How much capital did you invest in a company that didn't work out?

Some years ago, I had difficulty finding a job. It had nothing to do with education or experience, but the jobs that I wanted, were for the most part, through recruitment agents. The problem was, the recruitment agents were these idiot backpackers here from another country who didn't like the look of my name or that I spoke with a slight accent.

I thought the only way I could not only fix the problem for myself, and the others like me, was to get myself in front of the recruiter. That also posed another problem. How could I run around to all these recruiters in a short day ?

My solution was to build a website where people could advertise jobs on it and the way people would apply was via answering screening questions via a video clip. The applicant could also submit their resume.

I did research into it and I thought if I just got a measly 1% of my competitors market, I'd be pocketing the money I now make in a year, in one week.

After months of looking for the right people to build it for me, I found a company. We agreed on a price. They got to work. I sold my house to fund it and sold my car. I worked a day job to keep the money coming in, and worked hours on end every night to make sure this thing was on track.

We got 1 week out from final delivery and my world collapsed. My biggest prospect folded up, and that money I needed I was relying on to get moving. The months I spent wooing them to use my site was gone. I tried desperately within 2 weeks to sell the business to get out of debt. Nothing. A potential customer expressed interest and then I found out just used me to work out my financial position.

I was young and stupid. I had no one who could provide me with adequate business advice so I just tried my best.

I settled with the web developer who has since pressed the delete button on all my hard work. It's all archived docs now somewhere on a USB. They tried to drag me through legal avenue for me to settle the last $17,000 of their contract. My relatives banded together to bail me out on that. Not only was I broke, I was now in debt.

That was my $124,000

The second one, was more recent. I had spent several years looking for a martial arts teacher. Being in this part of Australia, (Western Sydney), it's the working class area. There's all types, mainly thugs, idiots etc etc. I got sick of running into martial arts instructors who thought of themselves as gods among us lowly mere mortals.

At this time, I was inspired by Ed Parker's Karate Tournaments, and namely the educational content and exposure it offered to the masses. I thought "Yep, Someone needs to do that here. We haven't had anything like this in Sydney for such a long time"

I got to work. I've never put on a tournament / expo / show before. But I knew, that just in my small circle of friends, a large percentage of them knew nothing about martial arts, or where to go and learn. I was yet to experience the arts, and I thought that I'd like to get them all in one place to do this. What could go wrong? I wasn't promoting any one style in particular or any person or club. It was open to every one and any one who was a teacher and wanted to show what they knew, show why they were different, and get more students.

An event was planned that was a an expo style event with a series of fights on the saturday night of that weekend, with all money from the fight going to a charity.

I had nailed it. An event not only providing an educational fun experience for a family audience, but also raising money. I held it no secret that I too was going to make money so clarity and transparency was my key to planning success. I was months away with 10 of 135 potential exhibitors already lined up. I budgeted to give away 2000 tickets for free to local community groups.

And then, something, came out of the blind side and put me down.

This horrible stupid thing called Ego.

Ego of instructors, trainers, teachers and "masters" of the "arts".

Not one person beyond the 10 I had already lined up as exhibitors were prepared to be part of this.

Why?

"Oh we can't come to that event if that instructor is going to be there" "Sorry we won't be going if that other group is going" "We don't mix with anyone else"

I even thought I'd tempt them by selling them a package for 5% of my original planned price for them and therefore making a loss.

They all declined.

So, at this time I had recently got married. I now had someone else to look after. Despite my wife being the best support, and helping me unconditionally, I knew I now needed to keep a roof over her head and food on the table.

My advertising expenditure, my website, my booking fees, everything I had poured into it got flushed away. My instructor (one of my best friends) and a very close friend who is highly regarded in another system warned me about the ego, but my passion to help people out, and to finally make a success of myself in something uncharted was making me blind. They warned me of the risks.

Funnily enough the Facebook page is still up, and every week, I get new likes. People still want it, but pride is an expensive word. I'm not going to fuel these idiot instructors pride by giving them free advertising for nothing. This event was going to HELP them get more students, HELP the people know the differences of the arts and where to go to send their kids or themselves, AND help the charity.

Am I bitter? The more I think about it.... yes. Will I try again? Maybe one day when I'm not as angry about it.

I occasionally see the people who openly and bluntly told me they weren't interested, the same people that talked down to me who was a junior and naive in the world of martial arts. The only thing I can say is, one day, I will be a better martial artist than them. And one day, they better hope that I don't get bored and decide to enter the same tournaments they do.

But... now, I try to let it all go. Spending anger on foolish idiots makes me the bigger fool.

There goes another $19,000, but...Life is about keep on keeping on.

I'll think of something else and I'll come back again.

/r/Entrepreneur Thread Parent