Best ways to assistance personally?

[berrywoods]

We started our business back in march, i knew it would put a strain on finances going from a secure job to now my partner doing full time hours and me taking home nothing as yet, but with bills going up we are finding our selves short, ive done reading with no aval and the local coucil have been no help at all. Is there any fincial help? or grants or anything avalible to people who have started new businesses, i did have a quick look at grants when we started but didnt really find anything, are grants avalible to small retailers, we are a LTD company, with only me and my partner running it, 2 work experence students, doing 1 day a week each, only looking to probably take 50k if we are lucky this financal year. Theres worrying about the business breaking even this year but more of a worry of if we can pay next months rent, any help advice or information would be fantastic.

 

[yy198610]

i also really want to have my own business now ,but little difficult for me to opperate .Please share the experience with me if u like。thanks

 

[Matthew Barsauckas]

Hi,

There is no doubt it is a difficult time to start a business.

I would suggest that you lay out your immediate problems before you on a list and look at what creditor positions spike out as having to be dealt with now.

List them in order of importance and then contact your landlord about the rent and explain your circumstances, if they at least are aware they may facilitate a moratorium or reduced payments..... it is not in their interests for you to fail.

Next look at the various government sites for grants and check with your local council what maybe available.

But above all do not let your creditors build up; reflect on what you can do to bring in additional cash (Always put your own families position first, food, electric etc), evaluate your position realistically do the numbers for 3, 6 then 12 months, if it all says no then you have your answer.

Decide on the facts not your emotions. If you think it can work in that time then go for it, if you think in 12 months time you will be worse of then dont.

Either way a decision will need to be made.

Best of luck.

 

[berrywoods]

thanks for the advice, i knew it would be hard, and the key to this succeeding is us lasting out 12 months, both personally and business wise, the council have been very unhelp when i ever ring with regards to grants, the person dealing with it seems to always be on holiday, but i will try again today, i would have thought surely, that being that im 21, ive started my own business, the area im in has 4 empty shops (in my eyes deprived area?) ive always worked, always paid my taxes, you would have thought there would be something avalible to me

 

[Matthew Barsauckas]

Hi,

I don't disagree with what you say. Check the government websites to see if there will be any new programmes in the pipeline that may be of assistance to you.

You have started a new business, you hope to create jobs, you are paying rent and rates.... there must initiatives out there for enterprises such as yours.

But keep at it until it leans in your favour.

I wish you well.

 

[berrywoods]

i hope there is, you'd think there would be incentive for people to do what ive done and start a business at such a risky time to help drive the recovery, i guess with the government all up in arms we cant expect too much just yet

 

[virtuallysorted]

The problem is that enterprise relies on small business owners taking a personal risk to start a company - even if eventually it employs staff, increases tax revenue etc. And the reason they do that is because so many new businesses fail and don't become a big success story, so they are a bit jaded about putting their hand into their pocket and helping with cash to every person who says "I've got this new business".

What you need to do is figure out a way of getting your business bringing in cash faster and in greater amounts, without increasing costs. Could you ask the council to feature your business in their community magazine? Or some other way of them helping your business without giving cash? Do they have rates relief for example?

Look at where your cash is going - can you slash costs? Look at where your business comes from, do they know anyone else who could use your services? Is there some sort of bulk buyer you could contact (maybe a zoo or a pet shop or breeders)? could you diversify into other services which are cash cows (like Petting Zoos or school trips)?

The reason the government doesn't give help to businesses that need it is because those businesses are already in trouble due to poor financial planning or lack of marketing or even simply lack of motivation from the owners. I'm not saying you have any of those problems, because it's tough to start a new business in any economic status let alone a recession - especially when it's one which involves people taking on more monthly household bills. But, yikes! It focuses your business head on making it all work if your personal finances are on the line

 

[berrywoods]

The problem is that enterprise relies on small business owners taking a personal risk to start a company - even if eventually it employs staff, increases tax revenue etc. And the reason they do that is because so many new businesses fail and don't become a big success story, so they are a bit jaded about putting their hand into their pocket and helping with cash to every person who says "I've got this new business".

What you need to do is figure out a way of getting your business bringing in cash faster and in greater amounts, without increasing costs. Could you ask the council to feature your business in their community magazine? Or some other way of them helping your business without giving cash? Do they have rates relief for example?

Look at where your cash is going - can you slash costs? Look at where your business comes from, do they know anyone else who could use your services? Is there some sort of bulk buyer you could contact (maybe a zoo or a pet shop or breeders)? could you diversify into other services which are cash cows (like Petting Zoos or school trips)?

The reason the government doesn't give help to businesses that need it is because those businesses are already in trouble due to poor financial planning or lack of marketing or even simply lack of motivation from the owners. I'm not saying you have any of those problems, because it's tough to start a new business in any economic status let alone a recession - especially when it's one which involves people taking on more monthly household bills. But, yikes! It focuses your business head on making it all work if your personal finances are on the line

yes i agree, a lot of smaller businesses do fail because of that, many of the smaller businesses are not people business minded and dont plan enough.

I think what gets me is when i pay my rates to the local council, it says the majority of it goes to fund local grants, none of which im applicable too , I have applied for rates relief, just waiting to hear back.

 

[ethical PR]

Hello

I am sorry to hear you are facing difficulties.

When you put together your business plan, you would have known what grants/loans were (or weren't available) and therefore how much of your own capital you would need to invest before you would be making enough to cover your overheads. I think most people estimate they need to cover 6 months - 1 year.


The vast majority of businesses aren't eligible for grants, that's a fact of life. So what are your options;

• Don't just wait for someone in the council to come back to you. Speak to Business Link (grant information is available on their website). Speak to your local Chamber of Commerce and other local business organisations.
• Go to see The Prince's Trust and get some advice from them and ask about their loans
• If your business isnt bringing in any money then perhaps you or your partner could get part time work - Sainsbury's, Costa Coffee - whatever you need to do to get some income in
• Apply for working tax credits
• Look at how you are promoting/marketing your business. Go on free courses offered by Business Link, download their free guides on promoting your business.

If you go forward with a more positive attitude, you might be find that your business starts to take off.

And if not, give yourself a cut off date and if your business isnt viable by this point, cut your losses and move on.

Good luck

 

[Billmccallum]

You have two problems...

a) most grants are for new businesses and not for businesses that have already started.

b) there is very lttle support for retail businesses anywhere.

One one thing in a your favour is your age...contact the Princes Trust and Shell Livewire.

http://www.shell-livewire.org/forums/forumdisplay.php?f=19 lots of people like you on this forum and they run (I think) monthly contests with cash prizes.

http://www.princes-trust.org.uk/