February 25th, 2010
Like many entrepreneurs, Adam Levy expected to do well with the music equipment company he started in 2002. Armed with an MBA and pile of money made in the late-nineties technology boom, he invested six figures in his new venture and waited to cash in.
Only things didn’t go as planned.
His business partner, a music industry mastermind, abandoned ship within the first 18 months and the company floundered. Seven years later, Levy still wasn’t making a living wage and was six figures in debt. Out of cash and out of choices, he filed Chapter 7 bankruptcy.
“If I had known then what I know now, I would have just cut my losses, swallowed my ego and moved on,” says Levy, who’s based in Hoboken, N.J. “I didn’t and it almost cost me my marriage.”
Slash Your Budget
Of course, declaring bankruptcy — which experts say should be a last resort — isn’t the only way to stop the bleeding. Reducing your spending should be at the top of your list.
“Getting out of your office space is one big thing I’ve seen people do,” says Dan Olszewski, director of the Weinert Center for Entrepreneurship at the University of Wisconsin School of Business. Same goes for trading in that gas-guzzling delivery truck for a smaller vehicle or selling off that five-figure color copier and learning to love Kinko’s.