Rags to Wreckages is my blog where I write about business strategy for current, would-be and successful entrepreneurs based on the fact that we’ve learned more from our mistakes than our successes.
Yes, the broader media like to show you the successful entrepreneurs, and I want to do that too. But, my view is that we can learn much more by looking at what went wrong and why, and then learn from it.
Equally, you may find that in the early days of an enterprise bad decisions may appear like smart choices. As Warren Buffett says ‘a rising tide floats all boats’, and so it was for many businesses until the global economy began to turn in Aug 2007.
However, as Buffett also says ‘now that the tide has gone out, we can see who has been swimming naked!’
In other words, many entrepreneurs took unacceptable risks or made bad decisions that didn’t impact on those enterprises UNTIL the economic tide turned – and then of course, many clever and highly feted entrepreneurs started to look a bit silly.
I count myself in this group too, and we saw that the business mistakes of the previous 5 years make our company untenable. From a £2k start to a £12m valuation in 2007, my first business closed its doors in August 2009 and my partners and I walked away with nothing.
Yes, quite a journey – and probably the best real life MBA you could ever get!
So, I wrote a book about what I learnt – 100 Rules for Entrepreneurs – celebrated what I had learnt and began again, only this time, with an even bigger goal!