Need some advice on Second Chances...

I'm a risk taker and always ask myself, "what's the worst that can happen" when deciding to move forward on an idea. If you play it safe, you'll always ask yourself "what if"

I've always felt that success or fail, the learning experience has more value than wondering what might have.

I owned a small business several years ago and I know how consuming it can be.  I eventually sold the business...at a loss.  There are lots of opportunities for entrepreneurs but it takes much more than a good product. Because you have done this before, I'm sure there are some things you want to do differently.  One thing that stands out from your post is that the economy tanked in 2005 thats when your previous business went south.  I don't see the economy any better today than in 2005. In fact, I see it as being worse.  That said, seems that people that are employed and have hobbies don't have much of a problem using their cash for their hobbies...just look at triathlon.  Anyway, I'm sure you have thought about much of the downside.  On the upside...sounds like start-up costs are minimal, I believe this is something you have a passion for, you are young and single. I think if it was something I really had a passion for I would move forward.  However, not before drafting a solid business plan and making the necessary contacts to help you sell your product.

Good luck Jon!

From our failures, we learn things we could never learn watching another or from books. You have acquired a richness of knowledge. My advice is don't squander it.

The question you have to ask yourself is "What do I have to lose?" If you don't have mouths to feed, other than your own, or carrying a debt load, I say take the plunge.  You had a good product, you believed in your product - that's more than many businesses can say. Don't let the economic catastrophe of '08 hold you back. 

As far as consumer goods go, the recreation industry is doing pretty good. Health and wellness is trendy. It would be a good idea to do some market research, as well. Additionally, call your previous customers and ask for their insights on the health of the industry and assessment of how their businesses are doing.

All good advice so far.  You need to have a business plan and be willing to invest some money.  But if everything checks out, go for it.  But I will tell you this.  Own 51% or nothing. 

I would take a long look at why it failed the first time and then determine if it was within your power to prevent the failure. If you can learn from the last time you will have better chances this time.

Sounds pretty cool to me, I'd go for it.

As someone else suggested, identify WHAT was, or what were (plural), that caused the downfall, i.e. Marketing, expansion, time, investments, etc.

It sounds like a sound business opportunity, and you have quite a bit of knowledge and practice with it.

Would you be willing to invest in your own business by seeing if there is a Small Business startup education class that could help you organize, plan, etc. the business better?

Good luck, Jon!  I do see success with this - it's how much, how fast, and how much time it will take.

Don't do the same thing twice.  You haven't given enough detail what caused the failure the first time or if you've learned anything from it, But if you are going to do basically the same thing again, but with a slightly different design, I'd say don't do it.  I am not necessarily referring to the product.  I am referring to the business model, the marketing, the budget, the growth strategy, the sourcing, the product, the design, etc.......  Whatever you did the first time didn't work.  Don't do it again.

That being said, I also say, never give up, never quite trying, never settle.  If you know what you'd do differently, then go for it.  If you don't, then figure that out first.  If you think you have an idea that no one else has thought of, you're other option is to patent the design and sell it to a manufacturer for the royalties.  that's a lot less work.  I would favor doing it yourself though.  Good luck man!

I used to be.  Haven't paddled in about ten years, but I've been looking at getting back into it now that I have a boat out here.  I was just in Confluence Kayaks last saturday having a look around...  I'm probably not good enough of a paddler to be a good tester for your purposes, although I know some people who are if you need.  But I am in the market for a paddle so I might get in touch in the spring - my old paddle was wood and even though it was a bit heavier they have a great feel to them.

I have had a very similar experience to yours except in our case the numbers were much larger.  We came within an inch of losing everything, and I mean everything.  From my perspective I look at what we learned and can see how much better we could run things if we were to try it again.  But I agree 200% with the previous poster that asked "what are you going to do differently?".  Don't go into this believing you will be successful simply because the environment is better, or because your product will be slightly improved. 

What are you going to change on the business side to improve your odds?  Can you get commitments from a few stores or better an online retailer to carry your paddles?  Even if you sell to them at cost to get that done it would be worth it to get your product into the hands of customers.  Maybe spend some time and effort looking at other products you could make with this process.  Be creative and see what else you can make.  Having more than one product would dramatically improve the landscape, and maybe make it possible for some behemoth to come buy you out just to own the process.

It's great that you could try this again for so little money, but don't be fooled into believing that the only thing at risk is $1000 that your brother is willing to lose.  You are risking much more than that both in money and also in time, energy, and stress.  Without changing the business plan I wouldn't do it.  There is more to life than money, as you well know.  And there is also something to be said for jumping off the cliff, I've done it three times and crashed twice.  But it worked once.  Just be smart about what risks you are taking and how you are going to address them.  And THEN jump off the cliff.  Good luck to you, I hope it works and you make a fortune.

From my banking background standpoint, 18+ years, I second what several folks have said, develop a business plan, examine why it failed before.  Look at alternative sales chains.  As well, look at SBA loans.  To go even further there is a push for expoting and all kinds of help including financial incentives.  Even EBAY as a sales chain.

As far as second chances, yeah, I beleive in that!

A couple of thoughts:

First, you mention I don't want to lose it all again. That's where, as others said, your biz plan comes in. You are in charge of your exit strategy. When you cut loose should be in the biz plan. Benchmarks for sales levels, production, etc. All in there. Obviously you can change this as you go, but when to pull the plug should be considered before you start.

Second, SCORE - they are a great resource. Stands for Service Core of Retired Executives. You may have a group in your area. They are essentially mentor who have 'been there done that' and can help with pretty much anything: marketing strategies, production ideas, whatever you need, they match you up with someone who can help. With your background of being there too, being able to bounce ideas off an objective listener might be really helpful.

Last, like someone else mentioned, you really need to do a hard post-mortem on the last go-round and figure out what should be different and what was working and what has changed since then.

I would personally feel strongly inclined to go for it. Rarely do you get another chance to "do it right" like this. Best of luck!

 "Much more streamlined, less focused on fast growth, more focused on quality production"

Focus on profit, not growth.  I think the businesses that are in it for the long haul focus on profit.

With my business, I do not care about volume.  I know my break even and how much I want to make.

My business is completing its 3rd year.  My profit margin as a percentage has increased year over year.  I have become more focused on the markets I want to be in.

It sounds like you are now considering the same thing by going away from how fast you can grow.

Now you need to find where the quality customer is versus the discount customer.

Fortunately for me I am not in retail and finding my customers is easier.  My wife owns a bridal shop and it is a struggle.

Best of luck to you!  I hope you hit it big, remember us mud suckers when you're flying in your jet someday!