Do I throw in the towel on my business?

a11waysindebt

Lets not forget you are a Sole trader.You are liable for all the debts, business running or not.

Look carefully at what you are doing.

Lifeisbutadream

Our business is now coming into into 4th year and is only just starting to make a profit.

A lot of small businesses close early because people expect that all their hard work will show something immediately - it doesnt work like that (OK it does sometimes, but as a general rule it doesnt).

As the sole trader, you will be the one laughing when the business starts to make some money, but as you are well aware, you are also the one taking the risks now.

How about your sister working on a 'profit %'?? either until the business gets on its feet, or for good?

We didnt pay ourselves much at all for the first few years - even now we only pay ourselves what we need to get by, ploughing everything else back into the business.

Regarding paying suppliers - try and pay them something even if you cant afford the entire amount - you need to try and keep them sweet. Dont let them down either - they are businesses too!

You need a complete overhaul in how you are selling - get out of the premises - you can always go back when you expand later - visit customers with samples, or invite them to a specific room in your house - make it clear that they are getting the products at good prices because of your smaller overheads.

You said that you are not paying VAT on the premises - why? you can claim back VAT anyway, so that shouldnt matter.

Can you write to large businesses and try and get a big order? be pro-active and send out letters or cold-call. What sort of customers are you looking for?

You can set up a website yourself for very little money (although it wont be as flash as some, but you can always expand later)

IMHO I wouldnt walk away - you have put money into the business and if that was me I would carry on until the bitter, bitter end... (although I wouldnt put any more new money in though)

a11waysindebt

Well said Lifeisbutadream.

I've had to haggle with 1 supplier believe it or not over 25p not alot I know, but the items are being sold in trays of 20 so I'm up a fiver before I start.

Its a good line and I can wholesale the items at this price.I always work on a percentage no matter what the product is and I'm not greedy.

If I get the timing right the supplier gives me 30 days, paying by card will give me another 20 to 30 days credit,I then pay the card off in full.

Like I said before keep working at it and expand your lines.

PasturesNew

Any business only makes money because it has enough coming in.

The only function that makes enough come in is sales.

You seem to have decreased your sales.

You need to look at the various ways you can make sales, e.g:
- online sales through existing sites (ebay, ebid)
- online sales through your own website (if you have your own website you can link to your ebay items from there perhaps too)
- door knocking team - look at training up some smart students to go door knocking in the holidays to make appointments for you. Go door knocking yourself.
- find a professional sales person who is happy to work on a commission-only basis; perhaps somebody who is already selling similar items
- promote the goods through local businesses selling complementary products
- display your goods in local businesses to get your name out there (e.g. house showrooms, local furniture shops, local hotels)
- make sure everything you sell has your contact details on. e.g. tags: get your website address on there, if their friend likes them and asks where they got them from, it's always there.
- do local markets, craft markets. Now's the time to be booking for Xmas Markets. Look everywhere for adverts advertising these. Google to get organiser details in your local area
- party plan. You can either do soft furnishings party plan parties yourself, or find people currently selling candles etc and asking if they'd sell your goods too.

That's just for starters.

You could still do all of this, under a new name if needs be, whatever you decide on your current situation.

Good luck

Lifeisbutadream

Just thought of another one - how about contacting house builders - ask for the name of the deisgner doing up the showrooms and get in touch - you may get a few to do - do a good job of it and you will have a contact for good.

COOLTRIKERCHICK

i personally feel that a website like any business is not going to be an instant success .. people think that once they have a website that business is going to flow in....

reading the op's first post.... i feel time is running out to be honest... and they have already upped their loan in the first year to now owing 17k... the business has now also got to find the interest on that too....its all well and good saying trade from home.... to save over heads.. i have traded from home... and once people know this they call at all times of the day and night.. they dont think you have a family to consider.... also dont forget your house rates will them change.... and you got to notify your household insurance to say a room is used to run a business.... so this would have to be looked at in depth before any decision is made...and what implications... and actual additional costs are involved.... you also got to consider your neighbours.. plus have you got the room to sew.....store... finished products without them being damaged... do you have pets ? smoke ? as even if you use a certain room, the pet hair, smoke smell can travel.. and some people are allergic to pet hair etc..

Lifeisbutadream

COOLTRIKERCHICK wrote: »

i personally feel that a website like any business is not going to be an instant success .. people think that once they have a website that business is going to flow in....

reading the op's first post.... i feel time is running out to be honest... and they have already upped their loan in the first year to now owing 17k... the business has now also got to find the interest on that too....its all well and good saying trade from home.... to save over heads.. i have traded from home... and once people know this they call at all times of the day and night.. they dont think you have a family to consider.... also dont forget your house rates will them change.... and you got to notify your household insurance to say a room is used to run a business.... so this would have to be looked at in depth before any decision is made...and what implications... and actual additional costs are involved.... you also got to consider your neighbours.. plus have you got the room to sew.....store... finished products without them being damaged... do you have pets ? smoke ? as even if you use a certain room, the pet hair, smoke smell can travel.. and some people are allergic to pet hair etc..

These are all things that need to be considered wherever your business is.

OP - It really depends what type of person you are - if you dont want to fight then walk away. I personally could not do that - you have the basis of a business and with a lot of hard graft you still could make it work

motorguy

Lifeisbutadream wrote: »

OP - It really depends what type of person you are - if you dont want to fight then walk away. I personally could not do that - you have the basis of a business and with a lot of hard graft you still could make it work

Maybe part of being a good business man / woman is knowing when to walk away? Surely if the business is £17K in debt + interest payments + losing money, maybe now is the time to walk away?

Its all very well being a hero on here about you not walking away, but maybe sometimes its better to draw a line and find a different opportunity?

I dont imagine too many of the great entrepreneurs in this country 'made it' with their first attempt.

vivatifosi

Hi alltoomuch,

It sounds like you've already decided, and only you know your situation inside out. Here's my view as someone whose had tough times with my (different line of) business but come out the other side...

If you can shut the unit and make money, then that is worth considering. If you shut the unit and still lose money, that's a different matter.

I don't agree that you need a shop, but you do need your name in the market. One of my friends started a curtain company quite a few years ago now. It was local word of mouth that worked for them when they didn't have a unit (they do now). They were known for a quality, bespoke, product.

How many of your clients are referring you on to their friends? You should be the first port of call for any window treatments for anyone that they know, and that, done properly can have a snowball effect. They also made sure that they had great presentations, were willing to do design boards to share the vision with clients. Do you have some cheap CAD software that can show your designs in the clients homes, visualise for themselves? Get out and mystery shop your competitors and find out what they do well. It won't be about their storefront (though for sure that will help) it will be about the intangibles that they offer that make people want to come back, or make people want to spend money with you. Do they have great swatches? Do they offer keener lead times? There will be something that the good ones do better...

vangirl_2

Recently visited my local blind shop, I didnt have much money so he made me some blinds from older material and cheaper discontinued railings to fit my budget. I was so pleased with the results that i had my whole house done and you couldnt tell it was from older stock. Maybe you could try this.
I once had a small gardening business and put a fancy ad in my local newspaper along with a small cheap one. The smaller one generated 70% more work than the fancy one cause people assumed i was cheap. it only cost £17 pw as well. Hope this gives you some ideas. Good luck