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| *Ostroff, Fair and Company>>>Small Business |
Should I close my office now or not? |
I started doing graphic design and printing part time about 4 years ago from home, and from jan 2005 I started officialy to run it full time. I have been very positive about it and seeing further, and I started spending more that I was producing thinking that the money spet was gonna help me make more money. In this same process a year ago I hired a friend to teach him and train him with the vision of having another person without too much cost to my company. We were working from home, and in february I leased a beautiful office. Now I am nehind in my credit card payments and moth to month I am getting behind my payments I used some money that I got and I had to start giving my friend a part time job only. I know Iam gonna get in troubles for breaking the lease I have, but dont have the money to keep paying month to moth all that money. What should I do ? You've out run your cash-flow.Common mistake for small business's.Break the lease and scale back on expenses to return to profitability.You have learned a valuable lesson:Cash flow and profit are not the same.If you are not using an accounting program,start.You need to determine the profitability of your company every month.once you determine your fixed expenses and then determine your sales break even point,you will be able to make an informed decision concerning moving to a new office.Don't let this get you down,at least you are aware of the problem and are looking for a solution.Wish you the best of luck. Amos Source(s): Corp CEO Pack it all in, try to consolidate all your debts. Tell all you owe money to what the problem is. The leaseholder can't get rent if you've got none. Failing that go bankrupt. Did you personally guarantee the lease?? If not go BK and get out of it. i guess you have to find out how's your cashflow, expenses and income, are they balanced? and figure out which expenses are unnecessary and cut it out see if you still have sth left...... First thing you should do is sit down with your business partner and see what type of ideas you two can come up with to make more money and to cut expenses. Second thing you should do is talk to your creditors. Explain the situation and see if you can make some type of arrangements. Thirdly, talk to your leaser. See if you can do some bartering. Bankruptcy should be your very last option. |
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