This article was taken from the September 2013 issue of Wired magazine. Be the first to read Wired's articles in print before they're posted online, and get your hands on loads of additional content by <span class="s1">subscribing online.
So the startup idea you thought would set the world on fire is a damp squib. How do you get out in time -- and with enough dignity and cash to try again? Mind Candy CEO Michael Acton Smith knows a thing or two about turning epic failure into massive success: after spending three years and £5.8 million on gaming venture Perplex City, the Firebox.com founder had to close the operation in 2007. He then launched Moshi Monsters: the kids' social game currently has some 80 million users and has spawned other businesses. He shares the key to surviving -- and then thriving -- in business.
Make beautiful mistakes
Some mistakes are seen positively by investors. "If you innovate and things don't work out, fair enough. If you burn through cash and don't learn or iterate fast, that's failure," says Acton Smith. "The number-one rule is keep things simple."
Don't just fail fast -- fail early
Don't waste time going down the wrong track -- release early and often. "We spent years assuming what the audience wanted, building something epic. We eventually put it out, and it didn't connect with anyone."
Go with your gut
Heed data and make obvious tweaks, but instinct is key. "With Perplex City my gut said 'We're not going to find the magic here'.
With Moshi Monsters, when we ran out of money, we believed that it was worth persevering with."
Now shout about it
"Marketing is used to fan the flames. If you use marketing to try to spark a product that's not working, you'll waste cash," he says.
Write your own press releases and favour social media over advertising.
*Read more from our <a href="https://www.wired.co.uk/magazine/archive/2013/09/how-to/make-the-impossible-happen"
title="Make the impossible happen">Extreme How To special here</a>*
This article was originally published by WIRED UK
