should i stay or should i go

Discussion in 'Growing and Managing a Business' started by mickybo, May 2, 2011.

  1. mickybo

    mickybo
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    Hi All,

    My business (like many) is struggling. I am behind on rent, rates and suppliers bills. I still believe in the business and dont think i was wrong in starting it but i fear i cant last long enough to see it through. Should i attempt to sell or do i have to stick it out to bankruptcy??
     
  2. mysandyda

    mysandyda
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    This question cant be answered by us, it is only yours decision, we dont know anything about your business and your situation so you must think about pros and cons and deside what is better for you. Sorry, it is a hard situation.
     
  3. LeoVKW

    LeoVKW
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    I second mysandyda. If you think you're failing, you're probably closer to it than you think you are. Nothing wrong with being wrong about something. Get a job, get your finances in order, and try again. Some businesses do okay, some fail, and some do very well. Plenty of new opportunities around. Don't hold on to a liability.

    P.S.: I'm not saying that you are indeed failing (too little information available). I'm reflecting on your comment that you think you are failing.
     
  4. Fergal

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    Welcome to our Business Forum mickybo!

    Have you done any planning to determine if your business can survive or not?

    If your analysis suggests that the business has no chance of surviving and there is nothing you can do to save it, you are probably best to cut your losses and get out of a bad situation before it gets worse.
     
  5. mickybo

    mickybo
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    Thanks Fergal,

    If the current sales levels continue as are i reckon ive got to december. I need an increase in sales of around 10-15% very do-able just need to happen ASAP. I am introducing a new line that should increase sales but needs to be a runner from the start. I dont really know however what happens to me if i sell and owe much more than i recieve?
     
  6. Fergal

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    Good luck with increasing those sales mickybo. Please be sure to post any questions you have or requests for feedback related to sales in our Sales & Marketing, Online Promotion & SEO forum section.

    When you say "owe" are you referring to money owed to creditors, for business loans, to business investors, or perhaps to some combination of these?
     
  7. ArcSine

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    Mickybo, very sorry to hear of your difficulties, but if it's any consolation, remember that you've got plenty of company. Also, keep this in mind: I know a fella who's a veteran investor in small companies. One of the first things he looks at when vetting a potential deal is the track record of the head honcho. Here's where it takes a twist: This guy will usually pass on a deal unless at some point the CEO has skippered a company through very rough times. As he puts it, "Until you've taken a ship into a hurricane -- even if you eventually crashed -- you ain't got the smarts and the craftiness I insist on before I invest...I don't care where ya went to school."

    First you need to convince yourself on paper that this biz has a bright future or that it doesn't. Sharpen your pencil and draw up a set of hard-headed, realistic projections. Do this in collaboration with an experienced accountant, who not only will bring to the table the vital number-crunching expertise, but will also keep the forecasts totally objective and serve as a reality check.

    If an intelligent, objective forecast indicates that it's a no-go, then (as already suggested) cut your losses quickly and efficiently. Exactly what that'll mean, in terms of unpaid liabiliies, vendors, and such, will depend on a bunch of specifics such as your business entity structure (corporation, ltd company, etc.), the provisions of the contracts (promissory notes, leases,...), the extent to which you've provided personal guarantees, and so on. Your accountant and an attorney, armed with all the details of your situation, will help you choose the optimal course.

    If the projections show solid down-the-road value for the business, then you must turn those projections into a solid business plan -- a document that will tell the story in realistic terms, while also making the biz's long-term value clear to the reader. Then it's on to one or more of the following...

    • You take your plan to your landlord, your vendors, lenders, etc. You get at least some of them to agree to grant you some temporary forebearance, for which they'll be compensated later in some way. Your pitch to them is that if you're forced to fold now, they're left holding very little. If instead they play along, it'll eventually be made worth their while (and your forecasts are backing up what you claim).
    • You pitch the biz plan to a new set of lenders or investors, who'd be willing to provide some refinancing that would take out any current creditors or lenders who still don't wanna play ball, even after seeing your plan.
    • At the extreme you might consider selling the business. Your biz plan and forecasts, showing attractive long-run value, becomes the foundation on which you base a reasonable ask price.

    Pretty general stuff, of course, and how (if) it's implemented depends on the particulars of your situation. Best of luck with it.
     
  8. Bliss Elliosn

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    Dear Micky,

    I would suggest that you believe in the business then you must take stand for it.
    Keep your best efforts up. Double check the things that where are you lacking. Look for some time may be the things get fine.

    However, you know the things better.

    “Whether you think that you can or that you can't, you're usually right” by Henry Ford.

    Good Luck!
     
  9. td2011

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    Sorry to hear you're struggling. It must be very hard to have enthusiasm for a business that seems to be failing when you're all out of answers. It may be worth bringing in a person to look at your business even if it's a friend. A fresh pair of eyes can often see problems straight away and give you an honest opinion.
     
  10. mickybo

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    Thanks ArcSine,

    I appreciate the comments and the time. I am progressing well with payment plans and rent freezes to hopefully get me to a better cash flow position while i attempt to increase sales. I hope to get to the point where instead of looking like leaving a sinking ship i patch up the holes and ride out the storm. Everyday is bringing its own challenges and the next person looking their money but i suppose "smooth seas dont make skillful sailors" I shall keep going

    Thanks
     
  11. sigma

    sigma
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    I understand that it is hard to make this kind of decision. If this happen to me, i will make a plan with target, give myself some time (reasonable time). And list down what i will going to do and what is my target. If i can achieve the target within the period set, mean i can actually continue the business set another target (this can ensure i wouldnt lose the direction and able to pay all the bills). If i still fail, i might think to quit it
     
  12. Yanni

    Yanni
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    What type of business do you own? I would love to learn more information.
     
  13. mackey

    mackey
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    Sorry to hear your situation right now mate.

    If you think, closing your business would be better and if you think you have done the things you should be done to make the business grow but it end up that way
    then I must say, you should go.
     
  14. Lou Vincent

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    Hello Dear!
    It is sad to hear about your business performance. Because I have also suffered with this bad experience earlier. I will suggest you to do something extra beyond your business. I tried online bidding it gives me an opportunity to feature my business also.
     

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