Retailer struggling to survive!

[Ryvere]

Hi all. As a newcomer to this forum I hope I get this right. If I step on any toes, please let me know!

We are a small furniture retailer struggling to survive. We opened our doors 2½ years ago and the day after we got the keys I think was the first time I heard the words "Credit Crunch". Since then we have managed to survive but only just. In some ways we have done remarkably well. Until last month we have shown consistent growth in the business and have established a good reputation in our town. The problem is that we simply have not grown enough and certainly not met our (I thought at the time) modest growth plans.

We are now surviving, just, but without paying ourselves salaries (there are 2 of us in the business). My question is simple. Can anyone suggest somewhere we can go to get advice?! Our bank have been as helpful as they can and came up with some money last year but they have just about reached their limit.

We know that we have a sound little business were the general economy to be in a better state and it will be a crying shame to see it go under but that eventuality is now on the horizon, if only because our personal finances are now shot. We're not able to pay personal bills and this will soon begin to affect the business.

Any ideas?

 

[sysops]

First, don't kid yourself that it's 'the economy' - yes business conditions are not ideal, but the last couple of years simply haven't been that bad. Think about it - we're talking about a few percent change in spending, nothing more.

That may sound harsh, but it is vital that you are able to assess your business objectively, rather than just hope that 'the economy' will one day transform around you, it won't.

Look at your growth figures for the past 2 years. If you extrapolate this into the future, where would you be in a year's time? And in two years?

What is the reason you are struggling, is it just that you don't have enough sales? or do you have the sales but your costs are too high?

 

[m.o.v]

hi sorry to hear you efforts are being tested to the fullest. I also have concerns about what direction to head in right now.

Have you considered finding marketing partners. Let them know exactly what your product is and what price you can sell at under different scenarios.

Personally, i have next to nil capital but many ideas like most and also lots of energy. You have a ship that has already set sail to take care of and might not be able to change direction completely so consider teaming up with people that can move your goods to shore in a rough sea.

I know this is all 'la dee da' sounding but if you survive the storm, worst case scenario you can swim to the beach when things settle down. At this point i don't think you'll mind when you are sipping a cocktail planning your next venture?

Ever thought community furniture?

 

[Lee Jones Jnr]

What town are you in? PM me if you'd rather not say publicly.
I have a shop in Staffordshire and one in Shropshire both doing well with furniture, more so in Staffordshire where I am based.
It could be that you are aiming the wrong products at the market you are in or that you are simply too expensive. There is always a problem of some kind facing small businesses, currently people say that it is the economy. We have been doing well because we are cheap and people shop around more when money is tight, so perhaps you simply need to source and negotiate better products and prices.
I know most shropshire towns quite well and sell to a few furniture shops so might be able to offer some advice if you let me know what products, price point and town you are operating in.

 

[m.o.v]

Good point sysops it is only a couple of percent as a whole, however could be much larger in many areas particularly now that there is less value in the home owners and markets mind. Ryvere, how do you think this change in thinking has affected your customers attitudes towards spending on furniture?

This is not a simple a or b scenario but also doubt that its far from rocket science, i say full of naivety.

 

[Lee Jones Jnr]

Stay well clear of simpletons who talk in metaphor all the time. Would you take business advice from David Brent?

 

[m.o.v]

Stay well clear of simpletons who talk in metaphor all the time. Would you take business advice from David Brent?

Thanks trading post, made it clear I was no authority on this. hope you saw the Christmas special for that show. Maybe he/she wouldn't take advice from Chris Finch either.

 

[m.o.v]

Trading post obviously won't be voting this year or going to church.

 

[Lee Jones Jnr]

Yes, you did indeed make that clear.

 

[Ashley_Price]

As has been said, the current financial situation isn't what is affecting your business. You need to look carefully at what you can do to make you stand out to customers.

For example: do you keep your past customers' details and let them know when something new comes in that would compliment what they bought previously from you? Have you considered doing a special event evening and only inviting the top 10% (in terms of value of purchases) of your customers?

There are a lot of things that can be done to attract people to come to your store and purchase furniture. It doesn't matter what the financial climate, if my armchair or settee breaks (somehow) or is exceptionally tatty I'm going to be looking for a new one.

You need to see what you can do to add value. Also have a look at a blog entry I did in 2008, called In Business There's NO SUCH THING as a Recession and the second part: HERE.

 

[m.o.v]

still trading post, am I right to suggest that Ryvere considers new avenues to market his product?

At the end of the your post you only asked him/her for the same details I suggested he approach others with for new ideas.

I think you should ask many people Ryvere, don't let cynics lead you into believing there opinion is the only one of value.

 

[Lee Jones Jnr]

'Consider new avenues' is meaningless.
I am not suggesting that I have the only opinion that has value, but what I am suggesting is that listening to advice from someone who in the same industry and geographical area and is doing so successfully is very likely to yield better results than speculation from someone who does not.

 

[Ashley_Price]

...listening to advice from someone who in the same industry and geographical area and is doing so successfully is very likely to yield better results...

That is very true - and proves the point that it is not the climate that is causing the problem, because how is someone else, in the same industry, successful?

 

First, don't kid yourself that it's 'the economy' - yes business conditions are not ideal, but the last couple of years simply haven't been that bad. Think about it - we're talking about a few percent change in spending, nothing more.

Disagree

Its the big spend items that get hit first in a recession.

Although I agree there are things can be done to mitigate the effects.

Rubber Ducks come to mind.

Earl

 

[sysops]

Disagree

You would, 1) because you're a dick, and 2) because you're clueless.

 

[patientlady]

Disagree

Its the big spend items that get hit first in a recession.

Earl

The mid to top end restaurants in our area are doing very well, with many fully booked three weeks in advance Thurs/Fri Sat/Sun. Bottom end pubs, 2 for 1s etc are struggling.

 

The mid to top end restaurants in our area are doing very well, with many fully booked three weeks in advance Thurs/Fri Sat/Sun. Bottom end pubs, 2 for 1s etc are struggling.

People eat out more in a recession for some strange reason.

But they don't buy houses,new cars, furniture and stay home for there holidays..

Earl

 

You would, 1) because you're a dick, and 2) because you're clueless.

Very subtle sophistication personified.

Earl

 

[sysops]

Very subtle sophistication personified.

I do my best to ignore you, but you seem unable to return the favour, constantly trolling in response to everything I say.

 

[patientlady]

People eat out more in a recession for some strange reason.

But they don't buy houses,new cars, furniture and stay home for there holidays..

Earl

Yes hear what you say, many buy new furniture when they buy a new house! ouch
Op just a thought, when I have purchased large furniture before I have thought it might be nice to have confirmation that it would actually fit and if not what might! Perhaps a free design, delivery and fitting service! I will never buy 'diy' furniture, so never sure if it will go throught the door! No Ikea double beds will, as i found out once some time ago:redface: Not sure if same market but you have Sofa sofa on yr doorstep don't you...

 

I do my best to ignore you, but you seem unable to return the favour, constantly trolling in response to everything I say.

I respond to the post .

"First, don't kid yourself that it's 'the economy' - yes business conditions are not ideal, but the last couple of years simply haven't been that bad. Think about it - we're talking about a few percent change in spending, nothing more."

So things may be OK for you,but certainly not for the majority of the inhabitants of this green and pleasant land.

Earl

 

[sysops]

I respond to the post .

"First, don't kid yourself that it's 'the economy' - yes business conditions are not ideal, but the last couple of years simply haven't been that bad. Think about it - we're talking about a few percent change in spending, nothing more."

So things may be OK for you,but certainly not for the majority of the inhabitants of this green and pleasant land.

Earl

There you go with more trolling, you just can't help yourself.

I know very few people whose businesses have contracted over the past 2 years. Those that have have only contracted by a few percent. All the data we have on the economy says that it has shrunk by a few percent.

You know different?

 

[m.o.v]

'Consider new avenues' is meaningless.
I am not suggesting that I have the only opinion that has value, but what I am suggesting is that listening to advice from someone who in the same industry and geographical area and is doing so successfully is very likely to yield better results than speculation from someone who does not.

Why is it meaningless(?), are you now being a simpleton. He/she is struggling I'm suggesting they speak to some people who may throw new ideas at them. No need to answer the above trading post because clearly your selective enough to brush over the fact that all you asked in the end was the exact same details as myself, only suggesting its better to do so via a private message to someone who is quote;'in the same industry and geographical area'.?

Again I'm not gonna pose as a guru on this hand's up on that here, but ryvere asking many makes sense.

Trading post will you post some idea's up here for ryvere!??! (ideas, avenues, suggestions, advice, you choose your term but let's see something other than a suspect invite for a cuddle)

 

. All the data we have on the economy says that it has shrunk by a few percent.

You know different?

Be interested to know what data you are quoting.?

Earl

 

[sysops]

I am soooo tired of UKBF and all the pointless noise.

http://www.statistics.gov.uk/instantfigures.asp

 

Hi all. As a newcomer to this forum I hope I get this right. If I step on any toes, please let me know!

We are a small furniture retailer struggling to survive. We opened our doors 2½ years ago and the day after we got the keys I think was the first time I heard the words "Credit Crunch". Since then we have managed to survive but only just. In some ways we have done remarkably well. Until last month we have shown consistent growth in the business and have established a good reputation in our town. The problem is that we simply have not grown enough and certainly not met our (I thought at the time) modest growth plans.

We are now surviving, just, but without paying ourselves salaries (there are 2 of us in the business). My question is simple. Can anyone suggest somewhere we can go to get advice?! Our bank have been as helpful as they can and came up with some money last year but they have just about reached their limit.

We know that we have a sound little business were the general economy to be in a better state and it will be a crying shame to see it go under but that eventuality is now on the horizon, if only because our personal finances are now shot. We're not able to pay personal bills and this will soon begin to affect the business.

Any ideas?

Getting back on track.

Do you have a website.?

You may be able to sell via the site and at worst spread the word in a greater area as to the existence of your shop and its wares.

Most bricks and mortar business's I have been involved with do considerably more business over the internet than from there Shops.

You have a very large potential customer base on the internet 1.5 billion as opposed to the UK's 60 odd million.

Earl

 

[Lee Jones Jnr]

Why is it meaningless(?), are you now being a simpleton. He/she is struggling I'm suggesting they speak to some people who may throw new ideas at them. No need to answer the above trading post because clearly your selective enough to brush over the fact that all you asked in the end was the exact same details as myself, only suggesting its better to do so via a private message to someone who is quote;'in the same industry and geographical area'.?

Again I'm not gonna pose as a guru on this hand's up on that here, but ryvere asking many makes sense.

Trading post will you post some idea's up here for ryvere!??! (ideas, avenues, suggestions, advice, you choose your term but let's see something other than a suspect invite for a cuddle)

It is meaningless because it doesn't mean anything. It is the equivilent of advising someone who is trying to save money to 'spend less' - how is what needs to be established.
I don't have the gift of telepathy and am not naive enough to think that the same advice will work for everyone, hence I need details in order to facilitate the formulation of any suggestions I may be able to offer.
If you feel the need to 'see something' to qualify me as being in a position to perhaps offer the OP some positive direction feel free to visit me at my place of business.
I'm not sure why you are so keen to get into a dispute. You freely admit to having limited funds and limited knowledge so why post at all when it seems clear that any 'advice' you offer up us purely speculation?

 

[sysops]

Once again Earl astounds all with his amazing wisdom.

OP: I run a furniture shop, but it's not doing very well.

Earl: Do you have a website.? You have a very large potential customer base on the internet 1.5 billion as opposed to the UK's 60 odd million.

You're some kind of a genius.

 

[crossdaz]

First, don't kid yourself that it's 'the economy' - yes business conditions are not ideal, but the last couple of years simply haven't been that bad. Think about it - we're talking about a few percent change in spending, nothing more.

This is wrong I'm afraid. Taking a national figure and saying it's only a few percent seems reasonable but it doesn't work like that.
The economy has shrunk a few percent - so if you work for the police or are an ambulance driver so what?
However, if you are a builder or worked for cadbury's or countless other manufacturers then your life has been devastated and probably will never be the same again

Anyone selling furniture is going to be hit (remember MFI?) and only the very leanest will survive.

 

[sysops]

This is wrong I'm afraid. Taking a national figure and saying it's only a few percent seems reasonable but it doesn't work like that.
The economy has shrunk a few percent - so if you work for the police or are an ambulance driver so what?
However, if you are a builder or worked for cadbury's or countless other manufacturers then your life has been devastated and probably will never be the same again

Anyone selling furniture is going to be hit (remember MFI?) and only the very leanest will survive.

Your understanding is flawed. Yes, people have lost their jobs. But what % of people have lost their jobs? What % of people are earning the same as they were 3 years ago? What % of people are earning more than they did 3 years ago?

MFI is just about the worst example of a company you could give. Remind me - how many times was MFI sold on, and all during the boom 1995-2005 period?

 

[m.o.v]

Trading post your a plonker, plain and simple. You've forgotten again to acknowledge that you asked for the same details to be posted as I did. Only after advising Ryvere not to listen to someone with yes; 'limited funds and limited knowledge'. Still plonker at least one of us is being honest and not, either ignorant or just selective as i think it really is.

Its not a case of being keen to get into a dispute as you say. Just don't like see through people like yourself trying to cut others down rather than improve.

Still no idea's given yet? whats happening? You've talked it now Walk?

 

[crossdaz]

Your understanding is flawed. Yes, people have lost their jobs. But what % of people have lost their jobs? What % of people are earning the same as they were 3 years ago? What % of people are earning more than they did 3 years ago?

MFI is just about the worst example of a company you could give. Remind me - how many times was MFI sold on, and all during the boom 1995-2005 period?

What percentage of people are buying houses and furniture compared to 5 years ago - I suspect it's less than a couple of percent?

 

[Lee Jones Jnr]

Trading post your a plonker, plain and simple. You've forgotten again to acknowledge that you asked for the same details to be posted as I did. Only after advising Ryvere not to listen to someone with yes; 'limited funds and limited knowledge'. Still plonker at least one of us is being honest and not, either ignorant or just selective as i think it really is.

Its not a case of being keen to get into a dispute as you say. Just don't like see through people like yourself trying to cut others down rather than improve.

Still no idea's given yet? whats happening? You've talked it now Walk?

Learn to read sweetie pie.
As I have already said, we, nay I, do not have enough information from the OP to be able to suggest how to move forwards.
I have no interest in trying to 'cut you down'. If you should ever need business advice and decide to take heed of the words from a man in no position to guide you then feel free to do so. I maintain that discussing things with someone better placed to offer suggestions is likely to be more fruitful.

 

Once again Earl astounds all with his amazing wisdom.

OP: I run a furniture shop, but it's not doing very well.

Earl: Do you have a website.? You have a very large potential customer base on the internet 1.5 billion as opposed to the UK's 60 odd million.

You're some kind of a genius.

Now your just throwing your toys out the pram.

The OP may not be aware of the potential of selling on the internet.

Hence the question .

Do you have a website.?

Having pulled many bricks and motar business's out of the mire by introducing web sales to them,it seems a reasonably good avenue to explore.

I suspect that many small bricks and mortar shops may be in trouble in the future if they do not have a web presence.

Earl

 

[thebigIAM]

It doesn't really matter if we put it down to the recession or not. The guy's in trouble, (certainly not the only one) and he's running out of ideas.

I'm a retailer who's struggling as well, Ryvere, only set up the outlet in this location in 2009, though I had run a similar business before which was interrupted by illness.

So, I'm asking myself if the trend is continually declining, (not for me personally. I had a good trading Christmas, and Q1 is normally quiet. But this particular Q1 has been dire); whether when I set up this time last year the business carried a certain novelty value in the area (almost certainly); what products have been selling best; noting that sometimes individual sales staff and marketing campaigns made a difference, blah blah. I think the website is a great idea, though its benefits might be more long-term. Short-term, I'd say you've got to be focusing on marketing the outlet, or finding other outlets if you manufacture your own.

 

It doesn't really matter if we put it down to the recession or not. The guy's in trouble, (certainly not the only one) and he's running out of ideas.

I'm a retailer who's struggling as well, Ryvere, only set up the outlet in this location in 2009, though I had run a similar business before which was interrupted by illness.

So, I'm asking myself if the trend is continually declining, (not for me personally. I had a good trading Christmas, and Q1 is normally quiet. But this particular Q1 has been dire); whether when I set up this time last year the business carried a certain novelty value in the area (almost certainly); what products have been selling best; noting that sometimes individual sales staff and marketing campaigns made a difference, blah blah. I think the website is a great idea, though its benefits might be more long-term. Short-term, I'd say you've got to be focusing on marketing the outlet, or finding other outlets if you manufacture your own.

A website can be nearly instant in having an impact ,if you geo target your local and surrounding area.

Someone like Ali-v8 can get you on google local almost instantly .

This increases the cachement area for you bricks an mortar.

Earl

 

[thebigIAM]

Hm. Watch this space. Could be something to explore a bit more.

What's Ali-v8?

 

[avantime]

To the OP - what ranges are you selling?

Most of my regular customers (furniture shops - mainly oak) are a little up on last year.

Do you have large stocks?

If you want to PM me I'm happy to help.

 

Hm. Watch this space. Could be something to explore a bit more.

What's Ali-v8?

The google Map man.

http://www.ukbusinessforums.co.uk/forums/member.php?u=28372

Earl

 

[FaerieB]

My question is simple. Can anyone suggest somewhere we can go to get advice?!

Try a couple of debt help forums ... pm me if you want the details ... it might just get you some breathing/thinking space. If you want to sell low end of the market I believe that's doing well, as is the high end. However, I only have government (media) stats to go on.

If you want to do something you believe in then maybe now (or ever) is not the time :| ... if you're an entrepreneur who just wants to make money regardless then you may get some help here although no one is likely to give too much away

Sorry I can't be of much help otherwise ~x~