Read on Twitter
How I lost $236k in monthly revenue
Following is a real life account of my last few months in business.
Sorry for the anonymity, real life me doesn’t trust Twitter me just yet.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">
In AUD (1 AUD = 0.69 USD)
Following is a real life account of my last few months in business.
Sorry for the anonymity, real life me doesn’t trust Twitter me just yet.
In AUD (1 AUD = 0.69 USD)
Company 1
100% Equity
Main hustle. Industry I’ve been in for 15 years.
We got smashed!
Had tohttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🛑" title="Stop sign" aria-label="Emoji: Stop sign"> trade.
Revenue
Feb $272khttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">
Mar $207k
Apr $41khttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend">
May $36https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤕" title="Gesicht mit Kopfbandage" aria-label="Emoji: Gesicht mit Kopfbandage">
- Forced to pivot business
- stripped out costs
June revenue up 50% from May.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎉" title="Partyknaller" aria-label="Emoji: Partyknaller">
100% Equity
Main hustle. Industry I’ve been in for 15 years.
We got smashed!
Had to
Revenue
Feb $272k
Mar $207k
Apr $41k
May $36
- Forced to pivot business
- stripped out costs
June revenue up 50% from May.
Company 2
50% Equity
Revenue
Feb $18k
Mar $41k
Apr $84khttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎉" title="Partyknaller" aria-label="Emoji: Partyknaller">
May $74k
This business was 2 years of trial and error before we cracked it.
We did that just as COVID hit and were able to double down on it.
Saved my sanity over the last few months.
50% Equity
Revenue
Feb $18k
Mar $41k
Apr $84k
May $74k
This business was 2 years of trial and error before we cracked it.
We did that just as COVID hit and were able to double down on it.
Saved my sanity over the last few months.
Company 3
30% Equity
Revenue
Feb $68k
Mar $49k
Apr $32khttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend">
May $38k
Small business customers in a niche severely effected.
Dropped our prices to zero margin to retain customers. Some customers we gave our service for free.
Retained all customers.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🥳" title="Partying face" aria-label="Emoji: Partying face">
30% Equity
Revenue
Feb $68k
Mar $49k
Apr $32k
May $38k
Small business customers in a niche severely effected.
Dropped our prices to zero margin to retain customers. Some customers we gave our service for free.
Retained all customers.
Company 4
50% Equity
Revenue
Feb $31k
Mar $34k
Apr $25k
May $21khttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend">
- Lowered rates to retain all customers.
- Negotiated great deals with all suppliers to retain margins.
- Revenue down/profit stable
Acquired 2 new customers at $3k/month from July.
50% Equity
Revenue
Feb $31k
Mar $34k
Apr $25k
May $21k
- Lowered rates to retain all customers.
- Negotiated great deals with all suppliers to retain margins.
- Revenue down/profit stable
Acquired 2 new customers at $3k/month from July.
Company 5
50% Equity
Revenue
Feb - June $6.5k per month
Revenue not effected.
Actually increased our profit margin.
Negotiated hard with all suppliers and increased profits.
50% Equity
Revenue
Feb - June $6.5k per month
Revenue not effected.
Actually increased our profit margin.
Negotiated hard with all suppliers and increased profits.
Company 6
30% Equity
Revenue
Feb $2.5k
Mar $2.5k
Apr $0
May $0
SAAS startup. All customers in a an industry severely effected by COVID.
Ran a ‘freemium’ model from April to retain customers.
Customers returned to 50% rates as of July.
30% Equity
Revenue
Feb $2.5k
Mar $2.5k
Apr $0
May $0
SAAS startup. All customers in a an industry severely effected by COVID.
Ran a ‘freemium’ model from April to retain customers.
Customers returned to 50% rates as of July.
Company 7
Launch this week.
Business has been on my radar for years but never got off the ground.
It solves a major post COVID problem.
My wife also started a side hustle and sold out her first product last week. I didn’t have much to do with this.https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen">
Launch this week.
Business has been on my radar for years but never got off the ground.
It solves a major post COVID problem.
My wife also started a side hustle and sold out her first product last week. I didn’t have much to do with this.
Lesson 1
Have multiple revenue streams
If I only had 1 business or 1 job I was dead in the water.
Company 2 saved me over the last few months.
Because I had a number of different businesses we were able to refocus our energies to drive profit.
Have multiple revenue streams
If I only had 1 business or 1 job I was dead in the water.
Company 2 saved me over the last few months.
Because I had a number of different businesses we were able to refocus our energies to drive profit.
Lesson 2
Cash is King
I had money saved, so when things got tough I knew we would be fine.
Having ‘sleep money’ - money that lets you sleep at night is crucial in life.
I always have 12 months of expenses readily available. Too much at stake not to.
Cash is King
I had money saved, so when things got tough I knew we would be fine.
Having ‘sleep money’ - money that lets you sleep at night is crucial in life.
I always have 12 months of expenses readily available. Too much at stake not to.
Lesson 3
You need great people around you.
We were under huge amounts of pressure across all companies.
Fortunately I have an amazing team around me.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🙏" title="Folded hands" aria-label="Emoji: Folded hands">
Without them we wouldn’t have been able to pull off what we did.
We are now stronger businesses.
You need great people around you.
We were under huge amounts of pressure across all companies.
Fortunately I have an amazing team around me.
Without them we wouldn’t have been able to pull off what we did.
We are now stronger businesses.
Lesson 4
Overnight successes take a long time
Company 2 was 2 years of blood, sweat and tears before we got it to ‘work’ in March.
I have no doubt most people would have quit. We thought about it numerous times.
Nothing of value comes easy.
Overnight successes take a long time
Company 2 was 2 years of blood, sweat and tears before we got it to ‘work’ in March.
I have no doubt most people would have quit. We thought about it numerous times.
Nothing of value comes easy.
Lesson 5
In adversity comes opportunity
I wouldn’t have started company 7, my wife wouldn’t have started her business and I wouldn’t have found Money Twitter without COVID.
Where will that lead me? Who knows?
But I have zero fear.
In adversity comes opportunity
I wouldn’t have started company 7, my wife wouldn’t have started her business and I wouldn’t have found Money Twitter without COVID.
Where will that lead me? Who knows?
But I have zero fear.
Lesson 6
Negotiation is a Super Power
Regardless of whether you are an employee (probably even more important) or you run a business you need to be able to negotiate.
We saved almost $20k/mth in expenses through negotiation.
It kept us in business.
Negotiation is a Super Power
Regardless of whether you are an employee (probably even more important) or you run a business you need to be able to negotiate.
We saved almost $20k/mth in expenses through negotiation.
It kept us in business.
Thanks for making it this far in my first ever thread!
I want to thank these guys for inspiring me with quality content over the last month and showing the way with killer threads of their own.
@CureIncome
@AskTheGiver
@FreedomPathGo
@fromclicktosale
I want to thank these guys for inspiring me with quality content over the last month and showing the way with killer threads of their own.
@CureIncome
@AskTheGiver
@FreedomPathGo
@fromclicktosale
