I opened my store almost a year and 10 months ago. I cater to early development and special needs. I took a business loan but have since racked up some credit card debt to make sure I always have enough inventory. I carry 60-70 different companies and am on prepaid terms with all but 1. My sales over the past year have not being covering overhead and now I'm running out of cash and every month is becoming a bit of a game to make sure I have enough for each bill. It's getting bad and I'm not sure what the right thing to do is. I've tried to cut other costs but there's not much to cut. I also run and manage my business completely alone (while being a mom of three). I started looking into debt consolidation, other loans,etc. but it seems to not be possible with the low sales. Here are some details, hoping someone can help suggest something.
Rent 1957 (going up 3% in oct)
Gas & Elec- up to 150
Verizon - 159 (hoping to get a better deal with spectrum in a couple months when contract is up)
insurance - approx 128 paid over 7 months (start again in Sept)
Garbage collection - 43.55
Merchant account fees (based on percentage of sales btwn 40-80)
Website - around 340 in December (I barely push the website because I feel like I lose money when I make a sale with higher shipping costs)
Loan payment 544
credit card minimums 608 & 80
Annual sales tax approx 2400, 150 for a permit for AC, account fee 650-700
Loan balance approx 36k,
credit card 1- 27,467 (interest comes to approx 330)
credit card 2- 8,127 (0% until Oct 2, 2017)
Monthly reoccurring payments set to credit card:
shopkeep - 79(just went up to this)
ADT- 63.25
Now for Income:
Net sales from aug '16-july '17: 29073
Tax return: 10,000
Rental Income (charge 15/hr for basement space for groups): 1881
My cash balance is dangerously low, maybe a couple thousand so I rely on sales now to pay for the next bill.
My inventory is pretty high - Almost 20k value (between 70-100% mark up -although shipping costs kill me)
I started doing activities and charging a small fee (so far I probably just made what I spent). I have some free activities that often generate sales but its difficult to run when I'm alone so I usually as the woman who rents to help me work the event and I dont charge her rent for a day. I also try to have sales but it doesnt often bring in too many people although my most recent did because I put on the ad they must mention it so I can track it and I did get a few people for it. As far as advertising, I paid monthly my first year for the local parent magazine and it was so expensive,I would ask all my customers how they learned about me and it was usually word of mouth. We have flyers in centers and schools and I plan to print more soon and have my mom deliver to ever pediatrician office and businesses with the same market. I often attend fairs with just an information table and maybe activities. One issue I have had is my schedule, as mentioned I'm a mom of 3 (One I had in January so I actually took a 10 day maternity to have a csection) but I noticed my busy hours are between 12-2 so my schedule has been 11-5 with slighty shorter on the weekend. It's very difficult to be there longer with my husbands schedule, my moms availability to baby sit and making sure I still have time with my kids. My new schedule for the fall will be (Closed Su, M/Tu,W 10-5/Th 12-7/F,Sa 11-3).
Please if anyone has any input, specifically on my debt, but other criticisms and suggestions welcome, I appreciate it. I don't have anyone in my life I can talk business with. Thank you!
Rent 1957 (going up 3% in oct)
Gas & Elec- up to 150
Verizon - 159 (hoping to get a better deal with spectrum in a couple months when contract is up)
insurance - approx 128 paid over 7 months (start again in Sept)
Garbage collection - 43.55
Merchant account fees (based on percentage of sales btwn 40-80)
Website - around 340 in December (I barely push the website because I feel like I lose money when I make a sale with higher shipping costs)
Loan payment 544
credit card minimums 608 & 80
Annual sales tax approx 2400, 150 for a permit for AC, account fee 650-700
Loan balance approx 36k,
credit card 1- 27,467 (interest comes to approx 330)
credit card 2- 8,127 (0% until Oct 2, 2017)
Monthly reoccurring payments set to credit card:
shopkeep - 79(just went up to this)
ADT- 63.25
Now for Income:
Net sales from aug '16-july '17: 29073
Tax return: 10,000
Rental Income (charge 15/hr for basement space for groups): 1881
My cash balance is dangerously low, maybe a couple thousand so I rely on sales now to pay for the next bill.
My inventory is pretty high - Almost 20k value (between 70-100% mark up -although shipping costs kill me)
I started doing activities and charging a small fee (so far I probably just made what I spent). I have some free activities that often generate sales but its difficult to run when I'm alone so I usually as the woman who rents to help me work the event and I dont charge her rent for a day. I also try to have sales but it doesnt often bring in too many people although my most recent did because I put on the ad they must mention it so I can track it and I did get a few people for it. As far as advertising, I paid monthly my first year for the local parent magazine and it was so expensive,I would ask all my customers how they learned about me and it was usually word of mouth. We have flyers in centers and schools and I plan to print more soon and have my mom deliver to ever pediatrician office and businesses with the same market. I often attend fairs with just an information table and maybe activities. One issue I have had is my schedule, as mentioned I'm a mom of 3 (One I had in January so I actually took a 10 day maternity to have a csection) but I noticed my busy hours are between 12-2 so my schedule has been 11-5 with slighty shorter on the weekend. It's very difficult to be there longer with my husbands schedule, my moms availability to baby sit and making sure I still have time with my kids. My new schedule for the fall will be (Closed Su, M/Tu,W 10-5/Th 12-7/F,Sa 11-3).
Please if anyone has any input, specifically on my debt, but other criticisms and suggestions welcome, I appreciate it. I don't have anyone in my life I can talk business with. Thank you!
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