Harsh Lessons: Real Entrepreneurs Share Why They Failed Brutally

Monica January 27, 2023

Sketchy Business

This Reddit user was an employee of an entrepreneur and shared how they failed brutally. Two guys put a bit of money into an IT company, and they hired the Reddit user to design and implement the network infrastructure. They told him he would manage their data center, which turned out to be a complete flop. Using his time, effort, and knowledge, he set up the basic network infrastructure and monitoring for it. They scammed him for his knowledge and work. The owners did something sketchy with the original investor’s money and the entire business went down soon after. It goes without saying that this serves them right(via zombie_overlord).

<< Previous

NEXT >>

Follow The Rules

Running a business requires entrepreneurs to follow the rules in place. Even though many people believe they’re above the rules, it doesn’t mean they will be successful. Those who cheat the system eventually get caught, which is exactly what happened to this entrepreneur. He said, he ran a shuttle service for a nightclub and was making bank. But he didn’t have a commercial license, insurance, or a business license. He was trying to do everything under the table from day one. That’s a huge red flag. Eventually, the cops shut him down. Was this worth getting shut down by the cops? Probably not. Doing things legally is the best way to go about it in the long run (via Reddit).

<< Previous

NEXT >>

Get It In Writing

Always get your contracts, agreements, deals, and signatures in writing, especially when handling money for business. This Reddit user shares their experience trusting their banker without getting anything in writing confirming their agreement. They got a loan because the banker represented them. It sounded like a scam from day one, especially when the banker claimed they never had a previous conversation about a loan. The Reddit user got angry and left this office, heading to another branch to close all their accounts.” This person had to deal with the consequences because they never received anything in writing. Huge mistake that they learned from. Their lesson? “It’s a little frustrating to be on the verge of making it on your own and have the rug pulled out from under you by someone you considered a reliable ally.” (via crimsonlaw).

<< Previous

NEXT >>

Commercial Brewing vs. Home Brewing

As a brewer, apparently you need to know the difference between commercial brewing and home brewing. This Reddit user shared how his friend, who’s a legendary small-batch brewer, did not know the difference. Because of it, his venture into commercial brewing failed brutally. While his home-brewed beer tasted delicious in smaller batches, when he tried to take it commercially, it tasted completely different. And he didn’t know the business very well either. This brewer only had enough resources to keep his business open for another month or two. This lesson is to do your homework. It’s important to know every nook and cranny possible of a business venture before starting (via Reddit).

<< Previous

NEXT >>

Follow The Marketing Numbers

Without marketing your business, how will anyone ever find it? This entrepreneur didn’t follow the marketing channels or the numbers it said were working, and because of it, their business failed brutally. They were set on building a blog even though all their sales success came from influencer marketing. They admitted that if they had to do it over, they would have put everything they could into the marketing channels that worked. You live and learn. At least this person has a vision for their next business venture and what they’ll do differently (via bputano).

<< Previous

NEXT >>

Don’t Focus On Old Customers

When a business is too focused on the past, it cannot grow. That’s exactly what this entrepreneur did. Because of it, their business failed brutally. After starting an independent engineering consulting firm that was made up of only them, they tried to get their old customers to pay them and avoided looking for new customers. An art collective agreed to pay him a flat rate for a job that took him a short amount of time to do and he was never paid. This same experience happened several more times before they ended up dropping the whole thing and working for someone else. Their time may have been wasted but at least now they know to focus on present customers rather than deadbeats customers from the past (via Optimized_Orangutan).

<< Previous

NEXT >>

One-Man Band

Running a business is one thing. Running a business completely by yourself is something else, and a lot harder than working with a good team. This Reddit user convinced themself to quit their job and become a one-man band IT technician. In reality, it was an excuse, because they needed to quit working to grieve the death of their father. They tried to force a project that wasn’t aligned with their current mental state. As we’ve mentioned before, it’s important to keep your mental and physical health as your number one priority when starting a business. They spent a month before developing a drug habit before getting their act together. At least they managed to turn their entire life around, learn from the experience, and start over (via Gaunts).

<< Previous

NEXT >>

Not Enough Money

You can’t run a business without investing money. It’s just as important as the business itself. This Reddit user failed brutally after learning they didn’t have enough money to operate the first year at a loss. Even though they could’ve run their business, they would have starved as a result. In regards to one-year projections, don’t forget your own personal salary (via Reddit).

<< Previous

NEXT >>

Jumped Ship At The Right Time

This Reddit user managed to get out of a bad deal at the right time. It wasn’t their business, but they were the supervisor for an entrepreneur. They made them a lot of money, and immediately afterward, noticed the owner started disappearing little by little. Suddenly, he was seen in photos in China, Greece, South America, while claiming he was on work trips even though they didn’t have any clients out of the country. A year later, the owner was caught embezzling money from the investors and pocketing the money. He was forced to close the doors (via brazenbologna).

<< Previous