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A founder maxed out a $250,000 line of credit and hit zero cash despite growing revenue. At a Dallas conference, his cards got declined. He'd confused revenue growth with actual profit and stopped watching his bank balance.
A founder maxed out a $250,000 line of credit and hit zero cash despite growing revenue. At a Dallas conference, his cards got declined. He'd confused revenue growth with actual profit and stopped watching his bank balance.
I was completely maxed out on my $250,000 line of credit and I had $0 in my bank account. Revenues were back up, but I was completely broke. And it's because I was spending more money than I was making and I didn't know where all the money was going. And that was kind of my first really big significant business failure, was when I was sitting at a bar at the Hilton Anatole in Dallas, Texas at a business conference, funny enough, and my credit card was declined. That's weird. Gave him another credit card, that was declined too. I gave my debit card, that was declined too. Oh no, this isn't good. I remember pulling up my bank information on my, on my bank account on my phone and realizing that I was completely maxed out on all my cards. I was completely maxed out on my $250,000 line of credit, and I had $0 in my bank account. So I was literally over $300,000 in debt, and I didn't even realize. It had gotten that bad. I was so heads down trying to get stuff to work that I stopped managing the business. I stopped even just looking at the bank account. Screw a P&L. I wasn't even looking at my cash. I was just saying like, was I making money? Like, was it working? Failing to acknowledge that, you know, sales and revenue don't fix everything if you're spending more than you're making. And that's what I was doing.
