Summary3 min read

Becker Business Podcast: "Small Failures Are Fine" (10-22-25)

Host: Scott Becker
Date: October 22, 2025

Episode Overview

In this concise solo episode, host Scott Becker explores the value of embracing small failures in business. Drawing from real-world observations and classic business literature, Becker champions the strategic acceptance of minor setbacks as a meaningful path to long-term success. His central theme: Small failures are normal—and even healthy—if businesses thoughtfully manage their resources and risk exposure.

Key Discussion Points & Insights

1. The Reality of Small Failures in Business (00:10 - 01:20)

Becker opens with the example of an investment banking business focused on many small- and mid-sized deals, rather than aiming only for massive, high-stakes opportunities.
He explains that time, energy, and effort will often be spent on deals that ultimately don’t work out. However, as long as the company secures a higher proportion of successful outcomes versus failures, it remains well ahead in the long run.

“This is a business that they've got that's not hitting home run deals… but doing lots of deals of small and mid sized. And of course they will invest some effort and some time and energy into some deals that don't work out.”
— Scott Becker [00:22]

2. Managing Risk and Resource Allocation (01:20 - 02:10)

Becker stresses the importance of not overcommitting capital, payroll, or talent to any single venture.
Small setbacks are acceptable and manageable as long as they don’t undermine the core stability of the business or endanger personal or organizational finances.

“Don't put in so much capital or invest in so many people and so much payroll and labor that you could—often deal with small failures as long as you continue to hit enough of the extra base hits, enough of the singles and doubles regularly.”
— Scott Becker [01:35]

3. The Philosophy: In Defense of Small Failures (02:10 - 03:00)

He frames the episode as “a salute to small failures,” recognizing their role in progress and innovation.
Becker reiterates that small losses are “good” and that “big failures are disaster.”

“Small failures are good, big failures are disaster.”
— Scott Becker [02:48]

4. Reference to Jim Collins and Practical Wisdom (03:00 - 03:30)

Citing Jim Collins’ “Good to Great,” Becker introduces the mantra: “fire bullets, not cannons”—focus on low-risk experiments rather than taking perilous, all-or-nothing bets.
This way, businesses can afford to experiment, learn, and iterate without jeopardizing their existence.

“It reminds me a little bit of the great book by Jim Collins, Good to Great, where he says when you’re trying new things, fire bullets, not cannons. Which essentially means…take shots at the plate that’ll be what we call small failures.”
— Scott Becker [03:05]

Notable Quotes & Memorable Moments

On embracing small failures:
“In all seriousness, it’s a salute to small failures. This is okay.”
— Scott Becker [02:35]
On risk management:
“If you invest in something, it doesn't work out, that's fine as long as you haven't put so much money into it that you're going to make yourself…or your company broke.”
— Scott Becker [02:15]
On business progress:
“Life will go on, keep on moving forward. It's okay. That's the concept today.”
— Scott Becker [03:20]

Structure & Flow

00:00–00:22: Introduction; the concept of small versus large deals/failures.
00:22–01:35: Example of business with many small deals; success metrics.
01:35–02:48: The dangers of over-investing in any single endeavor; importance of singles and doubles.
02:48–03:20: Advocacy for small failures; reference to Jim Collins.
03:20–End: Recap and closing message.

Takeaways

Small failures are not only inevitable but also constructive if managed wisely.
Strategic allocation of resources lets businesses take calculated risks, fail small, succeed big.
Classic business wisdom—experiment conservatively, avoid ruinous bets—remains as vital as ever.

Perfect for listeners wanting quick, actionable insight on risk-taking and resilience in business!

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Transcript1 lines

[00:00]
A
This is Scott Becker with the Becker Business Podcast and the Becker Private Private Equity Podcast. Today's discussion is small failures are fine. So, so here's the deal. I can. Somebody's an investment banking business and essentially that business is a great business. They essentially do lots of deals. This is a business that they've got that's not hitting home run deals, they're not doing billion dollar deals, but doing lots of deals of small and mid sized. And of course they will invest some effort and some time and energy into some deals that don't work out. But at the end of the day, as long as they have a ratio of deals that work out to those that fail, they're way ahead of the game. So the concept being in almost whatever you do, particularly don't put in so much capital or so much working capital or invest in so many people and so much talent, so much payroll and labor that you could often deal with small failures as long as you continue to hit enough of the extra base, hits enough of the signals and doubles regularly. So, so this is, the great concept here is basically in defense of small failures. If you invest in something, it doesn't work out, that's fine as long as you haven't put so much money into it that you're going to make yourself or your family or your company broke. So today's, today's concept is in all, in all seriousness, it's a salute to small failures that this is okay. Small failures are good, big failures are disaster. I mean it reminds me a little bit of the great book by Jim Collins, good to great, where he says when you're trying new things, fire bullets, not cannons. Which essentially means don't, don't, don't take shots at the plate, they're going to cause you to go broke. Rather take shots at the plate. That'll be what we call small failures. Life will go on, keep on moving forward. It's okay. That's the concept today. Small failures are fine. Thank you for listening to the Becker Business and the Becker Private Equity podcast. Thank you very, very much.