This Made Me Lose $15M
Summary
- I've experienced a significant setback where a project failed because of a vendor, which resulted in a $15 million loss. It's a hard pill to swallow, but setbacks like these can happen in business.
- I paid $700,000 for insurance against this kind of loss, trusting in the competency of a specialist to manage this risk, but it still occurred. It's a reminder to thoroughly vet the people you rely on and to double-check their capabilities.
- Despite the insurance, the person I hired to prevent this from happening turned out to be incompetent. It's important to accept that not everyone will live up to expectations, and sometimes their failure isn't out of malice but simply a lack of ability.
- When someone fails at their job due to incompetence, it's like a toddler accidentally ruining something valuable; they might not have intended to cause harm. It's a situation where you must absorb the impact and move forward.
- In moments like this, where a mistake costs you dearly, there's nothing much you can do but accept it as part of the entrepreneurial journey and prepare for how to handle such issues in the future.
Video
How To Take Action
I would suggest taking a careful look at who you're hiring, especially for critical tasks. You need to make sure they can really do what they promise. When you pay someone a lot, like I did, you expect them to be experts. But paying more doesn't always mean you get the best person for the job. Before you trust someone with something big, check their work and talk to others who've used their services.
Here's a tip: ask for proof of their success, like case studies or references. And don't just take their word for it. Do some digging to make sure they're as good as they say. Sometimes, someone might mess up because they don't know better, not because they want to hurt you. Think of it like a kid who doesn't know they're doing something wrong. It's tough, but don't get mad. Instead, learn and prepare to do better next time.
When things go wrong and it costs you, here is what to do:
- Take a deep breath; understand that setbacks are part of the game.
- Look at what went wrong and see if there were warning signs you missed.
- Think about what you can do differently in the future to avoid similar problems.
- Talk to others in business to learn how they handle these kinds of risks.
- Remember, it's not about getting mad at who messed up. It's about getting better at picking the right people for the job.
So, take the hit, learn, and move on. It's the only way to get better and come back stronger.
Quotes
"I had a big snafu that happened"
– Alex Hormozi
<<<
"It ended up falling through because of a vendor"
– Alex Hormozi
<<<
"It really sucked"
– Alex Hormozi
<<<
"You just have to take it, you just get kicked in the nuts"
– Alex Hormozi
<<<
"They were just truly incompetent"
– Alex Hormozi
