Sometimes founders build companies that don’t work. I want to go on record saying we need to normalize this. This is NOT failure. Too many founders hang on to their businesses out of shame or fear, afraid to shut it down. But the best founders know this is part of the process. Also, that they might be one step away from building something world-altering. Before Slack, Stewart Butterfield built a video game that never saw the light of day. The chat tool his team made to communicate internally? That became Slack. Before Canva, Melanie Perkins built a simple design tool for college yearbooks called Fusion Books. It didn't get much traction, but it gave her the insight that design should be easy for everyone. Before Dropbox, Drew Houston built a SAT prep startup called Accolade that went nowhere. The frustration of constantly emailing himself files led him to build Dropbox. Endings aren’t the opposite of success, they’re often the beginning of it. However, I can't stress this enough: When founders close that first chapter, how they do it matters. It's important to use tools like SimpleClosure help founders shut down cleanly, return capital faster, and protect the reputation that powers their next act. Some of my favorite founders to talk to and back have a chip on their shoulder after their first business, the ones who learned, regrouped, and rallied the right people around them for round two.
Brett Perlmutter one saying I have always lived by is- “You only fail when you quit.” The key to understanding this quote is realizing the goal. Some may believe this is referring to the one business you are focusing on or have founded. However, If you’re a serial entrepreneur like myself, the goal happens to be to build as many successful businesses as you can during your career. Occasionally this means cutting your losses at the time. Despite this, I caviat this statement with the idea that if you maintain majority ownership of your business and control its destiny, it doesn’t mean you can’t come back to it in the future! As many visionaries are, you may just be “ahead of your time.”
Isn’t there a stat that’s like “80% of failed first time founders succeed in their second company” That’s pretty amazing odds, and definitely proof that failing in your first startup can still set you up for incredible success
Brett Perlmutter, embracing endings often leads to even greater beginnings. How we close chapters matters. #NextChapter
Or you can pivot instead of shutting down
Love this. So many times there is a hidden blessing in the redirection.
OMG. I literally made a satire post and even a landing page for startup euthanasia service. You are amazing. https://mercy-pivot-services.lovable.app/
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What kills careers isn’t a dead startup. It’s dragging a dead startup for three extra years out of shame. Close clean, keep your reputation intact, and move to the next chapter with sharper instincts than 99% of first-timers.