Oops - I Sank A Business
I have a confession to make - I sank a business. It’s gone - liquidated, bust, dead - it doesn’t exist anymore.
When Did This Happen?
It all happened fairly recently and I made the final decision not to reverse the liquidation only a few weeks ago.
So What Went Wrong?
Lots of things went wrong and I will share some of those mistakes in the near future. But the main problem was me. Before we even started trading, my instinct told me it was a bad move. I had the opportunity to take a year or so off to work full-time on writing projects that I was passionate about.
But I foolishly ignored both my instinct and the chance to follow my passions. In fact, by the time I wrote this post earlier in the year, I knew I’d made the wrong decision: Business - Sometimes You Should Give Up.
How Much Money Did I Lose? Did I Lose Everything But The Shirt On My Back?
I don’t want to give an exact figure, but it was a lot - a high 5 figure sum. I wasn’t actually a Director of the Company (too long and boring a story to explain) but it was my money that was used to fund the business. My husband was a Director but we only lost what we’d already invested, as it was a Limited Company, which means that the Director’s are not personally liable for any of the debts of the Company.
Did The Company Owe A Fortune To Other Businesses?
No, it didn’t. The biggest creditor was me and we hadn’t borrowed from the bank. The amount owing to others was surprisingly small.
Am I Not Devastated By The Experience?
No, I’m not. Naturally, I had a lot of stressful days and sleepless nights leading up to the death of the business. For the last few years, I’ve been the sole breadwinner for my children. I’ve made sacrifices, including time spent with them, in favour of working and they’ve always been really supportive and understanding about that. So of course I was concerned that I would let them down if I could no longer put food on the table, because I’d made a bad choice.
And I don’t like losing money, but I learned a long time ago that it’s pointless to cry over material things that are broken and can’t be fixed. And what I learned from the experience far outweighs the money I lost. If it had been my first business, I’d probably have been gutted. But this was a powerful learning experience for me.
I’d already begun to change as a person. And I realised that it was foolish to ignore my passions. Had I put all my effort into turning the business round, I’d probably still be busy going in the wrong direction and wasting more valuable years.
Wouldn’t It Have Been Smarter To Turn The Business Round And Sell It?
We did consider doing that - although we’d have needed to diversify, as the construction industry in the UK is going through a recession right now. Plus, it would have meant borrowing money and investing more time. As we’d already decided that we’d rather focus on our passions and because we also wanted to emigrate, it would have been a bad choice.
Will I Give Up Blogging About Business Because Of This Mistake?
Absolutely not. I don’t see liquidating the business as a failure, because it was the right thing to do. I’d already given up a business I enjoyed (huge mistake), built a successful business and sold it (smarter move) and now I’ve liquidated a business that wasn’t right for me. So I believe I’m now in an even better position to help and advise others than I was before.
Am I Not Worried That Readers Will See The Death Of The Business As Failure?
Not at all - I hate the failure word. And I don’t see the decision to end a business that isn’t working and pursue my passions as failure.
Of course, negative people may see it like that but there’s no room for negative folk on this site. I’ve already received messages in my comments section from one person who had heard about the death of the business. They went straight into the spam folder, as they’ve posted negative comments and personal attacks before.
In the near future, I’m going to share some of the mistakes I made over the last year or so and the reasons that the business died. If you’d like to learn more, click here to subscribe in a reader. It’s completely free and it means you won’t miss a post.
Do you have any questions? Do you have any stories about businesses that have gone under that you would like to share - either your own, or ones you’ve read about? Would you give up something in order to follow your passions, even though it meant a huge financial loss? Please share your thoughts in the comments section.
Image Credit: Jef Poskanzer
Other People’s Mistakes
Last week, I asked readers to share what mistakes they’d made, or things that they really suck at. Hunter Nutall shared a major interview mistake he made and described how he turned it round. His story is a must read for anyone who wants to improve their chances of getting a job: The Hidden Question In All Job Interviews.
And Sara at On Simplicity bravely shared: Three Things I Suck At
Related Reading On This Site
Six Things You Can Learn From The Man Who Had No Shoes: This man’s was broke after losing his business. Yet he went on to build one of the most well known brands in the world.
Are You In The Business Of Misery? Can you be truly successful, if you don’t enjoy the business you’re in?
From £1 Million To Bust: How To Turn Your Business Round Again: An interview with Ian Denny who revived his business after going bust.
What You Can Learn From The Man Who Lost £250,000 Overnight: An intriguing story about a man who borrowed thousands on credit cards to start a business that crashed within months.
Going Broke? Judge Me - Feel Free To Cast The First Stone: Ian Denny talks about the stigma attached to business bankruptcy.
How I Brought My Business Back From The Dead With Blogging: Michael Martine lost everything and describes how blogging helped him start again.
Reaching Back Through Time To Help A Single Mom Living In Her Parents’ Basement: A great story by Wendy Piersall about the death of her first business and how it inspired her to start again.
Posted on July 23, 2008
Filed Under Misc | 4 Comments
