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Ask HN: How much money have you lost on side projects/businesses?

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Re: Ask HN: How much money have you lost on side projects/businesses?

#21
post #20
post #17

Left my job to do (current) startup. Spent 14 months w/o salary before we got funding. The total sounds like a lot but if I had to do it again I would. I'm a big proponent of being open about finances and the financial struggle of doing startups - especially when you have kids and one stay at home parent in my case. Loss of salary for 1 year, 2 months Does not include loss of 401k match or ESPP -$140,000 Successful K…

Thank you for sharing. One thing I would question though: why do you count your living expenses as a loss, since you would have still spent that money if you had your job. In fact, I would say that you are most likely saving on living expense, since you must be trying to spend less since you are earning less. Good luck with your startup!

That's a good point. I guess I counted it because it visually drained my savings. It felt different to see my savings account dwindle than it did to simply spend $ from paychecks.

But I think you're right that it's money which would have been spent.

Re: Ask HN: How much money have you lost on side projects/businesses?

#22
post #19

Earlier quoted context omitted.

Have you ever considered forming a company through which to take on these investments and projects? The company can declare bankruptcy independently, which should limit the (future) impact to your credit score and finances. (Obviously, wouldn't do anything for your past ventures.)

While this is true in theory, from my experience of running businesses and from talking to accountants and bank employees, this doesn't work for most people. A corporation or llc can shield you, but unless the company has a proven revenue stream or assets, no bank or landlord will take on risk without asking you to assume personal liability as well. Kind of like needing a cosigner when you get that first car.

your exactly right. only way to get money for a business like that is credit cards, second mortgage etc.

Re: Ask HN: How much money have you lost on side projects/businesses?

#23

I bought a pizza shop. Invested 100k from credit cards in it to prove I was committed. I work full time as a developer so, I needed someone to run it. Got sales to over 40k a month in sales and still couldn't turn any kind of profit. Bought a second shop pretty sure I was robbed blind. Sold both never got paid for either shop. Not sure how to proceed now. Getting garnished so huge chunk of my pay is lost to paying ba…

How did you not get paid when you sold them?

loan that never get's paid. don't have the time to run them. so then you could take back equipment, but it's mostly worthless for resell especially in a hurry. easier to just take a loss on taxes against future income.

Re: Ask HN: How much money have you lost on side projects/businesses?

#24

I bought a pizza shop. Invested 100k from credit cards in it to prove I was committed. I work full time as a developer so, I needed someone to run it. Got sales to over 40k a month in sales and still couldn't turn any kind of profit. Bought a second shop pretty sure I was robbed blind. Sold both never got paid for either shop. Not sure how to proceed now. Getting garnished so huge chunk of my pay is lost to paying ba…

wow man... You should stick to working and give your money to someone else to manage...

on a positive note. I saw the crap loans companies were approving before the downturn so I pulled out all of my money from the market and only lost 5% that year versus a lot that lost 30-40%. And put it back in the following year and had pretty good gains. so at least my experience paid off some.

Re: Ask HN: How much money have you lost on side projects/businesses?

#25

I bought a pizza shop. Invested 100k from credit cards in it to prove I was committed. I work full time as a developer so, I needed someone to run it. Got sales to over 40k a month in sales and still couldn't turn any kind of profit. Bought a second shop pretty sure I was robbed blind. Sold both never got paid for either shop. Not sure how to proceed now. Getting garnished so huge chunk of my pay is lost to paying ba…

Wow, that's brutal! Have you considered bankruptcy?

chapter 13 is brutal. no 401k contributions for 5 years.
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