Business Rates

[Cardcrazy]

I have owned a small greeting cards shop for nearly 5 years, after steady growth last year I became Vat registered. To help me through the difficult £80-£100, 000 turnover point I opened a second shop to help increase my turnover. Having 2 shops I have now lost my small business rate relief off my first shop. This is financially killing me and it looks like I will have to give up the second business even though at the moment it is holding its own ... Any suggestions or advice welcome... Thank you

[vangogh]

I think it's something you have to decide. It sounds like in the short term keeping the second store is hurting you financially. If you think longer term having the second store will be good for you financially, then I'd try to figure out how to ride through the short term. If you think the second store won't significantly improve your financial situation or you think it will take too long to make that happen, then I'd look to close the second store and gain back your small business rate relief.

Think about what will be better for you in the short, medium, and long term. If it makes sense long term to keep the second store, try to find a way to survive the short term so you can make it happen. Does opening a third store make sense? Could that overcome the loss of the rate relief? Could you borrow some money in the short term until you can find a way to make more?

I assume you want to keep the second store open. If not there's no issue. I'd think about how you offset the loss of rate relief and how long it will take. Based on that decide what you need to ride out the current financial hit and if it's reasonable to do so.

Hope that helps.