How do I stay afloat? Need advice asap

[nasgr]

Hi guys,

So, my business was previously ran with bad management and it has been over two months since I took over and reopened (had been closed for a year). I do face challenges such as how to bring back the old customers and attract new, just so I get enough business to stay open year round. The business I have is a produce market/fruit stand and I know what I have to do to "survive" all year long.

Now, the problem I currently have is that due to business being slow, and always having something to pay, I have a hard time saving money to use towards buying new inventory (inventory that I don't currently carry, but I know will sell) and I always end up working towards paying someone/something that I owe. I can improve traffic once I fill up all the shelves and space, and bring in items that customers want and will buy, but I don't have extra money to do that so I'm limited to limited inventory (very limited) that I sell and then use some of that money towards paying a bill and some of that money buying that same inventory (which sells, but isn't enough to attract more customers). As a result of all this, I'm "avoiding" to do any real advertising (except a couple signs outside the business) because I don't have a lot of inventory. Basically I'm stuck in this cycle where all the money I make goes to paying bills, which money is not enough to buy more inventory because there's bills that need to be pay. I'm always "chasing" instead of being ahead, if that makes sense.

The inventory that I do have, I always pay upfront (instead of getting it in credit and paying later) because I want to know that what I have in the store is paid off and is my money to use as I wish once it's sold.

The questions that I have is: Should I just hang in there until business improves and in the meantime save as much as I can and bring in as much new inventory as I can? Should I start buying on credit for the items that I can/from suppliers that trust me, just so I fill up the store and build the business that way? Another thing I could do, is get new inventory on commission where the supplier will get a percentage of sales-but I will actually have to go out and find people willing to do that.

I work by myself every day of the week. Obviously I can't afford to hire someone-so another question that I have is is it a good idea to simply take a day off and close once a week or can I not afford to do this?

I'm very confident the business will pick up and be successful, it is at a great location and the customers that I do have are happy with product and prices (and always returning, 80% of customers are returning). I need some advice on how to break from this cycle I'm in just so I can be more in control and expand. I will appreciate any feedback

[Kreater]

#1 You need 1 day off per week, especially if you're working solo. You'll burnout eventually if you don't take at least one complete day off. I close my business on Tuesday, since it's the slowest day of my week. I recommend closing on whichever day of the week is slowest for you.

#2 I recommend buying more stock on credit, if you know it'll sell for certain. That way you'll bring in new business who is attracted to your new stock. Plus people enjoy a store with full shelves and stocked.


Other than that, you just have to work for your profit. Reputation helps, once you're in the game long enough. It's taken me 3 years to accumulate reputation to start making better money from sales. I work a second job for additional income.

[Freelancier]

Kreater's advice is spot-on.

Your other idea of adding consignment-type items is also good, but I'd start with items that don't have a short shelf life (e.g., supplements or "energy" drinks). The idea being you want something that doesn't take up a lot of space (i.e., has its own floor stand that you can place near check-out) and has a decent profit if you sell it and that matches what your customers might purchase from a health food store (since they're at your place because they're into "healthy" food).

The other thing to think about is how much profit you're making from your floor space. All retailers try to maximize their profit per sq foot, since their floor space is limited. Look at your item mix and figure out how to fit more items (placing some smaller items above other items using tiered shelves, for example), figure out which products aren't turning fast enough and cut back the space for them. Really take a tough look at your product mix and identify what's working and what's not and trim the "not working" items and use your floor space to increase the number of profitable items.

[huggytree]

if you need money and you are confident it will work then you need to sell something or take out a 2nd mortgage on your house,sell your car, borrow from family

i dont recommend going into business w/o a cash reserve and money to work with....

i pay my suppliers at the end of every month...not cash upfront....i recommend looking for a supplier that will give you 30 days credit


realize this----if you borrow $$ or buy on credit and your wrong about the products selling then you could be out of business.....

you could get a 2nd full time job and build up some savings?? do it for 6 months and im sure you will be out of the hole your in

[Harold Mansfield]

All good advice here. This is the situation that separates the Men from the Boys. Almost all Entrepreneurs go through this exact moment.
I can't tell you where to get the money, but if you have assets, or favors to call on and you believe in yourself and your business as much as you say to do, now is the time to cash them in.

[nasgr]

I truly appreciate everyones' feedback, thank you

[DeniseTaylor]

I completely agree with everything here. You have to work to break out of the vacuum you're in. I would buy on credit to get yourself over the hump.

What I would like to add is to be sure to stiffen your discipline. Don't overbuy or buy on impulse. Perhaps you can balance the tried and true with experimental items (a few), to keep things interesting for your customers. Could also help to attract new customer-types you don't already have.

Then, once I got the inventory, I'd step up advertising accordingly. There are lots of cheap/free ways to promote and if you have happy customers, use that goodwill to grow. Can you run some kind of special that will prompt people to tell others about you? Like a two for one, or something like that?

I'm sure you'll do fine as long as you continue to work hard and carefully navigate through this phase.

Good luck! :-)

[Blessed]

Lots of good advice here!

Until you can do a focused marketing/advertising campaign do take advantage of the free & low cost advertising options that are available. Make sure you have a voice on Social Media - Twitter, Instagram, Facebook... those are all places to start helping get the word out about your business.

[nasgr]

Good advice indeed, thanks again everyone I wasn't really expecting this much feedback so I really appreciate it.

Business seems to have picked up a little in the past few days, so that's good. I will be getting more inventory this week and more next week.

As far as advertising goes, I'm thinking of hiring a couple people dressed in various fruit customs holding signs outside the business for 2-3 hours and on certain days when there's most traffic. I'm also going to send flyers via the post office (it's relatively cheap) and include a coupon. I'm also going to put up banners for X% off on a my slowest day and X% off for new customers. I do not have a lot of "friends" on my fb page but I will put up a sign/banner to remind people to drive safe and underneath to like our page on fb and I will start posting specials and deals on the page. That should be enough to bring in more people and once I can afford to spend more on advertising I'll do "bigger" things.

[cathyc100]

Boy do I understand where you are. I am in a similar situation in a different industry. I have had to take a hard look at myself and first say, Do I want to make this business work? What am I not doing that I need to be doing to make it work?
I know it is tempting to buy on credit. However, be careful as if you currently have good credit you don't want to damage that. You should look into business lines of credit and use your credit responsibly to grow your business. If you need help let me know. I have partners that can help guide you and get you money for your business without just charging on credit cards.
My business is websites/mobile apps and marketing. I certainly can help you put together a game plan to utilize the internet as a way to grow your business. I know funds is a major issue and I work with all kinds of people with all kinds of budgets and would be happy to do an initial consultation with you to determine your business goals and what I think I can do to help you work towards that year round presence for your business. We need to stick together and help and support each other.
If you want to make this business work, get in touch and let's work together to make that happen.

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