Why Many Big Paydays Result in Bankruptcies

Ever wonder just when it seems a company you know or hear of as a rising star that seems to have nothing but the brightest future ahead of it unexpectedly goes out of business just as fast? Or in the case of media stars that are all the rage then become totally irrelevant even faster? Usually it can be traced back to the “Big Payday.”

Some brands or companies have staying power. Same goes for talent such as movie stars or singers.  What we don’t see is the far greater number of everyday people who fall into this category because they are not in the public eye. Their stories fall by the way side and we wonder if it was just an act of fate. I believe it has less to do with fate and more to do with handing the reins over to someone else once the “payday” has been reached. Happens all the time in new start-ups. Some new company goes public with an IPO making the founders rich beyond their dreams then suddenly we find them out of business a year later. Most want to complicate it by adding excuses or alibis to all the reasons why they are no longer in the spot light, or worse no longer solvent. Many times what happens is once the ultimate goal they set is reached i.e., stardom, money, breaking records, positions of status, they feel they can now relax. Sound too simplistic? That’s the problem.

The first clue for trouble can be noticed when day-to-day efforts of anything are to be done through some underling, or done through some management company, etc. Another sign that trouble might be on the horizon is in watching how long it takes them to farm out the chore of actually opening their own utility bills and writing the check themselves. (The horror!) These are just first stages in the problems associated with the big “pay-day.” Others that can be just as damaging or prove disastrous even quicker is when this same attitude gets applied to their actual work or business. They no longer worry about prospecting for new clients or markets. Why? Because business is so good right now all they need to do is not lose any and the gravy train will keep on running. History proves it won’t. The road is littered with examples in the dangers once you turn over the helm of running your life or business in any way to someone else whether it be the small details or large ones, No one cares or will care for your financial fitness or career like you regardless of how much money you now may make. Most will never realize this until it’s too late.

Nothing creates success like more success, but you have to continually work at it yourself. No one is going to keep it for you no matter what you can now afford to pay them. You’ll never have enough.

© 2012 Mark St.Cyr, All Rights Reserved