Mistakes Entrepreneurs Can Learn From

Image: Entrepreneur.com

As the Co-Chairman and Co-Owner of Vivid Entertainment, Bill Asher is responsible for the company’s finances, including reporting and budgeting. A serial entrepreneur, Vivid’s Bill Asher has found success and failure in his business career, both of which have molded him to become a better executive.

Plenty of self-made millionaires and many of the biggest brands have gotten to where they are because they learned from their failures. Below are two keys to avoiding major mistakes in business:

1. Know when to call it quits. After significant financial investment with no tangible results, many entrepreneurs find it hard to quit. Slow to accept defeat, they end up pumping more cash into a bad project. When News Corp. bought MySpace for $580 million, it continued to invest in the company even after it had all but lost to Facebook. By the time it stopped, MySpace could only attract a bid of $34 million.

2. Don’t take your eyes off the ball. Often, entrepreneurs get attracted to the latest shiny objects and lose sight of their core business or competencies. This happened to Coke when it changed its formula through Project Kansas, a reaction to the Pepsi Challenge. The mistake cost the company big time. When you get distracted or focus on your competition, you become open to costly mistakes.

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