If your first business venture didn't succeed, don't despair! Business failure is part of the process. Failures and mistakes go hand in hand with risk and success. Before you embark on your next business venture, though, take some time off and really study your first business venture. Ask yourself some objective questions about what went right and what went wrong, and answer those questions honestly. See your mistakes and your strengths for what they are. Or, if you're still in the midst of your first business venture, take some time to evaluate what has worked so far, and what hasn't.

When you see your mistakes, learn from them and don't beat yourself up about them. One of the most intriguing characteristics about the best leaders we studied is that they embrace mistakes. They know that if they are going to succeed, they are going to have to try a lot of different things and they are going to make mistakes. They accept that and they don't let fear get in the way of taking action.

John Wooden, legendary coach of the UCLA Bruins, says about mistakes: "I learn from mistakes. If you worry about making mistakes, you will never do anything. I used to say that the basketball team that makes the most mistakes probably wins because they are doing things. The doer makes mistakes so they are not full of themselves." Gordon Moore, co-founder of Intel, says that embracing mistakes is part of leadership: "One thing a leader does is remove the stigma of mistakes. People who are afraid of making mistakes all the time just don't try anything."*

If you don't know what went wrong with your business, take some time to get perspective. Find some business mentors to help you identify your strengths and weaknesses. Here are some good questions to ask yourself:

• Did I Put My Customer at the Center of My Universe? Many entrepreneurs get so excited about their idea or service that they totally forget the customer. When entrepreneurs have a hot idea, they are like hammers in search of a nail--the idea is the hammer and the nail is the customer. But you've got to start with the customer and end with the customer. How can you serve your customers? It's not just about your idea, it's how your idea will help your customers because your customers are the ones who will buy your product. Without them, you just have an idea.

 
• Was I Passionate About My Business? If you went into business just to make a buck, go back to the drawing board. Fifty percent of small businesses fail within the first year, and 95% fail within 5 years. If you want to make it past the rough spots, you'll need real passion for your vision. Revisit why you started your business to identify the driving force.

 
• Did I Target a Niche? Entrepreneurs are famous for wanting to change the world on a shoestring budget. You might want to change the world, but you can't do it all at once. You have to start somewhere. Go back and look at your first business. Did you clearly define a competitive space in which you could win? Were you better, cheaper, and faster than your competitors within that space? If not, you've identified one area that you need to strengthen in your next business venture.

*Read more insightful stories about top business leaders in The Art of Business by Raymond and Stephanie Yeh.