help... my small biz is going bad - need advice

Madam_Ra

Oh my god... things are going so bad I'm feeling really ill about it all.

Basically, I stared a small biz from home at the end of last year... I'm running it from home and involves travelling to sell things.

Now things were going really really well, i set it up... obviously put a LOT of money into it (a portable streamline payment terminal, insurance, a loan, etc) and the products are so great they practically sell themselves when I show them. 2 months after I had started (when things were going well) my car packed up.... which was devistating. It needed a new engine :O - of course - money wise, I was at Zero at that point - so it is still sat on my driveway.

I had no way to get to show my products... I had no cash to try internet sales and I live in a tiny 2 up 2 down, so couldn't get customers over...

well... I've been able to borrow friend's cars literally once every month or so (when I had an exhibition or fair to go to) which has generated a little money which has barely covered insurance and loan repayments. So things have officially gone tits up.

I owe my suppliers money which I do not know how I'm going to get to them.... I've been temping to get my home and personal finances sorted (which are now dire) and I've been trying to get a full time job so I can sort this mess out, but I've not been able to get ANY job I've gone for (I had an interview yesterday which I'm praying I will hear some positive news from today - fingers crossed!)

I have no Idea what to do... I beleive I owe about £1000 in total to several suppliers (I also have about £160ish that needs to come out every month for my loan insurance and other little bits)... I've racked my brains and I'm stuck. I'm now thinking my only option is to declare bankruptcy, but I have no idea whether this is possible or what I have to do. It is such a damn shame as this business has so much potential. If I could pay the suppliers and get my car fixed, then everything would be fab....

I'm so worried sick about it all I feel really ill... and to add to it, I had a letter saying the bailiffs were round (i'm not sure for which supplier) and they'll be coming back And as it's my home address for my business, I'm so worried ....

I don't suppose there's another option I haven't thought of? If there was someone I know that would be willing to put some money into the business to sort out the 2 main issues, then It'd be bloody fab... but that just isn't going to happen. The bank won't touch me as I've had so little going in as of late.



any advice would be so very much appreciated.... many thanks.

southernscouser

Madam_Ra wrote: »

I'm so worried sick about it all I feel really ill... and to add to it, I had a letter saying the bailiffs were round (i'm not sure for which supplier) and they'll be coming back And as it's my home address for my business, I'm so worried ....

Ballifs cannot be instructed without a court order. How long have you been in arrears as these things normally take a few months to go through and you should be notified prior to it getting to that stage.

They may well be company representatives who will knock on your door (more than likely a threat though) but they have no powers at all!

If true ballifs do turn up at your door, do not answer it. They are not allowed to break in. It is against the law. They can enter through open doors or windows though.

Whatever you do, do not ignore these debts. There more pro-active you are about them the easier it will be to pay them off.

Is your intention to pay these debts off and carry on with the business at a later date or are you planning on winding the business up?

Are you entitled to any help, business grants etc? I really haven't got a clue so I don't really know!

Madam_Ra

Thanks for relpying.... I think these are the real bailiff guys... I had been in touch with my suppliers explaining the situation, but a few of them have been far from helpful to be honest... basically saying 'tough!'

I can't get any grants as I'm in the wrong postcode area (just to add to my major bad luck)

I would absolutely love to carry on the biz at a later date... but to be completely honest, I'm so damn sick with worry about the situation right now, I just want it to be gone and done with...

Jennie_2

Hiya,

Can you pm me your actual website address. I am having trouble deciphering it from your signature.

I am presuming you have an online shop? An Ebay shop?

Is there someone who could help you in the business who has a car?

Wherabouts are you in the country?

Sorry for so many questions... just trying to build a picture

Madam_Ra

Oops, I need to update my signature.... I had a website very briefly, but when I didn't have my car, I had to cancel it

I tried to sell on ebay... but it's difficulat as the quality of the toys is so good, but you cannot see online so well. A few bits didn't sell at all so I had to stop.

And it's gone beyond just needing a car now... with owing the suppliers, I cannot order new stock, so I only have a limited amount of stock left... and so I've got to go out and get a full time job, so will not have time to go round the nurseries, but could still do the exhibitions on occasional weekends (usually once every couple of months), but it would not generate enough money.

martindow

Sorry to hear about your problems. You need to get some proper help and advice on what to do. You could try Business Link who are very helpful and will be able to tell you what is best course of action. Their site is here
http://www.businesslink.gov.uk/

I hope that you will feel much better about things when you have other people involved and you are not on your own with this. Good luck and I hope you can work things out.

Dave_Brooker

Madam_Ra wrote: »

Oh my god... things are going so bad I'm feeling really ill about it all.

I don't suppose there's another option I haven't thought of?

Get a job, any job, McDonalds always need people.

Your only hope is to get some income, clear your debts (which aren't all that huge) and put the business behind you.

saraharrow

Hi,
Sorry to hear of your situation. Talk to business link they have some fantastic advisors. As for grants etc and being in the wrong postcode, Business Link can advise you on this, they may be aware of funding through other strands such as EDRF, ESF (they have various objectives, not always post code based) and any local authority grants.
It would be a shame to give up and go bankrupt, dont despair, you can work this out, talk to your suppliers but be ready for them to put the pressure you - they want there money, and perhaps you can persuade them for another month or twos grace in which you can work things out.
Good Luck, be strong

Sarah

barrymung

Put a "wanted" ad on your local freecycle. I have seen a number of tatty, but roadworth cars on there with a couple of months MOT left. Basically, use the car for a couple of months and re-freecycle it when the MOT expires.

As someone who runs an online business I'd say don't bother, at least in the short term. It's too easy for people to set up online stores so there are a lot of people competing for the same customers.

barrymung

Another thought. Could you sell the business (Perhaps on ebay) minus the debts and use the proceeds to pay your suppliers?

You could then start a similar business in the future and be debt free.

Remember, you will have learnt a lot from this business venture; you learn nothing from success.

barrymung

Yet another thought..pay your debts with your credit card then pay this card off with another interest free one. it'd give you a few months to sort things out.