Here’s how I lost $15 million trying to start a food business.
I thought, okay,
I’m in fitness, I talk about nutrition.
I can start a food company.
We did this big launch. The first month,
sales were a little disappointing for me.
So we did like 600,000 the first month.
Now, you might be like,
that sounds like a lot of money.
Let me walk you through the margins of this business.
So we’re doing $600,000 per month.
Now, the average meal was 10 bucks.
So we were selling 60,000 meals per month.
Well, sounds good, right?
Times $10. Now here’s the part that no one wants to talk to you about.
The food business. My cost was $9.
I had to cover every expense. Marketing,
sales, payroll.
On this $1, I was able to make in this business
somewhere in the neighborhood of 7% profit margins.
I just 5 x the amount of headache for an extra this much profit.
Honestly, I might have made 500 grand on this whole thing.
I decided to take my off the big pile of money
and go on the small pile of money.
And I lost a year.
Just because you don’t lose money doesn’t mean you didn’t lose money.