After the stock market tanked in winter 2009, I took an immediate hit of nearly $3500 / month. To begin with that super sweet ad from Charter Digital Media for $2500 / Month that I wrote about… when I was building NewDocs.
Well, that was canceled and on top of that, the Maentz Agency who represented Charter, sat on the $7500 of cash that was owed to LocalsGuide for past advertisement.
I had to file small claims and still make phone weekly calls for nearly 9 months before the debt was repaid – NOT FUN and an ugly side of business.
So as they say “Money Talks” and this was another good lesson for me, also to learn about cash flow and multiple streams of income.
I had to let go of my one employee, reduce my office space and really focus on lowering my expenses to stay in business. I reduced the LocalsGuide Paper down to 16 pages and setup an equation for myself which would guarantee a monthly sell out of ad space while still meeting my minimum expenses and cover remaining debts.
Of course this sounds… good but it really was not very good at the time. It created quite a bit of stress for me.
(( This leads into how I met Dicken W. and began working with him as my new business partner. Dicken sharing a small office in the same building, me saying I wanted to learn from him and then teaming up to help him on some of his projects. The disaster and theft of his business by the the total thief and asshole …who we call the “Entity” .The formation and launch of Emperors Group and FMTown.)) – Will Write About This in a bit… Hang Tight