13 Jul
$$$$ So here’s the scoop.
Posted on 2008 under alaska, blog, business opportunity, current events, money, rant | 1 CommentFor those that know me, you already know what’s going on. For you newbies, here’s the low down, and why I’ve been so quiet lately.
The small company where I’ve been working for 5 years is closing its doors. Actually the doors are pretty much already shut. It’s not because the business at its core wasn’t or couldn’t be successful, it’s due to poor operating decisions (by sole owner), continuing lack of interest over the years for the owner to bust ass (he’s almost 70), and servicing 400-750K in debt over the past decade. It’s a really sad situation, and very frustrating for me. As the bookkeeper, I didn’t really know what I was walking into when I first started there. I walked in to a business that had been servicing this debt, and repeating the same mistakes for about five years prior. Two weeks after I started, the previous bookkeeper, that had moved laterally to try her hand at sales, walked out. I stayed, and quickly learned the flow of the business, and did my best to juggle things over the years, and try to keep things afloat. We had some good people who worked there, that came and went, and we had some REALLY bad people too. The bad ones didn’t help the situation. A slack sales department (when I first started), a boss that was vacationing out of the country for several months over the winter, and the slowness of the season, continued the downward spiral that has eventually led to this point in time, and the closure of the business.
My co-worker and I would love to keep this business going (under a new name of course), and without the assistance of the current owner. We’ve exhausted all avenues, even talking to the bank. I have really crappy credit. I have no collateral. She has good credit, but no collateral and is overextended, due to her kindness in letting others, including me, use her credit cards when they were needed. Additionally she’s about to get the shaft for 20K in credit card debt, courtesy of our defunct employer, who previously used them to buy inventory. I feel horrible for her. It may work out, that she’s able to recover part or most of the money, but the time and effort that will go into doing so, just adds salt to the wound. She’s been a loyal employee for 10 years.
The past three weeks, have been some of the most stressful weeks of my life. Aside from my divorce, which I think is a given. Although it is not a sudden shock that this happened, in the end, when it really comes down to the END, the realization is almost too much to take. When you’re actually peeling pictures off the wall, and clearing out your personal items. It’s a really weird feeling. Even when you’ve been slowly expecting it for some time. I guess you always hope for the miracle. Some last minute funding that will come through. Someone that will look at the potential of this company, with the same business model, same customers, same service, same employees, just without the nagging debt, and a President that continues to make poor decisions, and won’t listen to suggestions from employees, CPA’s, bankers, and other contemporaries. Someone that understands our business, and sees beyond the sad looking financials of years past. My boss is stubborn. This is not a personal attack on him, as stubborn as he is, I believe he’s a good guy. I think he has the gift of gab, and getting to know people, getting the businesses started.
I can’t really say that I wished he’d started trying to find investments, or funding sooner… because at the end of the day, the only way to make this business function properly, is for him to walk away, and bankrupt the outstanding debt. Without many tangible assets, unfortunately the company in its current state isn’t worth sh*%.
If the business could continue (even in today’s climate and economy) it would start turning a profit in about 60 days, once the inventory, and receivables started rolling in. It’s a great business for so many reasons. Some of the customers have been around since the beginning 15 years ago, and they are fiercely loyal, even when we’ve been out of product and over the past year, that has been often. We’ve whipped our local competition, even with slightly higher prices, because we always provided great customer service, gotten them the product fast, not over charged for “shipping and handling” (like we recently found out a competitor is doing), and developed personal relationships with most of our customers and vendors. That makes it especially hard.
So the moral of my story, if there is one, is that I’ve been racking my brain, trying to figure out a way for a girl from the midwest, to keep this company going (with the help of the other vested co-worker). And over the last few weeks, this has been a BIG cause of stress and frustration. Yeah, I can get another job, but that’s not what I want. I want to be a part of a business that I have an interest in. I want to be a part of the business that I’ve already invested a lot of time in to. I want to be a part of a business that has great potential, a built in client base, proven products, and a sweet setup.
The flip side of this, is that because I’ve been a contract *employee* for the past three years, I don’t qualify for unemployment. And I don’t need to explain to anyone how badly that hurts, to have your income disappear.
I’m not totally giving up. I’m still trying to think of options for funding. Even if it takes a couple of months… we will lose some customers, but can build it back up. We have other products to diversify with if these become “extra” items that people don’t need. The Bush is our lifeline, and we’ve been servicing them for years. I feel bad for our customers, the ones that have come to depend on our products so they in turn can make a buck. And I feel bad for the customers that have placed orders (to the tune of 30-40K) that we can’t fill.
So 3 things:
1) Have you been in a situation like this before? What are your thoughts?
2) Know any venture capitalists or angel lenders, that want to bankroll some inventory?
3) Anyone need contract bookkeeping services? 
I can work remotely.
So that’s the reason for my silence. Other than brainstorming, I’ve been trying to put off the inevitable, and riding a roller coaster that some days leaves me in my bed in a fetal position or clinging to a small bone of hope that was thrown our way, always with disappointing results.
I think the best way to describe it, is the way you felt on the last day of 6th grade. Sick, excited, horrified, and wiser… all at the same time. I know about one door closing and 15 more opening. I’m just disappointed that a great opportunity right in front of me, is still out of reach. And it’s not even a large sum of money to keep it rolling.
Carpe Diem
