Theranos, a biotech company with a solid 13 year history, began its downward spiral in October thanks to a Wall Street Journal expose suggesting the company exaggerated its claims. The floodgates spilled open, and skepticism surrounded the company. Ultimately, the multi-billion dollar company couldn’t survive the onslaught, especially after a surprise visit from the FDA which resulted in the federal government planting a huge fine, shut down, and top exec firing.
However, there’s a golden lining—entrepreneurs can learn one big, tough lesson the easy way. Entrepreneur Magazine asked me what I thought about the potential lessons, and my first thought was that the company was too self-promoting. It showboated as the best thing in the world, overlooking any flaws. You need to own and work on your imperfections, not hide them.
Personally, I don’t think the company is totally done yet, but they need to prioritize a massive cleaning and overhaul. They’ll have to embrace humility, own up to their mistakes, and humanize themselves. There’s a lot of trust to earn back, but at its core it’s still a great company helping a lot of people.
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