New business / No money to spend / Lots of debt

sheffieldhitman

Hi

I Started a business up in April of this year , Me and my business partner are doing ok and just covering the cost of running the business. The only money i am taking from the business is car mileage! at about £400 p/m, Iv moved out of my house which i am renting out (covering costs) and moved back in with the parents

I have the following debt and would like suggestions on how to best cut down not only my spending but business spending (this would be a big help)

1 x Credit card £3,100 - Just moving to Mint card 9 monts 0% balance tran & purch

1 x Bank loan £10,000 (£6,000 went on car & insurance for travel, as i do a lot & £4,000 as a directors loan to company to kick start business)

1 x Dad loan £2,000 (a partner in the business couldnt join so bought his shares)

1 x Overdraft facility of £1000 - Currently £600 over drawn

Im a currently looking to get a night/weekend job to help out, but if any ones got any suggestions for me to get rid/reduce the debt id be very greatfull

:rotfl:

Cheers

Sheffiedhitman

Mizz_Pink

It sounds like your on the right track with moving back in with parents and using 0% offer on credit card etc.

What about a spending diary to see where your cash goes etc, it highlights where you can cut back eg, lunch at work, going out etc

Well done for posting.

barnaby-bear

sheffieldhitman wrote:

Hi

I Started a business up in April of this year , Me and my business partner are doing ok and just covering the cost of running the business. The only money i am taking from the business is car mileage! at about £400 p/m, Iv moved out of my house which i am renting out (covering costs) and moved back in with the parents

I have the following debt and would like suggestions on how to best cut down not only my spending but business spending (this would be a big help)

1 x Credit card £3,100 - Just moving to Mint card 9 monts 0% balance tran & purch

1 x Bank loan £10,000 (£6,000 went on car & insurance for travel, as i do a lot & £4,000 as a directors loan to company to kick start business)

1 x Dad loan £2,000 (a partner in the business couldnt join so bought his shares)

1 x Overdraft facility of £1000 - Currently £600 over drawn

Im a currently looking to get a night/weekend job to help out, but if any ones got any suggestions for me to get rid/reduce the debt id be very greatfull

:rotfl:

Cheers

Sheffiedhitman

A business that doesn't make money or pay you is not a business but a hobby. One that also carries lots of debt is also a millstone.

You said:
"Me and my business partner are doing ok"

Are you sure?

sheffieldhitman

Mizz Pink, the spending book sounds good thanks.

sheffieldhitman

Hi Banaby-bear

Thanks for your comments, what you say is true and at the moment A business that doesn't make money or pay you is not a business but a hobby

This is true my business is my hobby if it wasn't i wouldn't do it but as its a new venture i cant expect to be rolling in it straight away altho that would be nice lol.

Since we started out we have been running at a prof margin of 40% which is good for the industry we are in, we have been selling from a business card and have just got our brochures done so were doing ok

In the end new businesses have to be given 12 months to see if they work as 80% fail in there first year.

jellyang

Most small business do not break even until year two or three.
Make sure you get a good accountant to sort your tax out. She should be able to offset some tax if you make a loss and against your directors loan.

It may be a struggle but be very careful how much of your personal money/assets you put into your business as you will be responsible for this debt if things don't work out.

Its tough but a great buzz when you make it!

Good Luck

Batfink

I don't know much about the hit man business, so I shall just wish you good luck and hope our paths don't cross.

Batfink x