What really happens from startup failure and success - the real story

Rebuilding from failure is hard, but you can only do it by being authentic, honest and real.

The purpose of this article is demonstrate why failure is so devastating, how & why it happens, and what it takes to recover from it, BEFORE it happens to you.

I've heard lots of stories about failure. and read lots of articles about the "how's & whys". But you never get the full picture - just a snapshot (often sanitised), or "what happened and when". A dry lifeless and soul-less iteration of causes & events.

You miss out on the implications and outcomes to people and their lives, and the family, friends, and other people around them. And you therefore miss out on the rich learning and experiences.

I thought long and hard about how I could help other startup founders to avoid, or recover from, failure (and success). There were many options. But the only stories that I can truly tell, are my own.

And yet, writing and sharing those real stories opens the writer up to scorn, criticism and vulnerability, which is why they are so hard to write and share.

But I kept coming back to the fact that real stories, not "top 10 lists", are the concepts that resonate with people, and cause them to create change and act with urgency.

It is said that "once you figure out how to fake sincerity, the rest is easy". But  if you profess, as I do, to being "open, honest, transparent and congruent", the only option is to behave that way.

So I wrote my story into the introduction and Prologue of my 1st book, which I then pasted below. The first 2 sample chapters from the book also contain quite a few "hidden gems", to inspire you to commit yourself to your "journey of purpose', and to help you strategise & prepare for what happens during and "After you quit your day job".

"What really happens from startup failure and success"  - Click to tweet

However, my purpose is not to sell the book (though that would be a nice side-bonus). My purpose is simple: Clear the path for you, to help you ask better questions, and (hopefully) make better decisions, as a result.

If you aren't yet ready for the book, simply comment, or learn from the experiences that I have shared.

I promise that you will be moved emotionally by this story. And if you aren't, then perhaps this life isn't for you. Either way, you decide what happens next.

"To your success" - Daniel.

Book Description

You can read the full description at https://publishizer.com/before-you-quit-your-day-job/

"Before You Quit Your Day Job" is a must for anyone who wants to give themselves and their startup idea, the best chance of business success, without risking their career, reputation or relationship.

"Before You Quit Your Day Job" is written for you, the experienced professional, who has been thinking about building that great business idea. I'll show you how to "Break Free", and become that great entrepreneur that you've always imagined.

"There is no such thing as failure, only learning how to succeed, whether in this venture or the next." - Daniel Mumby - Click to tweet

I've included an expanded 1st Chapter, plus the Prologue afterwards for you to review (and share).

Introduction

Firstly, congratulations on taking the first step in the risk to follow your passion. Yes there are many things that have to align in order to create a successful venture, but part of being a successful entrepreneur - or what I call a "Visionary" - is about seeing opportunities before they exist, which is what you are now starting to do.

Let's have a conversation, you & I, about how you would like your life to look and how it's going so far.
? Are you where you expected? Have you "changed the world" yet?
? Or have you got a little "side-tracked"?
? Or worse, has life 'beaten you down' until you've become a shell of your former-self?
? Or have you "hit it out of the park" in your current career.
? Or perhaps you are exactly where you expected to be at this point in your life .

And at different times in my own life, I've been all of these.

But you are thinking about this book, possibly because there's something missing. An expectation that you were meant for something more? That there's a 'thing' inside you that you must do?

In any case, it's OK. There's still time.

There is a great variety of wisdom around what it takes to create a great business
? Some say that good ideas are everything when it comes building a great business.
? Others say that without great founders, nothing will happen.
? And others are of the belief that "execution is everything".
? And some (including myself) recognise that no venture can ultimately succeed without great guidance.

So which one is accurate? In fact, all of the above are true.

Many aspiring entrepreneurs often lack the vision around a market or audience, but may have the technical capacity or desire to be a venture founder. Others have that 'great idea', but not all the skills, resources or capacity. Still others have the necessary deep domain expertise and market knowledge, but not the knowledge necessary to create the service delivery mechanism. (These are often equally true whether the venture is entrepreneurial or intra-preneurial).

And there-in lies the challenge.

It's rare that a single person already has everything that they require to achieve "success".

So why expect to "do it all" and "know it all"?

Most 'great ideas' could become successful businesses, if you find the right support, at the right time. I believe that the best ideas come from people with deep domain & life experience and connections, who've circled around the problems of their profession for many years.

They know how to 'get stuff done', & probably had to overcome a few 'life challenges', so you don't need to 'teach' them resilience; these attributes together are the hallmarks of great entrepreneurs. But they've often got risks that hold them back from starting on the path to success.

Just like you have.

That's where I come in. It's my job to help you fill in the blanks, make you aware of the risks, and help you chart a course that get you to your destination.

We'll do that by guiding you through the key learning that I've taken away from my 15 ventures, as an investor, mentor & advisor to startups; from my 20 years in corporate business; from my learning from wise mentors. And from the life of challenge that I've lived, of which I'll share a little of below.

And I should forewarn you; I started my career in the building industry, dealing with builders and architects, so I'll use quite a few 'building' metaphors throughout the book.

Before we get cracking into the topics, in the first chapter, I'm going to address some of the most common misconceptions about startups, just to 'clear the site'.

As well, I'm going to tell you the "rules of the game" to succeed at a new startup venture. My focus is "digital, scalable, & disruptive", but these rules are universal to almost any business.

“The Laws" (there are 42 of them) are throughout the book. By the way, rules are meant to be broken, but if you break these Laws, (as with most laws) you'll often pay a terrible price. So by all means, bend or break the rules but not my laws.

The First Law is as simple as child's play.

"Always have fun in what you are doing". See? Simple.

If you are going to do something for a while, either have fun doing it, or make it fun, whatever it is. In fact, if you can't do either of these, then Stop.... Turn around, and do exactly the opposite of what you are doing now, because at least that has a chance of being more fun, and take you closer to where you are trying to get to, than what you are now doing.

"Surely the most important law can't be that simple?"

Yes, it is. As adults, we over complicate things. When you were a kid and your best friend knocked on the door and asked you to come and play, did you stop to ask them questions?
? "What sort of activity will we be involved in and for how long will my time commitment be?"
? "What is the renumeration package & benefits?"
? "Will it be structured, organised play, according to best practice industry standards?"

No. When you were a kid, "play" was fun. So is life. Don't forget that.

Somewhere along the line, most of us forgot that. Some of try & get it back with bigger, newer shinier toys, but is that really fun?

Remember the last time that you heard a child scream in laughter because they were being tickled by a loved one? They always say one thing, "Stop....", but all their behaviours and actions tell you that they want the continued sensations. That unbridled emotion, expressed in any way that every child does; through movement, touch, emotion, sound and content. And when you stop, often they say "do it again, daddy".

That's what I mean by "fun". The moment. Pure, unadulterated, happiness.

Who made the rule that no longer allowed us to feel like that as adults?

So I'm reclaiming that rule back for us grown-ups too.

Who wants to play?

“But am I really an Entrepreneur?"

After you've done a couple of startups (whether successful or otherwise), you quickly learn whether this is in your blood.

I'm not sure for me whether its thrill, risk, challenge, opportunity, or belonging that is the strongest motivator. After speaking with many other people of my 'tribe', it's pretty clear that all of these play a part in the decision of those of us that stay 'in the game'. For most of us, it's something we were born to do.

I also believe we are the product of our environments, and are a breed apart from the freedom seeking (but structure requiring) traditional entrepreneurs, like the typical small business person or franchisee.

There are similarities, yes. But substantial differences too. The franchisee seeks a brightly-lit highway to follow, whereas for us, a dim, hardly-trod path is enough.

For them, the pre-existing tools, the certainty of outcomes, and the mechanics of the process. This book might not be for that person.

So let me also make a distinction:- I don't think startup entrepreneurs made or born. They are forged, like the process of making a sword.

For us, like the explorers of the new world, a glimmer of opportunity, a faint light of hope, and the stories of the path ahead from our fellow travellers, is often enough.

Small wonder that many of us never quite make it to journey's end. And yet, that is part of the promise – upon which we could succeed, where others before us have failed.

"A journey of a thousand miles must begin with a single step." -Lao Tzu

"All of life is a journey: which paths we take, what we look back on, and what we look forward to is up to us. We determine our destination, what kind of road we will take to get there, and how happy we are when we get there." -Unknown

Don't Gamble on Your Future

I enjoy poker. I like watching. I like playing. I like playing with friends. I like books on poker, and I like good poker stories with friends.

Poker is not gambling. Its equal parts art, science, psychology, maths, bravado, skill & luck.

Just like business is. Just like life is.

Poker requires that you play the hand you are dealt, but unlike the game of life, in poker, you can fold & choose to play another hand if you don't like your cards.

If you choose to play a hand (often because you think you can win), typically you'll come up against another player with the same opinion; either that they have the best hand, or they believe they can read the other players better than they can read. You are then in sequence of events which will require you to back your cards with action, or fold.

Within that sequence of events, at some point, you will be required to bet your stake, called "going all-in". You do the math - the odds of you having a better hand than your competitors- and what card still to be shown might give the final winning hand. You try to read the other players to see if you can determine if they are bluffing. You re-evaluate the sequences of past bets to calculate what their likely cards could be and you look back on their past behaviours from previous hands to determine whether they are exhibiting similar behaviours now.

It's at this point that you have decision. You can fold, and live to play another hand, you can 'call", and see who has the better hand, (and perhaps be forced to match an 'all-in' bet) or you can go "all-in", in the hope that the other player will fold.

Here's where it gets interesting. In poker, you are playing a person or small group of people, against which you've got some past history & experience -let's call it a small set of variables.

In the game of business, at this same point, the set of variables is exponentially larger. Suddenly you are at a much larger table, playing against much more experienced competitors, most of whom have much larger piles of chips at their disposal. They have better advisors, deeper pockets, larger pools of expertise, & more years of experience playing this game.

And there are variables like customers, the market, other alternatives, a dynamic marketplace, the clarity of your message. As well, there are other risks like regulation, competition, strategy, execution -and a thousand other factors, many of which are beyond your control - which will affect the likelihood of the success of your venture.

But 'I have this feeling in my gut', you say?

"The idea is brilliant, no-one knows more about it, I believe in the product/offering/solution and I know I can make it work."

Of course you do. That's why you are having a go. But that just how you get you seat at the table -it's your 'ante'; the price of playing. It has little however to do with your ultimate success beyond that.

The 'Player' who bring just that, will quickly be stripped of their chips in this high-stakes game.

If you want to win, once the cards are dealt, you better be packing a great hand, or an innate ability to read people, or an incredible capacity to bluff, or a solid expectation of what's in your opponents hand, based on math. Or better yet, all of the above.

So do you 'call', fold, or go 'all-in'?

Here's the rule (#2 of my "42 Laws of Startup Success") that I learned the hard way - twice.
"Never bet more than you can afford to lose in a startup." Click to tweet

So what are you betting?
? Your house? (You borrowed against your mortgage)
? Your relationship? (You swore to your wife/husband/ partner that this would work)
? Your career? (you quit your day job before this venture can afford to pay you)
? Your reputation? (you burned bridges with colleagues and competitors alike)
? Your children's college/university fund?
? Your future earning capacity?
? The respect of peers/colleagues/ competitors?

I could go on, but you get the picture by now.

"I would never, never do any of those", you are now saying?

A professional never would. And yet, most amateurs & rookies do many or all of the above, and far worse. On occasion, so have I.

'Amateurs' might be tempted to borrow money from family & friends, or bet those personal relationships. They might bet their relationships with friends and business partners, by overstating the value of the venture, or their faith in their ability to overcome the insurmountable.

Some, horrendously, will even bet their integrity by borrowing money from "less than reputable" sources, or worse, stealing it. (I kid you not, I have seen it). Or they may have stolen contacts/customers from their previous employer, in order to setup in competition, or 'stolen' someone else's intellectual property in the belief that they can out-execute them.

And people who engage in these sorts of activities, almost invariably lose.

And for people like this, who really haven't figured out the rules of the game, they not only cost themselves success in this venture, they'll y lose all their chips, AND also their capacity to play again. Whether by loss or reputation or capacity, they do themselves out of the ability to build that next venture, or the ones after that, or partner with others.

Professionals do none of those things. They don't gamble. They do take calculated risks designed to minimise the downside, & maximise the upside.

That's Rule #3 - "Figure out how to 'stay in the game' between ventures." Click to tweet

Do you know how many ventures it takes, on average, to succeed? 5-14 ventures for the normal entrepreneur (whatever that is), until they hit massive "success" (whatever that is for you).

Do you really believe the stories about the first timer who struck it on his first time at bat? If so, go back & re-read that line, until that number is indelibly etched into your brain. Those stories make the news because they are outliers; the exception that proves the rule.

So why you would risk everything on "one roll of dice"? Are you an amateur? A gambler?

Or are you a professional?

Good. I knew you'd come to right conclusion.

But there might be couple of people reading this book, that aren't yet convinced.

How do you know that what I'm highlighting is real & valid?

Perhaps you have the maturity, foresight & wisdom to learn from other peoples' mistakes?

Sometimes when you learn lessons from life, you only have a dataset of 1. But how many data sets do you need to learn a pivotal lesson?

Let me highlight a real-world case study of what can happen when you bet more than you can afford to lose -and the implications.

I found this section incredibly difficult to write, and originally left it out of the 1st draft of the introduction altogether. But I realised, with the guidance of wise mentors, that it was important, because it sets the context of the book for you. And shows why I am exactly the right person to help you in your journey

So let me paint you a picture of my life after a series of venture failures.

Challenges & difficulties in your life?
Imagine – all of these events happening to you, within a 4-month period. Imagine stripping away your entire life, social supports, friends, family and all the other constructs by which you measure your life. Tell me how you would fare?

? Two ventures that you've each put 3 years of your life into, both fail due to external circumstances beyond your control.
? A bad choice of business co-founders, leads to unresolvable conflict in a venture
? A career attempt at a high political office that falls just a few '000 votes short, ultimately costing years of lost effort.
? Your relationship falls apart, and you are left without a home, career or even cash in the bank.
? The employment marketplace considers you unemployable, despite more than 250 job applications to positions for which you are highly qualified for.
? One of your children is diagnosed with cancer, and given almost no chance of survival,

• To then spend the next 2 years in hospital, in & out of intensive care, eventually becoming a paraplegic, all whilst you are powerless to help.

• And at the same time, a devastating divorce & family court battle that
• Strips you of all your accumulated assets, leaving you hopelessly broke and $200,000 in debt,
• And which removes your parental access to the child that you've raised since birth.

Imagine trying to find your way back from that, emotionally and financially; to rebuild after all this, without support or resources, or even the capacity to help yourself.

How would you cope with it? Learn from it? Recover from it? Rebuild anew from it? Arise from it?

I don't have to imagine -I've lived it.

And yet, after all of that, I still probably the most inspired & optimistic person you are ever likely to meet. For one very simple reason, which I've save for the last paragraph of this chapter.

If after reading that last section, you are not moved, then perhaps this life of entrepreneurship isn't for you. Perhaps it's time to put aside your vision of your business future. Because that story is real. Real events, real emotions, real outcomes.

And it's from those events that move us, that the major progressions of life take place.

Exactly like (but different to) the events that you will experience. Pain, turmoil, challenge, adversity, hope and occasionally, joy and success.

Some say that “Hope is not a strategy". I say “there is no Strategy without hope". (That's Law #22)

So now it's time for your first decision.

Some of you will heed my words, and step back, realising that perhaps the price you are preparing to pay is too high. To you- well done. You'll have kept your options open. This decision isn't permanent, and you can change your mind at any time in the future.

For some of you, who will ignore my guidance, who will press on regardless, I expect will also fail and & be forced to put it all aside, permanently.

For those of you in this group, I wish you luck. - you are going to need it.

And for most of you that have made it this far, you have now chosen the path of the professional -one of wisdom. You'll want to review your plans, think through the implications of the venture on those around you, and on your future, review the timelines & milestones, re-evaluate the risks, have open conversations, seek new guidance and wisdom, and push ahead with a new & re-considered vision.

If this is you, “Well done". Today is the first day of the rest of your life. The rest of this book is dedicated to you.

That's what I'm here to help you with. That is why I've gone through the journey I have – to learn the things that I needed to learn, so that I have the experience and learning to guide you on your journey.

"There is no such thing as failure, only learning how to succeed, whether in this venture or the next." - Daniel Mumby

"Everything we enjoy in society is a direct result of the accumulated learning derived from millions of mistakes. No mistakes, no progress. Yet we still look at making a mistake as embarrassing, wrong, an act bordering on sin. If you're making mistakes, it means you're doing new things, taking risks, stretching yourself. You're growing, learning. And isn't the journey, the experience, not the destination, what life is all about?" -Robert White

Continued on Part 2

If you like this post, share it. I promise you'll enjoy my upcoming books on how you can apply these rules to your life and your business.

StartUp books due soon for release

• "Before You Quit Your Day Job"
• "After You Quit Your Day Job"
• "Confessions of a Serial Entrepreneur"

Visit here for your advance copy of the 1st book.

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• How To Go Viral on Linked In, without being an Influencer       (2.2k)
• How to raise $5million for your startup idea (and why you shouldn't) (33k)
• Why Pitching to a VC will almost always fail (10k)

About Daniel

Also traveling under the alias of 'That Startup Guy' , I am a co-founder of StartUp Foundation (The Startup Accelerator for Experienced Professionals) and am intensely, deeply, passionately dedicated to "The intersection between personal mastery & business entrepreneurship".

My goal is to help you, by guiding you through the steps, and past the challenges and pitfalls, to turn that 'Great Idea' into reality, whether it's a business, a product, an app or just finding an answer to a common problem. 

At the same time, I'll share with you my own journey, from which you might just draw valuable lessons of your own. I spent 20 years in corporate life before catching the startup bug. (My first venture as an intrapreneur still generates over $10 million in per year earnings). I've since designed, built & launched 14 startups across ecommerce, technology, hospitality, social networking, logistics, financial services and not-for-profit sectors.

If you've got an experience about startup success (or failure), comment about it. If you've got a question, reach out to me via your preferred social media, or download my media/speakers kit. Other posts can be found here on Linkedin.