Overspending but need to run my business - please help!

Lexx0r

Hey all,

I am back - what a nightmare. PayDay loans have ate my income to bits. I am literally overspending every month and needing them. I ran through a "do not spend" month last month- and cleared a whopping £550 of my Wonga loan (which was around £900).

I then agreed with Wonga to split the owed amount into two months. This was fine. I have just paid off the remaining £488 which was owed to them.

I have the following debts:

£550 on a Captial One Card
£79 with Very.com
£-40 with HSBC Savings Account Overdraft

Doesnt seem so bad? I agree. But then theres this.

I earn £1231.08 a month - but also run my own business which has its first fully booked month this month.

This is where my prediciment starts. I need around £300 for the stock to complete my fully booked month - which should generate me around £600 in total (£300 profit).

However, after clearing my debt (£488.00 with Wonga), Paying my unit rent (£300.00), Household rent (£120.00) and masses amount of car insurance (whopping £150.00), mobile bills etc - I have £0.00.

Now I have thought

Lets Wonga.com the amount I need - and pay it back next month. But I dont want to start the Wonga spirl again. I need to borrow money here, clearly - but how? Sensibly?

Here are my current monthly spends:
£300.00 Workshop Rent
£150.00 Car Insurance
£80.00 House Rent
£40.00 Mobile Contract
£8.99 Zune Pass
£8.99 CreditExpert Account

Now to start with I am going to:
Cancel CreditExpert and use Noddle
Cancel Zune Pass as I dont really need it - just a toy

Wheres my money gone this month?
1st Sept Paid: £1231.08
Spent £488.08 to repay Wonga.com
= £743.00

Recieved £300 rent from business partner
£1043.00

Rent deducted: £600.00
=£443

Owed household rent: £130
=£313

Car Insurance: £104.19
=208.81

Car Insurance: £44.81
=£164.00

£80.00 received from Business Partner
=£244

Bank charges owed (120.00)
=£124.00

Help me out guys! What should I do?
If I have missed anything - let me know! I am going to the bank today to see if they can arrange a overdraft facility.

I must stress - no high street lenders touch me due to my age - hence why I have been using Wonga as it clearly outlines my fees.

Idiophreak

Am I missing something? You pay £300 in rent on the workshop and need £300 worth of stock to make £600...so surely the £300 profit you're after will just pay the rent. If this is your "fully booked month", does that mean that the best case scenario for your business is breaking even?

Lexx0r

Idiophreak wrote: »

Am I missing something? You pay £300 in rent on the workshop and need £300 worth of stock to make £600...so surely the £300 profit you're after will just pay the rent. If this is your "fully booked month", does that mean that the best case scenario for your business is breaking even?

Fully booked was maybe the incorrect term. We are not "fullybooked" in terms of business. We only work during weekends & evenings - and business is very slow at present.

Otherwise our workshop is used for pleasure.

LittleMissGiggles123

Why have you got 2 amounts for car insurance?

Trajal

These numbers aren't really enough for me to comment fully, however under no circumstances borrow any further money.

Your best bet would be to contact Wonga, explain that your circumstances are such that you need them to freeze interest, pay them £50/month and use the remaining for whatever it is you need.

You also mention a business partner in there somewhere. If you are shelling out £300/month for a unit, £300/month for stock that is considerably more than their £80/month contribution. Perhaps ask them to pull their weight?

I'd recommend putting together a full SoA so that people can give a proper commentary on it.

Idiophreak

Trajal wrote: »

You also mention a business partner in there somewhere. If you are shelling out £300/month for a unit, £300/month for stock that is considerably more than their £80/month contribution. Perhaps ask them to pull their weight?

In the OP, it seems that the partner's paying the other half of the £600 rent...

bargainbetty

What level of stock do you hold at present? Can you not begin the month and request immediate payment as you go through the days, only buying when you have the funds?

Not knowing what your business is, I have no idea what stocks you need. However, most professional suppliers allow business account holders 30 credit facilities - do you not have any of these?

I have to echo the other comment - if your business is costing £300 in rent, £300 in stock and will only make £600, I think you might need to rethink it as a going concern. I'm sorry, but based on the very limited things you have said, it isn't looking viable.

Defintiely do a SOA - possibly add in a separate one for the business?

heartbreak_star

What is this business? What pleaasure are you using the workshop for (I know that sounds SO wrong, but you get the gist...)

HBS x