped to create. Dean Kamen, the creator of the Segway Human Transporter and holder of 150 patents, jokes that his biggest failure is “that I have too many to talk about.”

For each of these famous entrepreneurs, however, failure was a milestone on the road to success. They actually celebrated their failures for what those mistakes taught them – and used the experience to move to the next idea.

Embracing failure as a teacher in the school of hard knocks was the theme of last week’s “Ideas to Profits” conference at UW-Whitewater, where the Wisconsin Innovation Service Center marked its 25th year of helping entrepreneurs grow their businesses.

Three successful Wisconsin entrepreneurs told their stories to conference participants during a panel discussion that illustrated how most – if not all – innovators have overcome obstacles along the road to growing profitable businesses. About 200 people attended the two-day conference organized by Dr. Deb Malewicki, UW-Whitewater’s director of business outreach services.
Advertisement
“Embracing failure is mandatory if you’re going to succeed,” said Craig Schiefelbein, president of Paragon Development Systems, a 19-year-old Oconomowoc firm with 215 employees and more than $100 million in annual sales. Paragon has survived because it adapted with each wave of change in the information technology industry.

Paragon first evolved into a component distributor after a start as a computer memory broker. Later, responding to market changes, it built and sold computers wholesale, then became a direct seller of hardware to large companies and ultimately moved into IT consulting and outsourcing. Today, Paragon Development Systems is a full-service IT infrastructure designer, supplier and manager.

“Agility is the only sustainable edge,” said Schiefelbein, who told how the company could have folded several times, but instead diversified and learned from its own mistakes.

Ralph Kauten, president of Madison-based Quintessence Biosciences, described how his company was launched with a portfolio of five separate cancer-fighting technologies – and sputtered when it initially picked the wrong technology to pursue.

“Most things don’t work,” said Kauten, who has been a part of starting four biotech companies over time, “and if they do work, they don’t work the way you think they’re going to work.”

After much time and investment, Kauten said, Quintessence eventually set aside the first technology and moved to developing what the company now believes is its most promising idea. The company now appears on the road to developing a safe and effective cancer drug, he said.

Jan Eddy’s example of failure involved a company that she developed – Wingra Technologies – and later sold to a larger software company about the time of the “tech bubble” bust in 2001. The sale had been a stock sale, and Eddy became frustrated as she watched the company she built from scratch slowly slipping away, along with the jobs of some of her closest friends and colleagues. So, in 2002, she bought back the company and rebuilt it.

This month, Eddy retired with Wingra Technologies showing record sales and profits and having been sold again (this time for cash) to a company that is dedicated to continuing its growth.

“Failure is seldom a single event,” Eddy said, but a collection of mistakes and circumstances that add up in ways that test the patience of entrepreneurs. Failure plus an underlying sense of business ethics can motivate and produce innovation, while failure combined with a lack of ethics can lead to desperation.

As Edison said a century ago, “I am not discouraged, because every wrong attempt discarded is another step forward.” For entrepreneurs just starting out, there’s some comfort in knowing that innovators, past and present, profited by their own mistakes.

Tom Still is president of the Wisconsin Technology Council. He is the former associate editor of the Wisconsin State Journal in Madison.

The opinions expressed herein or statements made in the above column are solely those of the author, & do not necessarily reflect the views of Wisconsin Technology Network, LLC. (WTN). WTN, LLC accepts no legal liability or responsibility for any claims made or opinions expressed herein.

Comments

Julius Msuri Lenguyana responded 5 years ago: #1

It will illogical if someone faces difficulties and run away from them. If he runs away from them he might meet with them along the way-if it happens so, and again, how many times should he escape them? The only solution is to meet them and solve them. Entrepreneurs must be sure of meeting difficulties and they must be ready to acommodate them while trying to find the way to get out of them

Julius Msuri Lenguyana responded 5 years ago: #2

"Running from problems does not help to solve them"
Entrepreneurs are said to be people who are ready to face and overcome failures during entrepreneurial undertakings. Although sometimes are faced with failures yet they should not run away from them. They have to learn, learn and learn from the past experience and find out the way on how they can overcome such failures and go forward.

PS: May I correct the previous comment in the first line and let it read as "It will be illogical" other than "it will illogical"

Julius Msuri Lenguyana responded 3 years ago: #3

Entrepreneurship is said to be inborn and some argue to be learned. To me all answers are relevant but not correct. Whoever is born comes into the world of unknowns meaning that he knew nothing before his creation. But according to Philosophers-Plato, when the soul was created it was filled with everything knowledge of this world. So; the soul knew everything before its inception in this world. But as soon as it comes into the world, the soul starts forgetting after meeting varying environment and here is where Socrates come up with the principle of "Recollection". According to Socrates, one should recall back after forgetting. This seems to be true. To him the soul has every knowledge of everything. Take an example-students in their studies are taught almost the basic things they should meet with during their exams. But during the exams they fail to answer some of the questions while in the examination room; however when they come out of the examination room and pass through the questions they become puzzled of how they fail to answer the questions. By this simple example human beings are born knowledgeable of various issues.

On the other entrepreneurship is learned to the perspective that, the forgotten issues on board should be reviewed to reactivate knowledge of what has been forgotten.
-----Lenguyana, J.M (2010)

-Add Your Comment

Name:
E-mail:

Comment Policy: WTN News accepts comments that are on-topic and do not contain advertisements, profanity or personal attacks. Comments represent the views of the individuals who post them and do not necessarily represent the views of WTN Media or our partners, advertisers, or sources. Comments are moderated and are not immediately posted. Your email address will not be posted.

WTN Media cannot accept liability for the content of comments posted here or verify their accuracy. If you believe this comment section is being abused, contact edit@wistechnology.com.

WTN Media Presents