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

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.

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....

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.

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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!

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)

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.

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

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!

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.

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.

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.

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...

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

stessed11 said:

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

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Are you totally sure about this?

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...

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

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

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

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

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?

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

stessed11 said:

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

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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.

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.

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.

"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.

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....