Six-month riches to rags

[VNV]

Boo hoo, woes me

Six months ago I was leading a team of engineers at an Internet start-up company making good money. Now I'm trying to mentally prepare for the possibility of bankruptcy.

After two years at the company, I realized it company was going to run out of money and quit late last year. Three weeks after I left, they laid my whole team off. Took my savings and moved to CA before New Year to try my hand at entrepreneurship. It was always my dream, and I thought the start-up's failure was a blessing in disguise.

I took out about 40K in debt total to start a business in CA, 13K in 9% business loans and the remaining in 0% (for 12 months) cash advances. My business partner and I probably wont be able to write ourselves paychecks for another a couple more months, but I'll probably run out of cash next month. And when that happens, I wont be able to make my monthly payments, and all the cards will become delinquent and automatically go from 0% to 12 - 20%.

The business will probably net me about $3K/month by the time we hit full-steam, but at that rate, and with credit card late fees and 20% interest rates (if I do become delinquent), I don't think I'll ever be able to pay off the debt unless we flip the business within the next couple or few years. At best, I may end up just breaking even.

I can't believe I blew through all my loaned cash so quickly. We couldn't have picked a worst time to try self-employment. I'm getting rusty at software already, got a criminal record (DUI) over the holidays that prohibits me from being employed anywhere corporate again, may have thrown away my career, and am now beginning to wonder about bankruptcy.

Just needed to get that out. It's not a guarantee and everything could still work out, but the pessimist in me is getting louder. I'll be skating on very, very thing ice for the next two months. Too bad I'm not religious.

Reflecting back, when all these plans were coming to fruition, I was on gear, and I think my ego may have gotten the best of me. Maybe the added testosterone inclined me toward riskier behavior, pushing my ambitions further than they should have gone. Shit, if I just got back on cycle, maybe all the stars will realign. Even if I did have to go through bankruptcy down the line, with gear and a freezer full of lean beef, nothing could ever get too bad.

 

[oldfella]

Damn bro,
Sounds like another victim of the poor performing economy. There are so many others out there with similar stories and so many more yet to come. This economic crisis is not your fault. So do not look at it as a failure on your part. You have tried to make an honest go of it and worked hard at it. YOu risked your own money on a resonable shot at success and the timing was bad. NO one outside of the government would have known this was coming. OH and I do believe the government knew about ths and had it supressed for their own gain.

Bankruptcy is not a crime, you do not go to jail for it and in many cases is the only way out. But I will give you this little piece of advice. The credit card companies are doing deals with individuals to clear these unsecured debts. my friend Marilyn was offered 1800.00 dollars from her card company to clear a near 10k debt. Yes 1800 to wipe off 10k!! THey called her she did not call them. SO call these creditors before you totally pull the pin and talk to them. Everyone is hurting bro, you are not alone and the pool is about to get more crowded yet with people treading water. I hoep it all goes well for you man, I really do. All the best VNV!

 

[Designbuilt]

Damn bro,
Sounds like another victim of the poor performing economy. There are so many others out there with similar stories and so many more yet to come. This economic crisis is not your fault. So do not look at it as a failure on your part. You have tried to make an honest go of it and worked hard at it. YOu risked your own money on a resonable shot at success and the timing was bad. NO one outside of the government would have known this was coming. OH and I do believe the government knew about ths and had it supressed for their own gain.

Bankruptcy is not a crime, you do not go to jail for it and in many cases is the only way out. But I will give you this little piece of advice. The credit card companies are doing deals with individuals to clear these unsecured debts. my friend Marilyn was offered 1800.00 dollars from her card company to clear a near 10k debt. Yes 1800 to wipe off 10k!! THey called her she did not call them. SO call these creditors before you totally pull the pin and talk to them. Everyone is hurting bro, you are not alone and the pool is about to get more crowded yet with people treading water. I hoep it all goes well for you man, I really do. All the best VNV!

I read your thread, and this post above, and I really can't improve on it, solid advice. As far as the anabolics go, I do think that you are right a friend of mine, who does a lot of big property development told me the same thing, that he makes ballsy decisions and takes risks (calculated) while "on" but when he comes off, he's a "weak sister" So take it for what it's worth.

Anyway, like I said, Oldfellers advice was right on the money and he threw in a little pep-talk with it, I really can't improve on that.

The only thing that I can add is to keep a positive attitude, worrying about it will only cause unwanted stress and anxiety that you don't need, just keep a possitive attitude, you will be surprised at the good it can do.

Best of luck!

 

[pesty4077]

Six months ago I was leading a team of engineers at an Internet start-up company making good money. Now I'm trying to mentally prepare for the possibility of bankruptcy.

After two years at the company, I realized it company was going to run out of money and quit late last year. Three weeks after I left, they laid my whole team off. Took my savings and moved to CA before New Year to try my hand at entrepreneurship. It was always my dream, and I thought the start-up's failure was a blessing in disguise.

I took out about 40K in debt total to start a business in CA, 13K in 9% business loans and the remaining in 0% (for 12 months) cash advances. My business partner and I probably wont be able to write ourselves paychecks for another a couple more months, but I'll probably run out of cash next month. And when that happens, I wont be able to make my monthly payments, and all the cards will become delinquent and automatically go from 0% to 12 - 20%.

The business will probably net me about $3K/month by the time we hit full-steam, but at that rate, and with credit card late fees and 20% interest rates (if I do become delinquent), I don't think I'll ever be able to pay off the debt unless we flip the business within the next couple or few years. At best, I may end up just breaking even.

I can't believe I blew through all my loaned cash so quickly. We couldn't have picked a worst time to try self-employment. I'm getting rusty at software already, got a criminal record (DUI) over the holidays that prohibits me from being employed anywhere corporate again, may have thrown away my career, and am now beginning to wonder about bankruptcy.

Just needed to get that out. It's not a guarantee and everything could still work out, but the pessimist in me is getting louder. I'll be skating on very, very thing ice for the next two months. Too bad I'm not religious.

Reflecting back, when all these plans were coming to fruition, I was on gear, and I think my ego may have gotten the best of me. Maybe the added testosterone inclined me toward riskier behavior, pushing my ambitions further than they should have gone. Shit, if I just got back on cycle, maybe all the stars will realign. Even if I did have to go through bankruptcy down the line, with gear and a freezer full of lean beef, nothing could ever get too bad.

We are all in the same boat, you can call it the Titanic. I lost just as much if not more, thank goodness you have money to last a month or two. I made it through and I will give you advice on what you need to do. First of all, don't worry about the commercial debts, as much as your own. It is not your fault are economy took a dump. Downsize all your debts and do that fast, in otherwords, cut back. If you were sucessful in the business that you own, don't you think you can do that in another? Even in this bad economy, you can make a decent living, but you have to be diversified. In other words, you might have to something different. And lift your head up and be positvive and surround yourself with positive people that are making it. I almost got in that negative thinking, that will destroy you. I love this saying"When the going gets tough, the tough get going You got 1 month to start planning, START!

 

[Uluwatu]

Six months ago I was leading a team of engineers at an Internet start-up company making good money. Now I'm trying to mentally prepare for the possibility of bankruptcy.

After two years at the company, I realized it company was going to run out of money and quit late last year. Three weeks after I left, they laid my whole team off. Took my savings and moved to CA before New Year to try my hand at entrepreneurship. It was always my dream, and I thought the start-up's failure was a blessing in disguise.

I took out about 40K in debt total to start a business in CA, 13K in 9% business loans and the remaining in 0% (for 12 months) cash advances. My business partner and I probably wont be able to write ourselves paychecks for another a couple more months, but I'll probably run out of cash next month. And when that happens, I wont be able to make my monthly payments, and all the cards will become delinquent and automatically go from 0% to 12 - 20%.

The business will probably net me about $3K/month by the time we hit full-steam, but at that rate, and with credit card late fees and 20% interest rates (if I do become delinquent), I don't think I'll ever be able to pay off the debt unless we flip the business within the next couple or few years. At best, I may end up just breaking even.

I can't believe I blew through all my loaned cash so quickly. We couldn't have picked a worst time to try self-employment. I'm getting rusty at software already, got a criminal record (DUI) over the holidays that prohibits me from being employed anywhere corporate again, may have thrown away my career, and am now beginning to wonder about bankruptcy.

Just needed to get that out. It's not a guarantee and everything could still work out, but the pessimist in me is getting louder. I'll be skating on very, very thing ice for the next two months. Too bad I'm not religious.

Reflecting back, when all these plans were coming to fruition, I was on gear, and I think my ego may have gotten the best of me. Maybe the added testosterone inclined me toward riskier behavior, pushing my ambitions further than they should have gone. Shit, if I just got back on cycle, maybe all the stars will realign. Even if I did have to go through bankruptcy down the line, with gear and a freezer full of lean beef, nothing could ever get too bad.

Don't lose track of your dream of having your own business. It is one of the most rewarding things in life you can do. I believe you need to stop worrying about your debt, it is already there and you can't do anything to change it. Shit you took the first step, now follow through with your plan of action and bulid your own business. And please if you watch the news, STOP!!!! The media is filled with tons of negativity, if the news was positive no one would watch it. I quit watching all news programs and reading the newspaper years ago. And I am better off for it. You could say I live in my own little world. Sure my one business's numbers are down, but I don't have the negative reinforcement of the media, telling me everyday the world is doomed. So I work harder on that business and concentrate on my new performance nutrition company that I just officially launched 10 days ago.

You picked a good time to start your own business, because you don't have a job. You are now in control of your own financial destiny, not your boss or supervisors. And again I can't stress it enough please stop watching the news, I promise your outlook will change.

I wish you luck in your new business venture and may it bring you success that you deserve. The harder you work the more successful you will become.

 

[Pekkerwood]

VNV:

I'm sorry you are facing tough seeming challenges. Almost ALL small businessmen find themselves in your exact situation at some point. Solving these problems is the key to success.

Your already know the facts. You have already made the statements. Start asking questions.

Who can help me? Will my competitors? Will a potential customer, step in a be your white knight? Can taking contract work be a short term solution? Can you factor any receivables you may have? Who is a potential equity partner?

 

[VNV]

Thanks for your support, guys. Makes me think...

I'm probably just an regular stiff, and that's okay. There's no shame in mediocrity.

I've always had this idea of what my life was suppose to be come, and how it was suppose to look. And my happiness has always been on hold for that moment. All my life I've been waiting to live; waiting for the time when I had earned the privelege of stepping back, looking at what I had created, and thinking, "Ah yes, I'm finally here."

The reality is, that moment will probably never come. So what?

Doesn't matter how prestine your mow or high you build your fense, a big pile of dog shit's always find its way onto your lawn. I can't spend my whole life waiting to become who I think I'm suppose to be, or it will pass me by. I have arrived. I am finally here. I am who I'm suppose to be. "That moment" is the present, and although it may not be what I imagined, it's what I've got, any this is my only time to enjoy it, so I'd better.

EDIT: In other news, turns out all my mega debt from '08 is giving me two more months of living expenses via tax returns. My shit's now a few more inches away from the fan, and that ain't half bad.

 

[thebrick]

One day at a time, VNV. That's all any one of us can do. Really, how many of us had our lives turn out exactly as we planned? Let me go out on a limb here… 2%? Bottom line, millions of people are in a tough spot right now. In the current environment, its like trying to make chicken salad out of chicken shit. As you imply in your post, live your life today, enjoy it, laugh, train, enjoy good food and good sex (not necessarily in that order )… and keep your dreams alive. Your life is the journey, not the destination. As they say, it ain't over until the fat lady sings. And she ain't sung yet.

 

[Pekkerwood]

Thanks for your support, guys. Makes me think...

I'm probably just an regular stiff, and that's okay. There's no shame in mediocrity.

I've always had this idea of what my life was suppose to be come, and how it was suppose to look. And my happiness has always been on hold for that moment. All my life I've been waiting to live; waiting for the time when I had earned the privelege of stepping back, looking at what I had created, and thinking, "Ah yes, I'm finally here."

The reality is, that moment will probably never come. So what?

Doesn't matter how prestine your mow or high you build your fense, a big pile of dog shit's always find its way onto your lawn. I can't spend my whole life waiting to become who I think I'm suppose to be, or it will pass me by. I have arrived. I am finally here. I am who I'm suppose to be. "That moment" is the present, and although it may not be what I imagined, it's what I've got, any this is my only time to enjoy it, so I'd better.

EDIT: In other news, turns out all my mega debt from '08 is giving me two more months of living expenses via tax returns. My shit's now a few more inches away from the fan, and that ain't half bad.

That is terrific. We all fall into the trap of if I had more money, better car, bigger muscles, more beautiful wife, etc that we dont enjoy our daily lifes. We spend time looking forward, and backwards. Learning to live i the now is strong voodoo my friend.

 

[EVERLAST]

you are not alone..................

Started my concrete construction company in August of 01, a month before the terrorists hit the towers and we lived through that.
In 03 I bought out a thieving partner who embezzled from his own son (silent partner) and me (managing partner)... nine months later my wife drives away in the red BMW convertible we got for her. I drove it ONCE!
Ever since it has been a shitstorm economy. I feel like the last 9 years has slowly been trying to choke the life outta me. My daughter went back to her moms (1st wife) after the divorce from the fake blonde and she started cutting herself. Huge trauma to me, medical treatment bills, on top of the rest. Wanted to just die. (she is now 19 and is a living doll...well adjusted and happy thank God)
Sass found me and wiped the crud outta my eyes and helped me to see things clearly. Watch out for dope and drink to creep in. It did on me.
She saved me by showing me that who I am is not the business or the things I lost (37' Egg Harbor yacht, red BMW convertible, Fake Blond Wife, big old 1918 mansion house I restored myself, Lots of travel and wasted spending)

I'm not bitter...still alittle pissed that we have three house payments to make. two on the market in this economy?!?!
What to advise? Batten down the hatches! Keep it simple and take advantage of everything you can to simply survive and fight again another day.
Watch out for negative thinking too. It is not your fault this thing tanked.
If most people knew what a business entails between the start up, insurance, tools, equipment, materials scheduling, and the damn employee problems, AND THE LOCAL, STATE and FEDERAL GOVERNMENT hands in your pocket at every turn!!! there would be NO NEW BUSINESSES

 

[Papa Van Smack]

Six months ago I was leading a team of engineers at an Internet start-up company making good money. Now I'm trying to mentally prepare for the possibility of bankruptcy.

After two years at the company, I realized it company was going to run out of money and quit late last year. Three weeks after I left, they laid my whole team off. Took my savings and moved to CA before New Year to try my hand at entrepreneurship. It was always my dream, and I thought the start-up's failure was a blessing in disguise.

I took out about 40K in debt total to start a business in CA, 13K in 9% business loans and the remaining in 0% (for 12 months) cash advances. My business partner and I probably wont be able to write ourselves paychecks for another a couple more months, but I'll probably run out of cash next month. And when that happens, I wont be able to make my monthly payments, and all the cards will become delinquent and automatically go from 0% to 12 - 20%.

The business will probably net me about $3K/month by the time we hit full-steam, but at that rate, and with credit card late fees and 20% interest rates (if I do become delinquent), I don't think I'll ever be able to pay off the debt unless we flip the business within the next couple or few years. At best, I may end up just breaking even.

I can't believe I blew through all my loaned cash so quickly. We couldn't have picked a worst time to try self-employment. I'm getting rusty at software already, got a criminal record (DUI) over the holidays that prohibits me from being employed anywhere corporate again, may have thrown away my career, and am now beginning to wonder about bankruptcy.

Just needed to get that out. It's not a guarantee and everything could still work out, but the pessimist in me is getting louder. I'll be skating on very, very thing ice for the next two months. Too bad I'm not religious.

Reflecting back, when all these plans were coming to fruition, I was on gear, and I think my ego may have gotten the best of me. Maybe the added testosterone inclined me toward riskier behavior, pushing my ambitions further than they should have gone. Shit, if I just got back on cycle, maybe all the stars will realign. Even if I did have to go through bankruptcy down the line, with gear and a freezer full of lean beef, nothing could ever get too bad.

Sorry for your hardship man. I got a challange for ya. If you have the forsight to leave a sinking ship, the forsight to know that you'll miss payments....months ahead of time....and the ability to set up the biz in the first place.....then call the card companies, or your lenders.....and make a deal. they know times are tough, and they'd rather work w/ you than have u go bankrupt.......then they can't profit from you at all. Take some time....figure out what you would need from them to make it work, and pitch it to them.