A VC in Vacationland

Although Gene Kratz in the movie Apollo 13 (I know, terribly old school) did not in invent the phrase 'failure is not an option' (it was the screenwriters, according to wikipedia…who knows?), the quote is sprinkled through start up literature and presentations. 

The NY Times magazine last weekend featured In Praise of Failure, well worth the read as it shows how failure does often lead to spectacular successes. But what's the role of failure in the start up world?  I'll posit that there is good failure and bad failure, and how to identify/avoid bad failure.

Bad failure is often when you run through all the red lights and really screw up. Your board members, friends, employees, among others are all telling you you are headed in the wrong direction, but you go anyway. I know how that works–it has happened to me a few times, with nasty consequences. Sometimes, it's just ego that keeps you going in the wrong direction; other times it's just not listening to those that care about you.

Here's the tip: have the courage to listen and respond, even though it's not something you want to hear. If you can engage in a meaningful dialogue with your 'critics', you are likely to see the error of your ways. If not, you will continue to block them out and continue down the wrong path. Problems won't go away just by wishing they would…