Failure is acceptable

We ask Steve Purdham to reveal what he wished he'd known when starting up his business.

If you have ever tried to guide a teenage son or daughter through the minefield of life and help them from making the same mistakes you made, then you will know that the ensuing tantrum and abuse quite often leaves you confused and in despair.

As a species we seemed to have developed a mental block to such advice as a means to ensure that experience is the only way to really understand. So venturing into the world of someone else's "Things I'd wish I'd known" in their business life is immediately fraught with problems, and actually that is good because I have to start my eulogy with two warnings.

• Beware of perceived wisdom!

• Opinions are like backsides, everybody has got one (we will come back to this one later)

So the following is my personal experience and you need to dismiss all or some of it as you see fit, enjoy.

So "Things I wish I'd known", for me, fall primarily into the emotional aspects of business life rather that the standard quantitative and process driven elements of business.

All business issues will fall into the hoppers of People, Process, Technology and Policy. They can be solved and taught with time, effort and understanding (zzzzZZZZ) but for me it's the emotional aspects which are things that seem to bubble under the surface of your execution until there is a sudden eureka moment. Quite often it turns out (as always) to be common sense but hey, some of us are more common than others. So let's dive in.

Avoid the negative

In building and running a public technology business you are faced with reporting your numbers and strategy to the shareholders every 90 days. This puts you in front of financial journalists on a regular basis.

The eureka moment for this one came when, after reporting quarter after quarter of success for years, I became frustrated that we never seemed to get any significant column inches in the business press. So I asked the journalist "Why?" and the reply was illuminating - "Steve, give me good news and I will write a paragraph - give me bad news and I will write a page."

Sadly, this is the world we live in and we are surrounded by constant reasons why not to do something, how difficult it will be, you'll never be able to do it that way, etc.

The British culture seems to amplify this more than most cultures I have met over the years. Whether it's down to the old class system, when it was seen as almost a sin to try and better yourself I don't know, but despite the many false smiles and words of encouragement, it is a fact that we live in a negative and unhelpful world and that is the world that as an entrepreneur you have to navigate.

It's simple to test this; ask anyone how they are and on the whole you know what the response will be - gloom and misery. I always answer "Brilliant - Fantastic"; it's amazing the almost shocked look you get! Try it!

Failure is acceptable

There is an implicit fear of failure in the UK and the potential stigma associated with it basically freezes most people into a state of indecision and paralysis. When Rob Barrow and I tried to get funding for SurfControl, we "failed" for almost two years seeing VC after VC after VC, Nomad after Nomad after Nomad, etc.

Failure is not wrong - if you have failed you have at least tried and that, in business, is the most important thing you can do. I'll admit that trying and winning is much better than trying and failing, but doing nothing is always a fail so find that belief and go for it.

Decisions

Make them and remember that a decision is for now, not forever. Too often people either don't make decisions, or if they do, they stay with it forever. This is a fact for most people and either you get frustrated or you help people.

The reality is things will change and you have to adapt. I remember overhearing a new employee in our Boston office being taught a process by an existing employee.

The new employee questioned the way we did the job, and the response was "We've always done it that way", at which point I had to intervene; we way as the department didn't exist three months earlier. The decision that had been made was right at the time but that was then; things change so be open-minded and move on.

"Just Do It" - Learn to trust your instincts

One of the biggest frustrations I have had in business is why things take so long when there is no reason for it and I eventually realised that the biggest gap in deciding to do something and then doing it is the "justification period".

When people try to make decisions or (eventually) make decisions, lots of time is lost before they then execute. This time is lost as people look for all sorts of ways to support the decision that they have or are about to make.

If you think about the last big decision you made, your instinct would get to the answer almost immediately, the rest of the time is then spent in justifying your decision. I learnt you can make decisions faster and get to the "just do it" bit extremely fast if you spot when the work you are doing is not for quantitative justification (which should still be done), but rather than qualitative reasons to make you feel that you have made the right decisions. If this can be done properly, you don't save trivial amounts of time you can save months or years in projects and execution.

Keep the faith, stay focused and believe

I said at the beginning, opinions are like backsides, everyone has one. As you grow you will be surrounded by advisors, consultants, lawyers, NEDs, corporate financiers, accountants, etc, etc. Many are excellent, but cross the line from the factual advice that you need to make a decision, into the polarised views of an individual who will probably have never been in your shoes. You may need help in specific areas but your position of command requires that you own the decision and you have faith in your vision and execution. So choose your friends and advisors with great care.

Translating funding speak

Over the years I have been involved with raising hundreds of millions of pounds in funding. But I wish I had one of those Berlitz phrase books when I started off.

The two phrases I have learnt to watch out for are "Good Luck, let us know how you get on" and "Great idea, but we would like to see a little more progress". The first is an obvious "no" as VCs don't like saying "no" just in case they got it wrong.

And the second great favourite of mine "Great idea, but we would like to see a little more progress" means "I am not prepared to take the risk. Go and do what you said you would do if you had the money (but without the money), and then come back when there is less risk".

VCs and investors on the whole don't know that they are doing it, but you can end up doing a lot of pointless work trying to "Make Progress". There are many such phrases; don't let them put you off. Just be aware of them and roll with the punches.

So that concludes my little journey of discovery. If you are still with me at this stage I assume you will be ready to give me the "teenage tantrum and abuse", but whatever happens in your journey, always do one thing - always take a moment and celebrate the small achievements for yourself and your team around you (who at the end of the day are the people that really make it happen).