• Reebeka Viktor

How to BOUNCE after a Major financial Loss ($160k)!

Updated: May 28, 2020

6 HARD lessons I learned from (almost) being wiped out financially & sued by my "friendly" 🐕 Rottweiler banker!

By Reebeka V. (Retail #Entrepreneur and aspiring #Empire builder) #Wealthy_Fashionista #Curated #Timeless #Luxxury


I have a shocking, true-life confession.

A few years ago, I committed a cardinal (business) sin. And I landed up paying R2M. / $160K for a ☕️ cup of coffee. 

If I‘m really honest, I committed the 7 Deadly Sins for buying a franchise*. But that's a story for another day. 


Thinking back, if I'd found an experienced financial advisor & coach that could have advised me, I think I may have saved myself a load of cash and anxiety. 


In school we learn that mistakes are bad, and we are punished for making them.” ~ robert kiyosaki


In the beginning ...

My story starts about the time I finished my MBA. I was full of book-sense & inspired can-do overconfidence.


I decided I needed to find a cash printing press to fund my expensive taste in clothes, shoes, and handbags. If Janet Yellen, the then Chairperson of the Federal Reserve, could have a printing press, why couldn't I?


I started by doing a “strategic scan” of the local market as well as global trends while sipping on a hazelnut latte at my favorite coffee shop.


This is when I had an #epiphany.


I figured that every #Espresso machine was actually a cash printing press! Every cup of coffee served, was immediately converted to cash.


This would be the perfect business for me, to start my empire. Plus, I loved drinking coffee and socializing. It was the perfect match.


So, I went on on a spending spree. I bought not one but two coffee shops to kickstart my fledgling empire.


Fast-forward, 24 months later, I managed to sell both businesses just in time as the 2008 financial crisis hit, narrowly avoiding complete financial* ruin.


In the first coffee shop, I achieved a healthy 30% return on my capital.


The second left me with a $160k (R2M.) hole in my balance sheet. Which included the costs for being sued by the bank that partly financed my coffee-fueled empire-building aspirations.


That’s what you get when you "negotiate" with the bank’s Rotweiller lawyer, let’s call her Cruella. And you will always lose. All their contracts are drafted for such a time as this.


BOUNCE ~ 6 LESSONS LEARNT FROM FOOLISHNESS & MAYHEM

1. B the #Business

The industry and business you buy or #invest in matters. Align these with your #passion, expertise, and #goals.


I thought I was buying a cash printing machine. And that my awesome socializing skills was my competitive advantage.

What I really bought was a food business in a very competitive segment, with low margins, very long hours (7 days a week) and low barriers to entry.

2. #OWN your Business

You can't outsource ownership.


Never having owned a coffee shop, I hired a manager recommended by the franchisor.

The manager was slick and I loved her.

She was so slick that within 6 months, she had amassed enough of my stock on the side, to start a competing coffee shop, across the road. Plus poached my best staff, all on payday weekend, our busiest time. <