I’m desperate. Will run out of money within a few weeks.

[123Holly]

I’m self employed with a shop based business. It’s seasonal and winter is my quiet time.
I usually manage to save up summer money and that keeps me going over the winter. However I had a member of staff that I discovered was stealing heavily in August and fired her. Since then I’ve just been working myself full time and haven’t taken a wage since August.
I already had taken a business loan to help with the bills but that money has ran out.
At home my husbands wage is not enough for us to live off. So I’ve been running up debt on credit cards so pay for essentials at home and for my shop. So now have £4000 on my card.
I don’t think I will be able to find money anywhere else and I don’t want to build up any more card debt. My rent will be due next month and there’s literally no money for it.
I don’t know what to do or where to turn. I’m stuck.
We own our own home (mortgaged) and I’ve said to my husband we might need to sell but he is dead set against it. That would be my last resort as well, as it is our dream home.
I don’t know what to do, and I’ve not been able to sleep well for months.
I’m stuck with the shop as I’m in a rent agreement and the landlord for three years so liable for the rent during that time.

Such a shame that your business has been so badly affected by the thieving staff member

Can't you sell the lease on the shop and get someone to take it over?

The problem is that even though there’s very little money coming in, I’m busy with customers coming in to enquire and prebook for the spring summer months. The money over the summer should be good so I need to figure out wether to get the summer out the business to pay off the debts then get out before the winter months again. That would be my preferred choice but January is such a hard month.

Right, OK. So.. what about the suggestions that you've been given?

What is it you sell? Can you rent shelf space to local crafters and artisans?

Can you reduce your shop hours and get a temp job? It's a bit hard to advise without know what you do but you said 'asset rich' and you rent stock out in summer so for argument's sake I'm going to assume bouncy castle rental. If not many people want a bouncy castle in winter, but some might for special occasions can you make sure that you are contactable and have set open days at the shop e.g Thurs-Sat 9-5 then look for a temp work around that. If possible you could get someone on a day rate to help out when you get a booking but you can't do it due to other commitments (temp job). It might turn into a more sustainable model for your business so don't give up just yet, think of it as an opportunity to develop?

I think your current problem is temporary and not related to the long term problem

This current cash flow problem can be coped with until September/October when you do one of the myriad of good suggestions above

If you realistically think you can make the money up and pay off the debts before September with all this work coming your way in the summer then I would have no problem with the temporary more debt

I think I’m going to fire off this email to the landlord to start off with. I’ve just drafted one up. Then depending on what he says can make a decision?
I think that’s probably what I need to know first.
I’ve just googled what a mortgage holiday from a previous suggestion. It could be a good option just for a few months to get me through.
Does that sound like a plan?

What is it you sell? Is it wedding related? I have a wedding related business that is quiet in winter and I'm in a bit of a flap this month, but I don't have a premises. You say you're there mon-sat until 6pm. Are you making enough in that time to justify keeping it open and power on etc? Can you keep it closed with a sign on the door woth contact details for appointment only and get a temp job for thw next few months, open it up again full time in spring and wind it down to fully close by next winter once debts are paid off?

Hideous spelling and grammar, sorry, fat thumbs.

If she was stealing from you then she should have been charged with that, and they would most probably have given her a compensation order so she would need to pay you back.
But it can take a long time to make I through the court system. How far along is that? You should get some money back.

Yes wedding related.
All my reps are saying how quiet it is and everyone is struggling industry wide.

Could you take a mortgage payment holiday? I think you can take 3 months twice during your term. If you are working in the shop try also surveys to make extra. I think teaming up with someone local - small rent to feature something like artisan chocolates or flowers etc could be a great idea. Whilst it’s quiet eBay anything you can. Maybe ask your landlord if you can have a few months reduced rent now and pay him/her back in summer? Good luck

The money over the summer should be good so I need to figure out wether to get the summer out the business to pay off the debts then get out before the winter months again.

But if you can pay off all the debts now through selling stock/equipment. Then why carry on accruIng more debt on the chance you might be able to pay the debt off in the summer. It would have some added risk because what if customers cancelled their bookings? Would it be another 9 months of you working FT but not bringing in any wage?

You’d have to do some maths to see if there is really any gain anything staying open.

Is it dresses or similar? Make a sign - appointment only until March when your opening hours will be blah blah, then get a temp job, ideally shift work so you can offer appointments during normal hours (just not every day but let them assume that's because you're booked up) Every dress shop I went to was appointment only so it's not weird. Then try and get rid of all your stock this summer.

Speak to your landlord definitely.
Or see if you can someone to share the space as a concession or similar?

And yes look into seeing if you can speak to mortgage provider too

Also how about working a second job? Or holding a sale to try and get a bit of stock cleared?

Time to get creative. Really good suggestions on here.
Mortgage holiday.
Sell off dodgy stock.
Focus on your best sellers/ high-profit items in the shop.
Shop open appointment only or two days a week.
See about sub-letting - beauty therapy trade would fit well.
Get a supermarket job for a few months - maybe nights.

It might be worth calling Business Debtline for some advice - 0800 197 6026. They're part of National Debtline but specialise in helping self-employed people. They may have some options for you to think about?

Sounds exactly like my sil a few years ago.

After a CCJ, they closed the shop, the bank put a charge on their house and she got a full time job. She & my dB spent the next two years working all hours to clear the debt.
All sorted now. Any future retail enterprise will be online.

If it's gowns, do you have a Facebook page? If not, you really do need one - even if you wind the business up, you'll want to use it to advertise any stock sales.

Have a "sample sale" by appointment only - advertise on every wedding site there is - they're are dozens on Facebook.

Advocate the point that brides can walk out with their dress under their arms the same day and take them away for fitting at their own seamstress.

What do you rent out?

Can you run the business from home? Do you have a room or garage you could do up as a boutique? Lots of people round my way are doing something like that these days.

It saves on rent, utilities etc.

Make sure you're getting all tax breaks through a decent advisor.

What is a CCJ Mint? Did they get to keep the house in the end?

There’s loads of good suggestions on here. I’ve sent the landlord an email and will sit down properly to put a plan in place.
I think if the landlord was to let me go then I would.
There’s not many empty shops in the area and it’s a very unique looking shop that generates loads of interest. Looks like something from diagon alley and people are forever taking pictures of the front.

How far into the three year lease are you. There is often a break clause during the first year. Our was with three months notice before the end of the first year.

The landlord may struggle to replace you. Won't he consider a short term reduction in rent or similar instead of you shutting up shop completely?

It’s a ten year lease with a break after 3 & 5 years. I’m into year 7 now. Never ever had a problem before. Just last year everything seems to have went belly up.
I’m hoping the landlord would see that I’ve been a good tenant. Replaced all the fixtures and fittings internally including a new staff kitchen. (All this done about 5 years ago) and maintained the premises inside and out the whole time. Surely that would go in my favour.