Closing my small business down

[smallbusinessowner]

In lockdown I started a small business during my maternity leave, that became really successful, and I hired a couple of staff.

But now that lockdown is easing, sales has dropped and I've had to VAT register as well, which means I had to raise my prices but then sales has dropped

Long story short, I'm really close to jacking it all in and going back to work full time. I don't love the business anymore and I get peanuts for working 24/7. Some months I don't even get paid and i ignore the kids while I'm working, it's causing me so much grief and stress

I want to just close it down but I feel really bad for my staff. How do I tell them that I'm closing down? And how far in advance should I tell them?

If sales have dropped it probably wouldn't come as a surprise to them that you are closing.
You should tell them as soon as you possibly can. It sounds as if you have to do this for your own wellbeing.

Thanks sparkling
I thought that opening a business would give me more flexibility but it's the opposite. I'm chained to my business

You aren't enjoying it, you aren't getting a reasonable wage from it, you feel your children are missing out, there's too much that's not right.
It's going to be upsetting to have to tell your employees, but they may not be all that surprised, if it was a business that benefited from lockdown but now doesn't.

Sounds really stressful to feel responsible for other people like that. But it might not be a huge surprise to them.

Would either of your staff be in the position to take the business over from you?

No I don't think they'll be able to take it on.. I can suggest but I don't think so.

Thank you for the moral support. I'm having sleepless nights as I feel so bad letting them down but my kids are suffering

As a fellow small business owner I totally understand where you are coming from. Vat registration is a total killer.

Self employment can see like a good solution but it’s just like a job but with added pressure when the buck stops with you.

If it’s not ticking all the boxes for you then I think you are right to stop.

You have to do whats best for your family

I don't know if it helps at all, but you can de-register from vat.

How about de reg from VAT?

Lower your prices & see if you can get the love back. Once you're sorted, there's nothing like working for yourself.

Obviously if it's making masks or something, chucking it in might be the best move.

You can't deregister from VAT if you're above the threshold for having to pay it though, I don't think.

@Kinsters

You can't deregister from VAT if you're above the threshold for having to pay it though, I don't think.

Of course you can't.

But given her sales have dropped dramatically she's below the threshold.

I will have to have a look to see if I can de-reg from VAT but if I make less than £85k pa with margins being so slim, I won't be able to sustain staff members anyway.

Having to deal with customers is the worst part, people paying a tenner and expecting their items next day delivered with tracking really blows my mind. I have a dedicated VA dealing with it but it still causes me anxiety every time a customer asks where's their stuff.

@CatrinVennastin yes I thought it would be great working for myself but actually it's worse than working a 9-5 in some ways. At least with a 9-5 job, I don't have to work weekends!

I run a small business and find it’s easier to sell less products for a higher margin
Eg I turn 30k per year but 18 k is profit.

I know exactly how you feel OP, but mine isn't a new business, so I can ride the wave of returning to a normal level of sales and still keep staff. You can't deregister for VAT until you have a year under threshold.
I think there are a lot of people just like you who set up businesses last year and jumped on the internet sales high, but have now come crashing down when shops have reopened and are struggling to keep going.

Oh, Sunday Spam!! So misdirected too