When should you give up?

[mantftf]

Dear Business Forum Members,

I am a director of a company that I established a year ago. I want to share my journey with you in the hope of seeking guidance and support.

The business had been going since 2005, but due to the cost of living crisis, interest rates, fuel, mortgage, etc., consumer spending was impacted, significantly impacting our customers and our sales.

Facing financial difficulties, I sought the help of a Chartered Accountant and Business Advisor. Unfortunately, their approach focused on liquidation rather than assisting in the business's recovery. Ultimately, the original company ceased to exist in January 2023, and I launched a new business with three staff members.

With my last investment of £100,000, we started again and achieved £2 million in sales in the first year. However, personal challenges and severe health issues have forced me to take extended leave since March of this year. My wife has expressed concern about my deteriorating health and advised me to step away from managing the business. Our cash flow has dried up, and if I don't generate more revenue or sales, the three remaining staff members will likely leave. This situation has left me feeling overwhelmed and at a loss for what to do next. I must also mention that during the last 12 months, I have not had any money from the business but had to give a pay rise to three staff members along with a bonus to stay with me. I have been told that if I don't offer a pay rise they will all leave and hence I had no other choice.

I understand that there are many factors contributing to my business's struggles, but I am determined to find a way to overcome these challenges and revive the company. I am contacting the Business Forum for guidance and support, especially in finding funding options to help us navigate this difficult period.

I appreciate your consideration and any advice or support you can offer. I believe that with the right guidance and assistance, we can turn this situation around and secure the future of our business.

Thank you for your time and attention to this matter.

mantftf

 

[mantftf]

Dear Business Forum Members,

I am a director of a company that I established a year ago. I want to share my journey with you in the hope of seeking guidance and support.

The business had been going since 2005, but due to the cost of living crisis, interest rates, fuel, mortgage, etc., consumer spending was impacted, significantly impacting our customers and our sales.

Facing financial difficulties, I sought the help of a Chartered Accountant and Business Advisor. Unfortunately, their approach focused on liquidation rather than assisting in the business's recovery. Ultimately, the original company ceased to exist in January 2023, and I launched a new business with three staff members.

With my last investment of £100,000, we started again and achieved £2 million in sales in the first year. However, personal challenges and severe health issues have forced me to take extended leave since March of this year. My wife has expressed concern about my deteriorating health and advised me to step away from managing the business. Our cash flow has dried up, and if I don't generate more revenue or sales, the three remaining staff members will likely leave. This situation has left me feeling overwhelmed and at a loss for what to do next. I must also mention that during the last 12 months, I have not had any money from the business but had to give a pay rise to three staff members along with a bonus to stay with me. I have been told that if I don't offer a pay rise they will all leave and hence I had no other choice.

I understand that there are many factors contributing to my business's struggles, but I am determined to find a way to overcome these challenges and revive the company. I am contacting the Business Forum for guidance and support, especially in finding funding options to help us navigate this difficult period.

I appreciate your consideration and any advice or support you can offer. I believe that with the right guidance and assistance, we can turn this situation around and secure the future of our business.

Thank you for your time and attention to this matter.

mantftf

Sometimes I think you need someone to say the Emperor is not wearing any clothes - I am going through my mind how can it come to this …yet again?

 

[JEREMY HAWKE]

I think you have contacted the right people I'm not a business recovery expert and there are some people on here a lot lot better than me
Over the years I have been in some shit but for various reason shutting was never an option and I hope your in that frame of mind and you can find a way through

Sometimes it does not require the highly educated professionals it requires the scrap yard dog with a win at all costs attitude
My question is how much do you want it to work and do you personally still want the hassle

 

[Paul FilmMaker]

There's a lot to unpack here.

You have some serious health difficulties and a business not making any money. Unless you believe you can grow it to profitability, then I would bin or sell it.

If you're struggling to manage full time because of health issues, one of those staff members should be the manager. The best thing I ever did in my first business was hire a brilliant, phenomenal, incredibly smart woman who was waaay smarter than me and very efficient.

So it depends what you've got going on. With my health issues, I nearly died and took a year or so out to recover. Sure, I had to completely reset the biz but after a couple of years I recovered and enjoy my home gym, going out to do sport. And most importantly, am enjoying growing the business again.

Are your health issues temporary? Fixable? Would a manager change everything? What would make it work?

 

[mantftf]

I think you have contacted the right people I'm not a business recovery expert and there are some people on here a lot lot better than me
Over the years I have been in some **** but for various reason shutting was never an option and I hope your in that frame of mind and you can find a way through

Sometimes it does not require the highly educated professionals it requires the scrap yard dog with a win at all costs attitude

Dear Jeremy,

Thank you for your understanding and support. It's taken a lot of courage to recognize that I'm struggling and that my health has been affected. I'm trying to manage my situation, but I'm also experiencing significant distress and unsure of what to do next.

I appreciate your acknowledgment of my situation and the impact it's had on my well-being. I'm committed to improving my health and finding the right path forward.

 

[HFE Signs]

I really feel for you, it sounds like you have given it everything and more, perhaps your accountant is right and as hard as it may be - it could be that it simply isn't viable anymore, can you sell off any assets or the goodwill to anyone else in the industry?

 

[Lucan Unlordly]

What is the nature of your business?

 

[Lisa Thomas]

Your health is the most important thing. If the Company is insolvent and no prospect of reviving then it might be time to call it a day and focus on your health and wellbeing.

Playing devil's advocate here because you seem adverse to the suggestion but you should speak to an IP.

If your company was previously liquidated voluntarily, and you were happy with the Liquidator, I would start by having a chat to them.

 

[mantftf]

There's a lot to unpack here.

You have some serious health difficulties and a business not making any money. Unless you believe you can grow it to profitability, then I would bin or sell it.

If you're struggling to manage full time because of health issues, one of those staff members should be the manager. The best thing I ever did in my first business was hire a brilliant, phenomenal, incredibly smart woman who was waaay smarter than me and very efficient.

So it depends what you've got going on. With my health issues, I nearly died and took a year or so out to recover. Sure, I had to completely reset the biz but after a couple of years I recovered and enjoy my home gym, going out to do sport. And most importantly, am enjoying growing the business again.

Are your health issues temporary? Fixable? Would a manager change everything? What would make it work?

Dear Paul,

Thank you for taking the time to respond. I find myself in a difficult situation, and I'm unsure where to turn for support. Firstly, I'm dealing with health issues, including Multiple Sclerosis, Bipolar, and recently diagnosed ADHD. The original business has gone into liquidation, and I've invested £100K of my personal funds to employ three staff members and establish the new company in Dec 2022. A manager has been overseeing the current business with my involvement at a higher level.

Regrettably, I've been off sick due to serious mental health issues, which are not temporary. Unfortunately, the business requires a further cash injection, and I'm uncertain about how to secure additional funds. I've already sold personal assets to invest the initial £100K, and I currently have no other assets to sell. I'm aware that staff members can find other employment opportunities, but I would be left to pick up the pieces.

I recently came across information suggesting that directors of companies with ADHD have a higher risk of Sui****.

I'm reaching out for advice and support on how to navigate this difficult situation. Any guidance or assistance you can provide would be greatly appreciated.

Thank you for your understanding.

 

[mantftf]

I really feel for you, it sounds like you have given it everything and more, perhaps your accountant is right and as hard as it may be - it could be that it simply isn't viable anymore, can you sell off any assets or the goodwill to anyone else in the industry?

Dear HFE,


I've poured my heart and soul and all my life's savings into rebuilding the business. Regrettably, I was compelled to agree to several commitments, even though our current financial analysis indicates that we cannot afford them. It's important to note that the business lacks any assets, as the liquidation process necessitated a complete re-establishment.

This predicament has left me in a highly vulnerable position, both personally and professionally. I'm grappling with the weight of significant mental health issues, and the financial burden adds an extra layer of complexity.

I'm contacting you for any support or guidance during this critical juncture. Your understanding and assistance mean a lot.

 

[mantftf]

Your health is the most important thing. If the Company is insolvent and no prospect of reviving then it might be time to call it a day and focus on your health and wellbeing.

Playing devil's advocate here because you seem adverse to the suggestion but you should speak to an IP.

If your company was previously liquidated voluntarily, and you were happy with the Liquidator, I would start by having a chat to them.

Thanks, Lisa,

I will do so.

 

[Mark T Jones]

One of the most frustrating and insidious forms of toxic positivity in business is the whole 'never give up' mantra.

Success in life, business and investment is about knowing when to get out.

That might mean cut your losses and get a job (or retire) or it might just be put things on ice and step back for a while.

Personally, when my business was bringing me down, I stepped right back - kidded my self I'd given up and drove vans for 18 months.

I could have happily not come back to the business, but in my case I actually realised what I was doing wrong (whilst delivering meat to Center Parcs) so made changes.

Going back may or may not be the right thing. What you need now is space between you and your business.

And a final note to anyone facing difficulties in their business - from someone who makes money by lending money

NEVER ATTEMPT TO BORROW YOUR WAY OUT OF TROUBLE!

 

[hikiwari]

Dear Business Forum Members,

I am a director of a company that I established a year ago. I want to share my journey with you in the hope of seeking guidance and support.

The business had been going since 2005, but due to the cost of living crisis, interest rates, fuel, mortgage, etc., consumer spending was impacted, significantly impacting our customers and our sales.

Facing financial difficulties, I sought the help of a Chartered Accountant and Business Advisor. Unfortunately, their approach focused on liquidation rather than assisting in the business's recovery. Ultimately, the original company ceased to exist in January 2023, and I launched a new business with three staff members.

With my last investment of £100,000, we started again and achieved £2 million in sales in the first year. However, personal challenges and severe health issues have forced me to take extended leave since March of this year. My wife has expressed concern about my deteriorating health and advised me to step away from managing the business. Our cash flow has dried up, and if I don't generate more revenue or sales, the three remaining staff members will likely leave. This situation has left me feeling overwhelmed and at a loss for what to do next. I must also mention that during the last 12 months, I have not had any money from the business but had to give a pay rise to three staff members along with a bonus to stay with me. I have been told that if I don't offer a pay rise they will all leave and hence I had no other choice.

I understand that there are many factors contributing to my business's struggles, but I am determined to find a way to overcome these challenges and revive the company. I am contacting the Business Forum for guidance and support, especially in finding funding options to help us navigate this difficult period.

I appreciate your consideration and any advice or support you can offer. I believe that with the right guidance and assistance, we can turn this situation around and secure the future of our business.

Thank you for your time and attention to this matter.

mantftf

I think it's important to recognise that you are a successful businessman who, through no fault of your own, has been forced to close your business and then been able to re-start and re-build to a significant £2m turnover on one year! That's pretty awesome!

The fact that you have been through all this with personal challenges and you are brave enough to be honest and reach out and ask for help makes it even more impressive.

Can I ask what your business does?
And are you close to retiring age or could you consider early retirement or part-time retirement?

 

[japancool]

@mantftf Do NOT let your business ruin your health.

When my business failed some years ago, I was spending all my time and personal resources trying to keep it afloat. I didn't realise how much stress I was under at the time.

As a result, the stress contributed to my kidneys failing. An accident caused by my failed kidneys caused me to lose my left leg. I spent the next 5 years on dialysis. Cataracts caused me to nearly go blind.

You do not want to be in a situation like that.

Since then, I've recovered, had a transplant and restarted my business, taking the lessons learnt from the first time. Given time and distance, I was able to look on the first failure with more calmness and understanding of why it happened and what I did wrong, but it takes time.

Take a step back and breathe. It's hard when you've put so much into the business, and you feel that you're a failure, that you have to keep it going at all costs, but that's the wrong viewpoint to take. Most business owners experience business failure, it's not a badge of shame. It's another hurdle in life that we have to overcome, and try to believe that you can do it.

 

[japancool]

NEVER ATTEMPT TO BORROW YOUR WAY OUT OF TROUBLE!

This x100. I did. It made things worse.

 

[japancool]

If I may ask:
1) What does your business do?
2) If you did manage to raise funds, what would you intend to do with it? (I'm not offering, btw )

 

[mantftf]

One of the most frustrating and insidious forms of toxic positivity in business is the whole 'never give up' mantra.

Success in life, business and investment is about knowing when to get out.

That could mean cutting your losses and getting a job (or retire), or it could be putting things on the ice and stepping back for a while.

Personally, when my business was bringing me down, I stepped right back - kidded myself I'd given up and drove vans for 18 months.

I could have happily not come back to the business, but I realised what I was doing wrong (whilst delivering meat to Center Parcs), so I made changes.

Going back may or may not be the right thing. What you need now is space between you and your business.

And a final note to anyone facing difficulties in their business - from someone who makes money by lending money

NEVER ATTEMPT TO BORROW YOUR WAY OUT OF TROUBLE!

Dear Mark,

I am grateful for your comment; it resonated deeply with me. There's often that pervasive mindset of "I can fix this," in doing so, I've put everything on the line—my life, my last bit of savings, and my unwavering effort.

Retirement isn't on the horizon; I'm in my early forties with a family to support. Despite the initial success of achieving £2 million in sales after restarting the business, we now need a crucial cash injection. I've borrowed personally to support the business and carry personal liability beyond my initial investment.

I would say that your cautionary note about never borrowing your way out of trouble is sound advice. Unfortunately, navigating these challenges often leads individuals to make decisions that may need to be more logical.

Thank you for understanding and offering your perspective.

 

[mantftf]

What is the nature of your business?

Furnishing / Lighting / Furniture

 

[mantftf]

One of the most frustrating and insidious forms of toxic positivity in business is the whole 'never give up' mantra.

Success in life, business and investment is about knowing when to get out.

That might mean cut your losses and get a job (or retire) or it might just be put things on ice and step back for a while.

Personally, when my business was bringing me down, I stepped right back - kidded my self I'd given up and drove vans for 18 months.

I could have happily not come back to the business, but in my case I actually realised what I was doing wrong (whilst delivering meat to Center Parcs) so made changes.

Going back may or may not be the right thing. What you need now is space between you and your business.

And a final note to anyone facing difficulties in their business - from someone who makes money by lending money

NEVER ATTEMPT TO BORROW YOUR WAY OUT OF TROUBLE!

Dear Mark,

I want to express my gratitude for your comment; it resonated deeply with me. There's often that pervasive mindset of "I can fix this," and in doing so, I've put everything on the line—my life, my last bit of savings, and my unwavering effort.

Retirement isn't on the horizon for me; I'm in my early forties with a family to support. Despite the initial success of achieving £2 million in sales after restarting the business, we now find ourselves in need of a crucial cash injection. I've borrowed personally to support the business, and I carry a level of personal liability beyond my initial investment.

Your cautionary note about never borrowing your way out of trouble is sound advice. Unfortunately, navigating these challenges often leads individuals to make decisions that may not seem logical in the moment.

Thank you for understanding and offering your perspective.

 

[mantftf]

@mantftf Do NOT let your business ruin your health.

When my business failed some years ago, I was spending all my time and personal resources trying to keep it afloat. I didn't realise how much stress I was under at the time.

As a result, the stress contributed to my kidneys failing. An accident caused by my failed kidneys caused me to lose my left leg. I spent the next 5 years on dialysis. Cataracts caused me to nearly go blind.

You do not want to be in a situation like that.

Since then, I've recovered, had a transplant and restarted my business, taking the lessons learnt from the first time. Given time and distance, I was able to look on the first failure with more calmness and understanding of why it happened and what I did wrong, but it takes time.

Take a step back and breathe. It's hard when you've put so much into the business, and you feel that you're a failure, that you have to keep it going at all costs, but that's the wrong viewpoint to take. Most business owners experience business failure, it's not a badge of shame. It's another hurdle in life that we have to overcome, and try to believe that you can do it.

Dear Japancool,

Thank you for sharing your story. I've spent the last 18 years building a business, only to see it collapse. Starting anew brought its own set of challenges, and now I find myself in deep trouble. The weight of responsibility feels overwhelming, and I'm losing the will to go on. Reflecting on my past failures, I've come to realize, especially after my recent ADHD diagnosis, that I tend to hold myself responsible.

Living with ADHD can be a constant struggle, and the feeling of being overwhelmed is ever-present. Despite my efforts, peace eludes me. It feels like a badge of shame that I desperately want to overcome.

I hope to find a way through this, but right now, I'm seeking someone who won't judge me and can provide honest advice.

Thank you for listening.

 

[mantftf]

If I may ask:
1) What does your business do?
2) If you did manage to raise funds, what would you intend to do with it? (I'm not offering, btw )

1) Furnishing / Lighting
2) Better Structure / Manager /Delegation / Fix all the current issues

 

[Mark T Jones]

It feels like a badge of shame that I desperately want to overcome.

To quote from 1984 'It's not cowardly for a drowning man to gasp for air'.

A decision to stop is a positive decision, failure is not recognising when you are going the wrong way (or not acting on it).

Your personal financial circumstances are none of my business; however there is a lot of work out there right now - albeit mostly low wage work.

Personally I chose agency driving, due to the flexibility it gave but there are lots of ways to earn money.

Your business doesn't need funding right now - it needs clarity & strategy. Or perhaps it has just passed its sell-by date. You can only work that out if you are distant from it.

 

[japancool]

B2B or B2C?

 

[mantftf]

B2B or B2C?

B2C

 

[mantftf]

To quote from 1984 'It's not cowardly for a drowning man to gasp for air'.

A decision to stop is a positive decision, failure is not recognising when you are going the wrong way (or not acting on it).

Your personal financial circumstances are none of my business; however there is a lot of work out there right now - albeit mostly low wage work.

Personally I chose agency driving, due to the flexibility it gave but there are lots of ways to earn money.

Your business doesn't need funding right now - it needs clarity & strategy. Or perhaps it has just passed its sell-by date. You can only work that out if you are distant from it.

Thank you - Yes sinking slowly and I can't breathe metaphorically speaking

 

[japancool]

B2C

First of all, you should look at your costs with a critical, open mind.

I hate to say it, but look at your staff. Do you *really* need all three? Can you do without any of them?

What about premises? What do you do at the premises that can't be done from, for example, home or a smaller unit? Are you paying for warehousing? Can you find a cheaper option?

Table out all your costs and go down them one by one. Take a big black marker pen and cross out anything you don't really need. Perhaps do this with someone else like your accountant, who can be less emotional about it.

What is your biggest issue now? Is it cashflow? Can you change your payment terms to ease any cashflow issues? Can you negotiate better discounts with your suppliers?

How much are you spending on marketing and is it giving you a return?

The exercise can be difficult because you're emotionally invested, which is why it's best to do this with another party.

You suggest you need investment to get a better structure and fix all the current issues. I don't know what other issues you are experiencing, but have you worked out how you're going to fix them? And how you intend to restructure? The worst thing you could do is get finance without a concrete plan.

 

[tony84]

Will you health improve? If not, I would knock it on the head.
Can any of the staff step up in to some sort of management role?

 

[MOIC]

Speak to your 3 staff about taking over the business, to leave you to step aside.

It may be painful, but reading this thread, you need to put your health first and let go of everything that is harming it.

Don’t dwell on past sales, profitability, ability to refinance or restructure.

Just get out of the situation with minimal cost and perhaps your 3 current staff can find a way themselves to make the business profitable. If they can’t, there’s your answer to not make any further investment in time, money or trying to save or resurrect the business.

Health first, always.

Are you seeing a professional for your current health issues, and what have they advised?

Follow their advice.

 

[BusterBloodvessel]

First of all well done on recognising there is a problem and reaching out for help. And as many people have said above, your health has to remain number one. I haven't been in a position as bad as yourself but I did let my business drive me mentally into the ground which in turn affected my relationships and general life until one day "enough was enough" - I was lucky enough that I was able to agree debt repayments over the following years to my friends and family that had invested in me and to return to a full time job. It still pains me to make those debt repayments each month, but I was otherwise able to walk away and it was perhaps the best decision I made in all the years of running the business.

Now, if you DO feel you have the energy left in you to turn this around, then could I suggest you give us all as much detail of you can of the business, how it operates, your customer base, supply agreements, etc. There are some fantastic business minds on here and an absolute wealth of experience. There will be a lot of ideas and suggestions for you - and whilst there is the risk of the old "a camel is a horse designed by a committee" it might only be 1 or 2 of those ideas that spark something for you or give you the chance to rethink/restructure/refocus.

I have to say that unfortunately so far it seems you are just keen on borrowing more money, with the vague idea of "Better Structure / Manager /Delegation / Fix all the current issues". Why do you need investment to delegate? What exactly are "all the current issues" and why would money magically fix them?

This is a wonderful forum that I have no doubt can help you. It is not, however, a bank or lending broker. I would strongly advise you to consider every option that doesn't involve borrowing more money.

Good luck and please do give us some further detail and I am sure we will all have ideas to help.

 

[Lisa Thomas]

Speak to your 3 staff about taking over the business, to leave you to step aside.

It may be painful, but reading this thread, you need to put your health first and let go of everything that is harming it.

Don’t dwell on past sales, profitability, ability to refinance or restructure.

Just get out of the situation with minimal cost and perhaps your 3 current staff can find a way themselves to make the business profitable. If they can’t, there’s your answer to not make any further investment in time, money or trying to save or resurrect the business.

Health first, always.

Are you seeing a professional for your current health issues, and what have they advised?

Follow their advice.

If the company is insolvent, I can't imagine any sensible employee would want to take over the business in its current entity.

A quasi phoenix/Newco maybe, but not the oldco.

 

[MOIC]

If the company is insolvent, I can't imagine any sensible employee would want to take over the business in its current entity.

A quasi phoenix/Newco maybe, but not the oldco.

Is the company insolvent?

Employees often take over the management (and possible takeover) of a business, as they will have more stake in turning the business around, rather than continuing as employees.

Just an option to be considered in my opinion.

 

[Lisa Thomas]

I don't disagree that an MBO could be a good option, where a company is solvent.

But here, who knows if the company is insolvent... Which is why I said 'if'.

However OP has said cash flow has dried up, they cannot afford to pay themselves, they have invested more than they can afford, they have sold personal assets worth £100k to inject into the business and it still needs another cash injection etc.

 

[MOIC]

I don't disagree that an MBO could be a good option, where a company is solvent.

But here, who knows if the company is insolvent... Which is why I said 'if'.

However OP has said cash flow has dried up, they cannot afford to pay themselves, they have invested more than they can afford, they have sold personal assets worth £100k to inject into the business and it still needs another cash injection etc.

If the OP is still trading, we must assume that the business is still solvent, albeit with cash flow problems, which many ( if not most) businesses may suffer during a period of trading.

Better to act now with a meeting with the 3 employees, rather than wait until the company is ‘officially’ insolvent.

Just my opinion.

 

[Lucan Unlordly]

I must also mention that during the last 12 months, I have not had any money from the business but had to give a pay rise to three staff members along with a bonus to stay with me. I have been told that if I don't offer a pay rise they will all leave and hence I had no other choice.

I have no experience in this field but can't help but reflect on an earlier statement. Were these 3 individual requests or connected in some way?

 

[mantftf]

japan coolFirst of all, you should look at your costs with a critical, open mind.

I hate to say it, but look at your staff. Do you *really* need all three? Can you do without any of them?

What about premises? What do you do at the premises that can't be done from, for example, home or a smaller unit? Are you paying for warehousing? Can you find a cheaper option?

Table out all your costs and go down them one by one. Take a big black marker pen and cross out anything you don't really need. Perhaps do this with someone else like your accountant, who can be less emotional about it.

What is your biggest issue now? Is it cashflow? Can you change your payment terms to ease any cashflow issues? Can you negotiate better discounts with your suppliers?

How much are you spending on marketing and is it giving you a return?

The exercise can be difficult because you're emotionally invested, which is why it's best to do this with another party.

You suggest you need investment to get a better structure and fix all the current issues. I don't know what other issues you are experiencing, but have you worked out how you're going to fix them? And how you intend to restructure? The worst thing you could do is get finance without a concrete plan.

Dear Japancool,

I had some further bad news from the test I had (MRI) and hence been not able to reply sooner. In fact I don't want three individuals and I won't have to do anything as they will leave due to money being dried up.

I have looked at all costs and there is no office costs as to save money we did the following:

1) Left Office 3 months ago - All working from home
2) Staff did cut hours to 4 days a week to save money
3) None of the suppliers will offer credit but we did contact for better terms
4) All other non essential expenditure has been stopped.
5) Less spend on marketing means -less sales - which means less money in the pot - it is a viscous circle.

I think it has come to a point that It is impacting me badly - like that feeling of sick to stomach, the business going down and I can't do enough to save it....

 

[mantftf]

Will you health improve? If not, I would knock it on the head.
Can any of the staff step up in to some sort of management role?

I think staff will leave as they all have bills to pay so will move quickly - I can't make them stay to fight this...

 

[mantftf]

Speak to your 3 staff about taking over the business, to leave you to step aside.

It may be painful, but reading this thread, you need to put your health first and let go of everything that is harming it.

Don’t dwell on past sales, profitability, ability to refinance or restructure.

Just get out of the situation with minimal cost and perhaps your 3 current staff can find a way themselves to make the business profitable. If they can’t, there’s your answer to not make any further investment in time, money or trying to save or resurrect the business.

Health first, always.

Are you seeing a professional for your current health issues, and what have they advised?

Follow their advice.

Due to Sui**** thoughts I am in the care of crisis team. The staff or one of them (manager) had mentioned that they will all leave so if that happens I have to step into the role of admin and sort out everything - whereas i have not taken anything from the new business and have risked my last bit of money - no wonder I don't have anywhere to go !

Really messed up and really difficult

 

[mantftf]

I don't disagree that an MBO could be a good option, where a company is solvent.

But here, who knows if the company is insolvent... Which is why I said 'if'.

However OP has said cash flow has dried up, they cannot afford to pay themselves, they have invested more than they can afford, they have sold personal assets worth £100k to inject into the business and it still needs another cash injection etc.

I am trying very hard and will take further advice - I thought I just ask opinion of experienced people here who won't judge me and be honest.

I do wonder why I put my self into this situation !

 

[mantftf]

If the OP is still trading, we must assume that the business is still solvent, albeit with cash flow problems, which many ( if not most) businesses may suffer during a period of trading.

Better to act now with a meeting with the 3 employees, rather than wait until the company is ‘officially’ insolvent.

Just my opinion.

Exactly - as most businesses will have cash flow issues - I am going through the same - the business is profitable and has taken nearly £2m - IF this was not a viable business then I would have found out in the first couple of months -what I do now is the key and sometimes you just can't breathe ...

 

[pentel]

as most businesses will have cash flow issues - I am going through the same - the business is profitable and has taken nearly £2m - IF this was not a viable business then I would have found out in the first couple of month

Have you done a cash flow forecast to find out what you need in the way of funding... and also find the point at which the business becomes cash positive....