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Entrepreneurs Have a Plan in Case of Failure

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An entrepreneur enters a battle with the psyche of winning, but has also prepared for the chance of failure. Those with a true entrepreneurial mindset know that failure may sometimes be inevitable and therefore failing does not mean it is the end of the world. It may be a painful detour, but it is not the end of the road. As such, it is best to aim as high as possible but also to prepare for the worst case scenario, especially in preparing what is needed to keep themselves afloat when they actually fail.

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Entrepreneurs are better prepared for the impact of failure on themselves and their families and are willing to face the consequences of failure more than others, as they know that that the path to success is lined with obstacles and sometimes failures.  Their threshold of how they handle a failed life is a lot higher than non-entrepreneurs. They are willing to accept a much bleaker alternative, and are willing to start again simply because they believe in themselves even if it means doing the most basic of job to keep the family going after their failed attempt.

The sad thing about some people taking the entrepreneurial path is that people in general seldom realise that failure is a more likely outcome than success for any venture they undertake. Because only the successful ventures are publicised and failed ventures rarely discussed openly, many may think becoming an entrepreneur is easy. They therefore may not realise all the risks they may be taking, and may fail to address these before moving forward, resulting in being blind-sided, and failing because of their lack of preparation, especially in sufficiently addressing the risk factors before starting.

The lack of awareness and preparation of failure will have a negative effect of people who have failed, making them more conservative to try again. By accepting and addressing the fact that you may fail, will help put you in the right mindset to take on the challenge. Once you have accepted that there is a chance of failure, you will be able to understand that even though the venture may be a total flop, you will be able to pick up and carry on with your life from then on, hopefully towards your next venture. Maybe you have to go back working for someone even if you start at the bottom of the ladder, so be it, as long as you know you can support your family. This will give you the courage to take the venture full on, knowing that it is not the end of the road if you fail.

Truth is that those who have failed before, are the ones who will have a better chance of success in the next round. This is because, failure is a learning experience, something that you pick up from to apply to your future endeavours. Those who fail(and learn from it) will have a better picture on why they have failed, which will help them plan more realistically for the future. (This is of course on the condition that they learned from their past mistakes and failures.)

Even today, many companies look to hire people who have failed at least once in their lives. Reason being if you have not tasted failure so far, and have not recovered from it, there may be a chance that if it hits you at a later stage, it may be very difficult to accept and get back on your feet. This can be  very detrimental to the company and to the person. So even companies these days, are accepting the fact that failure is part and parcel of everyday life, and that the focus should be on learning from that aspect and evolving yourself into something better.

We all know that for every success we are aware of there are many more failures, perhaps up to 10 or 20 times more failures for every success. Knowing this is very important so that this reality of risk and failure can help entrepreneurs do better by being more prepared before they start.

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