How I lost $50,000 trying to start a business. Here's what I wish I knew

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Starting a business was supposed to be my path to freedom. I had the drive, the idea, and $50,000 saved over years of working a stable job. I poured everything into building my dream — from branding and marketing to product development and inventory. I was all in.

Within 14 months, it was all gone.

What went wrong? A lot. But it wasn’t just bad luck. Looking back, I made some critical mistakes that no one warns you about in those “How to Start a Business” YouTube videos.

First, I fell in love with my idea and ignored the market. I didn’t test whether real people would actually pay for what I was selling. I assumed they would — because I would.

Second, I spent too much, too fast. Instead of starting lean and validating demand, I overinvested in branding, website design, and unnecessary software. My business looked great, but it didn’t earn a dime in its first six months.

Third, I underestimated how lonely and stressful it is to build something from scratch. I didn’t have a mentor, advisor, or even a business-minded friend to check my decisions or challenge my thinking. That isolation cost me dearly.

I’ve since picked up the pieces and started over — this time, much smarter.

Here’s what I wish I knew from the start:
Start small. Test everything. Cash flow is king. And hype doesn’t pay the bills — customers do.

Losing $50,000 hurt. But the lessons I learned were worth even more.

If you’re starting a business, learn from my scars. Don’t build in a bubble. Don’t assume success. Prove it, one small, smart step at a time.

 

And never confuse activity with progress.

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