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Look on the positive side - $5,000 isn't a ton of money and people are failing at business every single day, usually losing a lot more too. If I were you I'd get a job to pay back the money borrowed from family and then bootstrap another startup again, building on the lessons you learned from this experience.

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You're right.

Thank you for the encouragement.

$5,000 is less that the price of tuition, and I've definitely learned more than I ever did in a semester of college.

Maybe because college is aimed at something different? that's like comparing pears and apples. You learned a lot, but that doesn't replace college education/networking/etc (and college doesn't replace what you learned doing your own business either).

DONT. STOP. NOW. By all means get a job to pay back debts etc but KEEP GOING. :-) . that tuition you just paid will be for nought if you don't start your next company soon. (not suggesting you were going quit but beware that in your situation the worst thing that could happen is that you go get a "comfortable" job.)

This. I don't think your business is doomed, but this is a good time to think about what you've discovered and ask "What kind of business do I want to start? How, where, and with whom?" You're much better informed than when you last made that decision.

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