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Rethink Business Setbacks With "The Learning Pit"
Chris Scott
February 13, 2025
Setbacks can occur for a number of reasons when running your own business. False starts can lead to the loss of a major client, a failed marketing strategy can leave you with excess inventory, a procurement delay can result in a loss of reputation, and an employee's departure can negatively impact team dynamics. Every small business leader faces these humbling instances at some point in their journey.
These setbacks can feel devastating. Business leaders are defined by how they handle and grow from these setbacks. Successful leaders persevere through difficult times, knowing that even serious setbacks create opportunities for future growth.
The ability to navigate tough challenges and transform adversity into opportunity isn’t just luck — it’s a skill that can be developed.
The Man in the Arena, Or The Business Owner in The Learning Pit
Theodore Roosevelt, in his speech Citizenship in a Republic, delivered the following:
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”
Success is earned. True success comes from having the courage to step into the arena, despite the uncertainty of the outcome. But courage isn’t just about persistence — it’s about embracing discomfort as part of the learning process.
I recently read a Wall Street Journal article that argued against “rescuing your kid from the ‘Learning Pit.’” James Nottingham, a British teacher, noticed his students were playing it too safe, and he set out to help them take risks, ask more questions, and embrace uncertainty in pursuit of learning.
Nottingham "wondered how he could help them take more risks in the pursuit of learning: asking more questions, admitting when they didn’t know something, being brave enough to test different approaches. He used a picture of a U-shaped curve to explain to kids how their comfort level would drop and then, in time, rise again."
Though the article focused on children, the parallels to entrepreneurship are striking. The Learning Pit is our arena.
As small business leaders, we often find ourselves in a version of the Learning Pit. Whether it’s launching a product, refining a service, or navigating market shifts, every new challenge requires you to set aside your fear of failure and step into the unknown.
We have two choices:
Remain safely on the edge
Dive into the pit, embracing the discomfort as a vital part of our learning process
If you want to get to the other side — to the promised land, filled with deep understanding, mastery, and confidence — there's only way one to do so.
The hard way.
Into the Pit we go.
Embracing Your Time in The Learning Pit
Society often pressures us to avoid discomfort. Yet, entrepreneurship and real learning thrive on struggle. If we never take the plunge, we forgo growth.
In this light, business setbacks are not failures but catalysts for transformation. The Learning Pit serves as a powerful opportunity, fueling an entrepreneur's journey.
So how do you get out of the Learning Pit? How do we reap the rewards on the other side?
Quality repetitions — fueled by a positive mindset and the power of adaptation — are what allow us to learn from our mistakes.
“The only real mistake is the one from which we learn nothing.”
This mindset is about more than merely accepting failure; it’s about harnessing it. Every setback provides an opportunity to validate ideas and gain essential feedback. The key is to control these setbacks so you can quickly learn, adapt, and thrive.
A setback yesterday does not need to be a setback today.
Successful small business leaders jump head-first into the Learning Pit. It allows them to find the root cause of problems. To validate ideas. To explore pressing issues.
Mastering adaptability will have a profound impact on the company. With an effective strategy, you can emerge from the Learning Pit stronger and more capable than ever.
Climbing to New Heights with the SBi3 System
To emerge from the Learning Pit, small business leaders need a robust, results-driven system — a tool that doesn’t simply analyze setbacks but actively transforms them into solutions. That tool is SBi3, a problem-solving framework built on three dynamic pillars: Innovate, Implement, and Improve.
Innovate
The first pillar is about innovation. When a setback occurs, the natural response is to reexamine the status quo:
Challenge Assumptions: Ask questions like “What hasn’t been tried?” or “How can I reframe this problem?” Creativity in adversity can reveal unexpected opportunities. Use tools like the 5 Whys to find the root cause of a problem.
Generate New Solutions: Encourage brainstorming sessions with your team. Explore out-of-the-box ideas that might initially seem unconventional but could pave the way for breakthroughs.
Embrace Disruption: Often, innovation requires a willingness to disrupt established processes. This is the moment to consider radical shifts that could lead to sustainable competitive advantages.
Implement
Coming up with great ideas is only the first step. Turning ideas into reality requires a structured approach, discipline, and follow-through. A structured implementation takes deliberate action to bring innovations to life.
Actionable Plans: Transform those creative ideas into practical, step-by-step strategies. Break down your plan into manageable milestones to tackle the setback systematically.
Execution and Accountability: Implementing a plan means taking decisive action. Set clear deadlines, assign responsibilities, and monitor progress meticulously.
Operational Efficiency: During this phase, streamline operations and refine processes to ensure that your solutions are not only innovative but also effective in practice. This phase is all about converting vision into measurable results.
Improve
Every solution is a work in progress. The final pillar ensures that businesses don’t just implement solutions but also refine and enhance them over time. Continuous improvement turns good ideas into lasting success.
Collect Feedback: After implementation, measure the impact of your strategies. Use customer feedback, performance metrics, and team insights to evaluate success.
Iterative Refinement: With each cycle of SBi3, learn from the outcomes and tweak your approach. This iterative process ensures that you are constantly evolving and adapting to new challenges.
Cultivate a Learning Culture: Make improvement an ongoing part of your business culture. Encourage everyone in your team to share insights and be part of the continuous improvement journey.
Why SBi3 is the Best Way Out of the Learning Pit
SBi3 isn’t just a theoretical framework — it’s a practical, execution-focused system that bridges the gap between problem identification and solution delivery.
Results-Oriented Approach: SBI3 moves beyond mere reflection. It is designed to drive tangible outcomes by converting setbacks into clear, actionable solutions.
Structured Methodology: The clear three-pillar structure of Innovate, Implement, and Improve provides a repeatable process that demystifies the chaos of setbacks. With this structure, every challenge is broken down into manageable parts, enabling decisive action.
Harnessing Lessons Learned: SBI3 captures the essence of every setback, turning each misstep into a learning opportunity that informs your next move. The system ensures that you do not repeat the same mistakes, but instead, use the insights gained to propel your business forward. Temporary setbacks are an important resource for growth.
Empowerment Through Action: By following the SBi3 process, you shift from a reactive stance to proactive problem-solving. The framework empowers you to take control of your business challenges, transforming uncertainty into strategic advantage. This is a game changer for small companies.
The Learning Pit can feel like a place of struggle and uncertainty, but with the right approach, it becomes a launchpad for growth. SBi3 provides the structure, clarity, and action-oriented mindset needed to navigate setbacks and emerge stronger than before. It turns obstacles into stepping stones, taking a proactive approach to ensure that every challenge becomes a catalyst for long-term success.
Learn to Harness the Power of Business Setbacks
Business setbacks aren’t the end — they are the start of a transformative journey. Having a positive attitude and embracing your time in the Learning Pit means understanding that every struggle is a vital part of the learning process.
Remember, the true risk isn’t in falling into the Pit; it’s in never daring to climb out. Embrace your setbacks, learn relentlessly, and use the SBi3 System to transform your struggles into stepping stones for lasting success. With each cycle of the SBi3 System, you’ll not only climb out of the Pit — you’ll ascend to new heights that once seemed unreachable.
If you're looking to learn more about how the SBi3 System can help you turn challenges into opportunities, let's chat! No matter what industry you are in, the SBi3 System can help you break through the toughest of problems.
Let's schedule an intro call. I'd love to learn more about how I can help.
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