Badly need a plan for my small business.

J

joanj

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I am currently running a small retail business. It is just about breaking even before I take a wage which really means it is losing money in real terms.

I own the property and have a mortgage of 265,000 on it costing 1,620 monthly. I have approched BOI to give me interest only to try and catch up on bills that are in arrears, vat, credit card suppliers etc. I have been told by BOI that if they agree my interest rate will go from 3.2 to at least 5%. This would totally defeat the purpose.

You will wonder how a break even business could go into so much arrears. It is because, firstly, I have to take a wage whether or not the business can support it and also my husband who was self employed is not entitled to any state payments so all our household bills including house mortgage have to be paid out of the business. The business cannot sustain this.

I can't close the business because I would have little chance of renting the property as there are many vacant properties.

Any advice would be most welcome as I am at the end of my tether and just don't know where to turn.
 
Apply for jobseekers allowance. It is means-tested but you could continue with the business (as could your husband).

It is not true that self-employed people are ineligible for all social welfare payments, they can still get the means-tested ones.

Go to your local office in the morning - it won't be backdated even if you have been eligible for years.

Sorry I'm not much help on the business aspect, but if you don't need to take a wage to live on it will ease the pressure.

Sybil
 
He applied for Jobseeker' Allowance in January and was awarded €8.00, yes, €8.00 a week. It was totally due to the fact that while they could see that the business could not afford a wage for myself. I have been paying the mortgage on the business, principal and interest and the way they view this is that the principal portion is viewed as earnings even though they have to be paid to the bank.

The business will most certainly go to the wall because it can't afford to pay all house bills but at the moment I have no choice and the ironic thing about it is if the business goes we will be immediately be entitled to Jobseeker's Allowance,
 
If you give some more detail on the business it might be possible to offer some suggestions.

Can you expand the business in some low cost way, for example sell through a website, bring in additional lines.

These things can be hard to seee yourself especially when you are under pressure.
 
Might sound silly but check out that programme that Feargal Quinn did on helping out businesses. You will get the last 3 episodes here http://www.rte.ie/player/#!v=1102383
It is sometimes the most simple of things that make an improvement. Making sure all things are priced. Layout of the shop. Ease of finding things.
This all depends on the kind of business it is.
 
Thank you for your interest.My business is a ladies boutique.I have looked at all fergal Quinns programmes with great interest to see if I can learn anything from them but im in a different position in that I did a refurbishment in my shop last year and it is very modern and well laid out.The main problem is the reduction in footfall and spending.I am looking into costings on setting up a website at the moment and also will be stocking some new brands in the next few months.If I was successful in getting interest only on my business morgage at the present rate it be some help.The next few months will be a make or break situation.
 
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