BANKRUPT

Budget takeaway coffee opened · BANKRUPT after 1 yr 2 mo

Leah Nguyen, 45 · 1 yr 2 mo

“Spent the most on the fit-out. Regret it the most.”

Debt of $70,150. Bankruptcy. And I am still alive.

The court's decision arrived. The Chapter 7 process began. Cash -$1,704, debt $70,150, 1 employee, 2,899 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 openLeah Nguyen, 44. You have decided to try starting a company in New York. No idea, no product yet. Savings $61,709, employed ($9,587 a month).
2. Debt from day onePersonal debt: $352 a month for 110 months. It comes out regardless of the company.
3. 7/2026: what now?Start a business: «Budget takeaway coffee» — You are going with «Budget takeaway coffee». Next: a location and people.
4. Where to start, and with whatCheap rent down an alley — The rent is low, but customers take time to find you. You chose word of mouth instead of a sign.
5. Who opens the doors with you?Hire one experienced person properly — In the interview they knew this trade better than you. A little uncomfortable, a lot reassuring.
6. 2026 · year 1 beginsUS Rates Rose Again
7. 7/3 · Building repairsWater leaked from upstairs. You and the landlord argued over who pays for the stain on the ceiling.
8. 7/28 · Oil reached the cost baseBrent rose to $130 a barrel. Quotes for packaging and freight are not what they were last month. You redid the cost sheet.
9. An insurance agent dropped byTake the full package — Signed, hoping you never need it.
10. 8/3 · Hygiene inspection noticeGetting ready for an inspection, you re-labelled every date sticker. It took two hours after closing.
11. 9/14 · Supplier price increaseThe supplier said prices go up 7% from the next order. You need to find another supplier.
12. 9/27 · FamilyYou talked with your family for a long time. Someone said, “You come before the money.”
13. Financing approvedBorrowing from family $20,000 · 0.0%/yr · 36 months
14. 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.
15. 10/14 · A competitor made a moveThe shop directly opposite started 15% off. A few regulars went there.
16. 10/19 · Equipment stoppedThe technician said a repair would cost nearly as much as a new one. You bought new.
17. 11/16 · Loan payment dayLoan payment day. $889 in principal and interest left the account. The balance is $46,224.
18. 11/29 · Street festivalA festival opened nearby. Foot traffic doubled.
19. 12/17 · Minimum wage announcementA minimum wage increase was announced. Payroll and prices have to be recalculated.
20. Financing approvedSBA guaranteed loan $35,000 · 7.5%/yr · 60 months
21. You are short of moneyGuaranteed loan — You went to the SBA for a guarantee. It costs a fee and another review, but you can knock on the bank’s door without collateral. SBA guaranteed loan $35,000 approved.
22. 1/6 · Building repairsThe landlord said the pipes need repair and asked you to cut opening hours for two days.
23. 1/11 · A family emergencyAn urgent call from a sibling. You were away for half a day.
24. 2/25 · Funding costs rose againThe US 10-year yield rose to 5.69%. The bank is taking another look at your loan terms.
25. 3/10 · Records requested by the tax officeIRS requested records for credit card sales and cash sales. You opened the books again.
26. 3/27 · Oil reached the cost baseBrent rose to $130 a barrel. Quotes for packaging and freight are not what they were last month. You redid the cost sheet.
27. Financing declinedThe Bank working-capital loan application was declined.
28. 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.
29. 4/29 · 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.
30. 5/23 · The bank asked for documentsThe bank asked for revenue evidence and the business plan again. One line said they would review whether the existing limit can be maintained.
31. 5/27 · An employee quitAn employee said this month would be their last. The big store down the road pays more an hour.
32. A gap opened in the rotaMake an urgent replacement hire — There were a few mistakes in the first week. From the second week you had time to rest.
33. 6/14 · Supplier price increaseA new price list came from the supplier: your most-used items are up 8%. You redid your prices.
34. 6/15 · Heavy rainHeavy rain cut the foot traffic to nothing. Two reservations cancelled.
35. Financing declinedThe Bank working-capital loan application was declined.
36. 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.
37. 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.
38. Year 1 closeRevenue $97,878, loss $25,219. Cash $8,270.
39. 2027 · year 2 beginsA local news crew stops by
40. 7/14 · Loan payment dayLoan payment day. $1,594 in principal and interest left the account. The balance is $72,585.
41. 7/27 · Equipment stoppedThe fridge stopped during the afternoon rush. You threw out part of the stock and called a repair technician.
42. Cash ran outAsk the landlord to wait — The landlord said, "This once." Ask again next month and the answer will be different.
43. 8/7 · The health inspector shows up unannouncedThey checked the temperature logs and labels one by one. Two findings, no fine. Half a day disappeared.
44. 8/30 · A loan payment bouncedThe loan payment did not go through. One text from the bank, and your credit grade dropped a notch.
45. 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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