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Sometimes "Failing Fast" is a Smart Business Move

Discussion in 'BlackHat Lounge' started by BassTrackerBoats, Mar 11, 2014.

  1. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    I thought I'd share something that has saved me money over the years when I was fortunate to implement this particular business concept. I call the concept:

    Failing Fast

    Now, those of you that know me a little know that I am not a negative person 99.9% of the time and I do not expound on negative principles but this is actually not a negative concept despite the negative connotation of the word "Fail". Sometimes in business you save money by failing and the faster you fail the better off you are.

    Let's say you are starting a new online project and you have projects for the opportunity to make you 100.00 a month after 3 months and you expect to put into the project 50.00 a month for the first 6 months (all wildly hypothetical numbers). The project does nothing even close to what you are projecting and you are leaking cash faster than the Exxon Valdez leaks oil.

    You say to yourself, "Online Biz Opportunity Guy, do I want to continue to pour $$ into this project or is it time to call it a day and consider it research?".

    At some point you have to answer "Time to give it up" and move on.

    Or

    It is time to look at some options and see if you are:
    1) Marketing to the wrong demographic.
    2) Marketing the wrong product.
    3) Need to adjust your product's pricing.
    4) Need to adjust your product's offering by a tweak or two.
    5) Need to realize that your proforma was off.

    There is a time to just bail and let it go after looking at things harder and realizing that this was not a good venture for a revenue stream and the faster you bail the better off you are and failing is the best option. Sure, you don't want to brag to your buddies that you just failed at Venture XYZ but that is a part of business life and we all fail at one time or another but prolonging the fail can really be costly and end up putting you in a deep hole.

    Don't look at a business failure as a failure but rather as a lesson that you can use for the next move you make. Take advantage of the data that you gathered in that venture and use it to help the next one move forward in a positive manner. Cut your losses at an appropriate time as there is a time to just let it go and move one. Nothing to be embarrassed about as it happens to almost EVERYBODY and those that do not admit to failure are probably not being 100% truthful to themselves or you.

    Sure, nothing succeeds like success (http://www.blackhatworld.com/blackhat-seo/blackhat-lounge/412502-nothing-succeeds-like-success.html), but failing fast is fine at the proper time.
     
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    Last edited: Mar 11, 2014
  2. Biznik

    Biznik Regular Member

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