Hello Everyone!
I just wanted to make a public statement about the closure of my business and the impact this has had on my reputation as a business owner and mental health worker. While no one has approached me directly about it, I understand why people might hesitate before engaging with or referring to my next business venture. This is why I want to publicly address the elephant in the room on LinkedIn, as I believe the saying goes!
To start with, I really want to thank everyone who supported Chloe and I during this transition. Closing Scenic Health Services (SHS) was undoubtedly a hard choice for several reasons. The two key reasons are, first, that our participants trusted us as a service and genuinely cared for us as a team. Whether it was our weekly management calls with participants who just wanted to chat, or the immense time and effort our support staff put in to ensure their safety and happiness, one thing we knew was that our participants loved us! This is why Erin took over our participants and workers when she started her new company.
The second reason was our staff. They were just as important to us as our participants, forming the backbone of the business. I never wanted to let them down, but as their CEO, I did towards the end, with late wage payments, etc. But more on that in a bit.
SHS was founded on 10 August 2021 by myself, just as I was returning to work after being assaulted on the job and taking two years off. I had no business experience. To be honest, I didn’t even know how to pay taxes or what they really were. That was my first mistake. I went six months without an accountant, without tracking funds, and without setting any money aside. The bills stacked up fast, amounting to around $50K in ATO debt. Then I hired a bookkeeper, but at the time, I had no idea what a bookkeeper actually did. I was just told by the ATO to get one, so I did. And here’s another mistake—I wasn’t aware that some people will take advantage of you in business, so the debt kept building, and I didn’t even know it was happening. Thanks, Jimbo.
Fast forward, and I finally found a fantastic accountant who helped me get back on track. But even at that point, I was already far behind. She worked her hardest and helped me as much as she could, but then she went on leave and, unfortunately, closed her business. By this time, I was really feeling the pressure. I had the ATO, superannuation, wages, and running costs to cover. As many of you may know, the NDIS business model doesn’t bring in enough money to cover even the smallest extra bill.
Then I met one of the most caring bookkeepers, who I'll keep unnamed. She spent hours helping us try to get, as I like to say, “our shit together,” but just when we thought we had it, the staffing crisis hit. SHS was heavily affected. In one of the worst months, we lost around $10K in profit because we couldn’t fill the hours. Of course, I referred participants to other services—it wasn’t their fault we couldn’t find staff. And so began the real end. We had survived many ups and downs, but this was the final blow.
We had the hours coming in but no one to fill them, and then the big red letter arrived: an ATO bill for $140K. They were open to a payment plan, which I was happy to take on, but how could I afford it? I sold my camper trailer, cancelled my gym membership, and even reduced my kids’ daycare hours to try to cover ongoing bills, as well as the ATO payments. Then one day, Chloe woke up crying—we had officially breached our rent for the first time ever. I had a red mark against my name, and I broke down. I had so much running through my head and no clue what to do. Earlier, I mentioned the late staff payments. One thing I always made sure of was that staff were paid, even if it meant the Horvat family missed out.
You might be wondering why I kept going, and the reasons are listed above: our participants and our team. I didn’t care about my reputation or even how much debt I was in. I needed to make sure my staff had food on their tables, and our participants continued receiving the amazing support we were providing.
But that day, when Chloe woke up crying and I had my little breakdown, something clicked in my head. I went into protective dad and husband mode. It was time to put my family first. That day, I sent out a company-wide email saying that within two weeks, we would close our doors for good. I found new companies for our participants and support team, who would look after them and treat them as the amazing people they are.
When I think back to SHS, I have mixed emotions, but mostly happiness. We changed lives, and we even saved some along the way. I grew as a person—not just in business skills, but also in my mental health work. As I write this with a tear in my eye, I’m proud of what my team and I accomplished.
Moving forward, unfortunately, Mr. ATO man has forced me to declare bankruptcy. I had no choice. But the great thing is, I can still make a difference in the community. I may not be able to be a director of a business, but I can still be senior management and work on the ground making a difference every day. That’s where TwoHearts comes in. As you can tell, both Chloe and I are passionate about the industry and the community, and it will take a lot more to get rid of us. (And yes, Mr. ATO man, if you’re reading this, Chloe is the sole director now, so please give us a chance. Don’t judge me based on my failure. Remember all the amazing things we’ve done!)
There are also a few other reasons I’m sharing this with you.
First, I want to show you that I’m still here to support the community to the best of my ability every single day, with my beautiful wife by my side. I may no longer be a director of CallSafe Crisis Support, but I’m still the CEO, and I have some exciting news about that coming soon!
But I also have a message for you. You might be a struggling business owner working 60 hours a week to make a buck for your family. Trust me, mate—it’s not working. As someone who grew up poor, I understand the desire to succeed so your family never has to go without. But do your family a favour and focus on them. Your participants and staff will be fine. In five years, they won’t even remember you. But your partner and kids will remember this time.
If you need business help, reach out to these guys—they helped me a lot, including with mental health support: https://qsbc.qld.gov.au. And if you’re looking for mental health support, I highly recommend BetterHelp. They’ve been amazing for me!
With much love for the last time, Joseph Horvat, signing off as the Director and CEO of Scenic Health Service.
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