S7E23: The Failure Fund - Why Smart Entrepreneurs Budget for Mistakes

Disclaimer: This content is for educational and informational purposes only. It does not constitute financial, business, or legal advice.

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Ever wish you could fail on purpose—and still come out ahead? In this episode of Cash Flow with Pam Prior, Pam breaks down a concept every business owner needs: The Failure Fund.

Inspired by one of her clients (shout-out to Angela Lauria!), Pam shares how setting aside a small, intentional “fun-shit fund” can turn your business mistakes into powerful growth moves. Using the famous New Coke marketing disaster as a lesson in resilience, Pam shows how companies—and entrepreneurs—can plan to fail forward by budgeting for experimentation.

You’ll learn:
💡 What a Failure Fund is—and how to set one up in 3 simple steps
💡 How to use 90-day test cycles to try new ideas without risking your cash flow
💡 Why “If it’s not a hell yes, it’s a no” might be your new favorite business mantra
💡 How failure funds encourage innovation, creativity, and courage in your business

Pam also draws a powerful parallel between entrepreneurial risk and pharma R&D—showing how one winning idea can offset dozens that flop, and how planned risk-taking is the real secret to long-term success.

If you’re tired of playing it safe and ready to experiment without blowing your budget, this one’s for you.