May 2007 is a very important milestone in my life. I fell casualty to irrational exuberance and a former friend. In the spirit of entrepreneurship, I invested all my life savings (foolishly!) and borrowed $50,000 from my brother to promote, and produce 2 concerts featuring 2 headlining hip-hop acts. In short, it was a tragic failure financially, but that's not the crux of the story.
The primary lessons to be learned just in case you become bored, and don't stay to read the whole post:
- No matter how exuberant you are about a business venture, never ever invest 100% of your savings. Why? Murphy's Law. That's why? Want another reason? "Diversification is the only free lunch" - Jim Cramer.
- True friends are like diamond's in the ruff. Thank God if you have or find one.
- Leeches will always be leeches. Don't try to reform them unless you like swimming upstream. All relationships should be mutually beneficial except in charitable situations.
- Lastly, what goes around comes around? Cheat and be cheated. Steal and get robbed. The evil you perpetuate will follow you like a shadow. You will never escape your bad karma.
Back to the story. The primary goal of the concert was to promote a very talented artist (in my opinion) who until now I considered to be a very good friend. We accomplished that goal. He's gone from unknown to local celebrity in his town. Thanks to all the publicity garnered from ads, public appearances with the bigger concert acts, and the knock-out performance at the concert. Both concerts had very poor attendance so we didn't really make any money on ticket sales. I would have cancelled all shows in advance, but I was just to dumbed to see what was coming. I didn't use advance tickets sales as a predictive metric to postpone or cancel the shows. I would have limited the financial damage if I got action soon. But I was a rookie in the entertainment business as that was my first foray in that industry. I had passed the point of no return, so I had to proceed with both concerts. The financial outcome would have been about the same whether the concerts happened or not.
We had projected very healthy profits for the venture (<-- IRRATIONAL EXUBERANCE). I agreed to share all profits equally with my business partner - the artist that I was also promoting. I agreed to fund the concerts, and he agreed to fulfil his obligations as the artist. Prior to the concert, he was in really bad shape financially so he was counting on this venture to be successful too.
But we all know what happened. I was wiped out by this venture. Not to mention being in debt to my brother for all the money borrowed for the party. The loan made to fund concert was due 10 days after reconciliation. They was no way we were going to be able to pay in full. My brother became hysterically, understandably and threatened my life. I'm surprised I'm still here. We were both devastated. Recognizing that the loan repayment is inevitably going to be stretched out long term, he agreed to receive the insignificant box office earnings as the first installment. I was glad he even considered it. I didn't leave him with any other option.
It get interesting. Don't forget that I don't have a penny or know where my next dime is coming from. My main priority was cashing out with the concert facility ASAP, and then instanteously remitting the funds to my brother as promised. My partner, fully aware of the agreement to pay our creditor (who also happens to be my brother) tries to talk me into using the funds left over to pay his bills to help him survive. A little history, has a felony for attempted murder, very unstable financially, and his mother has evicted him several times. And I somehow ignore all the warning signs? I disagreed vehemently explaining that I would if I could but that right now, we'd just have to honor our agreement to our creditor (also a brother and a friend) to repay our debt. We had a heated argument and all kinds of surprising things we uttered by him about my character and loyalty as a friend. I had no more to give or loan him, so I guess I had outlived my usefulness to him. I never even considered using it for myself.
After the argument, he successfully devised a scheme to intercept the check for his own needs. Remember, he didn't invest one cent. The venture didn't turn a profit. And the only proceeds made designated for paying the creditor was stolen by him - a partner that didn't invest any money. I haven't heard from him since.
I've known him for a very long time. Almost 5 years now. In that period, I have gifted and made countless interest free loans to him for all kinds of personal emergencies. Received calls in the middle of the night with pleas to wire money or deposit fund to help with all his bulls**t. So much back luck with this guy. And then what? He pours salt on my wounds. I've never been in this sort of bad shape in life. Just when I need all the emotional and financial support I can get, he shows his true colors.
Over the past two weeks, I have thought about all the possible reasons for my predicament. And I've just concluded that maybe it's all karma. I don't exactly have a spotless past. I've done some really naughty things. And maybe, this is just payback. I've lost all my ill-gotten gains and their derivatives, and rightly so.
So let this be warning to me, and everyone who reads this. What goes around, come around.
But that was really f***ed up on his part. He'll get his though, I ain't worried.
It's a fresh start for me. I'm really excited that I'm purged and ready for a comeback.
I will retire by 35. I guarantee it. I'm currently 27.
Any and all money-making ideas are welcome. No Nigerian 419 scammers, please.
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