When bad business decisions equal success

Mantras like “every cloud has a silver lining” give us reassurance that our foul-ups could very well turn out into something good and positive. To feel better about making stupid decisions we recite these mantras, but how many of us actually find light in a bad situation and really learn from our mistakes? It’s way easier said than done.

Take it from Modcloth (e-retailer of vintage women’s clothing) co-founders Susan Gregg Koger and Eric Koger, who in 2005 flopped out of the Colorado State University’s Venture Adventure competition on account of their shoddy business plan. Losing the competition helped them regain focus, and they took the opportunity to access to a broad, new entrepreneurial network. Through the competition they would form ties with the people who would eventually become their lawyer, publicist and angel investors. They effectively turned their loss into a win.

Today Modcloth has 100 full-time employees in Pittsburgh and is a popular online retailer with over $15 million in annual revenue. The Kogers tell Lora Kolodny of the New York Times how they won by losing.