Business failure

[Tpsweetdelight]

I have opened a sweet shop in sep in a village and since Xmas it's costing me more money then it's making I have made our own homemade chocolates and doing homemade Easter eggs and the community have said no I feel like i may need to shut and look for somewhere else I am gutted any advice

 

[bodgitt&scarperLTD]

Cut your losses. Look for a starry eyed idiot with a recent redundancy package to buy the shop from you!

Give us an idea of your circumstances. How on the hook are you? What are the lease terms? Are you sole trader or LTD? Personal guarantee?

 

[Tpsweetdelight]

Partner is self employed and currently not working for 4 months due to medical reson so my wage is going on everything on the house kids bills aswell as paying my rent on the shop . I can't afford to re stock at the minute my lease is a three year with a year break this September. I am losing so much but don't want to give up and fail every idea I have the village don't want to know yet moan when small businesses shut due to lack of using them.
I need a better location but am on my knees and can't afford one let alone get out my lease

 

[Tpsweetdelight]

Partner is self employed and currently not working for 4 months due to medical reson so my wage is going on everything on the house kids bills aswell as paying my rent on the shop . I can't afford to re stock at the minute my lease is a three year with a year break this September. I am losing so much but don't want to give up and fail every idea I have the village don't want to know yet moan when small businesses shut due to lack of using them.
I need a better location but am on my knees and can't afford one let alone get out my lease

Ltd company

 

[HFE Signs]

As above, more information is needed. Did you make good money before Christmas? A lot of businesses are quiet in January and February. You should have an opportunity to make money over Easter? What are you doing currently to entice people in?

 

[Tpsweetdelight]

As above, more information is needed. Did you make good money before Christmas? A lot of businesses are quiet in January and February. You should have an opportunity to make money over Easter? What are you doing currently to entice people in?

Yes valentine's was alot of left over stock. Loads of treats for mother's Day and Easter yet nothing.
We are all over social media great prices and started making our own chocolate bars,slabs and Easter eggs . Window displays nothing is working I am at a loss

 

[HFE Signs]

Yes valentine's was alot of left over stock. Loads of treats for mother's Day and Easter yet nothing.
We are all over social media great prices and started making our own chocolate bars,slabs and Easter eggs . Window displays nothing is working I am at a loss

Are you in a busy location? What is you local competition? What were your best months and what did you do differently?

 

[japancool]

Yes valentine's was alot of left over stock.

Does that mean you had a good Christmas?

Do you sell online?

 

[Clinton]

i may need to shut and look for somewhere else I am gutted any advice

Huh? Look for somewhere else?! You have a lease you can't afford and you want to not just get out of that but get into another one somewhere else in the hope, the hope, that it will be a better location?!

You failed. Nothing wrong with that, lots of people fail at business. But there's no excuse for not recognising when you've failed and for trying to soldier on even when it's clear you've got a lemon!

I am gutted any advice

Yes, get a job.

 

[WaveJumper]

Really sorry to hear of the issues your having very difficult when your putting your-all into the business. However times are very hard for any retailer now, and I would suggest if you look in any high street right now how many actual sweet shops do you see i wold suggest none and unfortunately there's a very good reason for this not enough volume and low margins.

I am sure others will advise on best way forward for a LTD but I would make sure you read your lease and make sure you activate your lease surrender correctly. Might even be worth approaching the landlord for a rent reduction in the meantime some rent is better than no rent. best of luck

 

[Gyumri]

Might even be worth approaching the landlord for a rent reduction in the meantime some rent is better than no rent. best of luck

@WaveJumper has given a good suggestion if you feel able to hang on because if you have given no personal guarantees for the Ltd then you could just give the keys back to the landlord if he doesn't agree to a haircut.

The demand for chocolate goodies is obviously limited so it might be that you've got to throw in the towel until something more rewarding crops up.

 

[fisicx]

I have opened a sweet shop in sep in a village….

Are there enough people in the village to sustain the business?

Are they the sort of people who want homemade chocs?

Is there a lot of footfall past the window each day?

Are there other places locally where people can buy sweets?

Do you sell online? This one can save the business. A local lady does a subscription box each month. It’s so popular she has stopped taking in new customers.

 

[WaveJumper]

Attended a wedding on Friday in the corner of the room was a set up like a sweetshop maybe get on the phone and speak to your local wedding venue and offer your services. If you make chocolate products maybe bespoke bars or confectionary for the happy couples

 

[japancool]

I do, however, suspect this comes down to a lack of market research before startup.

Doing the same elsewhere will run into the same problems if no market research is done.

 

[Lucan Unlordly]

Probably not what you want to hear but I've just Facebooked your *business name to be presented with a marketing horror show, a thousand pictures with not a single piece of text, invitation to buy or reason to enter the shop. The only ray of light is that your marketing and presentation is so bad that it could be turned around but you will almost certainly need help.
*in Cottingham?

An empty shop window replaced with a few jars of sweets as a display (nobody wants to buy sweets that have been stuck in a window for weeks), and another with graphics of just more sweets. Hand written labels etc., etc.,

Of the photos, most look like a mish mash of sweets thrown into a box with no reasoning for putting them together, even the Valentines cones where a story could be put together are just Valentines cones with no description of the contents.
No offers, no 'Birthday Bags', 'Wedding Favours', Old Tyme Candy'...and nothing about the home made chocolates you say you are producing. Mothers Day 'Show you Care Pouch with a handful of sweets at just 70p. Showing you care is a £10 box of chocolates and a free Rose!

Attached to one image you say, closed today but open between 10 and 3 tomorrow (Saturday, traditionally the busiest day) but next week open Wednesday, Thursday, Friday and Saturday with opening times to be posted!

 

[fisicx]

Google thinks you are a terraced house.

Your business profile is devoid of content.

Your website doesn't exist.

In short, if you want the business to succeed you need to work a lot harder at your online profiles.

 

[Paul Kelly ICHYB]

When you wrote your business plan, what were the benefits of opening the shop in the location you chose?

 

[Ian J]

When you wrote your business plan, what were the benefits of opening the shop in the location you chose?

Tut tut. I thought better of you than to drag out that old chestnut

 

[HFE Signs]

It sounds like you need to go back to the basics and work out your target market, your USP's and your marketing plan.

This will tell you if the business has a future or not.

Most of us on here have made mistakes at some point or another, mistakes are fine though as long as you learn from them and work out a way to correct them.

 

[Paul Kelly ICHYB]

Tut tut. I thought better of you than to drag out that old chestnut

On the occasions that people do create a good, strong business plan, you might be surprised by how many do not use it as a reference for making decisions and taking actions, let alone revise it as an ongoing, working document!

 

[intheTRADE]

I agree with @Lucan Unlordly - the marketing is very poor

Up here in the North East is a place called The Chocolate Smiths. Search them and you will find them on any platform and take note of how they market themselves. They have exploded over the last couple of years

 

[Nico Albrecht]

Tut tut. I thought better of you than to drag out that old chestnut

I share the same thoughts.

It's difficult to predict the likelihood of neighboring weight watchers chapter signing a lease to the left, a personal trainer sweat shop opening to the right, and a slim kitchen opening opposite to his stall a month after its opening.

Moreover, I'm uncertain whether I could run such a business ethically as it promotes unhealthy eating habits, particularly among children who are already overweight. Selling such products could result in a burden on the NHS, requiring billions of extra taxpayer money to treat these individuals later in life.

 

[Lucan Unlordly]

Moreover, I'm uncertain whether I could run such a business ethically as it promotes unhealthy eating habits, particularly among children who are already overweight.

I'd say that's the root of the OP's problem. Presentation of the products on offer is not one of special treats but a stack em high overloaded box full of sugar.

 

[Mark T Jones]

As tough as it sounds, much of the above advice is spot on.

You posts give no insight to business essentials such as structure, plan or research.

You are still turning to blind hope - the notion that another location will be 'better' as opposed to planning and research.

 

[japancool]

I wonder how much of this comes from the stories posted on places like the BBC - you know, "I started my boutique cheese rolls business for fun and it's now turning over £5m". Success sometimes happens that way, but particularly for businesses where location matters, it usually doesn't if no research has been done.

In fairness, I started that way, and my first failure was invaluable market research and experience for my second.

 

[Mark T Jones]

Moreover, I'm uncertain whether I could run such a business ethically as it promotes unhealthy eating habits, particularly among children who are already overweight. Selling such products could result in a burden on the NHS, requiring billions of extra taxpayer money to treat these individuals later in life.

Fortunately, nobody is asking you to run it.

Stark reality - there is still good money in sugary sh!te and junk food, so that itself isn't the problem here.

 

[Duke Fame]

Much has been mentioned already but:

Retail is often terrible January – March and experience will tell you not to overstock at this time.

Do you have a PG on the property, if not, you can walk but negotiate with the Landlord for a better deal.

Your online presence is not good, I could not find you as a shop, only what is most likely your home.

My wife’s business had similar issues where she was using the one route to market via the shop itself where in reality, online and deliveries mean your shop is just one route to your customer. Given that, if you quit your shop, you could still operate the business from home but you do need a website.

Don't be afraid to copy a business that is doing well.

 

[Lisa Thomas]

I haven't read all the responses so apologies if I am repeating something but I suggest you speak to your accountants and/or a licensed Insolvency Practitioner to explore options.

You might also want to move your post to the insolvency section of the forum.

 

[ecommerce84]

Something to keep in mind is that businesses are very rarely profitable in the first year, many don’t even break even until year 2 or 3. What this means for smaller businesses is that you need a healthy dose of savings to live off of or another income to sustain you whilst the businesses finds its feet.

It sounds like your business has gone from being one that would have been a supplementary income to your partners to now needing to support a family, house and bills aswell and that just isn’t going to happen for a business that is 6 months old.

It could actually be that your business is performing reasonably, even whilst making a loss, but because of the change in expectations it is no longer viable. In that case you need to explore all of your options would include closing it down and find a job elsewhere or even open the shop for a couple of days (Friday and Saturday) and get a job for 3 or 4 until your husband is working again.

Is there any signs of progress in the business? Although the first few months of the year are tricky in retail we have Valentine’s Day and Mother's Day in there and chocolate shops should do well with both.

Your online presence really need’s work, at a glance some of the things I would work on:

• Your Google listing is pointing people to your house, change it to send people to the shop.
• Your Facebook posts are too short, and come across as unprofessional with poor grammar and ‘txt spk’
• Your pictures on Facebook are not great - does a family member or friend have a better camera you could use? And some better lighting. Social media sells food products so well, but you need much better photographs than you do currently.
• Stop doing polls asking what people want they want on Facebook, if you want to try an item, get some, take some great photos and sell it.
• Have some consistent opening hours

I really hope you can make it work but there is no shame if you can’t.

If you want a ‘hero’ product to try and push on social media in the run up to Easter, try half a chocolate Easter egg filled with cheesecake and topped with lots of Easter chocolate such as creme eggs, mini eggs and maybe some caramel sauce as well (see link below). People like ‘OTT’ and these have sold very well in previous years. You need really good social media posts or TikToks to entice people in.

This is the sort of thing I’m talking about, super easy to make and super social media friendly: https://www.bbcgoodfood.com/recipes/cheesecake-filled-easter-eggs

 

[Lucan Unlordly]

This is the sort of thing I’m talking about, super easy to make and super social media friendly: https://www.bbcgoodfood.com/recipes/cheesecake-filled-easter-eggs

Wouldn't that require Food Safety & Hygiene qualifications, a suitable kitchen etc., to supply?

 

[japancool]

I don't think the OP is liking the answers they're getting.

 

[Lucan Unlordly]

I don't think the OP is liking the answers they're getting.

Probably not but in fairness she has a lot on her plate to deal with........

Partner is self employed and currently not working for 4 months due to medical reson so my wage is going on everything on the house kids bills aswell as paying my rent on the shop .

Hopefully she can find some breathing space and a lifeline to action some of the things that need to be done.

 

[ecommerce84]

Wouldn't that require Food Safety & Hygiene qualifications, a suitable kitchen etc., to supply?

The OP would already be set up in that regard - they have a 5 hygiene rating from their local council for their existing food management and are already making chocolate so that same space could be used for cheesecake eggs. There are no extra allergens being introduced so it should be a very simple step up.

I’d have to guess, but I’d imagine they have at least a level 2 in food hygiene as most councils will push for this on initial inspection if you don’t have one.

The only other additional requirement would be fridge space if they don’t have any.

 

[Clear Out King]

Yes valentine's was alot of left over stock. Loads of treats for mother's Day and Easter yet nothing.
We are all over social media great prices and started making our own chocolate bars,slabs and Easter eggs . Window displays nothing is working I am at a loss

To be really honest with you "all over social media" isn't actually true.
Not everyone buys on price, you need to find a USP for your shop, something you can tell people about, something that is exciting and/or novel and keep plugging that USP on every avenue that you can.
Contact your local paper, they are always looking for stories, unfortunately, unhappy ones, but you could tell them about what made you open, what your future plans are, and air your frustration at the lack of support by the locals for local businesses.
Do you stock the regular brands, Mars, Cadburys, Nestle etc?
Is there a local newsagent, for newspapers and magazines, you may be able to get the wholesaler to let you have stock on an SOR basis.
If you could get those you might offer a delivery service.
Could you be a local parcel drop-off point?
There are numerous ways to expand your business outside of the sweets and as you have a lease til September, you need to start thinking outside the box, as the shop is going to be millstone until then doing something is better than doing nothing.
Hope this helps in a small way and I wish you all the best for the future.

 

[MBE2017]

Sorry to hear of your problems OP.

FWIW, here is my 2p worth.

Firstly, you need to decide if you can carry on, both financially and mentally. There are several IP on the forum who will offer you free advice based on your circumstances, take the chance for an informal tel call. You need to ensure you are able too meet your legal requirements and not trade whilst insolvent.

Secondly, IF you decide that you can carry on, accept what you are currently doing is not working. You are never going to make a decent living selling in the format you are, so you need to conduct some market research and find out what could work.

I’m not an expert, but I reckon most small chocolatiers would only be profitable at the luxury end of the market with high margins, quality packaging and great tasting chocolate.

You could consider offering a white label service to various places, such as tourist attractions, garden centres etc, with their own branding on the box.

Lastly, if you decide to not carry on, concentrate on moving forward. Decide the best way for yourself and move forward.

 

[Lucan Unlordly]

Selling such products could result in a burden on the NHS, requiring billions of extra taxpayer money to treat these individuals later in life.

if you read first what I was commenting on you may have understood why.

If you read the post you were commenting on you would have understood that the poster was talking about the impact of selling sweets, nothing at all to do with the shop owner having no sales.?

 

[fisicx]

Please keep on topic and refrain from bickering. I have deleted the offending posts.

 

[Clear Out King]

If you read the post you were commenting on you would have understood that the poster was talking about the impact of selling sweets, nothing at all to do with the shop owner having no sales.?

So making a global comment has no bearing on the seller?

 

[Lucan Unlordly]

So making a global comment has no bearing on the seller?

Moreover, I'm uncertain whether I could run such a business ethically as it promotes unhealthy eating habits, particularly among children who are already overweight. Selling such products could result in a burden on the NHS, requiring billions of extra taxpayer money to treat these individuals later in life.

It was a personal comment made by Nico and any conclusions that link such with the seller are your own.

 

[MOIC]

feel like i may need to shut and look for somewhere else I am gutted any advice

From the information you've provided, I would take out your stock, fixtures and fittings first, and then hand the keys back to the landlord, with a written note explaining you can no longer carry on. If you feel that hanging on until after Easter (and be able to make a profit until then), then do this after Easter..

After doing the above, ook to sell your stock at a market/fair or similar, or just sell online, if either are viable.

First, reduce all of your expenses, but do it correctly.

I wish you luck.