Running a business is not without its risks. Between initiatives that don’t pan out, partnerships that break down and promising products with little demand, failure in business can take many forms.
Below, 19 Forbes Business Council members share their experiences of taking a business risk that didn’t pan out. Read on to hear specific lessons that have stuck with them today.
1. Avoid Losing Focus On Your Core Mission
We started a company in 1999 to build online services. After the dot-com bubble burst, we pivoted to providing enterprise services in order to survive. While this pivot made sense at the time, it ultimately compromised our product vision and long-term goals. The lesson? A pivot can seem like a lifeline, but losing focus on your core mission is the greater risk. – Igor Ryabenkiy, AltaIR Capital
2. Expect Progress To Take Time
One of the biggest lessons I’ve learned is that progress often takes longer than expected. This is especially true when corporate culture is resistant to change, which is not always easy to gauge upfront. I’ve also learned that effective communication across an organization is more challenging than it seems. It’s essential to repeat key messages frequently to ensure clarity and alignment at all levels. – Irma Becerra, Marymount University
3. Prioritize Work Ethics And Company Values Alignment
I once kept a high-performing sales manager who was exceptional in sales but wasn’t a good culture fit and struggled with leadership. I decided to invest time in helping them improve, knowing it was very difficult. This led to the loss of most of the team. In the end, I had to let him go. The key lesson I learned was to prioritize work ethics and alignment with company values over performance. – Ines Nasri, WebPower USA LLC
4. Set Clear Boundaries And Roles Upfront
As a young CEO, I took the risk of starting a business with a friend because I thought our bond would make for a successful business. Unfortunately, it led to misaligned goals and a strained relationship. The experience taught me the importance of setting clear boundaries and roles from the start, as well as prioritizing professional compatibility alongside personal connections. – Vicky Owens, Socially Speaking Media
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5. Select Business Partners Based On Common Values
Choose your business partner based on common values, not on business goals or personal emotions. Had I known this, I could have saved myself 15 years of learning in my entrepreneurial life. While I learned this lesson the hard way, I have no regrets. Values stay with us, no matter the age, the bank account numbers or the relations we have. Shared values with your business partner are a lifetime warranty of your success together. – Magda Paslaru, THE RAINBOWIDEA
6. Thoroughly Vet Partners’ Stability And Legal Standing
I patented an e-cigarette cleaner and was one of the first investors in the product. Unfortunately, I relied on the e-cigarette company being compliant with regulations but they weren’t. I learned the importance of thoroughly vetting a partner’s stability and legal standing before investing in or developing a product reliant on their success. – Ben Neuberg, Thrivewell Infusion, LLC
7. Create Offerings For Real Problems
Before launching WithMe, I tried and failed at three consumer startups. They seemed like great ideas then, but in hindsight, I was trying to leverage “cool app technology” to solve a problem people didn’t really have. I was building a vitamin, not a painkiller. In founding WithMe, I targeted people’s need to print on the go occasionally, a problem nearly everyone has. – Jonathan Treble, WithMe, Inc.
8. Conduct In-Depth Market Research
I launched a product without fully understanding the market. While it failed, I learned the value of research, timing and calculated risks. Setbacks build resilience. Test, adapt and never fear failure. Good mentors save time and guide you to smarter decisions, turning mistakes into lessons and growth. – Jonathan Low, Biptap
9. Leverage Customer Insight For Products
Rushing a product to market without deep customer insight was a hard lesson. It taught me that listening to your audience early isn’t optional—it’s essential. At tickadoo, every feature is shaped by real feedback, ensuring we build what people truly need. – Francis Hellyer, tickadoo
10. Seek Both Positive Feedback And Financial Investment
I launched multiple products that seemed to solve real customer pain, got positive feedback from customer and partner interviews and failed. I learned feedback has little value if people are unwilling to invest their own money. “This product is great” differs greatly from “Here is a check.” – Gaidar Magdanurov, Acronis
11. Validate Demand Before Investing
I took a risk by developing an “infinite” hard drive without a clear go-to-market strategy, hoping a great product would sell itself. After months of development, we struggled to sell it due to a lack of demand and competitors offering similar solutions. I learned the importance of validating demand before investing in a full demo MVP. This ensures market interest before committing resources. – Dmitry Malin, Novakid
12. Avoid Building Too Many Things At Once
I recommend not trying to build too many things at once. It is important to prioritize and stay highly focused, so I generally feel three to four key initiatives are the maximum. It is good to sequence objectives to ensure you do a great job with each initiative and don’t dilute your efforts as things often take more time and money than expected for macro and micro reasons. – Brett Hickey, Star Mountain Capital
13. Understand Success In One Niche May Not Translate
I wanted to start a hobby job as a way to relax away from my large gardening business. I launched a high-end shop that sold upscale department store electronics and returns. Unfortunately, it was hard work and the resale value was quite low. I learned that when you achieve success in one niche, it can be very difficult—if not impossible—to replicate that success in another niche. – Tammy Sons, Tn Nursery
14. Ensure Integration Between Marketing, Content And PR
When one of our clients eliminated its marketing team, I invited those individuals to join my team and develop a new wing of our firm. We learned a lot along the way, including that every new department needs to be deeply connected with the core business. While we thought our marketing team could operate independently, we realized that it was stronger when integrated with our content and PR departments. – Emily Reynolds Bergh, R Public Relations Firm
15. Acknowledge The Necessity Of The Right Team
I once took a risk launching a software product without assembling a team with the right technical skill set—and it failed. That experience cemented the importance of surrounding yourself with people who can execute your vision. A great idea means little without the right team to bring it to life. – Pranav Dalal, Office Beacon
16. Adapt Meetings To Fit Business Needs
We cut all internal meetings for a quarter, thinking it would boost efficiency. Instead, performance declined due to a combination of poor collaboration and lower morale from disconnected employees. We learned it’s not about eliminating meetings—it’s about adapting them to fit business needs. The format, length and cadence can change, but fundamentally, we need to come together to do our best work. – Shayne Fitz-Coy, Sabot Family Companies
17. Learn To Let Things Run
I’ve taken risks that didn’t pan out, like investing in businesses during the pandemic when I hadn’t yet learned to delegate. You must let things run. Investing is like watching paint dry—you set a vision, map roles and responsibilities and support it rather than trying to control everything. Treat every venture like an investment and step back to let it grow. – Humphrey Ho, Helios Worldwide
18. Understand That Mistakes Are Universal
I’ve taken risks that didn’t pan out, which is a reminder that everyone makes mistakes. When my team takes a risk and makes mistakes, I tell the team to make them small, make them fast and move on. If you are going to keep an inventory or a ledger of all your risks that didn’t pan out, there is going to be a point where you don’t make any decisions and don’t take any risks. – Rocky Romanella, 3SIXTY Management Services, LLC
19. Take More Risks
Taking risks has defined my journey. While many didn’t work out, each shaped my perspective. The biggest lesson has been to take more risks—don’t let fear of failure hold you back. The downside is often less severe than it seems, and the growth is far greater. I’ve learned not to give up on ideas too quickly; success is often closer than it feels. Staying with an idea longer can lead to breakthroughs. – JJ Schickel, EVE Partners
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