19 Jun How I Almost Went Bankrupt By Putting All My Savings On The Line To Launch A New Business!
Please accept my apology right at the start for the quality of the audio. I recorded this on my drive from Mumbai to Vadodara. So you may hear the traffic and the AC blowing time and again.
Well, so with the point about the quality of the audio out… Are you ready to dive deep into my past? Let’s begin.
This happened a few years back…
Sandhya (Co-founder, The Marketing Nerdz) and I had saved a decent amount of money working with clients and helping them with Content Marketing and Copywriting.
Our 1st company, Contentorial was fairly successful.
But I wanted to do something BIG. And I had an Idea back then that I thought would put me on the map.
The idea was to launch a New Fitness App.
So I poured all my savings into this New App… And I ended up wiping out all our savings in no time on this ambitious project.
I almost became bankrupt, almost! I went to a point where I wasn’t sure how was I going to put food on the table the next morning.
I felt FEAR like I never had…
I felt ashamed, I felt like a LOSER… I had almost given up on life and any hope of a decent future in those moments.
But that one moment with Sandhya changed it all for me. I no longer felt the fear…
To know more about it, listen to the podcast below. I narrate how I got to the point of bankruptcy and how I overcame it and built a successful company.
Looking back, here are a couple of reasons I could zero down for the failure of my business…
- WRONG TIMING: In business, timing is as important as the product and the idea. I was a couple of years too early. The market place wasn’t ready to lose weight online and to let random trainers into their house. Apps weren’t really cool and common back then.
- Grossly Underestimating The Investment Required to Penetrate the Market: When I launched the company, I grossly underestimated the amount of money I would require to Acquire the Customers, Create Awareness in the Market Place while simultaneously building the Trainer Base for the App. 50 Lacs was a really small amount to Grow the Company, something I later realized.
If you look at all the Startup apps today… If you study their balance sheet, you would see losses of 1000’s of crores. So my 50 Lacs investment wasn’t going to do the trick.
Plus, logistically, it wasn’t a difficult business to get into… Since most of it relied on Humans. And like it or hate it, when a business is majorly dependent on the Human Factor, it’s risky.
Well, looking back, this was one dark experience that turned me into a REAL Entrepreneur. Many people talk today about how to Grow or Run a business. But there a very few who put everything that they have on the line and learn from it.
Hope you get to learn from the mistakes I made.