Sole trader owe 25k & can't cope with business anymore...

S

stessed11

Registered User
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This is my first post, sorry, its pretty grim.
I am a sole trader (retail store), and I owe 25k. I can't get anymore stock from my suppliers as I owe them too much. Hence I'm not making any sales as the shop is so badly stocked. Its got to the stage that I feel physically sick when the post arrives or the phone rings. I'm ashamed of the shop when customers come in. A few cheques have bounced so theres no way I can get a loan. Personal credit is rubbish too as a result. I can't cope with the pressure anyone. I have no personal assets to use.

Sorry, I used to be normal! I loved the shop and still would love if it worked.

Anyone know what I can do, or been through anything similar? Any replies appreciated.
 
Re: Can't cope with business anymore...

First of all, sorry to hear about your problems. But things will get better if you take it step by step. Try and put things into perspective. 25k is not a huge amount to owe in this day and age and there is a way forward. My advice, (there are others here who are better qualified to give it, though) is to consider closing the shop and signing on for Jobseeker's Allowance. Then go the MABS, the money advice people and ask them to help you get your debts sorted. They have loads of experience in situations such as yours.

The main thing is to try and remember that it is not the end of the world to lose a business and have to sign on. You can bounce back from this!
 
Re: Can't cope with business anymore...

can't possibly image the pain it is causing and I don't want to.
I went thru that 5 yrs ago and still am just coming right. Luckily I still have a home and my family.
I had to stop drinking (compounding the problem) as I needed a clear head, distance myself away from all negative things be it friends or enviroment then get financial advice from my friend who is in this field luckily. And that was just the start but a good one.
all the best and remember, the sun is still out in the middle of the day, when it's all grey cloud and pouring with rain :cool:
 
Re: Can't cope with business anymore...

Thank you so much for your replies, and the link. I guess I just don't know where to start. I'm not worried about afterwards, I'll get a part-time job and claim FIS (i'm a single parent).

Its getting to that point though is the problem. I just don't know how to close up the business. How do I go bankrupt? Do I have to? Do I send back any remaining stock of sell it off?

Any info would be great thanks.
 
Re: Can't cope with business anymore...

ring the MABS crowd today and ask for an appointment. They probably have dealt with situations like you loads of time and will tell you exactly who to contact. Going bankrupt might be too drastic a move until you tease out any other options. You say you're a lone parent. Are you getting One-Parent Family Payment? Would that be an option? It is very generous when a person is working part-time (say 20 hours) as you can claim FIS and OPF.
 
Re: Can't cope with business anymore...

Do you mind telling us what kind of shop it is...maybe we may be able to come up with more ideas
 
Re: Can't cope with business anymore...

I think that your worrying so much about it is severely curtailing your ability to get out of the mess. If you could somehow convince yourself that it is not the end of the world (much easier said than done I know). Perhaps talk to someone who has a serious medical problem and see how good you life is compared to theirs, try & walk a mile in their shoes. You will then be in a much better frame of mind to tackle your own problems. It will not make the problems any smaller or go away, but you have a better chance of success with a clear head.

Seems like you love the job and it's worth fighting for.

Why did it go wrong? did it used to work but now doesnt. Is the business viable if well run?
 
Re: Can't cope with business anymore...

What type of shop is it? Has it ever been profitable or is this just a rough patch? Depending on what type of shop it is you might be able to find other suppliers that will sell on consignment, in other words you only pay them for stock that is sold. This can often be attractive to suppliers trying to get products to market.

Do you have a marketing plan, there are lots of low cost ways to attract more business. You need to get creative and try and get yourself out of this mess.

If you want to PM me I may be able to give you ideas.

Matt
 
Re: Can't cope with business anymore...

BlueSpud said:
Why did it go wrong? did it used to work but now doesnt. Is the business viable if well run?
Click to expand...

I agree with most of the postings here. Take a step back, contact MABS, get an appointment and discuss your situation.

Determine what your social welfare entitlements are.

If you close up shop, can you sell off your current stock in a closing down sale and/or online via ebay etc? There are professional ebay sellers who can help you sell your stock for a percentage fee.

Review how the business got to this point i.e. what went wrong and whether it's viable to proceed if you can obtain further investment. Then review the business plan as the possiblity for addittional investment or possibly partnership may exist.

Put an action plan in place and maybe contact your suppliers to let them know what your intentions are and how you are going to pay them back.

There are many options available to you. Try not to worry too much, it may not be the end of the business and there are no shortage of services available which will be of help to you. Best of luck!
 
Re: Can't cope with business anymore...

Its a homewares and gift shop. I can't advertise as I've nothing decent to sell. Any new suppliers want COD on first orders which I can't do. Its never been very profitable but I'm only in business less than two years. I think it went wrong because of the small amount of capital I had on start-up. The products I sell (or sold!) are well priced, yet with a 70%-100% mark-up. Customers loved the stock. I know I could make it work if I had the decent stock.​

Just notices my username... meant to be Stressed11...!!
 
Re: Can't cope with business anymore...

I have been in contact with all suppliers, but even the meagre amount I've commited to repay isn't possible now. They've been very understanding and patient but their really getting tough now. I had the bright idea about five this morning to try to buy a new car on finance through the business, sell it and put the cash into the shop, and just have to manage the monthly repayments. Then I looked at the paperwork required to obtain the credit ... hopeless.

Thanks for the MABS suggestion but they just deal with personal finance problems. I'm not too concerned about that, I would put them in order before I finish up the shop. I already receive lone parents allowance, so financially I would be much better of just working part-time elsewhere, as I would be eligable for FIS. I just wish I didn't have to, I wanted it to work so much.
 
Re: Can't cope with business anymore...

stessed11 said:
I just don't know how to close up the business. How do I go bankrupt? Do I have to? Do I send back any remaining stock of sell it off?
Click to expand...

Do not just close up and walk away. Ensure that you get an accountant to finalise everything you can. Most importantly is Revenue. Do not leave VAT, TAX and PRSI without ceasing your records and finalising your commitments. Even if you owe some Revenue can be accomodating but if you do nothing but ignore them it will only get worse.

You can of course just close the door behind you, make a list of creditors, have the accountant contact them to explain the situation.

If you can see no way out don't let it get any worse by taking on more debt. Make a decision sooner rather than later.
 
Re: Can't cope with business anymore...

Thanks Davidoco. Everything is with the accountant at the moment, she is putting all that in order.

I think you get where I am. I just don't know how to close up. How do I physically finish the business. I never thought of getting accountant to deal with creditors. That would be an immense pressure off me.
 
Re: Can't cope with business anymore...

Welfarite, I wish I could get an investor. Family would help if they could, but can't. There isn't anyone.
 
Re: Can't cope with business anymore...

I know you dismissed the MABS option but still think that they have some useful ideas/options on their website (www.mabs.ie) about tackling debt, be it private or company debt.
 
Re: Can't cope with business anymore...

Close the shop today and stand back from it. 25k spread over a group of suppliers is small in todays terms and they will write it off painlessly without loosing much sleep. Retailers close all the time and they are used to it - anyway they factor closures into their trade pricing! If you wish , put a notice up saying 'closed for revovation' or something like that. This will give you breathing space. Let your accountant talk to creditors - they will write it off, but make sure the Revenue is sorted and the bank, as both of these may persue you personally.Your accountant should talk to Revenue on your behalf. Then after a few days you will realize that the world has not stopped, nobody cares or notices whether you are open or closed, just do not continue stressing yourself and adding to your costs and debts. Lots of people worry about loosing face - in reality as I say people really dont care.
Relex and good luck!
 
Re: Can't cope with business anymore...

Thanks Runner. What do I do with the stock I have? Should I get them all to take whatever remaining stock I have left, which was from them? (I think I'm answering my own question there!) Loosing face is hard but not as hard as living under this pressure all the time. I like the Closed for Renovations idea.

Guys just talking about it is helping. I just want it sorted soon or I'll end up having a heart attack with the stress.

BTW I've made a grand total of e63 today...
 
Re: Can't cope with business anymore...

Welfarite, sorry I'm not dismissing MABS. Its that I have used those steps, I've written to suppliers explaining the problems, I've made arrangments to repay small amounts. But their not going to give me more stock in the meantime. I moved premises to an area of much higher footfall, the feet are coming in but their leaving empty handed.
 
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