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



## stessed11

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.


----------



## Welfarite

*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!


----------



## dble8

*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


----------



## Welfarite

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

Here's a link to get you started: http://www.citizensinformation.ie/c...al-finance/debt/mabs_service/?searchterm=mabs


----------



## stessed11

*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.


----------



## Welfarite

*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.


----------



## Firefly

*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


----------



## BlueSpud

*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?


----------



## BetterBiz

*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


----------



## ivorystraws

*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?



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!


----------



## stessed11

*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...!!


----------



## stessed11

*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.


----------



## davidoco

*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?



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.


----------



## Welfarite

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

What about getting an investor in?


----------



## stessed11

*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.


----------



## stessed11

*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.


----------



## Welfarite

*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.


----------



## runner

*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!


----------



## stessed11

*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...


----------



## stessed11

*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.


----------



## Bronte

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

Even if this business goes belly up there are positives.  You owe a relatively small amount of money.  You know where you went wrong, not enough capital at the beginning.  You've had two years experience in business on your own - what a massive achievement.  Think about it – how many of us would have the guts to start a business.  It's never easy.   In America they applaud entrepreneurs even those who don't succeed at first.  They consider it a learning curve.  You also know what sells and doesn't.  So when you've picked up the pieces for this you can maybe start again.  But for now you need to shut up shop, talk to your accountant and your suppliers and try to pay as many of them back as possible.   If your problem is only lack of capital maybe a proper business plan submitted to your local friendly bank manager might be worth a try.


----------



## stessed11

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

Thanks Aileen, how I wish I was in America!  The town I'm in they'd be delighted I failed, there has been a "Who does she think she is" attitude from so many people its amazing.  Their problem, not mine.  I wouldn't know where to start on a business plan (i can see you all holding your heads in your hands!).  I have a background as a buyer for a large chain store and I'm great in Sales but the other side of the business isn't my strong point.  

I've worked six days a week for the last two years.  I haven't taken a day off in that time, never mind a holiday.  I took a small wage.  I've worked so hard.  My poor child spends more time here than at home.  I've got a great premises.  I JUST NEED MONEY!

See what I'm like.  I want out and I don't....


----------



## ubiquitous

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



stessed11 said:


> Thanks Aileen, how I wish I was in America!  The town I'm in they'd be delighted I failed, there has been a "Who does she think she is" attitude from so many people its amazing.  Their problem, not mine.



For what its worth, and if its any consolation, I think this attitude is a thing of the past in rural Ireland. People like to see entrepreneurs getting on. I've worked for over 10 years in a particular small town, 5 years running my own business. There is tremendous goodwill in the town towards the many people who have run businesses in the town during the past decade. Not all of these ventures succeeded but I don't think anyone viewed these any differently from the rest. When I started in business myself, the biggest obstacle holding me back was not competitors, banks, customers or busybodies, but the prejudices and misconceptions in my own head. I think every entrepreneur goes through the same process - even in America!


----------



## Guest118

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

Sorry to hear of your misfortune, I can only imagine how much stress you are going through.

What kind of stock do you have at the moment stressed11? What lines of products etc 
Give me a list of ten or twenty items you have in stock right now (I am a good at thinking outside the box so might give you ideas on how to move the stock)


----------



## ClubMan

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

Even if people are happy to see you fail you should forget about what they think and concentrate on dealing with your own issues. Otherwise it is wasted time/effort/energy/stress.


----------



## Brendan Burgess

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

Stressed...

At some stage you have to sit back and decide if a business is viable or not. Many businesses are simply not viable. But you don't know until you set them up. You might have a great product but there might just not be a sufficient demand for them. 

It seems to me that you need to make a decision to close the business. You don't have access to capital and even if you had, it might not solve your problem. 

If you make this decision, then you have a few considerations. 

You should return the stock to the suppliers and at least the amount you owe them will be reduced. If they don't want it back, then you should have a closing down sale. 

I assume that you are not set up as a  limited company? If not, then you will be personally liable for the amounts due to creditors. You should contact them when you decide to close down and tell them the up to date position. Most will be very flexible with you. What annoys people most is that they can't contact their debtor. They can't get blood out of a stone and they won't waste their time trying. €25,000 sounds huge to you but it's a tiny amount in the overall context of things. 

What about the shop premises. Are you behind in the rent? Tell the landlord what you are doing and return the lease to him. Unless the lease has some value in which case you should try to sell it. 

It's a great learning experience working in a company which is in trouble, but you won't appreciate that for some time. 

Brendan


----------



## GVA

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

Why not sell your remaining stock on eBay? It's very straightforward and will at least get you a bit of cash. It may also be a viable option for selling your goods going forward. You won't have to pay rent on a premises and it opens up a  huge market - there's 500,000 registered users in Ireland alone. It would also mean your kid could spend more time at home. There are obviously selling fees, postage etc. but I think it would be worth a shot. Best of luck whatever you do!


----------



## therave

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

hi stressed,sorry about your situation.
not sure where the shop is but maybe to give the business a kickstart if you knew a local builder and they were opening a new development you could do the show house or part of the showhouse with the stcok you have available .free advertising.
you could also display items and then order them for the customer rather than stocking them yourself.
above all you must  consider the impact on you and your families lives and ask the question,is it really worth the stress and unhappiness.


----------



## Vanilla

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

As a solicitor I've met quite a few clients going into business and as is the nature of things, quite a few of those businesses have failed. In fact I've had one particular client that I can think of straight off who has had at least four different businesses in the time I've known her and three of those failed fairly spectacularly. I have to say I admire her, she has that entrepreneurial drive, the drive to succeed. She's doing okay for herself right now but I think someday she'll do even better because she's a trier. I have many clients who failed at one  business and went on to succeed in a second. An entrepreneur is a rare beast, there are few risk takers out there but we need them to provide employment and I agree with Ubi- while there will always be a few idiots hoping to be able to point the finger- the majority of right thinking people will admire and respect the attempt.


----------



## Wildone

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

Hey Stressed,
I empathise with you, a desperate cloud over your head.  I would be interested in looking at the business to see whether I could help/become an investor.  A challenge I have been looking for for some time!
It clearly seems like a strange proposition but if you can, and you are interested, I'd be glad to talk further.
I cannot believe the attitudes of the people you mention in your town and I would love a challenge like this even just to spite them!
Whatever you decide, you must decide to do what makes you happy in the long run and *before* the stress starts eating at you too much.  This can lead to much more serious problems than 25k ever is.


----------



## stessed11

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

Sorry all, I had no internet access for a couple of days.

Many, many thanks to you all for the messages.  Its amazing how much support you can get from complete strangers!  I havn't stopped thinking about all your suggestions and I'm feeling much more positive.  However this ends up I'll cope with it! 

Had a possible offer of a loan for 8k from an unlikely source, so if I could get a bit more, I might just make it.  With 8k I can make 8k in 2/3 weeks.  Also if I put a hundred in Credit Union a week for ten weeks, thats another possible 3k.

Hmm...


----------



## ClubMan

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



stessed11 said:


> With 8k I can make 8k in 2/3 weeks.


Are you totally sure about this?


----------



## brodiebabe

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



stessed11 said:


> Had a possible offer of a loan for 8k from an unlikely source, so if I could get a bit more, I might just make it. With 8k I can make 8k in 2/3 weeks.
> 
> Hmm...


 

Why get a loan of 8k just to make 8k?

What if you don't make 8k? then you will owe 8k......


----------



## ACA

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

Will no-one supply you stock on a 30 or 60 day sale or return basis?


----------



## dockingtrade

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

If you believe you have viable that just needs a cash injection,  why not do a business plan and look for investment,or  present that plan to a bank and get a business loan of 50K. Pay of the 25k and buy some stock. If you can make 8k that fast , any bank will give you a business loan ...id say?


----------



## ajapale

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



stessed11 said:


> Thanks for the MABS suggestion but they just deal with personal finance problems.



You really should not dismiss MABS so lightly. An increasing number of their clients are people like yourself (sole traders) who are in difficulty. Even if they are not able to assist they are in a position to point you in the right direction.


----------



## RedStix

Sorry to come in on this thread so late but maybe you could try [broken link removed] or perhaps www.businessangels.ie. Its worth a shot.

GED

*PS: I have no connection to either company mentioned above.


----------



## stessed11

Sorry. I'm not doing myself any favours here!  If I buy 8k worth of stock, I sell it for 16k.  So I make 8k.  I would be confident of clearing that in 3 weeks. 

Thanks GED, the First Step website looks very interesting.  I've downloaded a sample business plan from them, which I'll get working on.  I'll give them a call an see how it goes.

Many thanks all for your help.


----------



## MOB

"If I buy 8k worth of stock, I sell it for 16k. So I make 8k. I would be confident of clearing that in 3 weeks."

If you did this every three weeks, you would have €144k gross profit in a year.  Doesn't seem hugely unrealistic, but I am not a retailer so my opinion would not carry much weight.  

But if you haven't already been doing this, are you sure you are not being unduly optimistic as to your ability to do it now?  And if you have already been doing sales at this level and with these margins, what has gone wrong?  You need to know these answers before spending or borrowing more.


----------



## Elphaba

take Runners advice. Its probably one of the most hardest things you'll ever have to do. Put up the sign. Homeware biz in ireland is very competitive, with Heatons, Lidls etc. Maybe in future you can set up an internet mail order biz working from home, specializing in gifts. Walk away with your head held high, its not the end of the world, you will go on and do better things, and learn from mistakes. Good luck....


----------



## johns75

Hi, Sorry to hear about your bad luck but at least you had the courage to give it a go. I was there once too and i know that sick feeling you describe only too well.

The premises you have? is it prime location? do you have a long lease? You could sell the leasehold for 25k and clear down the debt. There are always franchises looking for prime locations to open up stores, they may even offer you a job! Can you tell me which county your in? If i can, i'd be glad to help you.....


----------



## HighFlier

There is plenty of investment money out there waiting for a good business idea.

A small add in the paper could get you an investor if you have the right product and are in the right area and have an expertise in your field.

Are you in Dublin or down the country and what general area.

In any case calm down 25k is not worth wrecking your head over.


----------



## stessed11

Thanks guys.  

I'm in the North-west with a short lease.  The reason I think now that investment would work, is because I've moved premises in the last six months to a very central area.  Nobody else in town is doing anything like my stock.  Its mid range.  Not rubbish, but not branded either.  I really think there is a market for it.  It would be similar to Dunnes homewares, but people prefer this type of shop.  Its feels more exclusive, people think if they buy from me, its almost a one off.  They get great service, I'll assemble it, I'll gift wrap it, I take deposits, I'll deliver it, I'm genuinely grateful for the sale and it makes them feel good.  You don't get that in Dunnes.  

I think it was all your positive and supportive posts, either for or against going bust, thats helping me see this in a clearer light.  Reading my first post again, I certainly don't feel that 'terrified' anymore.  

I'm working on the business plan and I'll apply for a loan.  If it works, it works...  But I'll try to keep the head held high!!   

Thanks to all.


----------



## j2u

Hi have you tried setting up an oniline dropshipping website?you dont need any stock you advertise the suppliers stock and after the customer places an order with you  for your price you then order from the supplier with the money the customer has paid you.
So ill give u an example
supplier price for camera-130 euro
u advertise the camera on ur website for 170 euro
customer pays u 170 euro
when you get the 170 euro u order the camera and pay the supplier there 130 euro.
you make 40 euro profit without ever having or handling the stock.
Considering ur circumtances i think it might something you should look at.
hope this helps
Best of luck


----------



## aircobra19

Less the cost of setting up, running and maintaining the website.


----------



## stessed11

Thanks for the suggestions.  I have approval on principle for 20k, so fingers crossed.  I think the website could be a good idea along with the shop.  I was thinking of ebaying for awhile to see how it goes, and see from there.

If all hinges on the loan at the moment.  Should know next Friday.


----------



## z107

> If I buy 8k worth of stock, I sell it for 16k.  So I make 8k



I would suggest spending a bit of time doing a cashflow analysis. Examine your overheads, remember that the cost of stock isn't your only expense. It doesn't take too long to do.

If you do this, at least you'll know how far your €20k will go, and if it'll be enough to push the business back into the black.


----------



## stessed11

Umop3p.... (can't remember rest!).  I will do, I'm afraid I havn't done one before (more heads in hands!) but I have one printed off and a good book to guide me.  In my head I think its ok but I do need to get it down clearly.  

My plan is to pay of approx 10k in debts to suppliers I want to use now.  The remaining 15k can be paid off at small (I mean miniscule) amounts, as I won't be using them.  Bank the 10k as back up initially.

I also want to swan around all the banks with my 20k and get a better deal.  At the moment I don't even have an overdraught.  The majors seem to be all advertising for small business accounts right now, so maybe I could get something better, and more supportive.

Thanks for reading and posting.  Hope you all have a good weekend.


----------



## dockingtrade

some one previous mentioned 
[broken link removed]

3% 25k loan... beat any bank ,  dont know how to qualify for it but have look.


----------



## stessed11

Thanks Dockingtrade, I've been working on an application for that and if this other loan doesn't work out I'll go for First-Step.  Seems a great set-up.

The loan I'm waiting on is actually from my ex.  He pays me e100 per week maintenance, and he has a good credit history, so he's basically paying me maintenance in a very large lump sum.  If the business doesn't work out he has his repayments anyway.


----------



## man1

Hi stressed11
I think I should be stressed12 as I have exactly the same situation as you.
It is weird as I thought I was reading about myself when i read your post.
I am having huge financial difficulties at the moment and have a homewares and gift shop, like you it is not working out and we have come to the decision of closing up, we knew since christmas that it wasnt working out but we kept fooling ourselves into believeing that it would work, we kept saying next week will be better but it never was.
I dont know your full story but I think you should give up now rather than borrow more. If it didnt work for the last 2 years it wont now.
We are also in business for nearly 2 years.
Like you we made €78 euro yesterday so I know where you are coming from. We were averaging about 300-400 euro per day but it wasnt enough, we should have been doing at least 600 euro per day.
Now we are lucky to make 200 euro as we hardly have any stock at all and suppliers wont supplie us which is good in a way as it will only lead to more debt.
We have huge rates to pay and a even huger (is that a word) rent. we have a 25 year lease which we are trying to get out of at the moment. My parents went gaurantor on the lease which made it worse, I am so worried about them losing their house. I didnt even want them to be guarntor but they wanted to help and believed in me.
Now we cant even sell the lease as it is too expensive so we have to negotiate with the landlord. We are making some progress there which is good, I didnt think they would listen but we explained the situation and he is willing to listen.
I havent slept properly since last year and havent had a day off since christmas (7 days a week not 6) till recently as I decided to close one day a week so I could take a breather and sit back to look at the business properly.
If you want pm me and I can help some more. I bet we even sell the same type of stock.


----------



## contemporary

man1, I wouldnt even try to sell that lease just see if you cant reassign it without key money, if you can get someone to take the rent on it thats all you need to cover your behind.


----------



## stessed11

Didn't get loan.  Feel sick.


----------



## stessed11

Just had the Guards in, a supplier contacted them because they haven't been paid.  Join the bloody queue.

I can't take much more of this, feel overwhelmed.


----------



## DMTW

I'm very sorry to hear this
Myself and OH went through similar recently, and I know how awful it is..  It may help if you know someone familiar with this sort of thing and talk it through with them.  Try and deal with the debts as soon as you can.
Good luck.


----------



## stessed11

Thanks DMTW.  I can't afford to buy groceries today, never mind deal with the debts.  I'm sorry you went through similar, I hope you've come out the other side.  I've a van load of itinerants outside at the moment, they have given me a real hard time previously.  God help them if they come in now!  

Then again I might just let them take the lot and go home...!


----------



## RedStix

Hi Stressed11

My heart does genuinely go out to you. From a business point of view i don't know what advice to offer but Maya Angelou said this: 
"I've learned that no matter what happens, or how bad it seems today, life does go on, and it will be better tomorrow."

Keep your chin up if possible. You'll come out the other end.


----------



## DMTW

stessed11 said:


> Thanks DMTW.  I can't afford to buy groceries today, never mind deal with the debts.  I'm sorry you went through similar, I hope you've come out the other side.



We have.. you can read about it in 'pear-shaped' thread.  Business collapsed 2 years ago owing 90K.  OH buried his head in the sand and ended up on anti-anxiety drugs..   He only really started dealing with it in November when he employed a solicitor to help him sort it out.
The money advice bureau may be able to help you sort it out.  Whatever happens, you need to keep contact with your creditors and arrange a payment plan thats realistic and affordable.


----------



## stessed11

Hi All, Great news, got a loan of 20k.  Can't believe it!  Absolutley delighted!  Going to work my b*tt off to make this work.

Thank you all for your help and comments, it really helped.

One last favour please!  Wish me luck!


----------



## rgfuller

Good luck!


----------



## deem

good luck


----------



## KathScan

Best of Luck.


----------



## BetterBiz

You can improve your luck by putting together a solid marketing plan which details exactly what action you are going to take to make this work. Don't just wait in your shop for business to come to you - be proactive about attracting it and forging relationships with other businesses that can help you.

€20k can be burned through pretty fast so be careful!

Good luck!

Matt

www.betterbusinessresults.com


----------



## stessed11

Thank you all!

Thanks Matt, I understand.  What I'm going to do is pay off suppliers that I won't be using anymore a small amount per month.  Clear my debts with the others, and sort out a decent advertising campaign.  I'm hoping to still keep 6-8k back up in the bank.  I also want to look into a website aswell, the start-up costs seem fairly small, and I was hoping I could run it from here in the shop during business hours, or hopefully I'll be too busy and run from home in the evenings!

Any info on this is appreciated, but I will look through previous threads.


----------



## Tangerine

Idea of website is lovely but aspirational and can be timeconsuming to make it work for you. Listen to Better Biz use your resources by taking really practial steps to get people into your shop. Think about approching your enterprise board or some enterprise support agency and ask for a mentor who will help you focus on making the best use of your loan to trade out of your current difficulties.
Tangerine


----------



## aircobra19

I'm with Tangerine. Would forget about doing and running a website yourself. As it can eat up you time and resources. Not least end up being a serius drain on your time, and take a while to get any results. 

If you could get someone to sell your stock through their own website on for commission on sales only basis then maybe explore that. Or a on a fixed fee basis but only if they meet a sales target. Like any business, you'd need to verify the website company had a track record and demonstrable sales for other sites. Lots of sites don't generate signifcant income, or worse lose money and consume resources. 

But I wouldn't let that distract you from your core objective in putting the bricks and mortar store on a profitable basis. As Better Biz said you need to set out a business plan and marketing plan. Stick to it as long as its working. If its not stop and revaluate. 

Like all good CNN movies. Fire and Movement.


----------



## z108

I've been following this thread for what seems like a long time and the advice given was good enough that I had nothing else to add.
Good luck and please be careful with this new chance. I dont want to  be negative or pull you down but if your loan is in lieu of child maintenance then if  you lose this money the kids could also suffer because of it and your stress levels because of your responsibilities towards them will also be high. 
Dont take risks you cant deal with the consequences of if something negative happens. Look at what would happen  in a worst case and have a plan for what you will do in this eventuality. 
Sure its not positive entrepreneurial talk but even going forward and believing in yourself   and your plan , theres no harm in having a positive plan as a response for an event out of  your control. This way  even if the world ends you'll still be a winner psychologically.


----------



## stessed11

Thank you guys for the info on the website, I need to know as much as possible and will continue to research this as a sideline.

Sign, thank you, I understand.  As regards the maintenance, I have considered the worst case scenario and while it might not be the most moral of solutions, I would be given a means tested Family Income Supplement.  This would mean that although I have been paid the maintenance in a lump sum, if that sum is gone, then I will be given an allowance to cover a proportion of this.  I have signed an agreement with my ex which will cover him also, he has paid the maintenance for X many years and will not be liable for extra.

I had a newspaper sales rep in here for the morning and I got a good deal for the coming four weeks  (Got it reduced by half!).  So this week is being used to get the deliveries in and merchandise stock.  I'm also printing up some flyers to be dropped door-to-door over the next week.  Looking at local radio, but its pricey and I don't think my customer would listen to local radio, so I'll give that a miss.

Any other suggestions would be appreciated, and thanks again.


----------



## aircobra19

Did you do a survey of the customers that come in your door? Where do they see adverts? Ask them do they want to on a email list of special offers.


----------



## stessed11

I havn't done a survey Aircobra, it would be quite awkward to do in the shop.  The paper I'm advertising in a new free paper.  It is in most shops/restaurants/bars etc.  They deliver door to door aswell.  Its everywhere.  They have quite a bit of editorial on local news, so I felt it was the right one to use.  Weekly e-mails are a brilliant idea (why didn't I think of it!).  I will put text into ads and flyers to e-mail me to register for weekly "Specials E-mails".  Thanks!


----------



## eoinhealy

man1 said:


> Hi stressed11
> I think I should be stressed12 as I have exactly the same situation as you.
> It is weird as I thought I was reading about myself when i read your post.
> I am having huge financial difficulties at the moment and have a homewares and gift shop, like you it is not working out and we have come to the decision of closing up, we knew since christmas that it wasnt working out but we kept fooling ourselves into believeing that it would work, we kept saying next week will be better but it never was.
> I dont know your full story but I think you should give up now rather than borrow more. If it didnt work for the last 2 years it wont now.
> We are also in business for nearly 2 years.
> Like you we made €78 euro yesterday so I know where you are coming from. We were averaging about 300-400 euro per day but it wasnt enough, we should have been doing at least 600 euro per day.
> Now we are lucky to make 200 euro as we hardly have any stock at all and suppliers wont supplie us which is good in a way as it will only lead to more debt.
> We have huge rates to pay and a even huger (is that a word) rent. we have a 25 year lease which we are trying to get out of at the moment. My parents went gaurantor on the lease which made it worse, I am so worried about them losing their house. I didnt even want them to be guarntor but they wanted to help and believed in me.
> Now we cant even sell the lease as it is too expensive so we have to negotiate with the landlord. We are making some progress there which is good, I didnt think they would listen but we explained the situation and he is willing to listen.
> I havent slept properly since last year and havent had a day off since christmas (7 days a week not 6) till recently as I decided to close one day a week so I could take a breather and sit back to look at the business properly.
> If you want pm me and I can help some more. I bet we even sell the same type of stock.



How can she give up now after all the efort that has gone into getting it the shop back up again. New location, always a good start! Especially if it's in the middle of the town!! :>  Stressed11 - Keep up the great work you are doing, you seem to have a passion for running your own shop, It's not easy to give up after leaving everything behind to work for yourself. It's like every author will write in all those Startup business books and mags.... The first 2 years or so are always the hardest. So, once you have the hardest part done, which is where you are now... The rest is all down hill.

Don't listen to any negitive words. Keep positive.

Eoin
;-)


----------



## Richie

Just stumbled across this thread - glad you got the money, but as other posters have already said, be careful it can burn away very quickly. The County Enterprise Boards are a very useful resource for all small businesses. In particular they offer start your own business and business planning training (which you might not have the time for but if you do it would be well worth the effort (cost €50 to €100)). They also offer a mentor service for small business people. For around €200 they will appoint someone to help you with your business (around 5 visits). This is usually a very experienced person.


I am not an employee of the CEB's but I do provide some of the courses and some mentoring on their behalf in the South East (disclaimer ).


----------



## stessed11

*Bank Draft?*

Hi all,

Didn't want to bump up my old thread - "Sole Trader, owes 25k, can't cope etc.."

Got Sterling Bank Draft today for 13k.  The bank are saying it will take about a month to clear?!  What is that about, its a draft?  The cash is gone from the account it was drawn on.  I need this money today.  I've asked to see the manager, but I need as much info as possible.  Anyone know anything about this?

I'll be leaving in about an hour, please help!


----------



## ClubMan

*Re: Bank Draft?*



stessed11 said:


> Didn't want to bump up my old thread - "Sole Trader, owes 25k, can't cope etc.."


In this case bumping with additional follow up information is preferable to duplicating the original thread so I have merged this into the original.


----------



## stessed11

*Cashing a Sterling Bank Draft*

I've been told today it will take a month to for a sterling draft to clear.  Is this right?  I thought a draft was like cash.  I need this money yesterday!  Any advice?  I've made an appointment with the bank manager today and any advice would be appreciated.


----------



## ClubMan

*Re: Cashing a Sterling Bank Draft*

You'll want to check if any charges (e.g. foreign exchange margins etc.) apply to this too.


----------



## stessed11

*Re: Cashing a Sterling Bank Draft*

Thanks Clubman.  At this moment I'd give my right arm, never mind bank charges.  I've written cheques based on this being cashed immediately.  I'm in big trouble.


----------



## ClubMan

*Re: Cashing a Sterling Bank Draft*

Maybe you should contact the cheque payees and inform them that you need time to clear funds to cover the cheques? Otherwise they will bounce and you will be hit with charges.


----------



## stessed11

Update -

I have to get DHL to collect the draft tomorrow, send it back to UK, get it lodged back into senders account and get sender to "Wire Transfer" funds to my account.  Normally a draft would take 7/10 days to clear, but apparently because of the amount and the fact that its sterling is causing the long delay.  *GOD.*

Anyone see any potential problems with this?

Sorry mods if this is dragging on a bit, but I really appreciate any information from you lot - wish I'd found this site a couple of years ago!


----------



## dontaskme

stessed11 said:


> Update -
> 
> I have to get DHL to collect the draft tomorrow, send it back to UK, get it lodged back into senders account and get sender to "Wire Transfer" funds to my account. Normally a draft would take 7/10 days to clear, but apparently because of the amount and the fact that its sterling is causing the long delay. *GOD.*
> 
> Anyone see any potential problems with this?
> 
> Sorry mods if this is dragging on a bit, but I really appreciate any information from you lot - wish I'd found this site a couple of years ago!


 
give them the IBAN and BIC of your bank account to speed up the transfer. You should find the info on your bank statement.


----------



## gardenman

Hi Stressed11,

Just wondering how you are getting on. You have not posted in a little while. Hope all is ok and that things are working out.

If I had the money I would give it to you but unfortunitly i'm just moving out of a situation myself. 

Like I said before... Don't listen to any negativity, you have what it takes!

Best of luck,


E


----------



## ClubMan

gardenman said:


> Like I said before... Don't listen to any negativity,


Where did you say that? Not in this thread anyway. And what negativity are you talking about? Are you sure that you're not confusing genuine, objective, critical analysis with negativity?


----------



## barryo

Get yourself a good accountant who has experience and ideas in this area. (Not the someone I know route). The new car to get finance idea is crazy and you are in need of professional advice. If you feel bad over 25k, how would you feel after that was used up. Your belief in your shop does not mean it will work. There is a lot of self help book nonsense out there that has people running their faces into the ground. There are a lot of factors here and I could not possibly comment on any of them as you have not divulged them. I will say this - 100% markup achieved on some items does not mean a successfull business - Like that, cash flow problems does not mean it cant be successfull. Did you have a business plan to work from? I urge you to get some professional help - Ask someone like Enterprise Ireland for recommendations


----------

