5 reasons to fail fast and cheap

Know when to raise the white flag on your failure

It’s always heart-wrenching to see a start-up fail, especially when you are in the business of helping them succeed. However, it’s even more heart-wrenching when the start-up has been “bleeding” for a while.

As an entrepreneur it’s critical to understand when to end it. Ending fast has some key advantages:

1. Save more capital, time and energy
2. You’re free to assess and build upon one of the other venture ideas you have
3. Get key learnings and courage to incorporate into your next venture
4. Save critical relationships which help you build your next venture
5. Reduce mental anxiety and stress, which provides piece of mind

How do you know when the timing is right as an entrepreneur? Chances are you are so ingrained in the company or idea that you find it impossible to quit. Maybe even embarrassing. Not the case at all. It demonstrates you have the knowledge and courage to make tough decisions and know when it’s time to end and move on — a key factor in leadership.

You can help assess if the time is right when one or all of the following happen:

1. The solution to the problem your company solves is one customers will not pay for
2. The market window to launch closes due to timing
3. It will cost you more then the market will bare

Consider these factors even before you build on your next idea.

I’d love to hear from you. If you have any additional insight into the subject of failing quick as a start-up, please contact me and join the conversation by commenting below.

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