Anyway, I reached a point where my colocation fees were about 1.2k per month, I had been with my supplier from the very beginning, so from 1 server... At the peak I was grossing about 4-5k per month but generally monthly lows were about 2k, and everything had been organic, so I had no debts, and was just pumping everything back into the business. What happened was my provider offered to sell me his business for about 12k. You gotta keep in mind I was 18 at this time.
I took out a loan (my Dad was guarantor) and purchased his business. The aim was to, acquire his contracts for colocation with the datacenter and I was expecting to inherit an operating business which was turning in about 2-3k per month in normal "web hosting" businesses. All the sites were spread across about 30 servers, all of them really really old.
So, things went sour literally from day one. It turns out that he either fudged all of the sites on the billing software or they decided to just exodus on day one of me taking over. I ended up going from having healthy profit each month to operating at a deficit. Long story short it destroyed my business and nearly caused me to lose my degree at Uni from the stress of hacking away trying to save a failing business and continue with my degree.
Anyway, what did I learn?
Due diligence. Don't rush things. Don't trust people. You can really summarise this as a life lesson where I essentially ended up gifting someone 12k for "my patronage". It quickly became apparent I was his only customer and my success kept him just about ticking over, so I ended up "buying myself". I was pretty bitter about it for a long time, but I think I was just angry at myself for being so childishly naive to think someone I trusted wouldn't screw me over cause it suited him.