The end of the road for my business

[BusterBloodvessel]

First of all can I start this by saying I'm not even sure why I'm writing this. Perhaps just a cathartic exercise and any comments or thoughts from anyone that's been in the same position might be nice I guess.

I'm closing my business. I'm giving up, walking away, and turning my back on it. I can't help but feel like a failure, but at the same time I'm an idiot for continuing to try and flog a dead horse.

Business is a bakers/sandwich shop set up in 2018. We had a turbulent first year when one of the 3 partners left but then things settled down - myself and my business partner remained, he works full time in the business - and were actually looking pretty promising until Covid hit. It's just ruined us, and it's not getting any better. We are heavily reliant on the lunchtime trade and deliveries to offices etc which has completely been dessimated and won't ever revert to how it was before as people remain working at home. Going on Ubereats/Deliveroo has helped to keep things going but it's still just about been breaking even or losing a small amount week on week, these losses are now creeping up as the energy and food costs shoot up and there's only so much we can pass on - people have a "ceiling" in their head of a reasonable amount to spend on lunch and as everyone feels the pinch the last thing we can be doing is going through that.

Meanwhile I have continued to manage a full-time job which often involves working away abroad for days and full weeks at a time. In the evenings I deal with accounts and bits of admin, Saturdays I spend working in the shop and sometimes Sundays, as well as helping out during the week to do the odd delivery or go to Bookers. Not to mention that each time the funds drip away it's me that's turned to to put my hand in my pocket and prop it up as I'm the one that's seemed to have the steady income.

Enough is enough. I'm tired. Beyond tired, in fact. I'm sick of not being able to concentrate on my work because I'm worrying about how many ****ing sandwiches we're going to sell today and if we're on track to break even. I'm tired of getting home from a 3 or 4 day trip on Friday evening and setting an alarm for 7am Saturday to go and serve pies and breakfasts. I'm tired of being tired, tired of being stressed. It's contributed towards the recent end of my relationship with the love of my life - because I didn't give her the attention and be around in the way I should have been, nor did I have the money to do some of the things we planned this year because I sank more money into propping up a failing business. I'm tired of saying "let's see how the next couple of weeks go' and I'm tired of trying to think of small changes and little things we can try that ultimately don't make a big enough difference. I'm tired of having ideas that we can't implement because we don't have any money to do so. I'm done....so what if I've failed? I tried, and now I'll go and live a normal life with a normal amount of free time to myself and enjoyy spending my wages on the things I want to.

As for what happens now.... I don't know, nor fully care. There are debts of about £20k - the problem is a lot of this is to friends and family and on a personal level I won't bump it and see them out of pocket. My first offer is for my partner to take it over - if he takes responsibility for all of the debts then I will hand over everything to him and write off the many thousands of pounds it owes me, not to mention the last almost 4 years of my life that I've wasted.

If he doesn't want to do that then I'll bump it and make separate agreements with the family and friends to continue paying them off. If I have to pay out a few hundred pounds a month for the next few years then honestly, I'm so done with the whole place that I will do. It would give me less stress and pain to do that than it would to continue being involved with the bloody place.

I don't actually know what's involved in liquidating a company of this size (debts 20k ish, no significant assets to speak of other than some fridges and freezers really) in terms of costs and procedure, does anyone? I assume it has to go through a legal process with the creditors involved?

But whatever is involved.....Enough is enough and I guess you have to accept when you have failed.....right???

 

[UkAppCoder]

Always sad to see anyone in this position. The same sort of thing happened to my wife in the 90's - very small profits for far too much work. She was trying to sell high class Italian meals in a market where only lunchtime take-away was required to simply fill bellies!

Sorry I have no advice to offer, but I guess you've heard pretty much everything in this regard, so I wouldn't even try!

Perhaps when you've paid your debts you could try again. I've seen some pretty good advisors regarding business plans around here.

All the best, and chin up!

 

[Assistant Advice]

What a heartfelt post - and yes, of course it is okay to realise that things have run their course!

Your post clearly shows you have thought things through and enough is enough. But don't look at it as a total failure - you had a successful business at one point and then things conspired against you, for whatever reason.

Life's too short to be constantly stressed and tired all the time - you have an exit plan now go and enjoy yourself.

Good luck.

 

[Fagin2021]

It's not a 'failure' at all. You worked hard and gave it your best shot but were overcome by circumstances beyond your control. There's a difference though..

Many companies go bust with the directors/proprietors minimising the damage to themselves but leaving their employees/shareholders/creditors/suppliers in the lurch. You're not doing that and you have a plan. You also have a steady job to revert to and a better lifestyle to look forward to.

You can leave with your head held high rather than your tail between your legs and who knows, after a decent interval to regroup you might feel the urge to start another business,

 

[MOIC]

A brave post to share with the forum.

You've been very open and honest and many businesses will be in that position. You've had the courage to say it's enough and get out, many people do not.

We've all had failures.

You'll be back.

 

[hikiwari]

Good for you for having the guts to start a business.
Good for you for working hard and trying to make it a success.
Good for you for being brave enough to call it a day.

My heart goes out to you and I wish you all the very best for the future.

 

[MBE2017]

Sorry to hear the news, but it seems you have tried hard and circumstances can sometimes overwhelm anyone. Most on the forum will have had their failures, I wish you the best for the future.

Who knows, in a while you might decide to try something else. Get some rest in the meantime a regenerate your batteries, sounds like you need a good break.

 

[Mark T Jones]

One key (often lacking) business skill is knowing when to get out.

£20K will hurt a bit, but is far less painful than digging yourself deeper in the hope of change.

Well done for facing up to reality. Onwards & Upwards.

(And as others have said, a failure is just part of your story)

 

[japancool]

I think a large proportion of members on here will have gone through something similar and can sympathise. It's never easy walking away from something that has taken up so much of your life.

I'm sure you will be able to pick yourself up and move on to better things.

 

[Ozzy]

Everything I want to say has already been said above, except for one thing. Please try not to use the word "failure" when looking at what you've been through, it creates an emotion which isn't really correct IMHO.
You started well and then circumstances outside of your control changed the world around how the business operates, and you have been wise and successful enough to recognise this and choose to walk away honourably. That is absolutely not failure, that is good judgement after giving it every opportunity. Echoing everything @Fagin2021 says above.

 

[The Byre]

Who knows, in a while you might decide to try something else. Get some rest in the meantime a regenerate your batteries, sounds like you need a good break.

This! You'll be back! Most of us have had several failures - one only has to succeed once!

 

[estwig]

Luving the comments about it not being a failure!

I've had 3 'not business failures' in my time, an emotional mix of anger, fear and relief.

Good luck mate, I hope things pan out for you.

 

[japancool]

Remember, it's only a failure if you spent all the company's money on blackjack and hookers!

 

[estwig]

Remember, it's only a failure if you spent all the company's money on blackjack and hookers!

Oh sh*t!!

 

[MikeJ]

Really sorry to hear this, it must be a difficult decision.

On a practical level - limited company or partnership?
What lease do you have on the property? Is it with you or the Limited Company (if it's an LC)? Any guarantee in place? What happens if you walk away? If there's a long time left with no break clause, you may be better off running at a loss than paying off the rest of the lease.

Check out what walking away will cost you before you make your mind up.

 

[BusterBloodvessel]

Thanks everyone for the kind words it does help. In all honesty if it wasn’t for my business partner effectively being out of work, whereas I can walk away and carry on, I’d have done it a long time ago so deep down I know it’s the right decision.

Mike it’s a limited company and the lease is with the company. There’s 9 months remaining I think but we do know the owners well and they know the pressure we’ve been under so I think they’ll half be expecting it and from the previous conversations don’t really envisage any problems. We’re leaving them (unless my partner takes over and carries on) with a shop to let in a much more useable and lettable condition than when we took it over!

I think one thing I’ve learnt, and this is just for anyone’s advice really that might end up reading this thread at some point, is that this kind of small scale business just doesn’t work trying to run it with a hands off approach. What does frustrate me is that I know if i had the time - proper time - to spend working in and on the business I could make a difference. My partner isn’t a business person and never proclaimed to be, he’s an extremely talented chef and baker. he’s ended up so involved in just running and working in the shop that he hasn’t time to work on trying to grow it and try new things and neither have I. If it was the kind of shop with a husband and wife team running it and happily taking a wage between them abd perhaps living above the shop in an old fashioned style way it could probably make them a nice little income. It’s not something to have as a passive investment.

 

[paulears]

There is a big difference between being a failure and something not working. Failure is doing things too risky, not responding, taking ridiculous chances and being irresponsible. You're closing a business because it takes too much time, and doesn't make enough to make it viable. That's common sense. Well done for making the decision. A friend of mine was a director of a very busy, very large family firm, run in the main, buy the family. He took the decision to walk away, to have time with his family and even moved from the area. He'd been an active senior person in the firm since the 70s, but it really was 24/7, with the family feeling guilty for taking a day off. Walking away freed up enough time to enjoy his over 60 life - if he'd stayed he would probably have been working until he dropped dead. In his case, the firm is very stable and doing really well - but in his case, the job was the family, and that's even worse to walk away from. He's OK financially, but not being part of the name on the doors any more is hard to walk away from.

 

[BusterBloodvessel]

Remember, it's only a failure if you spent all the company's money on blackjack and hookers!

Been there, done that, but with my own money ?? and only on blackjack - by the time I’d finished with that there was nothing left for hookers!! ?

 

[Lucan Unlordly]

Covid destroyed many businesses overnight but left other established one's with a solid structure and decent financial backing, with the belief that normality will return. It hasn't and is still biting hard.

You haven't failed and to be honest have done bloody well to stick with it rather than chuck in the towel at the first opportunity. You'll also have learnt a lot more from the experience that will bode well for any attempts to dip your toe into another business.

 

[Financial-Modeller]

At the risk of sounding insensitive, it seems that the business is unchanged since you asked virtually the same thing 15 months ago.

Anyon else losing the will to live now? On the verge of closing..

Apologies in advance but this is just a rant and a moan as much as anything. Maybe others here are in the same boat. We have a moderately successful, 2 year old bakery & sandwich shop. I have my full time job alongside it and haven't taken a penny out of the business, my business partner earns...

www.ukbusinessforums.co.uk

You received some good advice then, which you may not have heeded, as you have continued to subsidise the baker's career.

It feels like you need to be decisive and assertive now, and move on with your life.

 

[BusterBloodvessel]

At the risk of sounding insensitive, it seems that the business is unchanged since you asked virtually the same thing 15 months ago.

Anyon else losing the will to live now? On the verge of closing..

Apologies in advance but this is just a rant and a moan as much as anything. Maybe others here are in the same boat. We have a moderately successful, 2 year old bakery & sandwich shop. I have my full time job alongside it and haven't taken a penny out of the business, my business partner earns...

www.ukbusinessforums.co.uk

You received some good advice then, which you may not have heeded, as you have continued to subsidise the baker's career.

It feels like you need to be decisive and assertive now, and move on with your life.

We did, to be fair, including the sitting down looking at all the financials and talking through with some business savvy friends and family. We did manage to get a small additional local grant eventually, restructured some debt to our main meat supplier which allowed us to move to a much cheaper one, and went on the delivery platforms which made a big difference. Ultimately, however, not enough.

 

[Legendary Workwear Ltd]

Don't look at it as failure, you tried your best and you realised things weren't working out so you've decided enough is enough.

Now you should start to make plans for the time you'll have away from the business and enjoy yourself, life is too short to work every minute of every day so take some time and look after yourself!

All the best

 

[SillyBill]

Really sorry to read this and most particularly about your partner. The costs can be higher on others than on ourselves, we just don't realise that when we think we're doing it for them. And to echo other comments, don't beat yourself up, my dear old mother even now, when I vent, reminds me that you can "only do your best and if it ain't good enough, it ain't good enough". I always remind myself of this, in success and failure you can only give it your best shot. The failure is not trying in the first place...

 

[Dinky]

Thank you for sharing, your post is so honest and open and feels like it was written for yourself as much as us. I get a feeling that it must have felt a huge relieve writing it, in the sense that your true feelings about the situation were revealed, and at least now you have a clear direction moving forward to resolve the issue.

I can only echo what others have said, far from a failure, just a learning experience (a harsh one granted!). It took a global pandemic to cripple you, without which your plan would have succeeded! When you started you started with the information on hand at the time, and absolutely could not have factored in for a virus that would literally bring the whole world to a stop.

If you ever decide to run another business, you will be able to put to good use all that you have learnt from this experience. And if you don't start another, at least you gave it a shot, which for me is a big success as most people with big ideas never put them into action... but you did! You could rest easy knowing you give it a shot, rather than wondering 'what if?'.

 

[UKsouthwest]

My wife and I ran a couple of coffee shop / cafe type businesses for seven years. It is both very hard work and you don't typically don't make fortunes. Anyone who can make a go of these types of businesses is doing really well. We sold both businesses and did ok.
I know it is raw at the moment but don't think of what you have gone through as failure but as a learning experience. You will have learnt so much going through the process.
I have had a business making very healthy profits for the last ten years and have had to close this recently. This loss was also caused by the pandemic and literally nothing at all that I could do about it.
Life is meant to be lived and you have had a go. That is actually what matters. Onwards and upwards with your head held high.

 

[Jasondb]

Just wondering if you could sell the business, you yourself said it would suit a husband and wife team and have 9 months on the premises rental. They might even keep on your chef for a trial period.

Just a thought......

Respect for giving it a go.

 

[Justin Smith]

First of all can I start this by saying I'm not even sure why I'm writing this. Perhaps just a cathartic exercise and any comments or thoughts from anyone that's been in the same position might be nice I guess.

I'm closing my business. I'm giving up, walking away, and turning my back on it. I can't help but feel like a failure, but at the same time I'm an idiot for continuing to try and flog a dead horse.

Business is a bakers/sandwich shop set up in 2018. We had a turbulent first year when one of the 3 partners left but then things settled down - myself and my business partner remained, he works full time in the business - and were actually looking pretty promising until Covid hit. It's just ruined us, and it's not getting any better. We are heavily reliant on the lunchtime trade and deliveries to offices etc which has completely been dessimated and won't ever revert to how it was before as people remain working at home. Going on Ubereats/Deliveroo has helped to keep things going but it's still just about been breaking even or losing a small amount week on week, these losses are now creeping up as the energy and food costs shoot up and there's only so much we can pass on - people have a "ceiling" in their head of a reasonable amount to spend on lunch and as everyone feels the pinch the last thing we can be doing is going through that.

Meanwhile I have continued to manage a full-time job which often involves working away abroad for days and full weeks at a time. In the evenings I deal with accounts and bits of admin, Saturdays I spend working in the shop and sometimes Sundays, as well as helping out during the week to do the odd delivery or go to Bookers. Not to mention that each time the funds drip away it's me that's turned to to put my hand in my pocket and prop it up as I'm the one that's seemed to have the steady income.

Enough is enough. I'm tired. Beyond tired, in fact. I'm sick of not being able to concentrate on my work because I'm worrying about how many ****ing sandwiches we're going to sell today and if we're on track to break even. I'm tired of getting home from a 3 or 4 day trip on Friday evening and setting an alarm for 7am Saturday to go and serve pies and breakfasts. I'm tired of being tired, tired of being stressed. It's contributed towards the recent end of my relationship with the love of my life - because I didn't give her the attention and be around in the way I should have been, nor did I have the money to do some of the things we planned this year because I sank more money into propping up a failing business. I'm tired of saying "let's see how the next couple of weeks go' and I'm tired of trying to think of small changes and little things we can try that ultimately don't make a big enough difference. I'm tired of having ideas that we can't implement because we don't have any money to do so. I'm done....so what if I've failed? I tried, and now I'll go and live a normal life with a normal amount of free time to myself and enjoyy spending my wages on the things I want to.

As for what happens now.... I don't know, nor fully care. There are debts of about £20k - the problem is a lot of this is to friends and family and on a personal level I won't bump it and see them out of pocket. My first offer is for my partner to take it over - if he takes responsibility for all of the debts then I will hand over everything to him and write off the many thousands of pounds it owes me, not to mention the last almost 4 years of my life that I've wasted.

If he doesn't want to do that then I'll bump it and make separate agreements with the family and friends to continue paying them off. If I have to pay out a few hundred pounds a month for the next few years then honestly, I'm so done with the whole place that I will do. It would give me less stress and pain to do that than it would to continue being involved with the bloody place.

I don't actually know what's involved in liquidating a company of this size (debts 20k ish, no significant assets to speak of other than some fridges and freezers really) in terms of costs and procedure, does anyone? I assume it has to go through a legal process with the creditors involved?

But whatever is involved.....Enough is enough and I guess you have to accept when you have failed.....right???

A sad tale indeed. It reminds me of what I thought back on the 11th March 2020, seeing Italy shutting down the north of the country. I was literally shouting at the TV "you cannot do that, have you any idea how much trouble that will cause !"
It was utter madness (particularly as 99% of people were known to be surviving the infection).

 

[Justin Smith]

TBH my business doesn't make that much money, and even less if one deducts the rents I get from the flats over my shop which are nothing to do with the business. Buying the shop (and flats) was undoubtedly the best business decision I ever made.
But I like going to work, I actually look forward to going, it helps keep me sane. In fact it was vital during the pandemic. Plus I am way past the stage where I could work for anyone else, being told what to do ? I don't think so !