2008 was a challenging year for me as an entrepreneur.  However, I met each and every challenge thrown at me and lived (barely)...and learned a tremendous amount from each.  I was hoping to start applying some of the lessons I had picked up, but apparently, I'm not done learning yet.  If you've been following my blog, you'll remember that I sold the coffee kiosk business early in 2008.  Unfortunately, I sold the business more to get it off my hands...and when you sell a business when you HAVE to, you almost never do well.  The lesson there is selling a business when you want to or have to is most likely a bad time to sell.  If you DON'T want to sell a business, that's probably a good time to sell a business (you might have to think about that one).  It reminds me of a Warren Buffet quote:  "Be afraid when everyone else is being greedy.  Be greedy when everyone else is afraid."

Anyway, I figured it was going to be tough to sell the business.  It was a business that had a good concept and good branding, but it had a bad location and was losing money.  In order to help the business move a little quicker, I offered to do a seller financing deal.  These are the things that desperate people do.   The person that bought the business (not surprisingly) opted  to take the deal.  I negotiated an 8% interest rate over a 4 year term. A few months after closing I looked into selling the promissory note (there a couple companies/investors that will buy these types of notes).  However, as I learned, companies/individuals typically want at least a 13% interest rate to even look at such an investment (mental note to myself for the future...well that's if I would even offer a seller financing deal). 

The thing that I did RIGHT was hire a lawyer to right the promissory note.  He had a bunch of legal mumbo jumbo in the document including using the business' assets as collateral for the note.  He also did a UCC filing (Uniform Commercial Code) which is a central filing office for certain financial documents.  There a full 3 pages of text on this promissory note so there are quite a few other provisions.  Anyway, this is all relevant now because the buyer is now two months behind in his payments.  It's been a challenge because I have been trying to avoid taking legal action, but that is quickly becoming my only option available to me.  According to my lawyer, the one option we have is to issue a judgement against him in court.  The issue with that is that it will probably cost me more in legal costs than he owes.  However, if I remember correctly, I can go after him for legal costs as well.  I'll have to read the promissory note more carefully when I get in tomorrow.  Anyway, I will give you an update in the next month or two in this developing situation.  I do have some good things that are starting to happen with my primary business, CTE Healthcare Communications.  I don't want jinx them as nothing concrete has happened as of yet, but 2009 has started with some promise and some frustration.