I invested a fortune without collateral in a niche I knew nothing about.
My friends warned me. I didn’t listen.
Because I live by the philosophy: “I just want to do cool stuff with cool people.”
When a trusted, good friend offered me to co-invest in several businesses in his field of expertise, I jumped at the opportunity.
The euphoria of starting new ventures sure is intoxicating.
We celebrated every milestone. But each celebration came with a price tag 😉
The Reality Check after 3 years:
• 2 of 4 businesses closed (70% capital loss)
• 2 remaining are bleeding cash
• No collateral to recover losses
• Continuous capital injections required
Would I do things differently? Absolutely.
Did it break me? Not even close.
Here are 10 hard-earned lessons:
1. Excess money can allow for lazy decisions and false optimism
2. Choose shareholders carefully – storms reveal true character (One dropped out before we even started)
3. FOMO is expensive – there will always be new opportunities (Yes, the S&P 500 would have been better. Moving on.)
4. Starting new ventures costs more than money. Your energy and focus are finite resources.
5. Stick to your expertise (My strength? Digital marketing and e-commerce)
6. Practice gratitude. Focus on what you have, not what you lost. It´s a survival skill.
7. Know when to stop. Pivots can be good, but sometimes you need to pull the plug.
8. Control matters. Now I only invest where I have significant control.
9. People-intensive businesses require different management (This deserves its own post one day)
10. Government regulations can easily destroy margins.
The Silver Linings:
• Deeper bonds with my friend (laughs and cries)
• Battle scars that built resilience… and one hell of a story to tell
• Wisdom that no MBA could buy
• You never know what opportunities arise from this experience
Probably I´ll be able to add to this list later on 😉
The Greatest Lesson?
The biggest mistake isn’t making mistakes – it’s fearing them so much that you never take risks.
Your mistakes don’t define you.
Your response to them does.
Success isn’t about avoiding failures. It’s about failing forward.
And sometimes, the most expensive lessons are the ones we remember best.
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