In entrepreneurship, failure is part of the process, not the outcome. According to related research, the average number of failures experienced by entrepreneurs in Silicon Valley, USA, before achieving success is about 2.8. This suggests that one must fail three times to succeed. In South Korea, however, restarting a business remains a challenging task, due to a societal atmosphere that does not tolerate failure. ChosunBiz sheds light on the value of "failure" through the stories of entrepreneurs who have risen again after setbacks. What did they learn from their failures, and how did they achieve a comeback? [Editor's note]
"I think there are things you can only gain by failing. The current business idea itself came about after I failed in my first venture."
Entrepreneurial re-examinee Lee Jun-young said this.
Lee's first attempt was in 2019. Although he majored in mechanical engineering in college, he was more active in entrepreneurship club activities than in classes. He ambitiously ventured into business with 17 club members.
The first item was a brokerage platform that connects small businesses with advertising agencies. He thought of providing standard contracts by introducing reliable advertising agencies, inspired by the difficulties faced by bar owners in college areas who were forced into unfair contracts by advertising firms.
Despite dedicating himself to work, excluding time for sleep and meals, he had to abandon the project because he entrusted the entire development to an outsourcing company and could not even properly launch the service. The platform business requires frequent updates, but the release was delayed indefinitely according to the outsourcing company's schedule.
◇ Depression returned due to failure, the process of overcoming it was the starting point for restarting
What returned was severe depression and burnout, a condition where an individual who is overly dedicated to work suddenly feels extreme fatigue and becomes lethargic. It was routine management that helped him rise from being bedridden and quitting school.
He started by waking up at a set time every day and posting proof photos. Gradually, he added routines like making the bed and stretching, and within three months, he was able to recover from depression.
Based on this experience, he created a routine management service called "Rubbit" in 2021. The service allows users to decorate the rabbit character "Rubbit's" room by earning carrots for completing their daily routines, and has achieved a cumulative user count of 2 million due to its positive reception.
Lee noted that through the process of restarting his business and developing Rubbit, he reaffirmed his commitment to entrepreneurship. He said, "I don't think I could have endured the fast increase in user count to 100,000 immediately after launching Rubbit within about a year if I hadn't had any confidence. Through failure, I was able to reflect on my commitment to entrepreneurship more objectively than ever before."
◇ Waterproof camera cases, dog dryers, e-books… nothing left untried
Kim Cheol-beom is another who has experienced as many as 10 failures in search of the right entrepreneurial item. He attempted various startups, from special equipment to franchise restaurants, only to repeatedly fail. He has also been a financial insolvent that is a subject to credit default.
His first startup dates back to 2001. While working for a company that imported special equipment and also working as a scuba diving instructor, Kim used all his savings to start a company that made waterproof cases for digital cameras with a friend in 2001. Although he seemed to be on a growth path after securing a supply contract with Samsung Techwin (now Hanwha Aerospace), due to poor sales, he had to abandon the business after just one year.
In 2003, he attempted to develop a dog dryer equipped with temperature and light control features, and in 2006, he tried to export special equipment, but things did not go smoothly. In 2008, he closed all domestic businesses and moved to the United States to start the fast-food franchise "Quiznos." However, the global financial crisis hindered his progress. As the middle to upper-class professionals, his main target customers, closed their wallets, he had to shut down all stores and return to South Korea after about three years. All that remained of his savings was around $20 (about 30,000 won).
The e-book business he attempted in 2010 performed well in its first four years. He collaborated with several publishing companies due to his recognized content planning skills. However, the launch of unlimited data plans caused consumers to start consuming content through real-time streaming instead of downloading e-books, leading him again to the process of closure. Kim remarked, "I never imagined that the world would change so suddenly."
Through repeated entrepreneurial experiences, Kim realized the importance of learning and began taking lectures without reservation. In 2014, he spent his own money to complete a short program for CEOs at Yale University in the U.S.
◇ Continuous studying and communication are key to success… "Prepared failure" is different
While mentoring their startup experiences, Kim came up with the deep-aging technology that quickly ages meat to create soft texture while conducting consulting for a meat processing factory at the request of the company. According to CEO Kim, aging is a critical factor that determines meat quality. If the appropriate aging level can be applied to each cut, it may also increase the demand for less desirable cuts that consumers typically overlook.
By formulating a strategy based on market analysis, he was able to secure funding from various investors to propel the business forward. DeepPlant, which took its first step in 2019, achieved approximately 2 billion won in sales last year and accumulated investments of about 500 million won. They currently hold nine patents and are supplying meat utilizing their own technology to distributors like NongHyup.
"To succeed in entrepreneurship, one must study first. Attend seminars, conferences regularly, and meet various industry contacts to broaden your perspective. Focus on researching failure causes, industry directions, and consumer pain points, and this repetition is the only way to achieve success."
Kim is confident that his 10 failure experiences over 20 years and the knowledge he accumulated in between led him to his 11th business idea. He emphasized, "Failure faced without preparation and failure met with complete readiness are entirely different."