When to close a business?

[Tigris]

I've been trying to grow an ecom store for around 3 years now and every month I put my own money in to pay the outgoings (not even paying for itself yet). Quickbooks/shopify fees. I started on Amazon and was advised to setup as Ltd so there's the year end fees as well.

The website sells 1 product and I just can't generate enough to launch another product. I have done courses on SEO to optimise the website and make it more appealing. The business is active on social media and it's growing on facebook but sales aren't. I have recently left a 9 - 5 career job to setup on my own doing the same thing I was in my 9 -5 so I have that business as well.

I'm thinking it's time to call it a day soon. There are big companies which sell the same part under there own brand and they seem to dominate. The aim was to reinvest all profits into more products but it's just not going anywhere. I feel the £50/month could go elsewhere right now.

It's going to be extremely hard to decide what to do because i've spent so long researching, social media, on the website, trying out different google/facebook adverts etc. If I do close it ile keep the social media profiles going as they are niche related and aren't soley about the product and maybe relaunch in the future with a different product.

I know some people say they don't take a profit for years but when I sell 1 product a month I feel theres nothing to grow/expand from that after 3 years. In terms of adding my own money to make MOQ's etc i've probably spent close to £3000/£4000. I did originally start on Amazon and felt me and many others were getting rinsed from the advertising fees and then setup my own website to sell.

In the back of my mind I know business isn't a short term thing and sometimes you have to hang in there but when it's not evening paying for itself yet after 3 years (just £50 a month in Quickbooks/Shopify fees) i'm not so sure.

The big question when do you feel it's time to close a business?

 

[Alan]

Only you can really decide.

setup on my own doing the same thing I was in my 9 -5 so I have that business as well.

But if you want my gut feel opinion, based on what you have written. Shut it down and concentrate on your 'real' business.

 

[Paul Norman]

It is always difficult to come up with a generic answer to your question - and without looking more specifically at your business it is also hard to give you a definitive answer.

But you ask a very important question. More business people ought to.

As a starter, I would say these things:

1. If you cannot see a way to profit in a timescale acceptable to you, and that you can afford.

2. If it is not giving you a buzz any more.

3. If the sales are zero or close to zero after a reasonable time of marketing the product.

4. If you have something better to do with your time.

 

[Lucan Unlordly]

I may have the wrong end of the stick here but looking back at some older threads you've started, enquiring about label printers, CNC machines and a multitude of useful fixtures and features that could help your business, suggests that you may be putting too much emphasis crossing the 't's' and dotting the 'i's' rather than concentrating on actual sales?

 

[MBE2017]

Just to add to Paul’s post above, if you cannot see a way to improve your sales.

Hard to advise any further on such info, I would advise asking people where you might be going wrong, sometimes something very small in approach can change sales in a big way, other times not.

 

[Zade1975]

A couple of questions,

You said - There are big companies which sell the same part under there own brand and they seem to dominate.
What are you doing differently to these companies to make your item a better choice over theirs, what is your USP?

You said - I did originally start on Amazon and felt me and many others were getting rinsed from the advertising fees and then setup my own website to sell.
Were you selling more when you were on Amazon?

 

[Tigris]

A couple of questions,

You said - There are big companies which sell the same part under there own brand and they seem to dominate.
What are you doing differently to these companies to make your item a better choice over theirs, what is your USP?

You said - I did originally start on Amazon and felt me and many others were getting rinsed from the advertising fees and then setup my own website to sell.
Were you selling more when you were on Amazon?

It was a different product on Amazon but within the biking niche. I started to rank the product and found myself getting 5-10 sales a day at one point then ranking decreased and it's a spiral downhill from there.

USP is we offer a 5 year guarantee over other brands.

The aim was for me to do my career job and have the ecom business as well. I would love to keep it but at this stage I can't see a way forward really unless I was to pay someone (costing a lot probably) to analyse and point out any issues.

 

[TelesMedia]

Hi Tigris,
Whats the website - maybe we can give some advice?
Anthony

 

[MattRumbelow]

One thing I would say for amazon is that it doesn't really cater for stuff like '5 year warranty', as so many of the preferences are based around cheapness.

When you say that other people provide the same part, are you talking about literally the same product, or other versions?

 

[BusterBloodvessel]

Maybe if we see the part/website we could give some more constructive feedback.

If other more established players and more dominant players are selling literally the same part (is it the exact same thing?) then what made you try and get into the marketplace against them? 5 year warranty on the majority of things isn't going to be a great selling point I don't think....is it something that's known for failing?

 

[SillyBill]

The replies on here are kind IMO, 3 years and not able to cover £50 a month answers itself. I'd advise seeking (re-)employment at the earliest opportunity, effort and plugging away isn't noble if it leads you to the poor house.

 

[MarkOnline]

I've been trying to grow an ecom store for around 3 years now and every month I put my own money in to pay the outgoings (not even paying for itself yet). Quickbooks/shopify fees. I started on Amazon and was advised to setup as Ltd so there's the year end fees as well.

The website sells 1 product and I just can't generate enough to launch another product. I have done courses on SEO to optimise the website and make it more appealing. The business is active on social media and it's growing on facebook but sales aren't. I have recently left a 9 - 5 career job to setup on my own doing the same thing I was in my 9 -5 so I have that business as well.

I'm thinking it's time to call it a day soon. There are big companies which sell the same part under there own brand and they seem to dominate. The aim was to reinvest all profits into more products but it's just not going anywhere. I feel the £50/month could go elsewhere right now.

It's going to be extremely hard to decide what to do because i've spent so long researching, social media, on the website, trying out different google/facebook adverts etc. If I do close it ile keep the social media profiles going as they are niche related and aren't soley about the product and maybe relaunch in the future with a different product.

I know some people say they don't take a profit for years but when I sell 1 product a month I feel theres nothing to grow/expand from that after 3 years. In terms of adding my own money to make MOQ's etc i've probably spent close to £3000/£4000. I did originally start on Amazon and felt me and many others were getting rinsed from the advertising fees and then setup my own website to sell.

In the back of my mind I know business isn't a short term thing and sometimes you have to hang in there but when it's not evening paying for itself yet after 3 years (just £50 a month in Quickbooks/Shopify fees) i'm not so sure.

The big question when do you feel it's time to close a business?

Theres having a go and then theres wasting precious time. From the information given this looks like the latter. Get shut, learn from it and move on.

 

[Tigris]

The replies on here are kind IMO, 3 years and not able to cover £50 a month answers itself. I'd advise seeking (re-)employment at the earliest opportunity, effort and plugging away isn't noble if it leads you to the poor house.

I will concentrate on the business I setup which is what I left my 9 - 5 to do a few months back. I did secure a job driving for a supermarket as well just to make sure bills etc were covered whilst I build up my clients. The ecom/online brand I started i've been trying to build up in the background as well as working my 9 - 5 at the time and now my drivng job and repair business.

Theres having a go and then theres wasting precious time. From the information given this looks like the latter. Get shut, learn from it and move on.

I would say you are correct to be honest. It's a hard pill to swallow but needs to be done and move on I think. The past 2-3 years i've spent so much time researching trying to progress the brand but not going anywhere. Given up a few hobbies in the evening to focus on it including the social media frequent posting etc etc. Feel like it's been nothing but business and small amount of family time but i've learned a few things along the way

 

[Lucan Unlordly]

I will concentrate on the business I setup which is what I left my 9 - 5 to do a few months back. I did secure a job driving for a supermarket as well just to make sure bills etc were covered whilst I build up my clients. The ecom/online brand I started i've been trying to build up in the background as well as working my 9 - 5 at the time and now my drivng job and repair business.



I would say you are correct to be honest. It's a hard pill to swallow but needs to be done and move on I think. The past 2-3 years i've spent so much time researching trying to progress the brand but not going anywhere. Given up a few hobbies in the evening to focus on it including the social media frequent posting etc etc. Feel like it's been nothing but business and small amount of family time but i've learned a few things along the way

Just 3 days ago you started a thread about packaging for a Bike part. If this was for the same product you are struggling to shift, as I said above. Step back and concentrate on selling, selling, selling! Stop researching, looking for magic cures and trying to put lipstick on a Pig.

Find your unique selling point or create one, 2 for the price of one, 2nd one half price or whatever it is, and make people want to buy.

 

[SillyBill]

I will concentrate on the business I setup which is what I left my 9 - 5 to do a few months back. I did secure a job driving for a supermarket as well just to make sure bills etc were covered whilst I build up my clients. The ecom/online brand I started i've been trying to build up in the background as well as working my 9 - 5 at the time and now my drivng job and repair business.



I would say you are correct to be honest. It's a hard pill to swallow but needs to be done and move on I think. The past 2-3 years i've spent so much time researching trying to progress the brand but not going anywhere. Given up a few hobbies in the evening to focus on it including the social media frequent posting etc etc. Feel like it's been nothing but business and small amount of family time but i've learned a few things along the way

It is a hard pill to swallow but an important one. Been there done it FWIW. My very first business I canned when I assessed that while it was able to supply me a living it'd be a sustenance living only and I wanted more than to just get by. So I went back to work for others for 5-6 years on good money. Until I hit the right formula when I did move back to the other side and never looked back. If you are not making decent money after a while there is a point when facts need to be faced. Best of luck, genuinely.

 

[Paul Kelly ICHYB]

By not selling on Amazon, Ebay etc, you have just reduced your reach by just about everyone in the UK and most beyond.

Depending on which service you use, you could pay your fees when you make a sale. Look at these fees as a cost of marketing/reaching those millions of people, not the platform ripping you off.

Continue with the website, although £50 a month for fees (inc QB) could be cut in half or more!

Have you done Ray's freshbananas.co.uk SEO course - that would be a great help, but remember, SEO is an ongoing thing.

Consider paying for UKBF membership and get members to review your website.