‘Gut punch’: Aussie boss reveals $50,000 mistake

A young Australian boss has revealed the $50,000 work mistake that felt like a “gut punch” in 2024.

Daniel Kitay had a mortgage when he invested $100,000 into his lolly business, but a $50,000 mistake almost cost it all.

Mr Kitay, 36, started Funday Sweets, a sugar-free lolly line, in 2019, but it wasn’t remotely easy.

“I initially invested $100,000 of my own savings and raised a small round of funds from family and friends,” he told news.com.au

He explained that he managed to “bootstrap” his business, which has allowed him to maintain complete control over it, but that didn’t happen without sacrifice.

“It took about 12 months to get the recipe right, which was made even harder during Covid, as accessing ingredients and lab resources was a real challenge,” he said.

“We launched in April of 2021 into Chemist Warehouse and online nationally.”

Daniel Kitay had a mortgage when he invested $100,000 into his lolly business Picture: Supplied

He explained that he managed to “bootstrap” his business. Picture: Supplied

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To get to that point, though, Mr Kitay had to make some tough decisions. He didn’t take a salary from the business for over two years and still had to work full-time.

“At the time, I was also running a consulting business to support myself,” he said.

“I didn’t earn a salary from Funday for the first 2.5 years, so that consulting income allowed me to live.”

It was tough but circumstances made it easier. It was during the height of the pandemic when no one could go anywhere or do much.

“Given the Covid lockdown in Melbourne, I didn’t really have the option to travel or go on holidays, and socially things were quieter. I had bought a house with my wife so I felt a huge amount of responsibility, and knew this had to work,” he said.

It has, for the most part, but things still go wrong, and such mishaps can cost him thousands.

“Funday Sweets faced a $50,000 loss when the team accidentally overproduced the popular red frogs, strawberries, and cream products,” he explained.

The team had to pivot immediately and look at the data. Picture: Supplied

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The team had to pivot immediately and look at the data. What they discovered is that parents were looking for lollies to put in their children’s lunch boxes. They repackaged the lollies to be marketed towards children, with the introduction of Lil Lolly Lovers.

“What began as a costly mistake is gearing up to be one of our most successful brand launches, as Woolworths immediately jumped at the opportunity,” he said.

Even if it didn’t end in complete disaster Mr Kitay admitted that losing that kind of money is “never easy” and stressful.

“When you realise you’ve made a mistake, it’s a gut punch. There’s a moment where you question all your decisions and wonder what that money could have been used for,” he said.

“My approach is to focus on what I can control. I don’t let the anxiety take over, because stressing about it only makes me feel worse and doesn’t solve the problem. I’ve learned to accept the loss, reflect on what happened, and take accountability.

“We meet with the team to analyse what went wrong, why it happened, and what we can do better in the future to avoid similar mistakes.”

He revealed how he made the $50,000 mistake. Picture: iStock

Mr Kitay said the biggest thing he has learned from that $50,000 error is that sometimes, in business, you have to make mistakes.

“I learned that no matter how much planning you do, scaling a business always involves a lot of moving parts, and it’s easy for things to slip through the cracks — especially when you’re wearing so many hats,” he said.

“The key takeaway has been the power of thorough planning and factoring in more time for new projects.

“This way, even if unexpected challenges arise, we’re better prepared to handle them without disrupting the entire operation. It’s a reminder that, in business, flexibility is as important as planning.”

Originally published as ‘Gut punch’: Aussie boss reveals $50,000 mistake