The other day I read an article at Quicksprout about how Neil (the guy who owns it) learned some lessons from losing money and was like:
“looks like it was not just me who lost a ton of money in crappy investments, it’s every entrepreneur”
As I’ve said before: losing is just as important as winning, if not more important… Robert Kiyosaki said:
He’s just a marketer, yet the saying is dead on.
Gotta say I read some cool points from Neil like:
Invest in what you know
Profit is more important than revenue
However, I want to add 5 lessons that I learned from losing so much money I feel like crying right now… just kidding, I know it is all a part of the game: you win and then you lose, learn and win even bigger…
…I hope they help you and save you money.
Here you go:
1 Do what you love
I’m sure you have already been advised so, but you should know it’s vital if you want to grow big… and you can like whatever you want, do it and be huge. You don’t have to do something just because someone said it was a good investment.
I just read the story behind Maglite (a company that sells flashlights).
The person who started it was a Croatian immigrant (or some country like that) and founded the company right when the tech industry was booming.
Now the company is one of the biggest in the flashlight industry and the guy is a billionaire, even though he did not do what was popular back in the days.
Entrepreneurship is tough, the only way to make it happen is when you truly love what you do, or else you will burn out and quit… plus doing something you hate just to make a buck is straight dumb.
Let me tell you about the million dollar business I lost in 2011.
I hated what I did back then, I made a lot of money, yet the fast food business was just not my thing. I don’t like junk food, nor do I like to make money without thinking.
I was going to fail sooner or later, even though I thought I was untouchable LOL… happens when you have boat loads of cash.
I surely did good growing the business, I made about two millions after one year of running it. I expanded it quickly, yet I only loved the money I made, not the business… and you know the saying: if you run a business only fro the money, you better quit immediately.
I did not quit, as I never do, yet the universe (or whatever is up there) knows it’s job.
Talking about money takes us right two the second lesson, which Neil also learned from his bad investments:
2 Profit is more important than revenue
This is a simple one, you would say… and it is, but it is also something we don’t care about that much when we make a lot of money.
That two millions I told you about were my revenue… my profit was still pretty impressive, yet it was far from 2 millions.
You have to know what you truly own.
That’s why all rap songs are about cash money, it’s the real deal LOL.
3 Invest in people
Your crew, or team if you will, is everything.
Leadership drives companies, hire the right people and teach them leadership by being a leader.
That’s another mistake I made – I couldn’t manage to surround myself with the right people, mainly because Bulgaria (my birth country, the one I ran the business in) is a fucked up place… sorry but that’s the truth.
I did everything by myself and at the end I just could not handle it.
Invest in people immediately after you start making some money, they are a company’s main asset.
4 Don’t believe everything you see or hear
I have no idea why but most people don’t know shit about what they pretend to know.
If you follow the wrong person, be it your friend, or financial advisor, you could really go down fast.
Read this article:
The one and only person you should blindly trust is you. Follow your guts first, and then get opinions from people who you are sure are competent, if you still need them.
I have made many mistakes, lost a lot of money listening to the wrong people, and the saddest thing is most incompetent people don’t even realize they are such… following such people is unhealthy for you, and for them as well.
5 Always be on the lookout for expansion
There is no such thing as too much growth.
You have to always look for other opportunities you could make money from.
If you lose momentum it could get really ugly… on the other hand if you keep growing, you will reach a whole new level of awesome.
Don’t just stop after achieving one goal, set a new one… and then a new one.
These are the 5 lessons I learned from losing 505 000 dollars in bad offline investments.
To tell you the truth, now when I think about it, it all happened for good. Not only will I not make them any more (or at least try not to), but I could help you not make them too.
Let me know if you liked this article and stay awesome.