Help Advice needed.....do i dont i ?

[studio55]

Hi
I need some advice any given will be appreciated greatly....
and the story goes..............

I owned my own salon and Nov last year (07) i was forced to close due to the rent increasing. i havent gone bankrupt just ceased trading, recently the shopping centre i was in approached me and asked if i would be prepared to re open the salon on a no rent basis. i will have to start paying rent when the business shows that it is able to cover the costs.
at first i found this hard to believe but they have put this in writing and it seems to be legit.
now i have decided to continue with the closing of my business as debts have now grown and wouldnt be able to afford to re open under my orignal name. my options is to re open under a similar name, the shopping centre are ok about this, but i have worries my self.
my main worries are the credit crunch.... i wouldnt dream of opening a new business at the moment as i feel it isnt the right time to do it but.....this offer is a good one, my shop is still there and i wouldnt be starting from the beginning again. all the chairs sections etc are still there and no creditors have come forward wanting the assets.
i made lots of silly mistakes last time ie spent to much on stupid things such as over advertising and hair shows that didnt really give me anything back.
owning a salon was my dream and still is, it was really hard work and stressful and i had a rough time i didnt see much of my family my dad has terminal cancer so need to spend time with him, but i cant put my life on hold forever he wants me to carry on living my life, i lost a lot of friends but in turn learnt who my friends were, it put a massive strain on my then relationship, i have a new one now but it is relatively new. i was devastated when i lost it, so having this oppotunity to have it back is amazing but i have my doubts over the timing.

i know no one can tell me what to do but have been told if i have doubts then i shouldnt do it,
can anyone give me any advice or points of view that i might not have thought of.
getting advice from family and friends is good but biased sometimes and getting professional unbiased advice would be a great help.

so let rip, be critical and honest i need it....

cheers guys and thanks
Clair x

 

['chelle]

You're so right, no one can tell you what to do, but I can understand you wanting to get some outsider opinions.

I think you've answered your own question to be honest. Personally, I wouldnt do it.

Unless you operated your last salon as a limited business, your creditors can still chase you for their debts when you open your new salon, because I suspect that the reason they havent chased you so far is because your business closed down, when they see that you have re-opened they could come calling for their money.

You said you have doubts about starting a new business due to the credit crunch, and if you have doubts its probably wise to follow your instinct. If I were you I would get all the debts from the previous business paid, and then at some time in the future, when the financial climate improves, and you can start with a clean slate, maybe look to re-open. Your previous shop may not be available but there will be other locations.

p.s - dont think the shopping centre are doing you any favours by offering you a rent free period, they are more likely to be thinking about their own concerns by keeping shops open and thus keeping the shoppers coming in!

 

[Annie23]

I think 'Chelle has some really valid points, especially about creditors looking for assets if they know you have opened up a salon again. It sounds like you have a lot going on in your personal life too, I personally wouldn't want the added pressure of opening a new business under your circumstances.

 

[studio55]

The salon was a limited company so the creditors wont be able to chase me so i will be opening under a new name.

the only reason the shopping centre is offering this offer to me is because lots of other shops have closed and yes they want to keep as many shops open as possible.

cheers for the advice guys anyone else got any views.

Clair x

 

[suzie49]

Hi Please dont take this the wrong way, but I think you have had the best advice there is from Chell, but its not what you want to hear.
At the end of the day only you know if you are up to taking the job on or not and no advice good or bad is going to sway you if your mind is already made up hun..:hug:

 

['chelle]

The salon was a limited company so the creditors wont be able to chase me so i will be opening under a new name.

the only reason the shopping centre is offering this offer to me is because lots of other shops have closed and yes they want to keep as many shops open as possible.

cheers for the advice guys anyone else got any views.

Clair x

Just as an afterthought hun, your creditors may not be able to chase you since it was a limited company, but you will still have these debts hanging over you which may not be the best way to start a new business. I'm not trying to put a downer on a new opportunity, but I think you might be being seduced by the offer of free rental to do something which, as you had said, you would not otherwise consider doing right now.

 

[studio55]

cheers for the advice guys i guess i had already made my choice but just wanted hear a more professional opinion, i have decided not to go ahead with it i would love to but the odds are against me so will leave it for a few years and concerntrate on some other projects.

 

[redsadie]

Hi hun, I just saw this thread.

I know you have decided against the shop, but would it be possible for you to go mobile just to keep your hand in, so to speak?

It would allow you to continue your career on your terms to fit in with your personal life, no overheads to speak of, maybe start to pay off the debts you incurred (or at least save some money to pay them in full as and when you can individually, which may mean they wouldn't know you were trading again, that you were just managing to pay them back)?

Then, when the time is right for you, you will be able to at least have some client base (and no debt) who I'm sure would be willing to follow you to the new salon.

This might not be for you, but it's just a thought.

Good luck with whatever you do :hug:

 

[Bebeautiful]

Hi studio55, wow what a dilema. This is the way I would approach it

1. Break everything down and take each one bit by bit
2. Think about the things that you did that you won't do again
3. Remember there's no rush (so to speak), you can use it wisely to speak to your current partner and the both of you can make a joint decision
4. and lastly, you've done the hardest work this time round it should be familiar therefore making it easier. Good luck and keep us posted with your decision. Here's sending you a big hug :hug::hug::hug:

 

[weezie]

Just as an afterthought hun, your creditors may not be able to chase you since it was a limited company, but you will still have these debts hanging over you which may not be the best way to start a new business.

I agree with the above and think you have made the right decision. It does not seem good business practice or morally right to owe money and then start again for your own gain without paying the debts you have already accrued. Who is to say the cycle of debt would not start all over again.

Good luck in what you do decide :hug:

 

[essentia]

Hi there - I have to agree with the other posts. Start with a clean slate and clear your debts. Also starting again with the stresses you have would perhaps not be the best way forward for now. The other thing will you still be able to trade with suppliers if you have outstanding debts with them? (By the way I have actually been to your salon a couple of years ago when I first came to Basingstoke.) :hug: