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This Was the Biggest Mistake I Ever Made Running My Business

I started my company way back in 1994. Think about that. Bill Clinton was President. Pulp Fiction had just come out. Harry Styles was born that year. Richard Nixon died that year. The Channel Tunnel was completed. Yeah, it was a long time ago. Yet, here I still am, 23 years later, running this business. I’ve made my share of mistakes. But one really sticks out. It’s something I will never forget. It happened in 1997. I lied to a client. Really, really lied.

His name was also Bill. He ran a business that cut, wound, dyed and re-wound fabrics onto rolls which were then sold to clothing manufacturers and others in the textile industry. In 1997, I was 32 and he was about twenty years older than me.

Bill was a very nice man. But he was also the most persnickety, detailed-oriented person I’d ever met. The guy knew every dollar that went through his company, from the cost of the coffee in the employee breakroom to a yard of cotton. Bill relied on an accounting system that my company had installed. But he needed more than that.

One day, Bill called me to ask whether I was interested in doing a “special project” for him. He wanted me to export a bunch of data from the accounting system and create a very detailed spreadsheet of costs for every job that went through his factory that quarter. He wanted to know exactly which jobs were profitable and which ones were not. I quoted him a fixed fee and he accepted. And so began a very important lesson that I started learning that day. I learned that although I was an accountant, I wasn’t really a great accountant. More importantly, I learned not to lie.

That I was not a good accountant became quickly evident when, a couple of weeks after I’d finished the project, I got a call from Bill. “Gene,” he squeaked (that’s how he talked – squeaking.) “I’m no accountant, but I’ve got some questions about your numbers. Some of these just don’t make sense.”

He pointed out a few things to me that seemed odd. I double-checked and, lo and behold, he was right. I had made a mistake. Actually, lots of mistakes. Bad formulas. Transposed numbers. Poorly imported data. It was a mess. In short, I did a rushed, terrible job.

So did I do the right thing and admit my fault?  Heck no!

This was a fixed price project, my company was still relatively young and cash starved and the job would turn into a big money loser if I had to go back and do the work over again. So I told Bill I’d “look into it.”

For the next few weeks, Bill tortured me. These were the days before email. So he left me messages – long-winded, squeaky-voiced missives that asked question after question. He was always very polite, very professional. He never accused or pointed fingers. But just by the nature of his questions, I could tell he knew my work was shoddy. “I’m no accountant, Gene, but this cost figure doesn’t add up to me,” he would say. Every day, it was something different. And the message always started the same: “Now Gene, I’m no accountant….”

Those two weeks were horrible. I cringed when our receptionist said, “Gene, Bill’s on the line for you,” or I got a voicemail that said “Hi Gene, it’s Bill.”

I lied to Bill. I told him the numbers were fine. I ignored his messages. I made up explanations. I hid the facts. I did everything I could not to admit fault and be forced to do it all over again.

You’ve probably figured out the end of this story. One day, the phone stopped ringing. Bill went away. Forever. I had taken this nice man’s money and delivered him a lousy product. I never owned up and I never returned payment. I vowed never again to go through that experience. And I never have. I still make lots and lots of mistakes. But I own up to them, like a grown-up. It’s just not worth it.

This year is the 20th anniversary of that nightmare episode with Bill. I haven’t seen or talked to him since. But I’ll always remember him.

Join writer and small business owner Gene Marks each week on the Small Biz Ahead podcast.

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View Comments (40)

  • As an Entrepreneur in the Story-Telling business, the comments to this story overwhelming represents 2 things:
    1. The fact that no matter what we do, we all want a reasonable resolution to a story; whether fiction or non-fiction, if the resolution does not feel authentic, then the story does not resonate as expected.

    2. Sure honesty is always the best policy, but we all make mistakes. How we rectify the mistake shows our authenticity...I'm in their camp: Call Bill/his family, apologize to him and give him his money...it is never too late to make amends-I think both of you will feel better.

  • Sooooo, did you pay him back? Or his family if he has passed. Maybe with interest. It is never too late to admit mistakes and show remorse. I lied to a client once, trying to protect my employer. I have always regretted it, and my employer did not thank me.

  • Give it to his family since he owned it and new owners have no vestment in it. It would mean a lot more to them and would be the rightful owners as he spent much time and effort having to find the errors and pay for them to be fixed.

  • Don't send it to the new owners of the company. They have no vested interest in the circumstances of the past. I would also not donate it to charity. A donation to charity is now intended to absolve you of whatever guilt or remorse you feel and that is not the point of this exercise.

    I think you should pay it forward. Use the money to help a young entrepreneur or struggling business but make sure you pass this story on to them. I would also help them to learn those same skills that made Bill's business a success.

    If you don't like that suggestion, let me know and I will send you my address and you can make the check payable to me.

  • I think we've all made similar mistakes in the past professionally (and/or personally) and over-promised/under-delivered. And someone has done the same to us. None of it is OK. Like you wrote - we live and learn. If one focuses too much on trying to change the past, you lose sight on working to be a better future self. RIP Bill.

  • It's a shame you didn't give Bill the courtesy of a refund and an apology long ago. Thank you for attempting to look him up to do so. We all learned something from your story - so you did well :)

  • Yes, at least a contribution to a charity in his name. If you're brave, contact the current management of the company, if you did the work for his company and billed them, not him. Tell your story. Tell them you want to make amends.

    They may blow you off. They may laugh at you. They may say, "oh, that's water under the bridge and was before our time."

    If they say something like, "well, we never used that system (it was worthless), but we'll accept you building XYZ for us," then, if it's of comparable value, do it. As a business owner, I can think of few things that would impress me more --- and personally, I'd be inclined to recommend that person's work to anyone who would listen.

    But don't do it for the positive feedback. You may not receive any.
    Do it for the ability to honestly say to yourself: "My integrity is rock solid intact."

  • Thanks everyone for your comments. The best part of what I wrote wasn't what I wrote. It's what you wrote in the comments.

    I did some digging. Bill - the owner of the firm - passed away three years ago. His company was sold in 2006.

    Maybe a contribution to a charity in his name?

  • Gene, Your second mistake was airing what happened in private in a public forum. Folks are quick to judge and tell you what to do, but would they follow their own advise.

  • Gene, I am very DISAPPOINTED in you! The lessons you intended to teach are valuable. However, your story is missing a HUGE COMPONENT. You never confessed to the original VICTIM or offered restitution!!!. To lie purposely AND not make restitution reveal a lack of character and integrity!
    I pray that you contact Bill, confess to him and make restitution.

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