When entrepreneurs fall from grace: Case of Theranos and lessons we can learn

Too much too soon can be a bad thing – if there are any lessons for the would-be and existing entrepreneurs to learn today, it is from achievements as well as failures. The case of one ambitious young entrepreneur whose net worth came down to nothing from a US $ 9 billion value, is one such instance where you know it is clearly entrepreneurship gone terribly wrong.
Elizabeth Holmes had a concept that was too good to be true; touted as the youngest entrepreneur to have innovated groundbreaking technology that allowed multiple tests to be done with one single drop of blood. Theranos was a powerhouse of everything a modern-day start-up could become. 
Elizabeth became the darling of the moment, raised venture capital in big numbers and took the biz world by storm – all because the young woman still not yet 30 spoke of a technologically superior Edison machine that would be used for the tests, allowing consumers to bring down the cost of running tests by a considerable amount. Wow – that was good news, said they all.
Theranos sounded so good that two major chains signed up with it to set up testing centers. Holmes was featured on Forbes and other prestigious media houses as the next Steve Jobs. Her net worth hit the billion dollar mark and she was photographed all in black, an elegant chic young woman whose product promise was going to change the world of tests. She was already an icon of everything a young entrepreneur could become. 
Yet, regulators found holes in her story. Theranos had no Edison machines and was using the same tests everyone else was using for their customers. Some of the tests came back all wrong. Theranos eventually owned up and Holmes was valued at nothing in her fall from grace. As at today, Theranos is not only being investigated by the Feds but also has decided to give up the testing business altogether – a fall from grace that would have been impossible one year ago.
So what lessons can we learn from an ambitious young woman who almost, almost had it together? Many, if you want to.
For starters, the biggest lesson is in integrity. It always pays to make sure that you do the right thing, the right way, when it comes to your business. No cutting corners and no hidden agendas. Integrity always wins out and always will be your greatest asset. Never compromise on mechanisms that may be dodgy as Theranos was. Sooner or later, the bad stuff hits the fan.
Transparency is yet another big lesson Holmes can teach us. In her haste to make big bucks and make Theranos great, she forgot the basics of making sure you have nothing to hide. Word does get around if you have a skeleton in the cupboard. 
Be transparent – be accessible and make sure your product promise is something you can live up to. Also, you must make sure your work with the regulators and laws are in line with what is expected. Anything less is dangerous and will definitely impede your growth in the future.
Theranos promised what they could not deliver. Always promise what you can give. Sooner or later, when you under-deliver, customers will know you have not got it right. It’s ok to promise less at the beginning – expand your product offering as you go along. Keep enhancing your promise; let it come from satisfied customers and improved business opportunities.
Plan to go slow. We live in the digital age and entrepreneurs, especially the young ones, have no patience. They want success here and now, a key fault line that Theranos discovered in their founder too late. It is always good to grow slowly – let the company and the entrepreneurial spirit mature – over time. Some of the best lessons are learnt over time and experience is still the greatest teacher out there.
Wait it out – Elizabeth Holms started Theranos with little experience and huge expectations. She should have waited it out, getting more experience and maturity. It is always a good idea to test your concept, see if it holds water and check it out with others with experience. Too much too soon is never good; there is a time for starting out and a time for holding back. Timing is everything – doing your homework is crucial.
Not every super-sounding idea can work in the market place. Sometimes it is good to do the same old same old than innovate things that do not deliver results. The same old same old has worked – if innovation is your path, then let it be a proven path and don’t even dream of taking the innovation road just because 
you can. 
Let’s face it – Holmes marketed herself and her company well. The business world today is so taken up with innovation – sometimes for the sake of it – than no one questioned the technical side of her much-touted Edison machines. The fact that Theranos was so secretive about their technology should have set the alarm bells ringing but it didn’t – so hung up was the world on her so-called pain-free or less pain system that would make blood tests a piece of cake – literally. 
So let Elizabeth Holmes and the case of Theranos be a case which can teach us lessons that hopefully, will help us to do things better as entrepreneurs. 
(Nayomini Weerasooriya, a senior journalist, writer and a PR professional, can be contacted at [email protected])