where to go from here... sole trader

F

F.B.I

Guest
Hi,

Sorry for laying my problem on this forum, I just don't know what to do. My business has only been open since the 22 june 2007 and it is failling. I took out a 35,000 business loan to start up with
(only because I couldn't get the full amount of 55,000) and now have had to get another loan to fix the account and bring it into credit. That loan was for 17,000. I guess for a little history, I deal in IT. My shop comprises of an internet gaming cafe, computer repair, Computer retail shop, website design and a games room with all the latest gaming consoles on a 42" lcd tv. When I first started with getting the lease, I was told it would take about a month or too. Like a fool I went and got a loan so I could pay the solicitor and the auctioneer. 8 months later I finally got the lease but, 8 months of loan repyments have also come from the loan (it was eating on it's self). all said and done, when I finally got the shop open the only part that was bringing in an income was the internetgaming cafe and the games room. During the summer it had done better then expected, only having 10 computers, and was paying the rent (2,800 a month). Unfortunantly, I had no more money for the rest of the shop (signage, adverts, stock, etc.). Now that school has started, I can't even make rent. I have the only computer repair shop in my area, and place that has something for the kids to do. I just don't know what to do now. The kids love the place, on the weekends they are always waiting by the shop for me to open and sometimes even cheer. I know all of them by name. It is going to kill me to close the shop. i need help. Thanks for any replies.
 
Well, first off, congratulations on taking the step and setting up in the first place. By the sound of it you have a business that is very much in demand if the kids are queuing up outside in the morning!

I know it's easier said than done but try to cut costs to stay operational for as long as possible and wait for busineess to pick up even more. Maybe think about only opening at the times the kids are off school to minimise your time/costs at the premises.

You say it's a Café, do you actaully sell drinks, snacks? If so, how are they selling? Could they be removed? Could they be used to offer incentives to customers to come in; eg: pay for 1 hour get free drink/snack? Offering this for quieter times might be an idea?

If the Games Room is the busiest part of the business, think about advertising this for kids parties etc. Offering discounts for quieter periods and bigger groups so as not to take away from your busy periods.

Maybe you could put up a prize for the winner/highest score (?) in the internet gaming at the end of each week/month. Maybe a voucher for GAME or XTRA VISION or similar? Small cost to you but might get the kids in longer or more frequently?

Also, are you operating all these services yourself? I know from being a web designer myself that one web design project can tie up your time for quite a while. You don't want to get bogged down trying to offer too much.

Anyway, best of luck with it, hope things pick up soon!
 
yes, I do it all myself. I don't have a cafe in the food sence, it's all internet, computer sales and repairs. The thing is, I have no more money. I can't advertise, can't even get in stock for the shop. I get a few people who wonder in a day looking for computer parts but, since I don't have stock I end up loosing them. I understand the customer when they don't want to wait a day for what they want shipped to the shop. I wouldn't either. I have thought of doing contests but again, I have no money for prizes or anything. Mean while the overheads keep getting bigger. I haven't been able to pay rent for two months now. I can't get any loans either. I have already checked. With out capital injected into the business, I will just keep getting in a deeper whole. I also have a baby on the way, that means soon my wife will be on maternity leave and only getting 2-3 hundred a month. If I can't become the main income bringer soon, we will be in massive trouble. What happens to those that file bankruptcy? will it affect my ability to accuire a good job? Thanks for the reply
 
Not any immediate advice, just that your post would clearly identify you locally and perhaps you are broadcasting too much info publically.
It seems you do need a proper business plan and market research...
R
 
I have a business plan, that is how I was able to get the loan. The way I structured it was that one area would compensate for another if one area slowed down. It would have worked only, when I opened the shop not all the areas were able to open at one time. I have the repair side open and internet side up. The website design and retail shop are not. I get the odd site to develope, but without the retail side up i'm in trouble.

It doesn't matter to me if i'm identified, as long as I have a remote chance to keep the shop open and recieve advice/help. The way I see it, how can someone give advice/help when the whole situation isn't known. Would I be wrong in thinking this?
 
You might be better off, for instance, removing the name of your town from your posts and from the "location" area of your profile. You shouldn't run the risk, for example, of your bank losing confidence in you if some of their staff reads this thread. You should be able to get plenty of good advice here regardless of whether you tell us who or where you are.
 
FBI

I sympathise with you, but there is no advantage to you in having yourself identified publicly on this site.

I have deleted your website address and your location from your profile.

Brendan
Administrator
 
Some businesses are simply not viable. You don't know that until you set them up. Many businesses fail. It's very difficult from where you are to know if this is a viable business or not. It doesn't sound viable.

You would need to find an investor rather than a lender. Or maybe a business partner who can bring some capital into the business?

Check out with your local bank manager if there are any business angels in the locality.

Brendan
 
or look to diversify into something else that can be done. If you could get capital to buy stock you could sell some of it on Ebay and the like to make some money. Cold call for computer repairs, advertise in as many free ways as you can. Introduce gaming nights/days so all the kids will bring their friends over etc or set up a gaming tournament thing over a few weeks or a month or two and the winner get a weeks free gaming or something else. Havent much time now but will get back tomorrow with a few other ideas you can toy with
 
The first thing that has struck me from your posts is that you have a computer room with 10 computers that are basically sitting idle for large parts of the business day. This type of room is in strong demand for private & public trainers all over Ireland, and in the suburbs of Dublin in particular. Private trainers typically would rent the room with the computers in situ to provide training for the day and/or night courses. This could be extremely beneficial to you and give you a source of income during the week.

There could also be an opportunity for you to offer classes in stuff like web-design and computer repair. Particularly if you have a workshop set up and the internet area which could double as a classroom.

Is this an option you have considered? If not, September/October is primetime to start thinking about facilitating night-classes!!!!!
 
I agree with the idea of serving snacks, hot drinks etc.
You could also provide the use of a photocopier/printer/scanner, telephone (I've seen this in plenty of internet cafes) sell computer accessories or even be an agent for mobile phones, depending on where you are located.
During the week it may be an idea to organise morning computer classes for the 'stay at home mum'.
Good Luck
 
I just see that you are broke and can't buy in stock.
Maybe you could share your rent with an interested party who would set up a mobile phone business etc.
 
Thanks for all your replies, I really appreciate it. There are many things in which were said that I have comptemplated. The only problem is, like wife says time is against us. The baby will be born in feb. I'm not one who has problems taking risks, but now that I have a family I wouldn't dare. What if thing didn't go right. The location I have is prime for footfall although, my wife informs me there is another location that the rent is a fraction of what it is now. It's just out further and kinda hard to get to with the one way street systems.
 
Mo3art has given some excellent advice. Have you contacted computer-training companies and offered your facility? Are there any large companies near you that might need training facilities for their staff?
 
Some brilliant advice from people there. I would agree that running a competition ..get local companies that woudl like to be assocaited with young people (like mcdonalds, shops, gyms,etc) to sponsor a few small prizes ..tell all the kids to tell their friends...charge an entry fee and that will give you some instant cahsflow to play with.

Then set about setting up a compter class advertise in thelocal church newslettersm, notice boards, schools etc. My sister gives computer classes to supplement her income and could be doing it full time she gets so much demand. she is a teacher . im sure if you approcached someone to do this in conjunction with you would also generate some money quickly. run a ten week course. 8-10 euro per week for 10 people each time. this will give you some money by collecting the course fees at the start. You have a good business but started off badly. you need to act quickly to turn this around. dont let it get you down. you got this far so you can do it.
 
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