The Safety Net
...With Annette Bunn
Dear Nettie @ The Safety Net
I have been in business for a few months now and to be honest I’m finding it really hard. I have spent all of my redundancy money on this and I now haven’t got enough money to pay my rent this month and my sales are not covering my costs!
So far, I am proud that I have got this far on my own but I think I now need some help. I like the look of RIFT and I read the blogs and other information regularly.
I have been using an accountant that is not local and I’m not sure if that is some of the problem here!
Be good to know what you would suggest – Ben
Thanks for the email, and I’m sorry to hear that things don’t seem to be going as planned!
Although reading between the lines, I really don’t doubt your passion for the business you have set up, you don’t say what the business sells and why you are finding it so hard. I think I would need a lot more information to be able to help you specifically, but maybe the following general comments may help.
I appreciate that you have invested a considerable amount of personal money into this business (redundancy funds) and of course I don’t know your background, but I would never encourage anybody to work on their own, it is always important to surround yourself with the right business people / advisors with some experience of business – in my opinion these people are key to any business – particularly those who will challenge some of your decisions – although I appreciate of course it’s your money and your dream!
I doubt the problem is that your accountant is not local, it’s more likely that you are not having regular conversations about the business and reviewing what is going on.
Maybe the place to start is with your overheads! You clearly have some sort of business premises – ask yourself is this necessary? Is it a shop – could you instead sell online? If you are renting premises – how long is the lease – when can you leave without penalties? What sales do you need to make daily, weekly, monthly to cover costs and make a profit?
If these are not questions that can be easily answered, then maybe this is where having the right people around you would have helped – have you looked at business planning in detail – for instance looking at cashflow, monthly sales revenue, premises etc. I am more than happy to send you a template for this if you feel it would help!
Where I would really like to start though is by having a proper chat and exploring your business and see how we can help going forward – so please get in touch.