My company is sinking!! Need advice

[Matt Teiken]

A couple of years ago I began work as CTO for a smallish mortgage company here in Northern CA. The company began to go sideways a year in, and I was in a position where a decent chunk of the staff was willing to follow me. I figured we could do alright with a battle hardened staff and without all of the unnecessary expenses and salaries built up during the boom.

Things were running fairy smoothly until the last few months, when my office manager apparently became burnt out and decided not to follow up with clients without letting me know this of course. Meanwhile he assured me everything was fine and that loans were simply taking longer due to banks doing their own appraisals, more detailed underwriting, etc. Seemed to make sense so I didn't question it too much. Soon enough I realized he was full of it and started drilling him. Turns out we have only one loan that is actually going to fund. So I go do the math and we are bankrupt... nice...

I fired the manager and had to lay off most of my staff. But my best sales person wants to partner with me now. She has a lot of contacts and can sell anything. Problem is, I am conflicted now because I don't know what in the world I can do to make money in this horrible market here in CA. I have been reading on this board, and one thing that appealed to me, wholesaling, doesn't seem very likely to do in my area where everyone is way upside down. Short sales seem to take forever, and everyone knows how difficult the mortgage business is. I obtained a life insurance license recently in order to sell life insurance and annuities, but not sure if I want to leap into that.

Fortunately I am young enough to get back up and start over, but my question to you guys is: If you were in Northern California right now with a great saleswomen who is also an agent, how would you utilize her? I need some direction since I don't have any mentors. Thanks guys.

[Michael Rossi]

It sounds to me like this was a self-inflicted wound. It wasn't the market that caused the business to fail, but it was your manager's failure to follow up with clients - and by extension - your fault for not managing your manager! The bottom line is that you could re-enter the mortgage market; start a real estate investing business; sell IT services; or anything else, but if you don't get actively involved in your business - you will fail again! All the hands-off, business-on-autopilot, guru crap of the last few years is simply nonsense. It was NEVER a path to success in any real business.

So, my suggestion is to determine what you would like to do and work your butt off to build a real business. YOU be the manager and get involved in YOUR business and you will be successful.

Good Luck,

Mike