BANKRUPT

Farm-direct live shopping opened · BANKRUPT after 1 yr 8 mo

James Jackson, 28 · 1 yr 8 mo

“Burned through my savings in 20 months. Speedrun.”

Debt of $139,300. Bankruptcy. And I am still alive.

The court's decision arrived. The Chapter 7 process began. Cash -$7,597, debt $139,300, 0 employees, 79 customers. Your phone filled with creditors' numbers. You are still alive. This simulation ends here, but your life does not.

How it went

1. 2026 · preparing to openJames Jackson, 27. You have decided to try starting a company in Chicago. No idea, no product yet. Savings $85,813, no job.
2. 7/2026: what now?Start a business: «Noodle & soup shop» — You are going with «Noodle & soup shop». Next: a location and people.
3. Where to start, and with whatGround floor with foot traffic — It is a good spot. People walking by see the sign. The money going out every month got heavier.
4. Who opens the doors with you?Part-timers for the rush hours only — Two students took turns. Both told you their exam weeks in advance. You were grateful.
5. 2026 · year 1 beginsChinese Demand Cooled · US Rates Rose Again
6. 7/10 · Hygiene inspection noticeA hygiene inspection notice arrived from the health department. You started with the fridge temperature log.
7. An insurance agent dropped byTake the full package — Signed, hoping you never need it.
8. Financing approvedBorrowing from family $20,000 · 0.0%/yr · 36 months
9. You are short of moneyBorrow from family — You brought it up with your family. The transfer was fast. The conversation stays. This money may cost more than bank interest. Borrowing from family $20,000 approved.
10. 8/27 · Reviews piled upThree one-star reviews with the same wording appeared in one day. You could not tell whether they were customers or a competitor.
11. 9/8 · Oil reached the cost baseBrent rose to $121 a barrel. Quotes for packaging and freight are not what they were last month. You redid the cost sheet.
12. How to handle the bad reviewsReport them to Google Maps / Yelp — Google Maps / Yelp removed some reviews. Not all of them. You saved screenshots and waited for the next one.
13. 10/5 · Supplier price increaseA new price list came from the supplier: your most-used items are up 6%. You redid your prices.
14. 10/25 · Building repairsWater leaked from upstairs. You and the landlord argued over who pays for the stain on the ceiling.
15. You are short of moneyHold on — You closed the loan papers. Instead you cancelled subscriptions, cut what you could do without and pushed the next payment date. Holding on is also a decision.
16. 11/15 · A competitor made a moveA nearby competitor started heavy social ads. Search for your shop and their ad comes up first.
17. Cash ran outTake a credit loan — The rate is 20%. You can breathe, but the interest comes back every month. The repayment schedule in the banking app starts to look like a calendar.
18. 12/12 · Equipment stoppedThe technician said a repair would cost nearly as much as a new one. You bought new.
19. The “$20,000 a month or your money back” courseBlock the ad — You block it and another account posts the same ad. The money is still in your account.
20. 1/6 · Word got aroundA post in a local community said “this place is good.” Customers came in without warning today.
21. 1/29 · Hygiene inspection noticeA hygiene inspection notice arrived from the health department. You started with the fridge temperature log.
22. 2/22 · More regularsYou now know more than ten customers by name, and you catch yourself asking, “The usual?”
23. 3/19 · Oil reached the cost baseBrent rose to $121 a barrel. Quotes for packaging and freight are not what they were last month. You redid the cost sheet.
24. 3/27 · Card terminal outageThe card terminal died at the busiest hour. You served only customers paying cash.
25. Financing declinedThe Bank working-capital loan application was declined.
26. You are short of moneyBank credit line — You walked into the bank with documents and proof of income. They said your trading history is short. Now you wait for underwriting. But underwriting declined it. Credit and cash flow need another look.
27. 4/7 · Reviews piled upThree one-star reviews with the same wording appeared in one day. You could not tell whether they were customers or a competitor.
28. 4/23 · Building repairsWork started on the building’s facade. Scaffolding went up in front and hid your sign.
29. Cash ran outTake a credit loan — The rate is 20%. You can breathe, but the interest comes back every month. The repayment schedule in the banking app starts to look like a calendar.
30. 5/13 · Records requested by the tax officeIRS requested records for credit card sales and cash sales. You opened the books again.
31. 5/16 · The bank asked for documentsThe loan extension paperwork arrived: financial statements and copies of the sales tax returns, please.
32. 6/3 · Supplier price increaseThe supplier said prices go up 5% from the next order. You need to find another supplier.
33. Financing approvedsmall business SBA 7(a) loan $50,000 · 6.5%/yr · 84 months
34. You are short of moneyApply for the SBA 7(a) loan — You rewrote the business plan. The officer at SBA (Small Business Administration) spent longer on cash flow and repayment than on revenue. The answer arrives by post. small business SBA 7(a) loan $50,000 approved.
35. Chinese Demand CooledA prolonged slump in Chinese domestic demand and real estate lowered Asia's export outlook. Clients who bought raw materials cut orders, and domestic consumption turned cautious as well.
36. US Rates Rose AgainSignals of Fed tightening strengthened the dollar, and this country's funding rates followed. When the USD rate jumped, costing got complicated again for anyone buying imported ingredients or parts.
37. Year 1 closeRevenue $95,612, loss $24,828. Cash $20,161.
38. 2027 · year 2 beginsRates Rose · You Found a Mentor
39. 7/3 · HeatwaveA heat warning. The air conditioning ran all day. The electricity bill is on your mind.
40. 8/3 · An employee quitAn employee said this month would be their last. The big store down the road pays more an hour.
41. A gap opened in the rotaMake an urgent replacement hire — A new colleague joined. Work is shared, but payroll and onboarding are now recurring responsibilities.
42. 9/13 · Oil reached the cost baseBrent rose to $144 a barrel. Quotes for packaging and freight are not what they were last month. You redid the cost sheet.
43. 9/25 · Loan payment dayLoan payment day. $2,266 in principal and interest left the account. The balance is $146,339.
44. Keep going like this?Switch industry: Farm-direct live shopping — It is practically a new start-up. You know less than you don’t, but at least it is not the same wall again.
45. 10/20 · Word got aroundA post in a local community said “this place is good.” Customers came in without warning today.
46. 11/7 · Records requested by the tax officeIRS requested records for credit card sales and cash sales. You opened the books again.
47. 12/9 · Global growth forecasts fellWith the IMF and World Bank forecasts diverging, global growth came down to 1.8%. Replies to overseas inquiries got slower.
48. You are short of moneyHold on — You closed the loan papers. Instead you cancelled subscriptions, cut what you could do without and pushed the next payment date. Holding on is also a decision.
49. 1/15 · Reviews piled upThree one-star reviews with the same wording appeared in one day. You could not tell whether they were customers or a competitor.
50. 1/24 · The tax went unpaidOn the due date the account was empty. $1,641 went into arrears with a late penalty. It has to be paid as soon as money comes in.
51. Tax in arrearsApply for instalments — Turned down: this is not the first time you fell behind.
52. Cash ran outLet an employee go — You paid the last paycheck and severance. The next day the place was one person quieter. You hated the silence.
53. 2/23 · The bank asked for documentsYour bank contact changed. The new one asked for the past year’s statements again.
54. 2/7 · A loan payment bouncedThe loan payment did not go through. One text from the bank, and your credit grade dropped a notch.
55. Tax in arrearsApply for instalments — Approved. $277 a month from now on.
56. Cash ran outClose the shop — On the last day you closed the books. The faces of a few regulars came to mind first.

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