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.
3. #UNDERSTAND the Business
There are no shortcuts or guarantees in the business.
If you aspire to build an espresso empire than get a job at a leading coffee shop chain for 6 months.
Become the Chief C&BW (Cook & Bottle-Washer).
Learn to work all the stations and the tricks of the trade. And unravel the 101 mysteries of how cash can leave the customer's hand but never makes it to your till.
4. #NEVER trust the bank
No, the bank does not have your best interest at heart. He who has the gold, makes the rules (#Golden rule).
Every clause in the #finance agreements gives the bank the power to claw, hack and plunder their way through your life to get back every single cent you owe them with large globs of interest.
That's where the origin of the mortgage comes from, effectively ‘til morte (death) you owe.
And not even your handbag poodle will be safe. Financing your dream with the bank's money should be your last resort.
5. #CALL it quits
Dealing with #failure and knowing when to call it quits, is an extremely underrated skill.
I, fortunately, made the call just in time and barely got out alive.
It took me more than 3 years to pay off all my #debt. Plus another 2 years to rebuild my savings to a reasonable level - OUCH!
6. #EXPERIENCE is priceless
Past pain can be your #future guide.
I now see the world very differently today.
The experience I gained can't be bought although it cost me dearly.
It has become the platform for my future success.
If you are a professional or business owner and need a Financial Advisor & Coach to speak to, then schedule a free 20 minute, to understand your current financial wellness, and discover how 1FINANCIAL PLAN will help you become financially SECURE, and help you grow your SUCCESS.
