The idea: To create the first web based, cloud hosted, subscription baed SIS (Student Information System) that aggregated student data, educator data and operational data
The gem: I got an investor!
The lemon: I contracted with my long time “friend” to write the software. He never wrote the software and he netted approximately $40k of my investment funds.
The result: I had to pay back the investor to avoid being sued. The software never launched and my “friend” relocated to Costa Rica at the time.
Lesson learned: Even when working with friends, you still need contracts! Establish payment and project milestones as well as build in contingency and exit strategies. Use weighted charges back and incentive clauses for missed/completed deadlines by vendors.