When is it time to stop trading ?

S

senni

Registered User
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Hi All

My Husband has a business in the high street( Brokerage ) all taxes paid to date, no overdraft facility and no business loans, all bills paid to date, it owes no one money( Thank God ) ...but

He has enough business coming in to keep the office open until Dec after this date I can see that he will have to put personal cash into the business. This money is needed to keep the rent and a part time staff member paid ( he has cut her hours already to the bone )

When is it time to call a halt to this business ? I can see that he will have to pay at least 40% into the business account to keep the business open from personal cash and this will impact on our family as we only have enough income coming in to support the family.

Please can you give me some advice ?
 
Tough one to call, as i dont know anyone who's self employed who wants to stop trading.

Id suggest look at the business, can you see it surviving if it gets the cash injection?

are there cutbacks you could make in the business?

Would your husband earn more in alternative employment? (dodgy given current employment situation, and personally could not see myself working for someone else unless in dire need)

Is there a future if you stick with it?

Its a place to start anyway and the fact that you recognise problems approaching is a huge positive.
 
Sounds like you have your finger on the problem. Closely monitor whats happening. As mentioned above is there a future, is the business growing or stagnating, is there alternative income sources, is your personal expenditure trimmed to the bone. Heartening to see someone who is on the ball.
 
We have seen our brokerage grow over the last number of years, but you need to be very flexible in the current environment. We have diversified across product ranges (general insurance, specialist liability etc) rather than concentrating on one or two areas. We have also invested a lot in technology and websites/online advertisement etc. I know this may not be easy to do over the short term but it is the only way forward that I can see. You could also look at a merger with another brokerage that might compliment the business that you are doing? Best of luck with it, if you would like any specific examples of how we have adapted let me know.


Jim
www.powerinsurances.ie
 
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