When we speak about anything worth remembering, I always remember about one story. This story is about my failure on my second business. At 2018 I launch a new business, a packaging business. Right now, I realize that my decision at that moment was pure of emotion. I dont have a proper business plan. Just a basic scratch and I rely that on my intuition. First year was hard, but I didnt feel it because I have many things to experiment about.
It start to show a gradual improvement trend on Q2 2019. During first year of Corona Virus Outbreak, when the business around the country felt that worst peak, I got triple turnover instead on 2020 Q1 – Q3 than 2019 Q1 – Q3. I guess it was because so much office employee made a new business, and big packaging company still vacuum on production for a while because of the outbreak. But I didnt prepare the side effect of that. I was wrong for enjoying the moment of rise too much.
After everything going back at the end of 2020, the war begin. The ‘new business’ start to close, I think thats because of its just a plan B for them. Whene everything goes back, they back to their main job. The big company start operating again. Worse than that, because they have a turnover target, and many of their customer close their business, they start to take middle low market, which is my primary market. They start the war and give a price up to 60% of mine. I dont know if they take profit or not, but thats their sales price. I could compete that, but it give a big risk for me because of the low margin of safety. Also, many of my key customer close their business too for one to many reason. I feel totaly fucked up!
I think my biggest failure is not making a proper budget for research and development. So when something hit really hard, I dont have a plan B. I put to much on machine and product investment, which is need a long run to give a better return. So in 2021 Q3, at the same time with my site contact ends, I decide to close my business. Actually, I close it in safe condition. I sold all of my stock to my existing customer. With this money I still could pay all of my employee with a normal wages plus some bonus. Actually I still can run that business for the next year, but with this condition, I calculate there are a big potential risk will be happen. But we dont know until we try it! Eventhough I choose not to take that risk.
So, this is the story that I think worth remembering for me. It a hard punch, but I believe its just a cost of learning to be better. Even when we are losing some money, we are not losing our hope. We can rise up, and try for the best in the future.