Home – New Forums Other discussions Am I Going Backwards or Fowards?

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  • #978019
    Beautyshop
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    • Total posts: 6
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    Hi All,

    I was feeling a little lost at the moment and thought this might be a good place to get some honest advice. This will be my 3 year running my online business (and 5th year running an associated forum), we have overgrown our storage space and rent an inexpensive commercial shed for the extras. I have 2 little children and a husband with a government job (yes, I know… lol). The business is doing well and I am still sinking most of the profits straight back into stock and covering expenses etc so that side of things has been fine. Here is the dilemma…

    My husband is completely unhappy in his job, and by the end of the year would really like to quit work and study (4 years) in a different field. I am escatic that he wants a different environment and to study in an area that I know he would be great at. Now, I am only in my 3rd year of this business and although we have now an established clientele etc, I am fretting about the idea of living on this wage which might or might not cover the bills… will we be able to do it and repurchase stock? Is it too soon? Is there anyway of knowing? My head is a mess and my husband is desperate to leave hsi depressing job at the end of this year.

    Is there any advice anyone can offer? I assumed that I would not need to reinvest in so much money in stock in the coming years as we have a very good base line of products… OMG please help I am driving myself batty.

    Thanks,

    G

    #1104202
    PaulThomas
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    • Total posts: 76
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    Hi Georgina,

    Relax, as Mark Twain once said, “Of all the things I have worried about none of them ever happened”.

    Your business is still in it’s early stages of growth and there is still a way to go yet. Having to make such a big decision at this point in your business’ life cycle would give anyone a head spin.

    There are many options available to both you and your husband. For instance, your husband might be able to do an online course and work part-time!

    Seeking help from a CPA might cost a little initially but the advice you receive could mean the difference between sinking or swimming. Looking at your 5 previous posts since 2010, I can see that you are giving it your all. At the same time I can see flaws. I won’t offer any marketing advice unless you ask for it. Some people think I am being arrogant when I speak up.

    You never know, a CPA might charge $200.00 for an hour of solid advice. Be prepared and take your P & L statements with you if you do seek CPA help. They will see things you or your accountant may have missed. That can happen when you are too close to the coal face.

    What ever path you choose to take it will turn out to be the right choice.

    Cheers,
    Paul

    #1104203
    MatthewKeath
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    You say you are sinking most of your money back into stock, so the question needs to be asked – Are you making any profit at all?

    Look at your profit each month. Is it enough to cover the bills after stock has been bought?

    If so, then everything is sweet and your hubby can peruse his dream. If not, then it time to seriously look at the business and what your business goals are.

    #1104204
    Beautyshop
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    • Total posts: 6
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    You are absolutely right Paul, I think I do need to sit down with someone to work to sums through carefully. And do belief it would be absolutely worth the money to get the right type of advice.

    Thanks very much guys for responding to my post :-)

    Our turnover is really healthy, but our profit per quarter is quite small in comparison, but I think I have been on overrdrive purchasing new & replacement stock. I am always expanding the range of products that we offer, but that might be an area that I can work on more gradually on rather than ‘racing to’. It’s so hard to know where the limits of the business are, and where to pull back.

    #1104205
    PaulThomas
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    • Total posts: 76
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    It’s a pleasure Georgina.

    If you have kept good records your popular fast moving lines should be apparent and will be the ones you can always keep in stock. Trending lines are harder to gauge so promotions that “talk up” the promo stock will help get them out the door fast.

    Also, try direct mail to entice new clients. Make them an offer they can’t refuse. Think about using discontinued lines as loss leaders too. You could also get in touch with Rox Baldan at Glamour Galaxy in Sydney. Rox runs makeup classes and has heaps of students who will all need a supplier eventually. Get your foot in the door there!

    Put your link in your Forum signature too! Create a twitter account, give samples to celebrities. For example, Tania Zaetta received a box of cup cakes the other day and posted a photo of them on Twitter. Tania has 11K+ followers.

    Think outside the square. Your business should be able to sustain a small army if you find the sweet spot!

    Good luck, keep going forward and strive for excellence!

    Cheers,
    Paul

    EDIT: You do need at least a PO Box on your website to reduce your cart abandonment rate!

    #1104206
    yourvirtualboard
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    These are life changing events you’re talking about and while advice from well meaning forum users (myself included) may help to a certain extent, it would be well worth getting it all really clear with some help if it’s too overwhelming for you and your husband to get through – As has been suggested someone objective that you trust that has the ability to help you clarify the different scenarios and then even be available to ask further questions down the track. It’s awful doing something that you hate doing and sometimes to change requires a little short term sacrifice for longer term gain.

    On the surface the things that come to mind would be, how much of your husband’s wage does the family rely on to live each month? Can the business cover most of that by getting better at working capital management (stock etc.). Also as suggested some part time work while your husband studies could be an option as well.

    In summary a well worked out budget and a plan would help you feel less “batty”

    #1104207
    erinna
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    Could your husband qualify for Austudy? (well, it would have to take into consideration your own income as well, so really its both of you applying ;) )

    It may be a pain to get, but it might help a little bit.

    What area is he going into? Some career paths sometimes have a work & study option (I think paramedics have this option), so there is some small amount of income at the same time.

    #1104208
    MyGreatIdea
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    yourvirtualboard, post: 115526 wrote:
    how much of your husband’s wage does the family rely on to live each month?…..
    In summary a well worked out budget and a plan would help you feel less “batty”

    And if you decide to do this, don’t forget that your cost of living will increase over those four years to include schooling…and all the fees, clothes, and extras that entails.

    Wendy :)

    #1104209
    AgentMail
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    You have a 6 month buffer (as long as your hubby can stick it that long), so my practical advice is to start saving hard. What is really useful is to have at least 6 months worth of personal expenses covered (mortgage/rent, food, loans etc.). If the business is then making half of what you need to live on right now, that 6 months will last a year, and if you seek the right advice and plan well, in a years time, you could have easily replaced that income.

    But save, save, save – put away every dollar you can from his income, and even some of the money from your business if you can – it really helps to start getting used to taking money out of the business now, so it is not such a shock when you have no choice but to do it.

    #1104210
    Anonymous
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    Hi all,

    Just wanted to chime in and say thanks to you all for the helpful advice and suggestions you’ve given to Georgina. It’s contributions like this from people like you that make Flying Solo such a great community to be part of :)

    Georgina, good on you for putting your hand up and asking for ideas. In addition to the suggestions made here, my own $0.02 worth is that this would be a great time to do some work with a business coach.

    Hope it all comes together for you beautifully,
    Jayne

    #1104211
    inxpress111
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    One thing I love about this forum is the advise being thrown around – we all just want to help each other out – can’t you feel the love!!!!

    I’ll throw my 2 bob into the hat as well and say Just Do It! – your husband is obviously not happy and all of us know it doesn’t matter how much money we make if we can’t be happy in our home life our business is worthless.

    I’ve been in a similar situation and as a family you make do – we did without our little luxuries because we could see what the end result would get us.

    Forgive me if I am wrong but I do think it is because being a woman and mother you are very scared as you are realising that you would have sole responsibility for the family finances – and of course you are scared – I would be too – but stand tall – you already have a business you have run for the last three years, a business that has expanded enough to warrent bigger premises – so give yourself a big pat on the back and tell yourself you can do this girl. We are all here to support you and know that by asking for help you are the type of person who has the initiative to do this.

    Also look at it as a blessing is disguise – not many of us have the opportunity you have to really look at your business and fine tune it – thus making it more profitable in the long run.

    Best of luck with whatever you chose – we all know that both of you will take all this advise on board but remember only you two can make the decision.

    So last word – just do it – don’t turn around after 5 or 10 years wondering what if – a mistake is only a mistake if you don’t learn from it.

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