How to Learn From Your Failures: 4 Valuable Lessons

What is failure?

At its most basic definition, failure is a lack of success. For businesses, failure can take on many shapes and forms. Failure could mean you were unable to land a big sale or ran an unsuccessful email marketing campaign. In other words, you didn’t achieve the desired results. You can also fail in your hiring practices or training opportunities.

However, perhaps the worst entrepreneurial pain point is a business closing down after consistently failing to turn a profit. This type of business failure can have devastating emotional and financial consequences.

How to learn from your failures

Success in the business world is rarely achieved without failure. In fact, some of the most inspiring entrepreneurs around have experienced setbacks. It’s often said that failure doesn’t stop people; it’s how people handle failure that stops them. 

“Learning from failure is crucial for entrepreneurs because it fosters growth, resilience and adaptability,” explained Eric Malka, managing partner of Strategic Brand Investments. “When entrepreneurs embrace failure as a learning tool, they develop a deeper understanding of what works and what doesn’t, building the mental and emotional fortitude needed for future challenges.”

Let’s look at four ways you can begin to learn from failure. 

1. Stay humble.

When you’re doing well in life, it feels like nothing can stop you. No words can adequately pin down the amazing feeling of being on top of the world. However, when failure hits, it hurts. It can hurt so bad you think you’ll never be successful again.

Staying humble helps curb the dramatic feelings of loss and failure. While you’re flying high on success, never forget that you’re human. Treat everyone with the same humility and respect you expect in return. 

When you’re humble, you’ll be mentally prepared for failure when it comes your way. It will also ensure you don’t get a “big head.” Plus, people close to you will help lift you up when things are not going your way.  

2. Find silver linings in your mistakes.

Finding a success story without a trail of mistakes is almost impossible. Nearly everyone experiences failure at some point in their life. Learning from your mistakes is the key to overcoming obstacles and becoming successful.

When failure strikes, ask yourself why it happened. Was it a result of something you did? Or did an outside force play a part?

Don’t be afraid to be accountable when you’re responsible for a business failure. In many cases, something could have been done differently to prevent the collapse. Think deeply about your situation, and don’t be afraid to do a little soul-searching. 

Celi Arias, CEO and founder of The Grown Ass Business, recommends finding ways to embrace your mistakes. “By embracing your mistakes as part of the journey, you’re not just taking responsibility — you’re cultivating resilience and a growth mindset that will serve you well in the long run,” Arias said.

3. Embrace change.

One way to learn from your failures is to embrace change. Some people absolutely despise change, and it’s easy to see why. They get caught up in their ways, get used to seeing the same people at the office, and like the routine.

When you fail, sometimes you have to change things drastically. If things are not going your way and you must start over, sometimes it’s best to sit back, consider the changes that must be made, and embrace them.

When you embrace change after a failure, you encourage healthy mental growth and development. If you want to be a healthy entrepreneur, you have to be a mentally healthy human being.

4. Filter your ideas.

When you’re on a roll, you may feel empowered to act on every business idea that comes to mind. You may want to develop a unique product, launch a side venture, switch up your marketing campaign, or churn out numerous blog ideas you’re convinced will generate more traffic.

Slow down — not every business idea is good or must be acted on immediately. There is a saying that for every good idea, there are 100 bad ones. Bad ideas can lead to product failure and can even devastate a business.

Instead, filter through your ideas and take notes. Consider carrying a small notepad or downloading an app for this purpose. Jot down ideas as they pop up. Give your thoughts time to marinate before acting on them. In many cases, you’ll realize an idea wasn’t as good as you initially thought.

Malka recommends assessing your ideas using key criteria like market demand, scalability, and alignment with your core mission. “By staying focused on their long-term vision, entrepreneurs can avoid spreading themselves too thin and pursue only the most viable opportunities,” Malka explained. 

Arias agrees that alignment with larger goals is a crucial determinant of whether an idea is worth pursuing. “Ask yourself: If you have a specific quarterly or yearly goal, does this new idea get you closer to achieving it?” Arias advised. “Or is it just a cool concept that might sidetrack you and your team from what you’re currently trying to accomplish?”

Why learning from failure is important

Failing to accomplish a goal can leave you feeling unmotivated or even unworthy of running a business. Don’t fall into this trap. Instead, view it this way: When you fail, you open yourself to valuable knowledge and insights that can guide you toward greater success. It may seem paradoxical, but learning from failure teaches you unique and critical lessons.

Learning from failure is essential for the following reasons:

• Learning from failure fosters creativity. If you fail by taking a traditionally successful route, you may need to embark on a novel path the next time around. That requires creativity. Restarting a business after a setback can mean trying unfamiliar methods, which some say is essential for long-term business success.
• You learn who to trust. Business failure may be due in part to the actions of partners, employees, vendors and other stakeholders. While lessons about learning who you can trust are hard, they are valuable. You’ll know who you can trust and may be less naive about business relationships and practices when launching a new venture.
• You understand the value of your offerings. Perhaps your customers didn’t truly understand the value of your products and services. Or, maybe you undervalued your offerings by pricing them too low. Experiencing failure gives you the opportunity to reassess your offerings and find new ways to communicate their value effectively.
• You learn to listen to yourself. Business failure shouldn’t lead to shame. Instead, tune out negative, nonconstructive emotions and focus on building self-trust. Boost your confidence by drawing lessons from your setbacks — this self-assurance will be an invaluable asset when you try again.
• You become more resilient. Failure is painful, but over time, it builds resilience. With resilience comes the courage to get back up and try again, making you more fearless in facing future challenges.
• You’ll learn what to do better next time. It’s tempting to think that if you’ve made a mistake once, you shouldn’t try again. However, according to Arias, failure has important lessons to teach you. “Instead of resisting failures, lean into them,” Arias advised. “They’re showing you crucial insights about your product and your industry.”

Jamie Johnson contributed to this article.