From the top Rebecca Smith · 6 August 2015
From Karren Brady to Elon Musk: The biggest mistakes made by leading business people
To make a new business into a success, you may feel pressure from a wide range of places and people, whichcan mean you end up compromising on something important. Other times you simply make the wrong call and regret it later. Errors in judgement oftenteach us a lot in the long run and any successful entrepreneurs will likely be able to recall the big mistakesof their careers. While they mayfeel completely disastrous at the time, making mistakes can be useful for future progress. Here are five examples of well-known business people with’some of the biggest errors they made and what they learned as a result. (1) Elon Musk: Hiring the wrong people When asked what his biggest mistake had been during a sterling career, the SpaceX founder floundered for a moment not because he couldn’t think of one, but because there were so many and he was trying to work out which was the biggest one. Musk settled on his long-standing practice of hiring talented people without much thought for their characters. He said the biggest mistake was probably weighing too much on someone’s talent and not someone’s personality. I think it matters whether someone has a good heart. It’s an interesting perspective when set against Richard Branson’s, who recently spoke about the value of hiring disruptive talent specifically recruiting entrepreneurial people who may be a trouble to manage among other employees, but could be a worthwhile investment. The point remains that recruitment is of crucial importance to any business looking to get ahead it’s worth spending time evaluating what qualities are most important to you and your business, and what effect hiring a specific person is likely to have on the firm and anyone else you’ve employed. (2) Karren Brady: Rushing back to work too quickly In a piece for the Guardian, Brady confessed that her greatest mistake was once taking a three-day maternity leave. I had my daughter on a Wednesday and then went back to the office on Monday to sack a manager, she admitted. She said that 16 years ago, when her daughter was born, flexible working and the advancements in technology we’ve made hadn’t yet materialised, and quite simply, she didn’t understand that a career lasts a lifetime. She thought that if she didn’t get straight back to work, her career would suffer that she’d be forgotten or could even lose her job. Brady said she did things differently the second time around and would do things differently today too. To be successful in business, you must not be afraid to make mistakes, she pointed out. And everyone makes their fair share of them. To become a respected and celebrated employer, Brady said it wasn’t enough to talk about flexibility and other notions, but do them. Those who are genuinely flexible? stand a better chance of attracting the best people and retaining them. (3) Richard Branson: Inspiring competitors and not offering a different enough product He’s a notorious jokester, but one of Richard Branson’s memorable pranks didn’t quite go to plan in 1986. In an exclusive published in Music Week magazine, he bragged about a secret invention of his called a Music Box which could store every song you wanted to listen to on a tiny device. Sound eerily like an iPod? Steve Jobs supposedly thought so too, and ribbed Branson, telling him the article helped inspire him in developing iTunes and the iPod. iTunes went on to change the music industry forever and resulted in the closure of Virgin Megastores, Branson said. Perhaps not acting upon my joke and creating the Music Box for real was my biggest mistake!? He didn’t sweat the outcome too much however a useful lesson in not getting so stuck on the idea that passed you by that you miss the next four that come your way. Thankfully, the best things about ideas is that they are like buses there’s always another one coming, he said. Branson’s other much-mentioned mistake was his ill-fated attempt to tackle multinational giant Coca-Cola with Virgin Cola. While he’s not at all against taking on a bigger company, Branson noted that if you’re going to take on a big name you’ve got to be much better. He acknowledged his product wasn’t differentiated enough I mean, two cans of cola there’s not much of a difference there. (4) Arianna Huffington: Burning out tooearly The founder of The Huffington Post said she’d love to tell her 20-year-old self to ‘stop worrying and get some sleep. Huffington feels she would have achieved whatever I achieved with less stress, less anxiety, less damage to my health and my relationships. We hear the incessant debate over the work-life balance, but for an early-stage business, you can be putting in ungodly hours to run the firm.
ABOUT THE EXPERTRebecca Smith
Rebecca is a reporter for Business Advice. Prior to this, she worked with a range of tech, advertising, media and digital clients at Propeller PR and did freelance work for The Telegraph.