Advice Please - How to tackle this problem

dottyanne

Hi All - gosh so many answers and advice - i think i'll take a stab at answering a few - i do enjoy a lot of aspect of working for myself and also realise that as a new business things are going to be tght for a couple of years. However i have no confident in any abilities to do finances whatosoever - well the proof of the pudding is my awful debt ridden SOA....

The shop really is a 2 man job - hubby always busy doing repairs etc - i collect deliveries (to save costs) as the supplier is only 15 mins away - we try to be frugal and not over order a lot of stock in - i think if we get the mess for 04-05 books sorted i will be a lot happier - then will progress to doing all last years accounts (not done yet - invoices etc all over the place) via quickbooks ...........i'm going to see how it goes for a while longer.......My hubby loves the shop and in a lot of ways so do i.........however i feel under a lot of financial pressure all the time and it really does make you feel like a defeatist and giving up. The answer to a lot of questions is 'i dont know' - if we break even - could afford a book-keeper - i feel like im just riding a wave and waiting to fall off??

calleyw

You say it is a two person job. I suspect that is only at certain times of the day.

If you collect the delieveries what does your husband do. He is manning the shop by himself.

So what do you do when it is quiet and he is busy repairing computers and you have no customers in the shop.

I do know that it takes awhile for any new business to be able to make a profit and have a decent turn over.

I am wondering if there is anything that you can be doing to increase profits when you have down time. Don't ask me what as I have no ideas but there must be some ways.

You do there is a small business forum on MSE

http://forums.moneysavingexpert.com/forumdisplay.html?f=27

All the best.


Yours


Calley

jessicamb

Hi Dottyanne

Could it be that the shop is starting to turn a corner now and business will pick up. It sounds as though you have been through the hardest start up part where business is at its toughest and it might not be the time to give it all up completely.

I'm sure if you can get on top of the accounts then you will be much happier and it might not be so onerous.

Could you help the cashflow short term with either of you getting a second job, even if its part time?

Careful_girl

Something you said struck home with me. You say yout OH likes doing the new business and that he went through a tough time losing his job. My OH is in the same situation and we are trying to set him up. You also say how you are unhappy. How about you looking for a new job to improve the income and leave him to enjoy his new life. I am sorry if this has already been said. If as a compromise you help the business what about going PT? As for the discussion I find it is best to discuss with my OH when I already have a suggestion as to how to help. Otherwise mine has a traumaa and I spend all my time calming him rather than going forward. Obviously you have tried to cut the old bills?
Best Wishes,
CG

dottyanne

jessicamb wrote:

Hi Dottyanne

Could it be that the shop is starting to turn a corner now and business will pick up. It sounds as though you have been through the hardest start up part where business is at its toughest and it might not be the time to give it all up completely.

I'm sure if you can get on top of the accounts then you will be much happier and it might not be so onerous.

Could you help the cashflow short term with either of you getting a second job, even if its part time?

Hi there i really do think the shop is turing the corner - but its hard when youve got old debt as you never seem to ba able to get in front..Am going to order Quickbooks Regular with Payroll to do all my business accounts - i will also transfer 05-06 onto this system before giving them to my accountant (a new one tho!) so they will be organised - once last years done going to get on with doing this years then keep on top of them weekly - i promise!! Its not that im lazy or messy just utterly scared of doing the wrong thing - with the software as above mentioned i think i can master the accounts and overcome my fear of figures!!

Pobby

dottyanne wrote:

Hi there i really do think the shop is turing the corner - but its hard when youve got old debt as you never seem to ba able to get in front..Am going to order Quickbooks Regular with Payroll to do all my business accounts - i will also transfer 05-06 onto this system before giving them to my accountant (a new one tho!) so they will be organised - once last years done going to get on with doing this years then keep on top of them weekly - i promise!! Its not that im lazy or messy just utterly scared of doing the wrong thing - with the software as above mentioned i think i can master the accounts and overcome my fear of figures!!

Well done!Accounts are not so scary.remember to hang on to all your receipts tho.I can be a bit scatter brain in that department.Also hun,make sure you know everything that you can claim for.On my part I can claim an at home office allowance,broadband and all manner of things.Great to see ya that much more positive!

lynzpower

Dotty,

Thanks for answering my point about break-even.

This is the thing that concerns me the most which is why I constantly bang on about it.

Forget the past for a second, and just think about this week

Get your SOA ( ignoring the debts for now) and work out per week what the business needs. INcluding
water/ gas/electirc bills PW
your hubbys income
your income
rent on the shop
petrol for the van
any "point of sale stuff you need" like carbaord stars, pens, carrier bags , sale signs etc
rent of the switch machine & fees
phone line & calls
ebay listing fees
inland revenue fees
business rates
any other stuff Ive forgotten

If things are annual, or monthy, just tot it up as you did with your home SOA. and divide, but instead by 12, divide by 52 as well. so you can get your weekly figure. this weekly figure is what the shop costs to run, pretty much week on week.

You will know by the end of this week a) what youve banked b) what other money has come in that hasnt been banked. Add these two figures together. ( not including any float in the till, just the extra)

If the figure you have brought in is higher than the amount you have to shell out, then you are in profit. If at the end of the week you have made less than what youve paid out, then you are making a loss. If you hit the figure dead-on, then you have broken even.

Sorry if this is teaching you something you already know, but I sense you are getting overwhelmed by the book-keeping etc, but really you dont need to be to do this quite basic sum. Forget invoices, bits of paper for debts for now, we can deal with those later.

ONce you and your Oh have seen the figure as it is, then thats how to find the starting point of making decisions from

Lots of love
Lynz
xxxx