Had an it company for 7 years , ran into debt over 1 million dollars. 2006-2012
I broke up with girlfriend( she was obsessive and over bearing, it’s a good thingr)…2011.
I split with business partner , i handed over company in return for 50% of debt….2012.
I can still use the software we built if want to.however I have decided to start my new business.
I currently have 10 employees in new startup, we do brisk business of $600 per day.( net profit at22%).
So total business is 600*24 days , it’s about 14400 dollars income I need to clear a debt of $500000.
I am from india.
My question, sometimes I wonder I am I over optimistic, I have nothing left with me as of this writing.
I started brick and mortar m-commerce business, we sell by cold calling, we do daily business of $600 from cold calling. we sell jewelry by phone.
I moved into this business because I needed daily cash flow..It’s too difficult at times to adjust at least $5000 for inventory or supplies purchase.
The cash flow is too tight since it’s $600 ,the effective saving $200 is not helping me buy new inventory or better television calling support.
Sometimes it becomes pathetic because we don’t have money to post what orders we got. Usually in india people pay after the get the package at home.Not before hand.
Can you suggest ways….
1. Debt from dad & mom $100000
2. Debt from dads house bank mortgage $200000
3. Debt from friends $72000( this is serious issue need to repay back in 30 days)
4. Debt from partners relatives $120000
5. Bills due $100000.
It sounds to me as if you simply have a business which is not sustainable. If your daily income is not enough to help you fill orders, maybe the reality is the fundamentals of the business are just out of alignment?
It would be very hard to see how any more debt is going to make this business successful. It sounds to me as if it is time to wrap it up and try again.
There seems to be no mathematical way around the fact you are generating $14,400 in income a month but need to clear $500,000.
I’m not sure what kind of magical answer you are looking for here. I believe you can already see this is not going to work out well.
Please post your responses and follow-up messages to me on this in the comments section below.