I Invested in a wrong business | Beyond the Grind #048

Korede Fanilola on Losing $300,000 and the Shame of Business Failure

What happens when a business venture you poured your heart, soul, and a significant amount of money into goes south? For many entrepreneurs, the financial loss is only half the battle; the other half is a silent, isolating struggle with shame. In a candid episode of Beyond The Grind, host Korede Fanilola opens up about a personal business failure and the powerful lessons he learned along the way.

Several years ago, Korede was approached by a friend with a promising opportunity in the trucking industry. The numbers looked good, the potential was high, and he jumped in. But what seemed like a clear path to profit quickly turned into a financial drain. "All that's happening is money is going out the door," Korede recalls. From unexpected maintenance costs to accidents and insurance headaches, the venture became a constant uphill battle.

After two to three years of trying to make it work, the final result was a staggering net loss of over $300,000. But the impact wasn't just financial. As a CPA, Korede felt the immense pressure of perception. "People look at me as this guy that's got all the answers," he shared. This created a deep sense of shame that made it difficult to talk about the experience, a feeling many entrepreneurs know all too well.

The Isolation of Entrepreneurial Shame

Failure is a universal part of the entrepreneurial journey, yet it’s often discussed in hushed tones. Why is it so hard to talk about our losses? The hosts—Korede, Allen Charles, and Tosin Omotayo—delve into this question, identifying the core issue: the perception of success. We see the polished family photos on Instagram, the triumphant business announcements, and we compare those curated moments to our own messy realities.

This comparison creates an isolating bubble of shame. "You feel like the odd man out," Allen notes. You start to believe you’re the only one who has ever lost money on an investment or faced a crushing setback. This isolation can be paralyzing, delaying recovery and making it harder to take the next step. As Korede points out, this feeling makes you question yourself: "Am I confident enough to make that next move? Am I gonna make another mistake?"

The truth is, the most successful people you know have likely failed more times than you can imagine. The key difference is how they process and learn from that failure. It’s about having a "Mamba Mentality," as Allen puts it—taking the next shot even after missing a hundred, learning a little something from each miss to improve your aim for the next one.

Moving from Failure to Framework

So how do you break the cycle of shame and ensure you don’t repeat the same mistakes? It starts with what Korede calls "strategic vulnerability." This isn’t about broadcasting your failures to the world, but identifying a trusted inner circle—friends, mentors, or partners—who can hold you accountable without judgment. A safe space is crucial for admitting what went wrong and truly learning from it.

For those looking to vet their next venture more carefully, Korede shared a practical tool: the AMSTAR framework. It’s a due diligence checklist to assess the viability of a business idea before you invest:

• M - Margin: Can the business achieve a healthy profit margin (e.g., at least 15%)?
• A - Advantage: What is your unique competitive advantage? What separates you from everyone else?
• S - Smooth Operations: What efficiencies are in place to ensure the business runs smoothly?
• T - TAM (Total Addressable Market): How big is the market and what is the potential revenue?

While failure is inevitable, making the same mistakes over and over isn’t. Using a framework like AMSTAR forces you to do your due diligence and move beyond wishful thinking. The lesson from a failure isn't the shame you carry; it's the tuition you pay for the wisdom you gain. That wisdom is what prepares you to climb the next mountain.

Everyone fails. The journey is about learning to fail, learning from it, and moving forward with newfound knowledge and resilience. By sharing his story, Korede reminds us that we aren't alone in our struggles and that our most painful losses can equip us for our greatest wins.

To hear the full story and the hosts' insightful conversation, watch the complete episode on YouTube. And don't forget to subscribe to the Beyond The Grind newsletter for more honest conversations about business, career, and life.