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Entrepreneurship:  When a business is failing..what to do? : - (  |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
 Posted - Jan 08 2009 : 11:04:17 AM
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Well, as some of you may know, I went out on a limb and decided to open a store(brick & mortar) in the town I live in. It's called The Little Green Store. Well, after Christmas, I have some things on sale, but people are NOT shopping. I haven't had a customer in almost a week. If things continue at this rate, I only have enough money to stay open until the end of February. My inventory is on a credit card. I can make February rent and Feb credit card pmt, and that's it. If I get a few customers, it would only pay for the electric and phone to be on through the month of February as well.
I am by no means asking anyone to feel sorry for me, or to buy ANYthing. Here's why:
I would so much a million times over be at home.(then why did you start the store in the first place, you may ask? ...because NO one saw this recession coming! this is the WORST WORST time ever to start a retail business!) I have enough things at home to take care of and do, and my husband makes enough money for us. I feel like it is costing us more by me being here. He does not make enough to support any of the finacials of the store, and I feel so bad that the inventory is actually on my dad's credit card, and he's about to have something reposessed:(when he could have used the CC to make the payment:( )
The only thing I can think of, is letting my landlord know in advance, and start packing, bring everything home, and finally get the shopping cart on my website and just sell from home. Lots of businesses online are nothing more than dropshippers. Lots of them are not necessarily brick & mortars. So they eliminate rent/electric/etc. I would feel a lot better selling from home and only needing to make the $300 credit card payment, instead of the pressure to keep the electric and phone and rent money coming in.
My husband is an eternal optomist and it drives me crazy. At this rate, I would have to close Feb 28. He says it will all work out. HAHAH I'm the one sitting here, I'm the one dealing with these financials. I'm trying to make it make sense to him. We have no money to fall back on, so it's either close up, or ruin my dad's credit and get kicked out for not paying rent.
Have any of ya'll been through this or know someone who has? I'm open to suggestions. Dad is pushing me to run ads and have flyers made, but I dont think he understands there is NO extra money for things like that. I am right on Main street at a stop light and I have a sidewalk sign that people can see while walking or driving or sitting at the light. I've made flyers, and got no response.
What do you do when you know you're going under? |
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deeredawn
True Blue Farmgirl
2306 Posts
Dawn
Cordova
TN
USA
2306 Posts |
Posted - Jan 08 2009 : 11:13:12 AM
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What do you have to offer that no one else does? Can you get in some guest speakers? Arrange an open house? Anything that would draw in people. I'm with your hubby, I know your store and I see the potential with the products you offer, you just have to find a niche.
What would be the benefit of hosting a couple of informational nights? Could you get in a rep from one of your suppliers to talk about the benefit of their product? Maybe everyone that purchases that product for a week gets blank % off?
How about making up some very small gift bags, with an inexpensive product in it, a business card, a coupon, and going door to door to other businesses in your community? Walk in with a huge smile, intro yourself and your store, give the giftie and maybe explain a little about what a "green store" is. I did this, a lot of people didn't know a new store was in the area nor what we had to offer.
Cristine, I've talked with you a lot. Please dont give up. Start making a list of opportunities. I'll help if I can. Let me know!
Dawn #279
MJ's Heirloom Mavens-Mother Hen
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 08 2009 : 11:24:34 AM
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I dont think I could get any guest speakers a lot of my products come from the PacNW, and even then, I don't carry a big enough selection of their line for them to explain the benefits of natural. I've had an open house. I've had radio ads, a radio quiz and gift bag for the winner. I've put out litteraly 2000 business cards, and I tie one on to every bag a customer gets. I've walked door to door. It's like people won't even take the time to come in. I've given away a lot of samples that way also.
I would love to keep the store, but only do it as an online store and not a brick and mortar, I have to sell soo much product in order to pay bills and restock, it's nearly impossible.
I also kind of did it to myself by limiting my merchandise to things only American made. I could at least have some fair trade clothing or something. Americans are not willing to pay American prices.
Dawn, I dont want you to think my response is so negative, but I'm seriously running out of options, and I cannot afford to have but so many sales and promos.I'm in a small town, a financially strapped town, a town with 2 jobs in the newspaper and a horrible economy. I just feel like the odds are stacked against me and sometimes you just have to roll with the punches. |
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FebruaryViolet
True Blue Farmgirl
4810 Posts
Jonni
Elsmere
Kentucky
USA
4810 Posts |
Posted - Jan 08 2009 : 11:30:16 AM
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Christine, I'm so sorry to hear this, especially after you've done so much with the store. The problem is not you, or the store, it's the economy--it truly is. Right now, believe it or not, the only "incidentals" that people are spending money on is lunch/dinner at restaurants and hair salons. They just did an article in the paper that said people will forego all other things but will always go out to eat, and spend money on beauty.
Why not try the online store--there have been several here, locally, to do the same. One "green" store has only weekend hours, and maintains websales mon-fri. I have noted a serious drop in most retail establishments. I went to Macy's last night to see if I could find a dress for my babyshower, and I was the only one in the whole department store--and today, they made an announcement that they would close 11 locations nationwide. |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 08 2009 : 11:43:07 AM
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I saw that about Macy's. I don't want to seem like my mind is made up because I know I will be letting my dad down, and I don't want to do that, and I don't want to seem obstinate, but I am a realist.
The thought of it failing isn't what is bothering me. The thought of the ridiculous financial obligation I've taken on and cannot further afford is what's really bad. That's why I said I should start packing! Between my husband's businees and the store, and my dad is an OTR trucker, I am keeping all of our books and tryint to keep track of bills and such. So when I'm here at the store I can work on that, but I feel like a complete idiot for sitting around just hoping. I cannot make people come in. I have people come in and snub their nose at the product or the prices. I know it's not as cheap as walmart, but that's because it's high quality! GRRRR
I think it would be a lot easier to sell $300 worth of stuff to make the credit card payment and sell from home. versus selling enough to pay $475 for rent, $100 for electric, $75 for phone, and So I have $1000 worth of bills and if I sell $1000 worth of inventory, hypothetically I should be restocking and spending #1000 on that restcking. I don't make that much...EVER.
So the longer I sit here and sell down, the only thing I'm doing with the money is giving it to the landlord and draining my inventory.Imagine if I could sell $1000 worht from home! I could make the credit card payment, restock, and stay online in business! |
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deeredawn
True Blue Farmgirl
2306 Posts
Dawn
Cordova
TN
USA
2306 Posts |
Posted - Jan 08 2009 : 12:05:11 PM
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NOt a downer, I was just trying to brainstorm a little. The economy is awful. I get it. Do what you have to do and know that you have a sister here in Ohio to crab to when you want!
Dawn #279
MJ's Heirloom Mavens-Mother Hen
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 08 2009 : 12:14:52 PM
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| I lvoe to garden and cook and keep house and cut grass, etc. and since the store I've neglected all that. I feel like such a jerk. |
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LivingWell4You
True Blue Farmgirl
1411 Posts
Karen
Hillsboro
MO
USA
1411 Posts |
Posted - Jan 08 2009 : 12:16:48 PM
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Cristine, it sounds like you already know what you need/want to do but the issue is convincing your dad and husband. Sometimes when I see things down on paper instead of hearing just the words, it helps me to "get it." Try sitting down with them and showing them the numbers - brick & mortar store vs. online, income vs. outgo. Maybe that would help.
Whatever you decide, I'm there with ya, sista!
God bless -
Karen ~ Chickherder & Maven's Haven Editor
Farmgirl Sister #311 |
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Alee
True Blue Farmgirl
22941 Posts
Alee
Worland
Wy
USA
22941 Posts |
Posted - Jan 08 2009 : 12:19:40 PM
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You know, Cristine, if you keep your store online that will keep your business name going and once the economy starts bouncing back, you could re-expand and open up a storefront again. *hugs* I know this is a hard situation for you, but you also need to be comfortable in you endeavors as well.
Alee
Farmgirl Sister #8
www.awarmheart.com
Please come visit Nora and me on our blog: www.farmgirlalee.blogspot.com
Put your pin on the farmgirl map! www.farmgirlmap.blogspot.com |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 08 2009 : 12:30:02 PM
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A year from now things could be great, and if I did do good at home, I could save up enough to reopen! You're right. I was thinking of that earlier, but my brain is so scattered right now. My husband told me at the beginning of this not to get bored and give up, so I just feel so bad. I'm making my positive and negative list right now. I'll try to post tomrroow!
I'm headed home to get up the nerve to talk to my dad. I know he wont be mad, but the money does have so much to do with this situation. I feel like I didn't manage it properly :(
Hubby said we would talk about it tonight too...strength requested!
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Edited by - MsCwick on Jan 08 2009 2:33:52 PM |
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LivingWell4You
True Blue Farmgirl
1411 Posts
Karen
Hillsboro
MO
USA
1411 Posts |
Posted - Jan 08 2009 : 3:08:37 PM
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Ooooo yea, a pros and cons list! I used to do that on all my major decisions (haven't had the need lately). Taking your situation as an example, I'd make a list of pros and cons for keeping the store and one for closing for now and going online only. Then I'd rank each list (4) in order of importance. Then go with your gut. I did this once when I was trying to decide whether to stay in the town where I was teaching and about to get tenure or move back home to be close to my parents due to my dad's health issues. After doing all the lists, staying in the teaching town came out on top but it didn't feel right. So I went with my gut, moved back home and never regretted it.
Making the lists keeps those things from flying around in your head and gets them down on paper so you can quit stressing trying to deal with everything in your head.
Will be here praying for you, Cristine. Keep us posted.
God bless -
Karen ~ Chickherder & Maven's Haven Editor
Farmgirl Sister #311 |
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therusticcottage
True Blue Farmgirl
4439 Posts
Kay
Vancouver
WA
USA
4439 Posts |
Posted - Jan 08 2009 : 3:32:31 PM
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Cristine - I am so sorry to hear this. Missy and I went through closing our store in 2004. It was a very hard time as we had put our heart and soul into the store. But the sales weren't there and we didn't have a lot of money in the bank for backup. We basically put everything on sale 50% off and advertised as a going out of business sale. Then the stuff we had left we sold online. The saddest part was when people who had never been in the store before came in just because it was 50% off everything. Then they would ask why we had to close. It took about 6 months to get over it and now we both know we're a lot happier not being tied down to a store. It's a huge committment.
Handmade Soap and More! http://therusticcottage.etsy.com
The Rustic Cottage Blog http://therusticcottage.blogspot.com
PROUD FARMGIRL SISTER #100 |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 09 2009 : 07:44:36 AM
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Oh Kay, you're exactly right. I put SALE on my sidewalk sign and people come in and ask what's on sale? Well, the things with the sale sign by them, games, candles, and EMAB. Grrr. It's very frustrating. I just feel overwhelmed with trying to take care of the store and then everything at home too. It's just a lot. I don't have a lot of help. Before the store opened, and my husband's business was doing well when I wasn't working with him, I was helping him by running ads in the paper, managing his money, keeping his business organized. Now I'm doing that for him and I'm doing it for me, and I help my dad while he's OTR making sure his bills get taken care of. Then at night I have all cleaning and cooking and maintenance while my husband sits on the couch. I told him lastnight I wouldn't be so "for" closing the business if I had a little more help, but it will only last for a few days.
It's a lot of things culminating that are pushing me towards a particular decision.
Today I am going to subscribe to the ridiculous internet service in order to put my store online for actual shopping. If I get more web business than face to face business here at the store, I think I will take the whole store home. there is no point of selling my inventory online just to pay my rent. If I sell a thousand dollars a month, it would only pay for the store, depleting my inventory Of course it could grow, but by then I will have no inventory. If I were to sell a thousand at home, I would have $700 left after the credit card, either profit, CC $, or money to expand my inventory.
If I expanded my inventory, a year and a half from now, I could reopen and actually have a FULL store with a nicer variety! |
Edited by - MsCwick on Jan 09 2009 07:48:13 AM |
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julia hayes
True Blue Farmgirl
1132 Posts
julia
medical lake
wa
USA
1132 Posts |
Posted - Jan 09 2009 : 08:09:00 AM
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This is just incredible! I am so sorry for the stress here. The economy just blows my mind and I have all kinds of opinions that I'll spare you. I think the thing that impresses me about you is your flexibility. Your first post was very practical and you were examining how you could cut your losses. The most recent post was also very practical but you were looking at possibilities and opportunity. I think your resilience is astounding! As much as I'm bummed that things are so tight and tough for you in your current situation a part of me can hardly wait to see what wonderful things will happen as a result of your creativity and ingenuity! Here's to practical optimism!!
Good luck...we're all behind you!! ~juila
being simple to simply be
Farmgirl #30
www.julia42.etsy.com |
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graciegreeneyes
True Blue Farmgirl
3107 Posts
Amy Grace
Rosalia
WA
USA
3107 Posts |
Posted - Jan 09 2009 : 08:58:28 AM
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Yes Cristine - good luck. It sounds like you have really explored and deliberated on all of your options. It is unfortunate that the things we need the most right now in terms of the planet - organic foods, green items, American-made, are the first to go when the economy gets tight. It seems that people haven't really changed their priorities and it is time for all of us farmgirls to do more education such as: "If we had been buying american-made goods this whole time perhaps the recession would not have been so bad" of course that would lead to a whole huge lesson in economics, but these are things people should know. I work in an organic/gourmet store in Spokane and I tell you, between the weather and the economy, this Christmas season was dismal.
Best of luck to you, and let us know what you decide.
If you get your stuff on a website be sure to post here:)
Amy Grace
Farmgirl #224
"use it up, wear it out, make it do, or do without" |
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K-Falls Farmgirl
Chapter Leader
2096 Posts
Cheryl
Klamath Falls
Oregon
USA
2096 Posts |
Posted - Jan 09 2009 : 09:06:17 AM
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Cristine.. You tried a venture, a dream or whatever and it didn't work with our economy the way it is.. I applaud you for your effort & commitment. I think you are wiser to go on-line, The pro O& con list is a perfect tool.. Good Luck. Cut your losses and Move forward. Sounds like you have a plan in mind and I would go with your gut feeling. You might put a sign up on the store explaining your change. Good luck!
http://www.k-fallsfarmgirl.blogspot.com/
Come visit the barn at http://barndoorcreations.blogspot.com/
Cheryl
Farmgirl #309
"If you don't like something, change it. If you can't change it, change your attitude." Maya Angelou |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 09 2009 : 09:25:31 AM
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See my dad said go ahead and go online from my store location. But even if I sell $500 dollars worht of merchandise, ALL of the money goes to rent. Where as if I sell $500 from home, I get $300 for the cc payment and $200 for either restocking or inventory changes.
I have no support for closing and moving home. My husband said I'm wishy washy and then it got into a heated argument when I asked if he would help me brainstorm. My dad said whatever, just make the payments.
Honestly part of the reason I want to do it at home is because nothing gets done unless Im there, and my husband wont even be there if Im not there. So nothing gets done. If I worked from home I would be able to do all the things I stay up til 11pm doing now. |
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lorijarrett
True Blue Farmgirl
112 Posts
Lori
Norfolk
NY
USA
112 Posts |
Posted - Jan 09 2009 : 09:43:30 AM
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You know there does come a time when you have to just do what you in your heart know is right. You will probably receive some negative comments and hurt feelings from your family but you are ultimately responsible for the debt right? I guess if it were me I would just stop trying to gain everyone else's approval (after repeated attempts to explain the issues) and do what I thought needed to be done. I hurt for you, I can hear the desperation in your words and frustration but in the end the decision is still really yours. Take care and god bless.
Lori
www.countryhandsandheart.etsy.com
www.farmgirlinthemaking.blogspot.com
Farmgirl at Heart #397
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 09 2009 : 11:08:33 AM
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Lori, you are truly right.
PROS:
Stay open
publicity
room for overstock
room for josh's office
face to face cust svc
strength during economic downfall
stability
close
take care of home(very important)
less $ out for electric/rent/advertising
more $ for credit card pmt to pay off
time to sell my prod @ farmer mkt
could reopen in a year or so if(& w/ better inventory
MAYBE husband could help w/ of $ such as internet fee?
possible money for advertising?
CONS:
stay open:
less $ to pay down on CC
more money/inventory gone to pay rent
cannot stay stocked($ goes to rent)
no $ for advertising
expensive internet fees to sell from home
closing:
less publicity
lost money on shelving/some inventory(but could be used in future)
inability to find affordable rent in the future
expensive net fees from home
shipping materials(could incorporate into shipping cost sometimes)
Feel free to help me with any pros and cons....your ideas are welcome beause obviously I need them |
Edited by - MsCwick on Jan 09 2009 12:33:52 PM |
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LindaLee
Farmgirl in Training
10 Posts
Linda
Milwaukie
OR
USA
10 Posts |
Posted - Jan 09 2009 : 11:30:57 AM
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Cristine-
Those of us who have a heart for entrepreneurship are sorrowful with you! I also wanted and want my own shop; had a cute little old "grandmas" house on the main street, all picked out in September. i got quoted a great deal on the lease [because the owner was desperate!] . . . but I backed out . . .due to the impending shakey economy. I go by the place and it is still empty! I dream about what could have been . . . and what still might be in the future. Hooray for you for doing your online store, that's exactly what I decided to do back in November! So far it is still difficult but it helps me keep busy and be creative! Now I don't have those lease payments and I'm HAPPY! I say good for you! for making the hard decisions and moving on! Good luck! Let us all know what your online address is!
Linda
Country Gram's Handmades |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 09 2009 : 11:45:46 AM
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see, i put the deposit on the place in the end of july before there was much insight into what the economy was going to do. I opened sept 15th, and october was the WORST retail sales month since like 1980 or something!
You were just a bit later tha me and had more time to see what was going to happen! I'm glad you didn't dive in like i did.
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Jami
True Blue Farmgirl
1238 Posts
Jami
Ellensburg
WA
USA
1238 Posts |
Posted - Jan 09 2009 : 12:05:39 PM
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Christine, do you have a written business plan for your business? I have found it a very useful tool for our farm business. When I lose track of why I'm doing it or I'm in a hard spot, I revisit the plan and it reminds me of the vision and goals and how I mapped out how to achieve them. It's also very appropriate to change or tweak the goals every now and then as you change focus or circumstances but you end up still working towards your vision in a workable and pliable way. It may end up that you are achieving your business goals quite differently than you set out to do but it's working and fitting into life and circumstances better than being too rigid and sticking with a plan that is outdated.
I wish you well in your decision.
Jami in WA
Farmgirl Sister #266
http://woolyinwashington.wordpress.com/
http://farmhouseflair.etsy.com |
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MsCwick
True Blue Farmgirl
775 Posts
Cristine
Farmville
Virginia
USA
775 Posts |
Posted - Jan 09 2009 : 12:31:04 PM
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| I dont have a business plan per se. I only have my own personal projections of what could happen at this rate. At this rate, the month of January, I would barely make enough to pay the electric bill, let alone rent/phone/restock. $38 dollars in 10 days. |
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Meadowflower
Farmgirl in Training
25 Posts
Lisa
Harrisburg
Pa
USA
25 Posts |
Posted - Jan 28 2009 : 05:03:35 AM
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Hi Christine,
It's definitely the economy. Unfortunately it's not going to get better by February, in time for you to recover. Everyone is tightening their belts tighter and tighter...and tighter. Not only are we doing without extras, we're bypassing things we need to live, trying to wait until we get more money or until...? You're not the only business having problems. Large retail stores (Circuit City, Linens and Things) that have been around for a long time are closing for good. The signs are all around.
We have been through a similar thing. My husband opened a food delivery business years ago. It was doing pretty well for awhile - busy but not very profitable. Then business started dwindling. It got to the point where all the money from his day job was going in to support the business, and we had nothing to live off of. He thought optimistically if he spent $10K (using credit cards) on advertising, that he could drum up some more business. We discussed it and agreed yeah that may bring in some more business, but would it be enough to cover the $10k we spent on the credit card + cover the business expenses so we can make a tiny profit + no digging into his day job money? Not likely. It wasn't realistic. So it was painful but we closed the business.
We felt bad for awhile but didn't regret it later. We could have seen ourselves in poor poor shape later had we strapped ourselves down with that financial burden. IMHO, I think what you said is a great idea; bring your inventory home, close the shop, sell from home. When the economy gets better, if you think it's feasible and profitable to put your store in a brick&mortar again, then great. But maybe you'll like running your business from home and keep it that way! Who knows.
Please let us know what happens! |
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bohemiangel
True Blue Farmgirl
2087 Posts
Bridget
Ligonier
pa
USA
2087 Posts |
Posted - Jan 28 2009 : 09:19:11 AM
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I work at a small shop equine chic, we have had some of those days and weeks. Our town we joke sleeps jan-feb. I think IMHO that the online store is calling to you! :) I will be praying for you and wish you the best! xoxoxo we're here to support you!
**~~Farmgirl Sister #60~~**
"... to thine ownself be true."
http://liggybitsandpieces.blogspot.com/
http://ligonierliving.blogspot.com/
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Entrepreneurship: When a business is failing..what to do? : - ( |
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When a business is failing..what to do? : - (
