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Thread: When do you call it over?

  1. #1
    Site Caretaker Dave A's Avatar
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    When do you call it over?

    Most business owners will do almost anything to keep their business going. When is the right time to walk away?

    Consider this:
    The former chief executive of defunct Regal Bank and a convicted fraudster faces a sentence of at least 15 years when he is sentenced on Tuesday.

    Jeff Levenstein will appear before a judge at the South Gauteng High Court in Johannesburg on eight charges, including six of fraud and two of the contravention of the Companies Act of 1973.

    “In spite of the accused’s industrious efforts to hide the fact that Regal Bank was not doing financially well, the truth of Regal’s dismal performance and situation was ultimately exposed. This resulted in Regal Bank being placed in curatorship and ultimately liquidated.”

    Levenstein has been found guilty of falsely shoring up Regal’s share price by buying its own shares and giving other people and entities money to acquire the shares of Regal Holdings, the bank’s parent company.
    full story from Business Report here
    Was Jeff Levenstein simply trying too hard to keep the company going?
    The trouble with opportunity is it normally comes dressed up as work.

  2. #2
    Platinum Member Marq's Avatar
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    You make an interesting case for a keen employee.

    In this case though, I believe it was over the moment he lost the first rand of his trusting clients.
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    Site Caretaker Dave A's Avatar
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    You make an interesting case for a keen employee.
    That's what I find interesting. What was his motive in pulling the stunts he did?
    The trouble with opportunity is it normally comes dressed up as work.

  4. #4
    Platinum Member Marq's Avatar
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    Yes, it seems he had some sort of mistaken belief that the whole thing would come right, turn the corner and he could get it it straight again. Cause there does not appear to be any personal gain out of the story....or was there?
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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Marq View Post
    it seems he had some sort of mistaken belief that the whole thing would come right, turn the corner and he could get it it straight again.
    Now that's the crux of my particular line of thinking. Great success at times lies on the other side if imminent failure. If a business owner is struggling, they're told to hang in there, fight harder, smarter etc and great things lie ahead.

    Obviously not always. Which poses the question:

    When do you call it over?
    Where is that line where you go "let's wrap this one up, cut our losses and try making some money another way?"
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member tec0's Avatar
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    In my Opinion only; do not “underestimate” the power of desperation. Fact is nearly all of us here is or was at one stage a business owner. Thus we know that we had to consider loans, overdrafts and in extreme cases we had to play cat and mouse with the banks and suppliers.

    So yes extreme action and sacrifice can be “justified” on a personal level when it comes to “saving” something that you think is worthy. I think it is just human nature. However law is law and wrong is wrong and that is the end of it really.

    In my personal experience I would say “STOP” when

    A > the company is going bust.
    B > you have to do something illegal to keep it going.
    C > you stand to lose more then what the company is worth.
    D > being blackmailed by groups and organisations.

    Honestly I think we can all “add” a bit more to this list but in the end of the day the only advice I can give is “Don’t be stupid” You can always start over from the ground up if you know when to quit.

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    Platinum Member Marq's Avatar
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    I agree with that.

    Its the when you do something illegal, that has created this problem for Levenstein. There is also a bit of a difference when it involves other peoples money. If it your own then you can do what you want to get going again - through some more in, go deeper into debt etc, but when you gamble with other peoples stuff without their say or knowledge, then you have crossed the line.
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