I need an angel

[3babies]

Hi All

I really need some help/advise. I am a mother of 3 children aged 1, 2 and 4. My youngest has severe illnesses and is always in and out of hospital.

Anyway I wanted to set up a business selling products to help parents in my situation. I've managed to get some product etc and things were going well.

A PR type company contacted me a few months ago with promises of helping to expand my business, I was silly and listened but now I have NZ$15,000 (that is about 6000 or 7000 pound) worth of bills, I'm about to loose my husband, family and house because all these extra bills are distroying my marriage.

I have tried everything, the bank, family, friends etc but now I have no where to turn, all I was trying to do was help people and now I lay in bed crying all night because I am going to be left with nothing.

I need an angel to offer some good advise.

 

[Textlocal]

Hello,

sorry to hear about your situation.

Is the £6000 mostly to be paid to the PR company? What did they actually do for you.. did they get you any press coverage?

I am guessing you are on a £2k per month retainer with them... and you have now cancelled this?

A.

 

[Zeno]

Where is you business located?

 

[3babies]

Hi there, my business is in New Zealand. The money is partly owed to the PR company and partly to printing companies as well as some to the bank (They gave me a tempory overdraft that I had to pay back by the 20.11.08).
The PR company said I needed a rebranding exercise so I had to get photos, printing etc done. I have had no major press coverage yet however I do have a story about my son and the business going into the main magazine for parents in February, and I have been invited to a conference in January to showcase my products.
I now know how silly I was trusting them when they pretty much told me I had to spend money to make money.
On the positive I have talked to the companies that I owe money and I have cut down what needs paid now to $8500 (3500 pound) and I can pay the rest off over the next couple of months. Trouble is I cant even afford that.
I have had great feedback from people about my products but a lot of people dont even know my company exists.
We the conference in January and story in February I will know more where the company is at but how do I hold my head above water until then???

 

[Textlocal]

Sounds tough.

I was in a similar position 2 years ago... I got "addicted to Google" where you bet money on Google Adwords so that people see your business in the paid listings and click though. I was spending up to £1000 per week at one point... but I met a business partner on http://www.angelinvestmentnetwork.co.uk/ - where you pay £99 and if people think your idea is good enough they will invest in the business.

I got lucky... I "went all in" on the last card and one the jackpot.

So.. depending on what your business is it may be worth joining an Angel network like http://www.angelinvestmentnetwork.co.uk/ or http://www.angelsden.co.uk/ - although I am not 100% sure if those particular ones operate in NZ.... I am sure there must be something similar though.

Good luck!

A.

 

[Zeno]

This is predominately a UK based forum so I doubt people may be able to offer specific help.

What is it the PR company did you for? Did you have a contract with them?

 

[3babies]

Hi again

Thanks Txtlocal, I didnt even know places like that existed, Ive just found an angel investments place in NZ.
Yes Zeno, I do realise that this is a UK based forum but I couldn't find anything similar in NZ and still thought I could get some good advise here.
The PR company did a rebranding exercise

 

[Zeno]

Hi again

Thanks Txtlocal, I didnt even know places like that existed, Ive just found an angel investments place in NZ.
Yes Zeno, I do realise that this is a UK based forum but I couldn't find anything similar in NZ and still thought I could get some good advise here.
The PR company did a rebranding exercise

I wasn't criticising, just warning you that we might not know the factors in NZ.

The thing that worries me is where you said this PR company contacted you. Did they provide with a quote or an estimate of the costs invlolved?

 

[movietub]

Hi All

I really need some help/advise. I am a mother of 3 children aged 1, 2 and 4. My youngest has severe illnesses and is always in and out of hospital.

Anyway I wanted to set up a business selling products to help parents in my situation. I've managed to get some product etc and things were going well.

A PR type company contacted me a few months ago with promises of helping to expand my business, I was silly and listened but now I have NZ$15,000 (that is about 6000 or 7000 pound) worth of bills, I'm about to loose my husband, family and house because all these extra bills are distroying my marriage.

I have tried everything, the bank, family, friends etc but now I have no where to turn, all I was trying to do was help people and now I lay in bed crying all night because I am going to be left with nothing.

I need an angel to offer some good advise.

Don't feel intimidated, you owe a lot of money, they are probably getting nasty. Been through it all myself and I promise you your in a stronger situation and better protected than you know.

The good news (for the time being) is if you can't reasonably afford to pay the marketing company tell them the truth. Then explain you are seeking a way forward and you will respond in full after Christmas. So thats Christmas to focus on the family - stage one dealt with.

Stage two - do they deserve their money? If they advised you to spend that quantity of money they must have discussed targets or at least be able to prove they gave their advice based on what was best for your business, not just best for their pockets. If you now feel that the business is a flop and can't possibly make real money then I would question why they didn't sound alarm bells themselves before taking a lot of money. They do have a responsibility to do whats best for your business as long as you are clearly led by their advice. going down this road will take at least a couple of months, you can involve any suitable advice bueros (or similar) in the process to make sure you have not been mis-sold or intimidated. They cannot interfere or pressure you while you are seen to be following the established routes. You are simply confirming the value of what they sold you - same as checking a reciept but take longer.

Just make sure you keep them updated along each step of the way. You cannot be seen to be ignoring them.

Finally if you do have to pay, whatever the final figure. Be honest. If its going to take you 2 years to pay them back offer these terms along with a full breakdown of your current situation. Even send them income/expense breakdown. Once you have demonstrated they will get nothing by taking you to court their only viable option is to work with you.

If it did get nasty I would immediatly offer the business in lue of payment. They thought it was worth spending £6k on after all.


Whilst doing all of the above really consider the future of the business. If you still believe it can work use its long term potential to fund an arrangement with those you owe money too. If it was more of a personal thing and you have lost faith in its ability to make money (or even break level) be honest with yourself about that too!

Good luck

EDIT - As pointed out earlier not many of us are experts on NZ procedures, but I expect most of the advice is relevant althouth the procedures may be different. speaking to any organisation that offers free legal and consumer advice will reveal the best avenues for you.

 

[Textlocal]

Yes.. http://www.newzealandinvestmentnetwork.co.nz/home

Now.. I don;t want to advise you to spend more money... but it is there for consideration. It worked for me... my advise is just be as "human" as possible.

The business world is full of so much corporate b"ll****, jargon and most of all people who want to take your money (mostly marketing agencies, PR companies and.. most of all self proclaimed web SEO experts!). Be very, very, very wary of them all. 99% of of them will take your money and deliver nothing. In fact, PR companies only succeed with the material that you give to them... in which case, if you have material... do the PR yourself! The editor of any magazine is just a phone call away.

You have spent your money already, so you now need to think about being more creative. Do you own PR.. don't be afraid to pick up the phone to your local newspaper.

Keep your eye on the local news.. are there opportunities there?

Look out for partnership opportunities EVERYWHERE!! Get other people to sell for you with their own reputation. You are new.. it is hard for people to trust you - so build on the success of others. You can be sure they did the same

A.

 

[JustOneUK]

step 1 - save your marriage
step 2 - save your marriage
step 3 - save your marriage
step 4 - stop all monies leaving your accounts until you have sorted out your finances. If you don't have a viable business then close it or scale it down. If you think it's viable the approach friends/family and offer them equity in the business if they can contribute. Try getting a loan from the bank secured against your house, car, dog, or whatever (£6,000 isn't much)... above all save your relationship. Even if you end up with nothing it's worth having your family.

People go bankrupt all the time but still have their relationships in tact.

James.

 

[Chris Ashdown]

I would suggest you try and contact your local citizens advice and explain your problem to them, they will if the same as the UK give free advice and possibly advise freely on what you can do to the PR company and if they have acted in good faith


Try www.cab.org.nz

 

[Louise Jones]

Sounds tough.

I was in a similar position 2 years ago... I got "addicted to Google" where you bet money on Google Adwords so that people see your business in the paid listings and click though. I was spending up to £1000 per week at one point... but I met a business partner on - where you pay £99 and if people think your idea is good enough they will invest in the business.

I got lucky... I "went all in" on the last card and one the jackpot.

So.. depending on what your business is it may be worth joining an Angel network like - although I am not 100% sure if those particular ones operate in NZ.... I am sure there must be something similar though.

Good luck!

A.

Good luck 3babies, I hope everything works out for you!

txtlocal, thanks for the link going to have a look at the angelinvestments site myself

 

[3babies]

I have learnt the hard way that people (or some people) in business are nasty nasty people and take advantage of unwise people like me!!!
It is good to hear that I am not the only person who has been in trouble financially because of money problems.
I am mainly stressed because if I dont pay them (some of what is owing then I can pay the rest off) then they are going to contact a debt collection agency in New Zealand if you owe money to these agencies then you cannot legally have a company.
I have looked up the NZ investments network but honestly I don't think I can spend any more money!! Everyday I get e-mails from people that I owe money to and I hate it!!!
They dont understand that I have No money to give them!! I have explained my situation to them and that is how I have got the total owing now from $15,000 to $8000.00 and I can pay the extra $7000.00 off.
I feel so silly for getting myself in this situation but I know that somehow I will make it work. I may not have any money at the moment but I am working long hours trying to make it work!

 

[Zeno]

Do you have any money coming in?

 

[3babies]

Hi JustOneUK
It is really hard at the moment. When we brought our house we were a 2 income family and then our son got sick. I had to leave my job to be at home with him so we are now a 1 income family so the bank cant give us a loan against our house because our income is not high enough.
I love my husband and I hate the fact I have put us in this financial position. In your post you said that $6,000 isnt much but when you have nothing it is like $100,000.
All we seem to do is talk/argue about money and I would just love for him to come home and not have another money problem but I can't see that happening. He is working as many hours as he can which makes me feel even worse.
I guess I feel silly/guilty/angry with myself and take it out on him when its not his fault

 

[3babies]

I do have money from sales coming in and we have my husbands income. I have money invested in product in the storeroom but that does not pay the bills until I sell it!

 

[Zeno]

I am just trying to get an understanding if you can trade out of your current situation. Have you ever had financial statements prepared?

 

[3babies]

The company was only registered in May 08 and I have not had financial statements prepared. I have worked out that even without making any sales (if the business does not work) I have a spare $150.00 - 200.00 after paying mortgage, bills and living expenses. My main trouble is that I did not realise how much it costs to set up a business. I have a lot planned for next year (the conference and editorials in magazines) - I just have to get there!
I have seen a business mentor here who said I was on the right path, I just should not have committed myself to bills that I cannot currently afford.
My tip for the day "If you can't afford it - don't do it". If only I knew that a few months ago.

 

[Textlocal]

My lesson learned was "If your are spending money on marketing, and it clearly isn't working then.... stop spending money on it"

Yeah, seems obvious in hindsight I know.

A.

 

[3babies]

Oh yes hindsight is a wonderful thing!!

And if only we could see into the future!!

 

[3babies]

Thanks for all your suggestions/ideas. Its good to know I am not the only person who has made mistakes. I am just so angry with myself. Its funny (well not really that funny) I have spent the last few weeks trying to sort out my problem and a lot of the companies that offer to help just want me to spend more money - which is rather silly.
I think the systems are similar in the UK and New Zealand, I have talked to citizens advice and they had a business mentor look into my business. On a positive note he thinks it is a viable business but he had not been able to offer any suggestions for my current situation.
Anyway it is late here in New Zealand and I have spent all day (again) trying to sort my problem. Maybe a good night sleep will help - a magic fairy might drop a bag on money on my doorstep - well at least dreams are free.
I do feel better knowing that other people have been in similar situations and have got themselves sorted.
Thanks again

 

[3babies]

Hi all, I just thought I would give you an update on my current situation. I contacted a number of "business investers" here in NZ through Citizens advise but a couple of them advised me that I was not in as much trouble as I thought and told me to do a sale and extra promotion to trade my way out.
I am proud to say that I have managed to cut down what I owe by a huge amount and more lined up for after Christmas (even got a free bit coming up on prime time TV on a major channel-very exciting).
I did get a strange deposit into my bank account which the bank said was 100 pound that came from London...I dont know anyone in London so if this was one of you trying to help please let me know as I would like to repay it (early next year when I can afford to). I might be broke at the moment but I dont like charity as there are a lot of people worse off than me.
I now have 3 days to make $5000.00 (2000 pounds) and that will be everyone happy before Christmas. Any suggestions, ideas or donations (which will be repaid) gratefully received!

Thanks again for all your advise and have a very merry Christmas.

 

3babies...

One think you should seriously consider is offering information products about allergies rather than physical......reason being that the NZ search level is low, but the world wiide is huge. Yet the problem is the same in all contries , so aim at selling an advice guide...membership site or similar - trading on world scale ALSO allows leverage of a lot more traffic mechanisms.

 

[3babies]

Hi all, I hope you had a great New Year!! My big question today is

"Should I quit or keep fighting??"

I just don't know what to do, I can see the potential in my business but I can't get my debts paid to continue. I have so much happening in the next couple of months but how do I get from now until then with debt collectors and no money??? Why did I ever get myself in this situation? I know some of you are probably thinking why am I so upset about 2000 pounds but that is a lot of money when you dont have it!!

 

[3babies]

I forgot to say - Ive got Skype all sorted now

 

[movietub]

Hi all, I hope you had a great New Year!! My big question today is

"Should I quit or keep fighting??"

I just don't know what to do, I can see the potential in my business but I can't get my debts paid to continue. I have so much happening in the next couple of months but how do I get from now until then with debt collectors and no money??? Why did I ever get myself in this situation? I know some of you are probably thinking why am I so upset about 2000 pounds but that is a lot of money when you don't have it!!

I think I posted quite a while ago to say that if your debts/current cash flow aren't worth you going bust then its not worth your creditors pursuing the debt via any sort of legal action. If there is light at the endo of the tunnel simple communication of the facts will make anyone chasing you for cash realise that being patient will lead to payment. Legal action would bankrupt you and they would get nothing. It really is that simple and the guys who want money will know the score.

But now the situation is down to a couple of thousand for just a couple of months you could pretty much just give the old 'cheques in the post routine' or a varient of it. 60 days feels like a long time when people are on your back but in reality you will look back and see this time as a blip. A small one.

Really it sounds like you sorted most of your problem, just pay what you can when, communicate with everyone and sort it out as quickly as efficent running of the business makes possible.

Good luck, well done so far too!

 

[3babies]

Hi All,

Thanks for all your advise over the last couple of months. I have decided to press on and work hard to get myself out of trouble. Today my website is being update to be able to receive international orders so if you know of a child with an allergy or medical condition that requires a medic ID bracelet please point them in my direction.

Also I need to know of free ways to advertise an online shop.

Any ideas/suggestions gratefully received.

Thanks in advance