I posted previously about my online business (an online shop) and am struggling with things at the moment. Am considering scaling things back as an option to reduce overheads (wages and marketing are the two biggest areas of spend), but worried about how I might manage.
I took on an employee when pregnant (DD is 2.5 now), and things were great to begin with. I was able to work PT, it was profitable and I was drawing a decent income. It was all manageable.
Over the past year, sales have dropped due to Google algorithm changes. Currently, I’m working 30+ hours per week (includes weekends and evenings) and my employee works PT. Several months ago, we took out a loan – part of it to invest in the business (to overcome the Google stuff) and part of it as our own living expenses. This money will have run out in 4 months time.
To scale back, I would need to fundamentally change how I run things with the business. With no employee, I would need to do everything, working every single day – probably no holidays at all etc. But on the up side, I would reduce some of my £18k marketing spend and wages bill. I couldn’t do it forever like this, obviously, but it’s an option.
To throw in a curve ball, DH and I would want another DC soonish (I also posted about this previously!). This was one of the drivers for taking out the loan, as we needed to give it our best shot as time’s fairly limited. But, if I scale back, it’s going to be very hard to bring in another employee as the business won’t be able to afford it.
Anyway, I’m really torn about it - especially as I feel that I want to spend more time with DD and together as a family, not less. I would love to hear any success stories if anyone else has been in a similar position of any kind. Or can offer any words of support!!
Thank you in advance.
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Any success stories from business owners who have scaled back their business - temporarily or permanently?
5 replies
Saffra · 11/02/2014 12:12
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