Post: #1

Background:
I began working for a small tech company (I'm the 5th employee) in April and things started out well enough but after a few months, the company took on a lot more than it could chew and it wasn't long before they had run up some very large tabs with vendors that they could not pay. The market had completely changed and the business model did not bring in enough revenue. Although they never told me explicitly that they filed for bankruptcy, it was pretty obvious that they had done so back in November. I'm on the operations team and can see that they're hemorrhaging cash every single month and revenues are only 10-20% of their peak from last summer. I meet with the owner every two weeks and while he admits that the company is going through some "tough challenges" at the moment, he insists that they will be able to stay in business and even carry through on previous plans for acquisitions. Obviously, I'm a bit skeptical. I'm loyal to the guy because I connected with the owner originally and he's been a great mentor to me and he's assured me that he would let me know if the company was going under. I'm a contractor and wouldn't fall under unemployment compensation rules. I've quit many gigs in the past but feel bad about walking out on this company at their darkest hour.

I have been working on other projects feverishly over the past few months to hedge my bets if/when I am told that they're closing the doors. However, I'm so wiped from the demands of the job and the stress of wondering if there will be a paycheck for me every two weeks that I'm finding it difficult to pull the energy together to work on my other projects at night and in the evenings.

Has anyone here ever worked for a failing business? If so, how do you cope? When do you know to cut it loose? Did you feel any responsibility for the company failing?

Post: #2

Many times.
You need to get your parachute and resume ready and start hustling for other jobs. I have found that once the creditors start showing up at the door it's game over.
Word of advice: start cashing your paychecks at one of these corner check cashing places. They charge too much, but you don't want a bounced paycheck screwing up your own personal banking account.
I knew the fit was about to hit the shan when one of my former employers gave me a paycheck and told me not to cash it right away. Marched down to Fast Frank's Check Cashing and got my money that day. The other spuds listened to the boss man and never did get paid.

Post: #3

(01-23-2014 12:23 PM)Blackmagic Wrote:  Has anyone here ever worked for a failing business? If so, how do you cope? When do you know to cut it loose? Did you feel any responsibility for the company failing?

I've worked for businesses in decline but always got out before the thing tanked. I'd say most important is to network - get on meetup.com in your city and see what kind of networking events you can get to. There's lots of stuff for founders, entrepreneurs, programmers, etc. Get out, meet people, tell them your situation, so that when the bottom drops out, you'll be a couple phone calls away from your next gig. I wouldn't worry too much about side projects now. The networking events will give you an opportunity to get out and have a drink and meet people who can help you transition to your next gig.