Turning Failure into Fuel: Entrepreneurs Harnessing Setbacks for Growth Unlock the power of failure.
By Matt Ford Edited by Patricia Cullen
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Entrepreneurs often worry about it, but by embracing the setbacks, you learn what doesn't work, push the boundaries to innovate, and cultivate the resilience needed to succeed. Discover the inspiring journeys of entrepreneurs who've turned troubles into triumphs.
Matt Ford, co- founder and CEO at Sidekick, a next-generation digital wealth manager for the modern investor highlights the valuable lessons entrepreneurs can learn from their failures.
In 2014, I set up a money management business called Pariti. In some ways, you could consider it a success because we got an exit, selling to Tandem Bank. However, we arguably failed because we never raised enough money. At the time there was only one other company that went down the same path as Pariti, but they significantly raised more than us and were able to stay in the game much longer before they found product market fit.
A decade ago, the funding landscape was markedly different. Ten years ago, there was a prevailing ethos of "build it first, monetise later." Drawing inspiration from successes like Facebook, the mantra was clear: prioritise building robust businesses without immediate revenue concerns, aiming to monetise once established.
I was a fresh faced, 20-something-year-old and had never raised money before. Raising only £500,000 meant we were setting ourselves up for failure from day one because we just didn't have enough runway. I made all the errors that first-time founders do because I couldn't attract the senior people who'd done it 20 times before to de-risk the process.
Related: Turning Failure into Fuel: Entrepreneurs Harnessing Setbacks for Growth
This approach meant I consistently operated with a small, predominantly junior team. While this had its limitations, it also had its benefits. Operating with minimal financial flexibility wasn't entirely negative; in fact, it fostered creativity through constraints.
In 2024, startup entrepreneurs must embrace failures as learning opportunities and remain focused on solving real problems for their customers. The key lesson is the importance of securing sufficient time and resources to properly develop and test a business idea, rather than rushing into a venture with limited funding.
Some entrepreneurs just get lucky - they have an idea, see a problem, find a solution, and the problem changes the world. However, for the majority of entrepreneurs it is not like that at all. You think you see a problem, you believe you've got a solution for it, and then you realise over the next 12, 24, 36 months, all the reasons you're wrong.
You need to keep trying and adapting and failing, trying and adapting and failing, and eventually, hopefully, you actually get to the right answer. In a big company, there is a lot of risk mitigation. Early stage startups don't have this buffer.
Fast forward to today, Sidekick has secured a total of £8.5 million in funding, providing an ample runway. My journey through failure has strengthened me and emphasised the importance of prioritising the needs of our customers.
Related: From Concept to Company: Adam Sharpe, CEO, Cardstream
