Sold my first company in 2019 after 12 years of grinding. Walked away with enough to never work again if I wanted. Spent 18 months 'relaxing' and hated every minute. Started a new venture last spring, brick and mortar retail, something I'd never done. Sank about $180k of my own cash in, plus a small SBA loan. It's dying. Lease is a nightmare, foot traffic never recovered, and I'm bleeding $8k/month. My spouse wants me to pull the plug. I feel like a moron for not just doing another software thing. But also weirdly relieved at the thought of killing it. Anyone been here? How do you separate 'this idea failed' from 'I'm a failure' when the first one worked so well? Not looking for a pep talk, genuinely want to know what you actually did next.
What to do when a new business idea flops after a successful past exit
Relieved is your answer. You already know. Kill it and don't look back. The money is gone, the lesson isn't.
Brick and mortar retail? In this economy? Bold. Look, you took a swing outside your lane, that's not stupidity, that's curiosity with a price tag. Most people just buy a boat.
The bit about separating the idea from yourself is the whole game. I exited a logistics business in 2017 and then launched a meal kit thing that tanked in 8 months. What helped me was writing down every assumption I made that turned out wrong—not as self-flagellation, but as a document of what I actually learned. Mine had 31 items. A lot of them were things I'd assumed because my first business never had to deal with them. Rereading that list made it feel like tuition instead of a wreck.
What's the lease situation? Can you sublease or assign it? Sometimes getting out of the the lease is harder than admitting the business failed.
If you feel relieved, that's not weakness. That's your gut telling you the cognitive load is already too high. I'd listen.
Also, $8k/month is a slow bleed. Six months from now you'll have lost another $48k and probably be more exhausted. Rip the bandage.
I haven't sold a business, so take this with a grain of salt, but my dad ran a hardware store for 20 years and when it closed he said the relief was bigger than the grief. I think that's common.
The spouse is right, but also nobody wants to hear that. Have you actually run the numbers on what a wind-down costs? Break fees, inventory write-offs, early termination penalties. Sometimes 'bleeding slowly' is cheaper than the funeral.
SnarkySprocket makes a good point. I'm in commercial real estate—not giving legal advice here, but I've seen tenants negotiate early exits more often than they think. Landlords hate vacant space. Worth a call with the landlord before you decide anything.
Thanks all. Lease is 18 months left, no su blease clause, but landlord is a mom-and-pop guy, not a REIT. I'll try talking to him.
Wait, OP came back. I thought the rules said you don't post again? Nevermind, glad you did. Good luck with the landlrd talk.
Honestly I'd take a weekend and write a one-page post-mortem. Not for anyone else. Just so this flop doesn't become a ghost you chase for years.
Update us on the lease. And don't start another brick and mortar. Please.