Help for a failing small business?
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My brother owns and operates a small mechanics shop that caters to race cars and making street cars ready for racing. He has owned the business for 5 years but is barely making ends meet. He has taken out a second mortgage and has obtained about 25k of credit card debt.
This is his dream job and he loves it and the business is good but he just can’t seem to get ahead and now the debts are piling up and his luck is running out.Are there government grants or any advise you can give to help him keep his business?I tried to help him, but it is to hard for me to find any information, so I hope people that visit this blog can help.I know about debt consolidation but not sure how much this will help in keeping the business! Any advise would be cherished and welcomed. Bankruptcy is not really an option, at least not yet!Sphere: Related ContentGovernment Grants
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January 31st, 2009 at 2:33 pm
Without trying to tell you how to **** eggs, I suggest,if you have not done so already, to seriously look at the Business Plan you have before you pump any more into the business from expensive loans that will bring about closure sooner rather than later, if you do not reduce costs or grow the business. He has to reduce his costs in the first instance unless he gane generate extra business in a cost effective manner.
Make sure you are looking at this venture as business and not a hobby !
What do you mean the business is ‘good’ ? If you cannot make ends meet, then this can be so.
Do you know your market ?
Are you agressively marketing the business ?
In the short term – can you increase business from existing cutomers ?
Can you ofer any value added services at a low cost to your business ?
Can your market withstand price increases ?
Is there any competition ?
Are they also finding times hard ?
Are they stealing business from you ?
January 31st, 2009 at 8:17 pm
No clue how you can get out of that but in the future instead of a personal business do the paperwork to become an S corp or limited liability partnership. It is about the same as being personally owned but it makes the company a separate legal entity so they cannot come after you for your companies debts.
As for your current company you either have to reduce costs or increase income or both. I don’t know your market you the dynamics of your business but if your company is losing money unless you have a solid plan to that will make money i would say taking out loans is only delaying the inevitable and will make it worse in the end.
Maybe if there is not a big enough market for racing mods you could do other custom work on cars or try to get some general maintenance and repair work in the door. Sure it may not give you the satisfaction that the pure racing work does but if it gets money in the door it might keep you in business to do the racing stuff.
February 2nd, 2009 at 5:27 pm
Go to to find the nearest SCORE chapter. In the upper left hand corner is a box to enter your zip code. Your nearest SCORE chapter will be on the next screen. Contact them to arrange for a free one on one meeting with a SCORE counselor about steps to take to save your brothers business..
SCORE is a nonprofit organization. They provide a public service by offering small business advice and training.
SCORE’s 10,500 volunteers have more than 600 business skills. Volunteers share their wisdom and lessons learned in business. The volunteers are working/retired business owners, executives and corporate leaders.