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Beware self-funded Startups: failure can haunt you for a long time

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Re: Beware self-funded Startups: failure can haunt you for a long time

#31

Post by ig1 »

StartingOver wrote: post #25
ig1 wrote: post #5

Can you raise investment or sell the company outright ? - if you've got millions of users then it might be viable route.

Sell might be an option. One of those things where there was an offer a while back, perhaps they will take it for a song. But otherwise, how to go about it?

It's hard to say without knowing more about the business, but assuming you know who your most likely acquirers are get a contact within those businesses and approach them directly.

Who do you primarily owe money to ? - if a significant chunk is to a supplier then you might want to see if you can negotiate a deal with the supplier writing off the debt in exchange for equity in the company.

Re: Beware self-funded Startups: failure can haunt you for a long time

#32

Post by StartingOver »

lordmatty wrote: post #4

What you have been through sounds terrible. I can imagine you a feeling very burnt out. However, once the smoke has subsided I'm sure you take positives from this. If you need a salaried job, I suggest you look for a medium sized company that would value your experience, rather than a large corporate.

Yeah. Funny thing though, in all my life I've never had a resume, always things found me. It doesn't feel like it will be that way now, but I Aldo understand that I'm having some very strong feelings at the moment. I'm not much of one to hold on to them too long though. perhaps to a fault. I'll be refreshed by new year, but want to burn through all the dark parts now and leave as much behind as I can.

Re: Beware self-funded Startups: failure can haunt you for a long time

#33

Post by DevX101 »

You asked us, "what on earth do I do now?". I recommend you start another post and change your question to "how do I monetize millions of users?".

Give us a description of your market without revealing your business of course, customer profile (age, income, etc) , how much information you have on them (do you have emails? location? interests etc), and how much time they spend on your site.

I'm sure you'll get much more practical and useful advice from that thread on solving the problem rather than the commisseration here on your bad situation.

Re: Beware self-funded Startups: failure can haunt you for a long time

#34

Post by StartingOver »

ig1 wrote: post #31
StartingOver wrote: post #25

Earlier quoted context omitted.

Sell might be an option. One of those things where there was an offer a while back, perhaps they will take it for a song. But otherwise, how to go about it?

It's hard to say without knowing more about the business, but assuming you know who your most likely acquirers are get a contact within those businesses and approach them directly. Who do you primarily owe money to ? - if a significant chunk is to a supplier then you might want to see if you can negotiate a deal with the supplier writing off the debt in exchange for equity in the company.

Banks!

Re: Beware self-funded Startups: failure can haunt you for a long time

#35

Post by StartingOver »

maineldc wrote: post #8

Wow, this is a tough read. I know things look bleak right now, but I think you need to step back and realize that things are going to be fine. First off, start looking for a job. I know that you are worried about credit reports, etc, but if you are good, someone will hire you. Don't assume that you will fail to find a job because of this. Second, consult someone knowledgeable about bankruptcy. I don't believe your ho…

Thanks for those words. :)

Re: Beware self-funded Startups: failure can haunt you for a long time

#36

Post by talkeinan »

You need to share more info. What do you think about the business in general? How your co-founders feel about it. Are you all at a point of wanting to call it quit because you don't believe in it anymore, or is it simply the debt that makes is all seem like a bad movie.

You need to be honest about the business. Selling a business when all founders want to get out is HARD if not impossible. If however, at least some of you want to keep at it, you might consider selling your shares (or part of it) rather than the entire business.

Re: Beware self-funded Startups: failure can haunt you for a long time

#37

Post by StartingOver »

kitcar wrote: post #27

Have you thought about getting investors now? If you don't think the business is attractive enough for investors, then the bad decision wasn't that you didn't get investors, it was that you picked the wrong business.

Too late for investors I think. And it wasn't so much the wrong business per se, we didn't shift when the market did, and later we didn't give up when we should have.

Re: Beware self-funded Startups: failure can haunt you for a long time

#38

Post by StartingOver »

DevX101 wrote: post #33

You asked us, "what on earth do I do now?". I recommend you start another post and change your question to "how do I monetize millions of users?". Give us a description of your market without revealing your business of course, customer profile (age, income, etc) , how much information you have on them (do you have emails? location? interests etc), and how much time they spend on your site. I'm sure you'll get much mo…

Very true! I will wait a week and gather those thoughts for a post next Sunday.

Of course, it's not that we haven't thought of things, but how much good time do I want to throw after bad?

But how insular I have been to not think first of posting that question. Thanks!

Re: Beware self-funded Startups: failure can haunt you for a long time

#39

Post by haploid »

Been there. Destroyed my credit right out of the gate when I tried to run a web development firm in 1997 on student credit cards. Was threatened with eviction twice, and eventually was forced to move. Was fired and subsequently sued for $millions from/by a dot com in 1999 at a time when I literally had a negative account balance. I had dropped out of school to pursue my ambitions, so I had no degree to fall back on in order to secure a well-paying "job".

Disclaimer: the following is intended to be inspirational, not boastful.

13 years later, I am partner in a profitable ecommerce enterprise, after having put a startup success notch in my belt in 2004. My credit score is pushing 800, and I no longer even think about money.

My point is, your life isn't over, no matter how much it seems that way. It doesn't take long to bounce back.

Re: Beware self-funded Startups: failure can haunt you for a long time

#40

Post by [deleted] »

StartingOver wrote: post #28
alain94040 wrote: post #19

Earlier quoted context omitted.

Don't take on debt secured by you personally. Your business should take on the debt. I know it's easier said than done, because no one will loan anything to a business with no revenue. By agreeing to personal debt, you pledged personal money that you didn't have. I guess different people have varying levels of risk, but I don't invest money I don't have.

Another lesson: you may think it is a business card (it is), but surprise! They can convert to personal (read the fine print).

[deleted]
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