If you could create your own fantasy board of directors, who would be on it? CO— connects you with thought leaders from across the business spectrum and asks them to help solve your biggest business challenges. In this edition, we ask the founder of a business financing platform to explain why setbacks can be a good thing for entrepreneurs.
In this edition of “Ask the Board,” we feature Frank Scarso, the CEO and Founder of Avanza Capital Holdings, a company that offers small business financing. He went from two decades on Wall Street where he faced addiction and personal setbacks to ultimately rebuilding his life and career.
Today, Frank runs a successful lending company for millions of small businesses across the country. Frank's story offers a lens on resilience. Below, he shares how leaders can rebuild after setbacks and why second chances may fuel innovation.
Setbacks force you to rebuild your foundation
When everything's going well, you can get by on momentum. You might be cutting corners, ignoring red flags, or making decisions that work in the short term but crack your foundation over time. A major setback doesn't let you do that anymore.
I spent 21 years on Wall Street before my world came crashing down due to addiction, legal troubles, and other challenges. Looking back, it was actually the beginning of building something real. When you're forced to start over, you can't afford to make the same mistakes. You rebuild with better materials.
The rebuild teaches you that honesty becomes non-negotiable and in turn, you stop hiding from problems because you've seen where that leads. It also shows you that sustainability matters more than speed. Fast growth means nothing if you can't maintain it. In addition, your reputation is earned daily. One good year doesn't erase past mistakes. Consistent action does.
You learn who you really are under pressure
Success can hide a lot of weaknesses. Failure exposes all of them. When I was at my lowest point, being separated from my family and dealing with the consequences of choices I'd made, I had to face the truth about who I'd become. That kind of clarity is brutal, but it's also a gift.
My brother asked me a simple question that changed everything: "Don't you want your kids to have good memories of their childhood like we did?" That moment of clarity came because I'd run out of excuses and distractions. I had to decide if I was going to keep lying to myself or do the hard work of changing.
Eight years later, that foundation of self-awareness shapes how I run Avanza Capital Holdings. Every decision gets filtered through lessons I learned the hard way. When you've been through real adversity, you develop an internal compass that keeps you honest.
When you're forced to start over, you can't afford to make the same mistakes. You rebuild with better materials.Frank Scarso, CEO and Founder of Avanza Capital Holdings
Setbacks create empathy that become your edge
When you've overcome your own setbacks, you spot resilience in other people. You recognize the difference between someone who's reckless and someone who made a mistake and learned from it.
This empathy translates to business advantage: You build deeper relationships with clients who feel understood. You make better judgment calls about who deserves support. You attract customers and partners who value authenticity over polish.
The path forward matters more than the past
Here's what I tell every entrepreneur dealing with a setback: Your past doesn't define your future unless you let it. I'm not going to pretend these struggles never happened. But I'm also not going to let those things be the final word on who I am or what Avanza represents.
The only question now is what you're going to build with the lessons you learned from your past. Get ready to turn your experience into your edge. After all, that's where real success begins.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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