“My business is failing, but I’m in too deep to get out.”
George C. Chicago asks: “I opened up a catering business nearly three years ago, pouring a large severance package into it, along with life savings and a significant amount of borrowed capital. We’ve been bleeding financially ever since. I’m at that point where I don’t know if I can go on, but I feel I have so much invested in this that I just don’t know how I could walk away from it. I’m pretty desperate.”
June 7th, 2006 at 3:12 pm
Tough one George, without knowing more about your business, but I suspect you need to make one last run at it, probably changing your business model. The businesses that survive are usually the ones that ‘morph’ into something completely different from the original concept. Talk to a good business turnaround consultant, and take a fresh look at things. For instance, do you need to rationalize your product line? Can you downscale and segment more tightly? Can you improve your service offering? Is your marketing really getting the bang for the buck you need? Can you diversify your revenue model (for instance if you are in catering can you offer catering schools, workshops, information products, training programs, webinars?) Are you using the web effectively to expand your client base? Could you move to a more ‘direct sell’ model? There are some great small biz support resources available, but you need to sit down with a radical thinker, and come at everything from a fresh, more innovative perspective. If this isn’t possible, then probably time to shut shop.
June 10th, 2006 at 8:22 am
My father always said five years is what it took to grow a new business. The first couple of years are all investment, the next two are break-even, and after that you get some gravy. Never give up too soon. Maybe you just need to buy more time. Have you thought about taking a partner on board?