how to handle financial stress from previous business failures

[emavery176]

Hello everyone,

I don't know how to write this as this is tough. I want to make it clear - I'm not having a pity party. I realize that there are people who are doing worst than me.

Currently, I'm living paycheck to paycheck and it's stressing me out and effecting my focus. Inflation and a previous business failures that didn't work out wiped me out financially. I took out a 10K loan to fund my business - it was a mistake that I'm paying for now.

I'm having a hard time managing the stress and fear from my previous "failures" and focusing on my next business. My previous failures have stolen my confidence.

Has anyone else experience this? What helped you overcome this?

Thanks!

 

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[Roli]

Hello everyone,

I don't know how to write this as this is tough. I want to make it clear - I'm not having a pity party. I realize that there are people who are doing worst than me.

Currently, I'm living paycheck to paycheck and it's stressing me out and effecting my focus. Inflation and a previous business failures that didn't work out wiped me out financially. I took out a 10K loan to fund my business - it was a mistake that I'm paying for now.

I'm having a hard time managing the stress and fear from my previous "failures" and focusing on my next business. My previous failures have stolen my confidence.

Has anyone else experience this? What helped you overcome this?

Thanks!

I had a similar scenario and what brought me back, was the realisation that I didn't particularly like the business that failed, I was just doing it because I thought it would make money. So I got a job and bided my time. Now I'm doing what I want, the financial pressures are still there, but they don't bother me as much.

Also I started getting more grateful for what I did have, now every morning I wake up and do a body scan and smile to myself when I realise I'm in perfect health. I love my daughter and wife and I guess that's enough for me.

It's only money, you'll be back.

 

[Chris_Varick]

Well the good thing is you have definitely left the comfort zone !! Now go for a run (withou music or any abstraction ) breathe focus and take the 24 hours you have Devide it into action blocks read unscripted again and follow the rules without any hesitation ! From what I read in the forum a lot of people became really successfull after they were totally broke because they had a chance - like the quote from movie interstellar "this is not possible" ..."no it is necessary" all the best

 

[Joejordan95]

living paycheck to paycheck and it's stressing me out and effecting my focus. Inflation and a previous business failures that didn't work out wiped me out financially. I took out a 10K loan to fund my business - it was a mistake that I'm paying for now.

summarizing what you've said, the issues are :

• Living paycheck to paycheck (because paying the loan?)
• Low focus (because of high stress?)
• High stress (because of living pay check 2 paycheck?)
• Low Confidence(because of a failure?)

I've questioned each one because only you could answer what the real reasons are and you'll have to answer them to make headway.

before hitting another business, get yourself straight? Maybe get a foundational job or an extra one/side gig to speed up paying down your loan then that'll free up your stress and increase your focus because you'll be focused on achieving that one thing.

Also paying down the loan will be winning and may improve your confidence after getting a series of little wins via paying off debt.

Taking on another job will be stressful to a degree if that's the route you take but at least you know its paying down the loan if that's your goal and you never know who you might meet! it could be someone you meet while solving these series of problems that mentions a problem they have and you decide you could fulfil the need?

A case of re-framing is here too- an opportunity to grow because you're out your comfort zone.

P2P requires being savvy with your money
running a business requires you to be excellent at handling stress
running a business requires you to be focused

working through this might help increase your capacity in all the above

 

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[Kevin88660]

Hello everyone,

I don't know how to write this as this is tough. I want to make it clear - I'm not having a pity party. I realize that there are people who are doing worst than me.

Currently, I'm living paycheck to paycheck and it's stressing me out and effecting my focus. Inflation and a previous business failures that didn't work out wiped me out financially. I took out a 10K loan to fund my business - it was a mistake that I'm paying for now.

I'm having a hard time managing the stress and fear from my previous "failures" and focusing on my next business. My previous failures have stolen my confidence.

Has anyone else experience this? What helped you overcome this?

Thanks!

If you live in a developed country with working for a wage, 10k debt is not a huge liability that could be gone in months.

 

[emavery176]

summarizing what you've said, the issues are :

• Living paycheck to paycheck (because paying the loan?)
• Low focus (because of high stress?)
• High stress (because of living pay check 2 paycheck?)
• Low Confidence(because of a failure?)

I've questioned each one because only you could answer what the real reasons are and you'll have to answer them to make headway.

before hitting another business, get yourself straight? Maybe get a foundational job or an extra one/side gig to speed up paying down your loan then that'll free up your stress and increase your focus because you'll be focused on achieving that one thing.

Also paying down the loan will be winning and may improve your confidence after getting a series of little wins via paying off debt.

Taking on another job will be stressful to a degree if that's the route you take but at least you know its paying down the loan if that's your goal and you never know who you might meet! it could be someone you meet while solving these series of problems that mentions a problem they have and you decide you could fulfil the need?

A case of re-framing is here too- an opportunity to grow because you're out your comfort zone.

P2P requires being savvy with your money
running a business requires you to be excellent at handling stress
running a business requires you to be focused

working through this might help increase your capacity in all the above

Thanks and your advice! This really helps and you're right I am stepping outside of my comfort zone. This is my opportunity to grow! I'm going to remember this!!!

If you live in a developed country with working for a wage, 10k debt is not a huge liability that could be gone in months.

That's a good point. Now that I'm thinking about it, I'm already part time (albeit minimum wage lol) with my side gig. I'll focus HARD on that to fix my situation. Thanks for the perspective.

 

[WillHurtDontCare]

I'm having a hard time managing the stress and fear from my previous "failures" and focusing on my next business. My previous failures have stolen my confidence.

Has anyone else experience this? What helped you overcome this?

"Donald Trump's comeback is one of the most dramatic of all time—as well as one of the most visible. According to a well-known anecdote, one day when he was $1 billion in debt, Trump pointed out a homeless man to his daughter and said, "See that bum? He has a billion dollars more than me." The Guinness Book of Records lists him as having the biggest financial turnaround in history. "In the early 1990s, I owed billions of dollars and many people thought I was finished," says Trump. "I refused to give in to the negative circumstances and I never lost faith in myself. I didn't believe I was finished even when the newspapers were saying so. I refused to give up. Defeat is not in my vocabulary."

Donald Trump on Failure

Donald Trump on failure.

www.psychologytoday.com

Trump filed for bankruptcy 6 times and he still flies in a private jet.

The primary thing is that you need to understand that other people have been in far worse debt than $10,000 and they overcame that, so you can too.

The next thing that you can do is take inventory of your skills. Are there any skills that you can use to generate cash quickly so that you have a cushion against that debt?

Also, what expenses could you slash? Could you move into a new place? Could you shop at a cheaper grocery store? What digital subscriptions could you cancel? Could you cut out some of your vices to save cash?

Your stress is the result of not having a clear picture of your options. If you knew how to make $10,000 per day on command, then you wouldn't care about your debt. Your situation is less important than knowing that you have options to get to where you want to be.

However, you can lean into the stress that you're feeling from the debt and use it to push yourself harder. Necessity is the father of invention, etc. People usually aren't making serious progress because they're happy with where they are - they make it because they're pissed that they don't have more.

 

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[emavery176]

Thank you everyone for the responses.

P2P requires being savvy with your money

What does P2P mean?

 

[Joejordan95]

Thank you everyone for the responses.

What does P2P mean?

just shortened it for paycheck 2 paycheck

 

[shubham___3011]

Hello everyone,

I don't know how to write this as this is tough. I want to make it clear - I'm not having a pity party. I realize that there are people who are doing worst than me.

Currently, I'm living paycheck to paycheck and it's stressing me out and effecting my focus. Inflation and a previous business failures that didn't work out wiped me out financially. I took out a 10K loan to fund my business - it was a mistake that I'm paying for now.

I'm having a hard time managing the stress and fear from my previous "failures" and focusing on my next business. My previous failures have stolen my confidence.

Has anyone else experience this? What helped you overcome this?

Thanks!

Hey mate!! Im new to this forum and saw your thread on the top, id like to recommend you a book. The Richest man in babylon has helped me personal alot and may help you as well. Take care all the best

 

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[MattR82]

Eventually the hatred of the slowlane life will trump any kind of low confidence from business failure. 10k is not too bad. Imagine a slowlaner that loses everything in a divorce at 50.

Stay positive! Some great advice I had in this situation was to watch how you talk to yourself. No negativity allowed. Train yourself to say a few different positive things about yourself and where you are going to be, for when that inner voice kicks in.

There are also plenty of service based businesses you can start on the side with just sweat equity and barely any cash.

 

[DragoonDB]

Hello everyone,

I don't know how to write this as this is tough. I want to make it clear - I'm not having a pity party. I realize that there are people who are doing worst than me.

Currently, I'm living paycheck to paycheck and it's stressing me out and effecting my focus. Inflation and a previous business failures that didn't work out wiped me out financially. I took out a 10K loan to fund my business - it was a mistake that I'm paying for now.

I'm having a hard time managing the stress and fear from my previous "failures" and focusing on my next business. My previous failures have stolen my confidence.

Has anyone else experience this? What helped you overcome this?

Thanks!

I haven't been in this situation, but I do want to ask a few questions.

1. Do you have a clear view of your income - both that which may be stable and that which is not?
2. Do you have a clear view of your expenses?
3. Have you put these together in a budget to figure out how to allocate all of your income? Your income minus expenses should be zero, as all dollars should be accounted for (any excess should go into paying down your debt, and then later into a business starter fund, etc).

Sometimes the uncertainty is the stressor. If you have done/will do this exercise, it may help to alleviate stress when you can see it will take you X months to clear the deck (and maybe sooner if you get additional income streams). And the clarity of a budget and telling your money where to go often shows you have more than you may have otherwise thought when you're in response mode.

Facts help to balance emotions. You can do this.

 

[The-J]

Currently, I'm living paycheck to paycheck and it's stressing me out and effecting my focus. Inflation and a previous business failures that didn't work out wiped me out financially. I took out a 10K loan to fund my business - it was a mistake that I'm paying for now.

1) don't blame inflation, don't blame the economy, don't blame the market. This is a fundamental attitude shift you need if you're going to win.

2) yes, this happened to me. I was much more indebted than you. Turns out, I didn't die and was more than capable of paying off the debt on my own. The high-interest debt will be gone next month and the low-interest debt will be gone in less than a year.

Lessons learned:

1. Only take debt for capital assets that you know will help or inventory that you know will sell. Don't go into debt for a speculative venture. Debt for capital assets makes sense because you can at least recoup something. Debt for inventory makes sense because it helps your cash flow. Do not take debt to "guarantee salaries" or "fund ad spend" or "have a cushion" unless you're making money already and can easily pay off the debt you take on.
2. Figure out how much you need to pay the minimum on all your debt and how much extra money you have to put toward your debt. If you have no extra, then you have 2 options: reduce expenses and/or increase income. How you reduce expenses or increase income will depend entirely on you, your situation, and your skills. I both decreased expenses and increased my income to solve the problem.
3. Snowball the debt. Start from the smallest balances and pay them off in order of size, not interest. Pay the minimum possible payment on the rest. This works because you reduce your minimum monthly obligation and can make larger payments to larger balances over time.
4. Try again without taking debt. If you let a financial failure prevent you from starting again you are dooming yourself to never succeeding. If you try again without taking any debt, it means you can try again soon (if not now).
5. The worst part is spending time worrying and not taking decisive action. Don't waste your time in self-pity. Don't waste energy feeling bad about yourself and your situation. Do not count the months that you set yourself back. Reduce expenses. Increase income. Whatever you can do, do it. It is better to spend extra time working than to spend that time wallowing.

Funny thing: I thought I was going to need to get a job to handle the situation, but it turned out that I didn't. I just needed to do more of what I was already doing that was making money, and less of the stuff that wasn't.

 

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[Kevin88660]

Thanks and your advice! This really helps and you're right I am stepping outside of my comfort zone. This is my opportunity to grow! I'm going to remember this!!!

That's a good point. Now that I'm thinking about it, I'm already part time (albeit minimum wage lol) with my side gig. I'll focus HARD on that to fix my situation. Thanks for the perspective.

The true cost of a debt is interest on the debt, because in theory there is no urgency to get rid of any debt if there is no interest.

Even at a 10 percent annualised rate 10k debt is "hurting" you less than a hundred a month.

Get a decent wage, control your spending, grind the debt with 500 dollar a month repayment, you have time.

I bet you would still have enough cash to experiment other hustles along the way.

Explore the options. Do the math.

 

[LateStarter]

Currently, I'm living paycheck to paycheck and it's stressing me out...

I'm having a hard time managing the stress and fear from my previous "failures" and focusing on my next business. My previous failures have stolen my confidence.

I'm not here to motivate you or convince you of anything.
Here are some questions you may need to start asking yourself to figure out your own journey.

Honest Question
What's more scary; the prospect of living paycheck to paycheck for the rest of your life or, betting on yourself as an entrepreneur that can figure out how to be successful?

If living paycheck to paycheck doesn't scare you, and motivate you then maybe entrepreneurship isn't for you.
There's nothing wrong with that. It's not for everyone.

What are you doing, and why?
I don't see you mentioning anything about working 2 jobs, or hustling to earn extra cash on the side to pay down the debt or give you more of a financial buffer. You said it yourself, your current situation is stressing you out, you're uncomfortable. But what are you doing about it? If neither of these things are painful enough to motivate you toward action, what will?

Why do you want to be an entrepreneur? The Lambos, chicks and bottles? Ask yourself some serious questions to understand your own motivation. That desire should be persistent and motivate you to not settle for mediocrity EVERY. DAY.

Mindset
As others have said, $10k is nothing.
Expand your mind. Think bigger.

The world is abundant and there is literally trillions of dollars flowing across the world every day. Do more reading, spend time with successful people, and work on a mindset shift toward a) abundance b) action, and c) motivation.

Once you have those 3 pieces, you'll be fine. If any are missing you're more likely to continue to fail.

 

[Johnny boy]

It happens. Grit your teeth. Stay up late. Focus. Work smart AND hard. Bust your a$$ and constantly improve.

You’re an entrepreneur this comes with the territory. Get back to work and don’t get shaken up by that pit in your stomach.

You want a 1% high level life? Expect high level difficulty. Expect high level problems. Expect needing to have high level endurance. Expect needing to be a high level person. Have high level discipline. High level stress and the required stress tolerance. High level decisions to make. High level creativity.

You signed up for this, and it’s worth the cost.

 

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