I think I'm on a sinking ship...I'd appreciate some feedback!!

[Sid23]

Fastlaners,

I’ve posted a few threads about my situation (http://www.thefastlanetomillions.co...-still-moving-towards-fastlane-long-post.html) and I’m back for more.

The real estate developers I work for are having financial difficulties. We just came to market with a gorgeous new building, but we missed the market and only got offers on a couple of the units.

As I’ve mentioned, we are a small firm of 4 partners, myself (project manager) and our office manager / assistant. Our company cash flow for the year is projecting a $900k loss. For a big company, not a big deal, but this money basically comes out of the partners’ pockets so there is definitely talk about us just closing the doors and/or going on a “hiatus” for the next 3 years because they don't see the market coming back or any reason to keep plugging money into the business…

I’m trying to be proactive and figure out other solutions to keep food on the table, but the biggest issue I see is that the development world is at a complete standstill in my area and it appears it will be for the next 2-5 years. So normally, at least short term, I would just go find another development opportunity. But all of my contacts are out of work and lots of other development firms in my area have gone bankrupt or shut down.

Before this all came down, I’ve been working on trying to start a part time fastlane business on the side. After about 4 months I discovered a fatal flaw in my business and unfortunately it died. But I learned a lot of invaluable lessons that will help the next venture.

What I am trying to do now is figure out what I should do. I only have savings to last me a couple of months without a paycheck right now. I’ve cut my expenses way down and my wife and I are living much more simply now. So we’re making positive changes. But unfortunately that doesn’t undo 6 years of living outside our means.

So I’m trying to decide should I try and find another JOB for the time being while I start another PT business? Should I just stay at my firm until D-Day, hoping it never comes and work on a PT business?

I think is the best option is to stay put here (for as long as I’m able) and start another part time business. I’ve been brainstorming ideas http://www.thefastlanetomillions.co...125-so-economy-sucks-what-do-people-want.html
and trying to think of ideas. I’m thinking about green building (and recently got my LEED AP designation), and while I see that industry booming in 3+ years, I’m stuck on finding something that solves a problem right now.

I’m thinking about a green website that helps homeowners make small changes in the current home (lightblubs, drip irrigation, etc) and things like that that help them save money during this recession. I don’t think most people are going to be installing solar panels over the next couple of years or building new homes, but I think people would be open to learning about small changes they can make now. But other than that I’m kind of stuck at this point.

My other thought is to take all of the skills I’ve acquired over the past 4 years and move in a totally different direction. But again, kind of at a loss as to how to even begin with that plan.

But I’m concerned that I’ve become emotional about my situation and maybe I’m not looking at it logically. It’s hard to logically discuss with my wife as it has become emotional for her also.

Any thoughts, comments or ideas anyone could provide would be greatly appreciated!! (Feel free to come down on me as hard as needed…if you feel that’s what I need)

You guys rock. :yourock:

Thanks,
Sid23


EDIT: Erased some info that is not public knowledge.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[RealOG]

Re: I think I'm on a sinking ship...I'd appreciate some feedback!

Sid23,

One thing you shouldnt forget is: You are not alone. Everyone is feeling the pinch right now. Some more than others, but no one is exempt.

It is okay to have emotions about difficult situations, but you cannot let the emotions make decisions for you. I say this because it sounds like that is the direction you are heading when you have difficulty discussing it with your wife.

I have a lot of advice on your situation, but I dont want to inundate you. Let's focus on your company.

For your company, 900k is a lot but not insurmountable. Here are some thoughts:

• How did the equity partners cut you out of the deal? Was it legal? Do you have recourse? Can they provide you with some capital to sustain yourself?
• Can you negotiate with your creditors? Shutting the doors means they get nothing, so they are likely to work a deal out with you - especially given the state of everyone else suffering.
• Would you consider partnering with another firm in another state? Tout your successes and the ability for them to get a bargain right now. If I had a construction business, I would be looking to expand right now so I could catch the market on the upswing.

Remember, its about survival right now. The companies and investors who survive this downturn will emerge stronger and more successful than they ever thought possible.

 

[Sid23]

Re: I think I'm on a sinking ship...I'd appreciate some feedback!

I have a lot of advice on your situation, but I dont want to inundate you.

RealOG, I'm open to hear this as well. Don't worry about inudating me.

My company is doing what they can. I can't get into details on this forum for privacy reasons.

 

[fanocks2003]

Re: I think I'm on a sinking ship...I'd appreciate some feedback!

Have you tried market to a new customer segment? I mean richer segments? People who are actually in no need to borrow money in order to purchase a very expensive and customer tailored home?

I read this very day that Roman Abramovich, the russian oligarch billionaire, is purchasing a yacht for 300-400 Million dollars right now (custom built and the biggest ever built if I remember correctly). See, not everyone feels the pinch of the recession. Some few up there have cash laying liquid in the bank. A lot of it laying there waiting to be spent on toys. I am certain some of those people wouldn't mind spending some of that cash with your company. Why not weed those customers out and propose to them.

In the meantime negotiate with the creditors and tell them you are working on a solution that will save you all. You are all in this boat together. No one wins on crushing the other guy here. That's just childish.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[RealOG]

Re: I think I'm on a sinking ship...I'd appreciate some feedback!

See, not everyone feels the pinch of the recession.

Are you kidding? Roman is feeling the pinch worse than most people:
The Biggest Losers Complete: #8 Roman Abramovich

Sid23 - my suggestion is to take things one step at a time. Break this insurmountable problem into a bunch of small issues. Focus on one issue at a time until you have solved the entire problem.

Start with your family life first. Things are always more manageable when the wifey is happy. Discuss what you guys need to be happy during this difficult time and make sure you are giving it to one another.

 

[Russ H]

Re: I think I'm on a sinking ship...I'd appreciate some feedback!

Start with your family life first. Things are always more manageable when the wifey is happy. Discuss what you guys need to be happy during this difficult time and make sure you are giving it to one another.

Best advice I've seen on these forums in a while.

My wife and I went through all kinds of stuff shortly after we met (6 months after we met, her mom was diagnosed w/terminal cancer and given 8 weeks to live. Two years later, same thing happened to her dad). In between that time, we moved out of our long-term houses, bought 2 new ones (next to each other), and then bought a B&B and never lived in the 2 houses!

Did I mention we were having a horrible time trying to get preggers while all this was happening?

Finally had got pregnant 6 months after we bought a HUGE project that required 110% of our devotion (didn't happen-- kid came first).

When you share your journey w/someone, and the two of you help each other through the hard times, somehow the other stuff just doesn't seem so scary or daunting.

-Russ H.

 

[fanocks2003]

Re: I think I'm on a sinking ship...I'd appreciate some feedback!

Are you kidding? Roman is feeling the pinch worse than most people:
The Biggest Losers Complete: #8 Roman Abramovich

That was in January this year, this is now:
Chelsea football club owner Roman Abramovich buys a £288m yacht | Football | The Guardian

If he was pinching dollars, then why buy the most expensive yacht ever built? He, pinching? Don't think so (I guess he solved his little problem pretty fast). And he has been known for being the most liquid billionaire out there a long time now so I guess he is the guy to make such dramatic changes happen if any one.

The upper levels of the richdom has money laying around. I can assure you that a $900.000 home will not be a problem for a guy like Roman Abramovich. If he can purchase the most expensive yacht currently existing, then he and his likes can certainly purchase a couple of multi million dollar homes (or one big home for a couple of million bucks) from our friend who started this thread. You just need to find them, cater to them and tailor a solution they want and you will have the money.

If you are not willing to do that, then you are toast and you will be right. Then no amount of credit crunching will help. You will then be history. I am just producing productive solutions here. I have been in bad shape many times, no news to me. The only way out of such slumps is to cater to people who have much more money than you have. That's the way out when the other customers cannot help you out.

In this case the regular customers seem to be non-existent. What choice does he have? How do you negotiate with creditors when you have no bargain chip: the customers who proivde the cashflow? You can't. I have tried it myself. I would be surprised if the guy who started this thread actually succeeded with that strategy. Sorry to sound like a pessimistic bastard here, but as every good negotiator knows: without the upper hand you have no gain. No gain at all. You can play like you have it, but the other side will smell it a long way. Creditors are very skilled in this game. Their noses are like hunting dogs. They smell your fear.

The creditors will only stay as long as they believe whole-heartedly that you can help them out of their problem. They may convert debt to equity perhaps, but even in that situation you will need to produce results. Making more money is always the solution. That is what the market is all about. The market exists to expand, not decrease. When it decreases no one wants to be near it. Everyone jumps of the ship and the dumbest sucker is left behind to take it all on himself.

Sorry, ranting. Move up, short and sweet. Make more money, that is the only way you will save your company. I hope you take this to heart, because I actually feel for you. Everytime I write these ever lasting texts is when I actually feel passionately involved in a subject. I normally waste no time on subjects of no importance. If you are reading this now (the one who started the thread. Sorry for not remembering your screen name), please find those richer clients NOW. Quickly. No time to spare.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.