The word “failure” can be a bit misleading.

Before I founded Merritt Bookkeeping, I had a failed Business under my belt.

Did the business eventually fail? Yes. But was the experience a failure? No.

If I could do it all over again, I would. Why? Because it gave me what every small business owner needs: experience.

Contrary to what the Business shelf at Barnes & Noble would have you believe, experience isn’t something you can buy or learn from a book. You have to live it and earn it; you have to experience experience. That’s the catch.

How do you learn to not make certain mistakes? By making them. As they say, experience is the best teacher.

So, I’m not here to save you from making mistakes. I’m here to let you know that it’s okay to make them; that it’s, in fact, necessary to make them, and to actually encourage you to go out and get started (the smart way).

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In December of 2007, I was working at a business management firm in Los Angeles, where I’d been for over a year. I handled accounting and account management for clients in the entertainment industry. It was a good job: it paid well, had flexible hours, and so on.

But it was still a job. I was still working for someone else, answering to someone else, feeling the suffocation of the corporate world and the desire for freedom that many employees think about. I really wanted to be an entrepreneur, to own my own business. I had been reading books about it, dreaming of it, trying to figure out how to make it happen. It was that month that the idea for my first business came to me.

It was called “A Better Opinion”. I was frustrated with getting mixed reviews on movies. Reviews from websites, critics, and friends all garnered different responses and I would know a movie was actually terrible until I’d wasted money to see it! I wanted a resource that matched me up with people who enjoyed the same movies (and books and video games) that I did – and hated the same ones as well.

I began sketching out the plan for my website, which would match people up based on their ratings of movies (as well as books and video games). Four months later, I decided to leave my current job and pursue this business full time. I had some money saved up, but I had a stroke of luck (or a sign from above) too: a liquidated family investment netted me an unexpected $50,000 too. I had the capital to get started!

But just two years later, I had given up on the business and let my idea go.

Where Did I Go Wrong? (And What Can You Learn From It?)

Prepare to Execute

When I started my first business I did so by launching myself into an industry I knew nothing about, with no prior business experience. I simply thought: “My idea is so great that it’s sure to succeed!”

I was convinced that I had the next greatest idea; an idea that everyone could benefit from. And, to this day, I still believe it was a good one.

But ideas are nothing without good execution. What does that mean for you? Focus at least as much on your execution as the good ideas you have. If you have a great idea, but you don’t feel confident that you can bust your butt (and I mean really hustle) to successfully execute it, don’t bother starting a business.

A good idea alone does not a successful business make.

Take the time to understand your industry niche and how it works. Work to understand accounting principles like gross and net margins. Develop the drive to get out there and talk to lots of people and find sales opportunities.

Again, a great idea is important. But if you can’t execute on everything else required to run a successful business, you won’t go very far.

Partner Up

Understandably, this can all seem overwhelming. You might be asking yourself: why would anyone ever start their own business with all that there is to learn and do?

Keep in mind that you don’t always have to go it alone! You can partner up with someone who can help you (as I’ve done with Merritt Bookkeeping) or consider gaining experience by working for another small business.

Identify your business-related weaknesses and find someone (or some company) to supplement them.

Take Risks

Another important concept to understand and internalize is that reward does not come without risk!

Even if you’re unsure, even if it seems overwhelming, even if it will require you to work hard and make sacrifices: take risks! Without them, there is no possibility for reward.

As I said from the start, you shouldn’t try to avoid failure. You should try to avoid inaction. As Aerosmith said: “You got to lose to know how to win.”

If I had never failed with my first business, I know my current business wouldn’t be the success that it is.

Follow Your Heart

Lastly, just follow your heart. Nobody knows you (and what you’re capable of) better than you! Do what you feel, not what others tell you. That way you can always be accountable to yourself.

And Remember…

Owning your own business is extremely rewarding and I highly recommend it to those who understand the principles I outlined above!

With your first business (and maybe your second and third), you may lose money and time, but you will gain practical, valuable experience.

I lost a lot of money, but the lessons I learned were invaluable.

If I had never taken the plunge and started my own business, regardless of the outcome, I might still be working at an unfulfilling job with an unrealized dream…and that would be the worst outcome of all.

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