As the real estate market led the economy in the biggest downturn of my lifetime, I used every resource at my disposal to keep TrailsWeb alive.
When the real estate market started to buckle late 2005, TrailsWeb was getting 80% of its revenue from one company, a land developer. We started making websites around 2006 because I had to reinvent the company to stay in business. I lost money the following year, and had to borrow from friends and family to stay alive. TrailsWeb may have made $80,000 in gross revenue for but it cost $95,000 to make it. I lost 20 pounds because I couldn’t afford food. I paid over $5000 in overdraft fees between 2007 and 2008.
I was in foreclosure on my house for 18 months. My sewer was disconnected for 10 days at one point. It was really hard, but it just didn’t make any sense to close up shop and try to find a “regular” job. So I kept showing up to work every day in spite of the growing number of creditors demanding I find profitable employment and start paying them back.
I borrowed $36000 from my father at the last second to get my first mortgage reinstated and avoid the auctioneer. My 2007 Toyota Highlander Hybrid was repossessed and I still had to make payments, but they were a lot lower. My second mortgage accepted a payoff settlement of $12500 for a $52500 balance. It was hard, but I got through it slowly.
Today my mortgage is current and since I only have the one I actually have a little equity in my house. I only have one credit card balance left of $3900 that I’m making payments on, I have made several thousand in payments to the IRS for the unpaid taxes from 2007 and 2008 and will probably be caught up by the end of 2011. I moved my company into my house and politely dismissed all but two people with talents that compliment my own. They only get 2 to 6 hours of work per month, so payroll expense is all but nonexistent. I do no advertising, nothing that costs money. My only bills aside from debt are phones, merchant account, and internet, about $600/month.
It sucked to go through, but when I came out the other side I genuinely appreciated the discipline I was forced to learn. The only thing I would do differently (aside from all the changes I would make if I could see into the future) would be not to worry so much. I was literally racked with terror on a daily basis that my life would be torn to shreds. It was torn to shreds, and the worry was far worse than the reality.
TrailsWeb is now consistently profitable, and the future is brighter than ever.