Last time, we talked about Todd, a young real estate entrepreneur, whose triumph turned to tragedy. Todd’s story comes from an article, in the New York Times, by John Leland, entitled A Real Estate Speculator Goes From Boom To Bust. We discussed some lessons you can learn from Todd’s misfortune.
Today, we want to go beyond the lessons and offer some advice on how to recover from a devastating turn of events.
Keep your dream alive.
Stay positive. Reach out to people close to you. People love helping people. Let them.
You should also be thankful for your misfortune. Yes, we do mean that. It means you’re one step closer to success! History is ripe with examples of people who failed before they succeeded bigg. Plan on your name being added to that list!
Here’s the first step to starting over:
Assess your strengths and weaknesses. If you’re not going to repeat the past, you have to learn from it. That’s how you fail forward. Learn from it and then forget about it – move on.
In Todd’s case, it’s obvious he is a dynamic young man. His banker said he performs. That’s a striking compliment coming from a banker who has foreclosed on him. It appears that Todd is good with Operations and Sales. Management, particularly financial management, is his weakness. This is common among entrepreneurs.
You want to build on your strengths and get around your weaknesses. For example, Todd may take in a partner with strong financial skills to complement his abilities.
What if you’ve declared bankruptcy (or are deep in debt)?
We’re not attorneys, or financial planners, or anything else worthy of giving you information for your specific situation. Keep that in mind.
A successful business person referred a friend, who had just declared bankruptcy, to a banker. The bank turned him down. The business person called the banker and explained that his friend was a better risk than he was.
“How can that be?” the banker asked. “You have stellar credit.”
The business person replied, “Because if you lend me the money, I can declare bankruptcy tomorrow. My friend can’t do that for seven years.”
We’re not sure if that’s still the case, but the point is to find ways of turning your liabilities into assets. Todd has changed from a merchant-model (i.e. he buys it, then sells it), to a broker-model. Now he makes money without having to invest any capital. Brilliant!
Our quote today comes from the great Dig Hammarskjöld.
“Never measure the height of a mountain until you have reached the top.
Then you will see how low it was.”
Keep climbing. You’ll find that many of your mountains were really just mole hills.
Tune in next time to see what people regret the most, according to a recent study. Until then, here’s to your big success!