You Need to Set Aside Some Failure Budget

Ability to Fail More Can Help You Win in the Long Run

What if failure isn’t something to avoid, but a weapon to master?

In a world obsessed with perfection, the real winners outlast everyone else by failing smarter and faster. Success doesn’t come from dodging mistakes—it comes from finding your own "thing" where you can endure setbacks longer than others, iterate quickly, and turn those mistakes into progress.

This article introduces a new way to think about how failure can give you a strategic edge. We’ll explore a brutal historical lesson, modern tools that make failure cheap, a personal example of outlasting through process, and an innovative framework called the "failure budget."

The WWII Strategy of Soviets

During World War II, the Soviet Union struggled to cope up with German technological superiority. But they found their edge in vast manpower and cheap materials. They outlasted the Germans through sheer endurance, staying in the fight despite heavy losses. This isn’t about mimicking their tactics or ignoring the human cost—it’s about the strategy. They found where they could take more hits than their opponent and leaned into it.

The lesson here is simple but powerful. Identify where you can outlast the competitors. It could be resources, being happy with little and ability to save more money, or a unique strength only you have. In war, it was numbers and resilience. In your world, it might be something entirely different—but the principle holds.

While we can’t replicate such extreme tactics today, the idea of enduring setbacks by leveraging your strengths still applies. In modern life, we find less costly ways to outlast opponents—like iterating endlessly in areas where we have an advantage. Let’s see how that works now.

Reducing the Cost of Failure

Today, failure doesn’t have to sting as much as it used to. Ability to run businesses online and AI tools slash the cost of trying new things, giving you more chances to iterate and find what works. Think about it: online businesses skip the massive overhead of physical stores. You can test ideas globally for pennies compared to a brick-and-mortar disaster.

AI takes it further. Tools can automate customer service, analyze data, or even generate content, cutting labor costs so you can experiment without breaking the bank. These advancements don’t stop failure from happening—they just make it affordable. Lower costs mean more attempts. It’s the modern way to outlast others by iterating until you strike gold.

For example, a small e-commerce startup can test 10 product ideas in a month online, where a traditional store might manage one. More shots at success mean you’re more likely to hit the target eventually.

My Writing Journey

I’m not a professional writer, and I can’t compete on polished quality. But I can connect concepts from discrete domains and have unlimited idea. So, I can outlast others by writing endless imperfect drafts and slowly improving my writing skills. I can focus on the process—not the outcome. Recognition might come someday, but I don’t wait for it. I keep iterating because I enjoy refining ideas over time.

Each draft is a small failure I learn from. It’s not about being the best writer on day one—it’s about enduring the feeling of disappointment longer than others. Like the Soviets with their manpower, I found my "thing"—volume and persistence. You don’t need to be flawless if you can keep going, tweaking, and outlasting the competition.

This approach works because it’s sustainable for me. I don’t burn out chasing perfection. I just keep moving forward, one messy draft at a time.

Set Aside Some Failure Budget

Here’s a fresh idea: the "failure budget." Allocate a set amount of resources—time, money, or effort—to experiment and fail deliberately. It’s about learning and iterating without risking everything. This flips failure from something to fear into something you plan for. This gives you the feeling of safety to try new things.

Businesses budget for growth all the time—why not for strategic mistakes? Think of it as a safety net for bold moves. It’s like a startup’s runway, but specifically for testing ideas until one sticks. For example, a company might set aside 10% of its budget for experimental projects. Most will flop, but one could be a game-changer.

For individuals, it might mean dedicating an hour a day to try new skills, knowing most attempts won’t work out. This framework makes failure a tool, not a threat. It’s how you outlast competitors by planning to fail well.

Failing Safely in High-Stakes Situations

In fields where failure isn’t cheap, simulations let you iterate safely. They’re like a failure budget in action—controlled spaces to test, fail, and refine without real-world consequences. Surgeons practice on virtual patients, failing without harming anyone. Pilots train in flight simulators, crashing planes that never leave the ground.

Businesses use economic models to test strategies risk-free. Militaries run war games to refine tactics. These examples show you can apply this outlasting strategy even when the stakes are high. Simulations let you fail over and over until you’re unstoppable.

It ties back to the failure budget concept perfectly. By simulating, you’re budgeting for failure in a way that’s safe and smart. You get all the learning without the costly wreckage.

Conclusion

The Soviets outlasted the Germans with manpower and materials. I outlast with endless imperfect articles. You can outlast your competitors too—by lowering cost of failure with tech, reflecting on each try, and using a failure budget to strategize.

Find your edge: where can you take more hits than others? Start small—set aside 10% of your time or resources to fail fast and learn.

While others dodge mistakes, you can embrace them. Outlast, iterate, refine—that’s your strategic edge. The next time you fail, don’t flinch.

Ask yourself: how can I stay in the game longer than anyone else?