2
2023Anonymous
- Original Poster
- #1
Hi everyone,
Unfortunately I am here looking for advice on the demise of my business before I get legal/professional help and pay for it.
I have been in business since 2012 running an e-commerce shop based within the sports industry, I started this business with just £2500 and no stock or loans, approx 5 years ago I got this to £650,000 turn over and about £50k in stock with healthy margins. The BBL came at a good time as we had just started working with a German supplier who wanted to off load a lot of stock at a great price, we used the £50k for this and made about £25k net profit from that deal alone within 8 weeks. Unfortunately not too long after that sales went down as life went back to normal, a lot of people in my industry are suffering and I am seeing companies and even distributors shutting each week.
Our sales are about 30% of what they used to be and margins are incredibly tight now we are having to lower prices even further to get a sale. The last 6 months have been tough, were lucky we have some cash savings from previous years and prepared for a slump as we have barely took a wage in this time, just enough to cover the outgoings at best.
The company is ran by me and my wife, no employees.
We have no credit accounts with suppliers, we have one credit card with about £10k on it which we have already factored in and have stock to pay this off.
The next thing is a BBL which has about £35k left, we have extended this in the hope it will help but after a year its getting worse and we have just took a holiday but in reality I think we will struggle to make it through the next 6-9 months as cash reserves are running very low and we now would struggle to even buy in sufficient stock to make a difference.
Its a tough place to be in and making me feel shit after 12 years of genuine hard work its come to this. I can clear the credit card, pay approx £5k off the BBL and that will be about all the money left.
What are my next steps here, is it simply a case of paying off what I can and then closing the business? There is no other assets, crazy to think just 5 years ago we have a warehouse for stock, new company vans and were doing very well.
I am looking for genuine advice and the BBL was took in good faith, spent within the company and helped us to get where we are now but cash is dwindling away each money and not enough is coming in. I have considered adding some personal savings to help keep it a float but I think I might shoot my self in the foot by doing this.
Apologies for any spelling errors, i have had to type this quickly while travelling!
Unfortunately I am here looking for advice on the demise of my business before I get legal/professional help and pay for it.
I have been in business since 2012 running an e-commerce shop based within the sports industry, I started this business with just £2500 and no stock or loans, approx 5 years ago I got this to £650,000 turn over and about £50k in stock with healthy margins. The BBL came at a good time as we had just started working with a German supplier who wanted to off load a lot of stock at a great price, we used the £50k for this and made about £25k net profit from that deal alone within 8 weeks. Unfortunately not too long after that sales went down as life went back to normal, a lot of people in my industry are suffering and I am seeing companies and even distributors shutting each week.
Our sales are about 30% of what they used to be and margins are incredibly tight now we are having to lower prices even further to get a sale. The last 6 months have been tough, were lucky we have some cash savings from previous years and prepared for a slump as we have barely took a wage in this time, just enough to cover the outgoings at best.
The company is ran by me and my wife, no employees.
We have no credit accounts with suppliers, we have one credit card with about £10k on it which we have already factored in and have stock to pay this off.
The next thing is a BBL which has about £35k left, we have extended this in the hope it will help but after a year its getting worse and we have just took a holiday but in reality I think we will struggle to make it through the next 6-9 months as cash reserves are running very low and we now would struggle to even buy in sufficient stock to make a difference.
Its a tough place to be in and making me feel shit after 12 years of genuine hard work its come to this. I can clear the credit card, pay approx £5k off the BBL and that will be about all the money left.
What are my next steps here, is it simply a case of paying off what I can and then closing the business? There is no other assets, crazy to think just 5 years ago we have a warehouse for stock, new company vans and were doing very well.
I am looking for genuine advice and the BBL was took in good faith, spent within the company and helped us to get where we are now but cash is dwindling away each money and not enough is coming in. I have considered adding some personal savings to help keep it a float but I think I might shoot my self in the foot by doing this.
Apologies for any spelling errors, i have had to type this quickly while travelling!
