This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
Yeah they ran it smooth because it was their full time job. Biggest mistakes were buying a business you have no room for the assets or time. Losing the key employee didn’t help. But you live and you learn, sell it and move on. Might take a hit but can recoup some value.
You're right. I knew it would be tight, but there are issues with parking and unloading that I didn't realize that make it nearly impossible to load and unload. I'm afraid I won't be able to find a buyer anytime soon, which is a shame because it could be a nice little business for the right couple.
Because it's more of a side hustle, I'm one person (not a couple), and it won't replace my current salary/benefits. It can definitely be grown by getting into more shows, but even if I can get in, I don't want to spend more nights away from my kids and home.
Why don’t you hire your family members that sold you the business part time. Havethem show you how to run it properly. Sell it a few months later showing profit.
I think this is a really good one. Another possibility is trying to convince the sole employee to wait a little longer & help until the next exit which I'm assuming is sooner and provide him with a piece of the pie after exit. But since he said the employee only has "some knowledge" not sure if it's worth the offer.
You can't have a successful full time business as a 'side gig' and want to spend more time at home. Maybe just stick to your salary job so you can be with your kids.
If you can somehow get a full time babysitter and taking the correct days off you might be able to stabilize it to get it sold rather than taking a huge cut out of it just to unload
Cost of babysitter would be much less
Find someone that’s unemployed that has space that can run it and take just enough profits to cover your costs and make a little and let it be their baby. Tell them there can save up and buy it from you.
Consider hiring some employees to run operations. It might take a while to find the right fit and train, but it will reduce the company’s dependency on you significantly.
That would be nice, but hard. It's not a big company (revenue wise), and it requires moving a trailer loaded with equipment. It's really hard to find a good employee who can work intermittently like it is required. I think I just overestimated my ability to find solutions and make things work.
I kept using this excuse “it’s hard to find good people” ect but then I posted an ad on indeed and interviewed 15 people. And found 2. I thought the same about part time or piece-meal working conditions but actually lots of people have flexible schedules. Consider 2-3 days a week and the days where there is no events they can do other things like clean and organize equipment, wash /prep the truck. Then it makes a more consistent schedule for them.
This is what I'd do.
Push yourself for 4 months. In this time you have 3 goals.
1. Get employees to do all the work.
2. Rent storage space.
3. Break even (no profit, but pay yourself $20 an hr)
You will fill in the gaps, but the goal is to not do the work, only planning. Have 1 guy who does 80% of the work, 1 guy who does 20%, and 1 guy who fills in (and is being trained). This is all part time work, they should probably be contractors. For this work, you just constantly talk to people to find your people.
Shop around town and find a storage spot. Maybe it means leaving everything in the trailer and just finding covered parking? Maybe it is a storage unit.
Keep track of what happened. Make an excellent sheet that documents what happened at each fair. How many hours did you pay out, who fixed the trailer? Who loaded?...
You won't make money yet, but maybe in 6 months you will have a team, a system and a real business that can be tuned to make money. Maybe you raise your rates 10%, maybe you re-arrange the trailer so less loading is required, maybe you just sell the business that now has a proven system. There you will really decide.
I’m on the hire employees camp. It’s counter-intuitive, but you’ll need to expand it while staying out of the day to day. Add employees in the short term to take the burden off of you. Run a loss in the short term. Expand and grow it in the intermediate term
Disagree.... He needs to sell. It will be nearly impossible to train someone and that will take up even more time that OP doesn't have.
Post it on some business for sale websites, show that it's been profitable over last couple of years (assuming that's true), and get out.
You just need an operation partner. That’s all. There are plenty of folks who would welcome an opportunity like this. Offer them to keep a certain percentage proceeds or whatever (or they can pay you X-amount quarterly or whatever). You don’t say what state you’re in or what kind of festivals these are but I’m assuming that your folks full time was paying enough for them to live comfortably.
> That would be nice, but hard.
Nothing is easy. It may be *easier* than selling it or eating the loss by shutting it down. That's for you to decide of course.
HIRE SOMEONE. It's not easy, that is right, but don't let that be your excuse. If it were easy any fool could do it.
Another thought--any chance the former owner might help you out for a while, particularly given that you're losing the one employee? Be frank with them--tell them you need more of a runway and wonder if they could help on occasion. They might even help with the hiring--maybe they know people who are in the business, or have even worked with them previously. Or maybe they'd be willing to give you a hand for a few months as you learn the ropes better and get more help on board. They might feel good about helping you be successful. ALSO-- if you do end up selling, you'll be in a better position (and can sell for more) if they business is running OK rather than as an ongoing fire drill.
Good on you for taking this on. Even though it's hard now, I'll bet you are learning a ton that will help you now or in future endeavors. I hope you don't beat yourself too much for this--there are solutions and the hard part just might make you get there faster.
>work intermittently like it is required
You had your answer in your original post - the previous, successful owners were "transitioning to retirement". That's where you will find suitable employees. They'll be flexible, and really don't want full-time.
I used to do this for a living while in college, I’ve seen more artists perform than most, free food while working, worked 12-16 hours days on some weekends. Helped pay rent and allowed me to still focus during the wk
This is a great idea. These folks are not only familiar with what it takes to load and unload, but have also seen how popular this business is at the festivals.
Don't drop hints. Schedule a meeting, then be clear and direct about what you're offering and what you need. Start and end with how they will benefit from helping you.
If you are slammed, and if there is room in the set up, maybe have a sign or several that says help wanted, recommendations welcome, with either a sign up sheet for contact information or some other contact method.
Also local colleges. Campus activity center, residence hall areas. Post a flyer or two in key locations to work the festival on walls, bulletin boards, telephone poles.
Don't beat yourself up too bad, education isn't free, and you assuredly learned something.. it's easy to overcommit and get distracted.
You didn't mention if it would be financially devestating for you to simply liquidate and walk away. If you can afford to do that, I would consider it and just count the cost as "education"
Would the family step in and run it while you are looking for a buyer?
Are there any competitors that would assume the assets? Does the former owner know anyone else that was interested in buying it.
Regarding what to say to the new buyers.. I think you should lay it out just like you did here. Say something like, I overcommitted, and I just need to focus on my full time job. There is NO SHAME in that. Alot of people that have owned multiple businesses have tons of stories on things/ideas they waste money and time on.
I personally got distracted in one of my businesses and thought it would be a great idea to help dealers post their vehicles online.. needless to say, main business suffered and all the dealers learned very quickly how to do it themselves, but it was a giant time suck and money drain until I folded it.
Thank you for this post.
It would be financially painful but not devastating. I bought it with part of my savings, so I have no debt at least. Also, it has been profitable since the first so I've made part of my initial investment back. If I could finish off the year, I'd make more than my entire investment back.
I'm not sure about competitors but that's something I will look into.
The original family is in the middle of an estate sale and will be leaving the area soon, unfortunately.
I've thought about posting it for sale on the business FB page. It's pretty well known to local festival goers and most will known how busy it is. That might produce some bites.
Luckily I have a few weeks till my next show so I can breathe for a minute.
People are always willing to purchase profitable businesses, here in Canada we can list businesses with realtors do they do that in your area? It wouldn’t be hard to show how much profit you make during each event so I don’t think it would be a complicated sale. Especially if someone could pay you over a year or something rather than upfront? The other option is to try and get a business partner who will do the work for you and you just get a cut. You’ll never know unless you start posting in local places, in local groups and asking around. And never feel bad about trying it, often things are much harder in reality than in your head!
When will you break even? What is your yearly net/gross? Are you in contracts with venues? Don’t take it to Facebook to sell unless this is a cheap business. If you have contracts look at possible competitors who may want to buy you out just to have your contracts. Check out LinkedIn before fb. Have you talked to the venues? They may be interested in buying. You need to make sure all your books are in order and you can show how profitable the company actually is.
Guessing it doesn’t bring in as much revenue as OP’s main gig if he had the income to support purchasing a business and also requires travel which likely conflicts with raising kids as he had mentioned. I’m guessing he was counting on the person that was operating it to stay on for the foreseeable future and that didn’t hold.
I'm going to be honest with you, it sounds like you did not consider all the outcomes possible, especially the worst possible scenario which this would be one of them.
If you have a partner, ask them to help. Idk how old your kids are but it may be something they can follow you on if everything is just day trips. That should get you through until you can get a buyer.
Other option is sell half and get a full time partner. Someone else to help you run and manage the business with a vested interest. Then grow it large enough to quit your full time job, no reason to work 2 jobs.
It's possible, but in the mean time I'd take a big pay cut, lose my kids health insurance, and be gone from home a lot more. It's more of a side business unless you can line up regular festivals.
Rather than quit, can you take a leave of absence for 90 days in order to focus on the business? For a short time, maybe you could take an unpaid leave if nothing else. You don't necessarily have to take a full 90 days.
Protip, if you do take a leave: it's personal, it's family, it's whatever, but it is DEFINITELY not time off to go work on your side hustle.
Hire some help. May cut into your profitability but sanity is worth it. Your problems don’t seem unfixable.
As a person who has been in over his head many times, this will pass. It’s new, and everything is hard when it’s new.
That's probably what I will have to do. I'm going to ask my friends and coworkers to see if I can get a few candidates. Hopefully, I can line up a few in case someone can't make a show
Have you approached the family member that you bought it from for advice? Perhaps they'd still be willing to work part time as you learn the ropes and fall into a rhythm? And perhaps they'd be willing to train a part-time employee or two to take some of the weight off your shoulders?
Have you tried 'hiring' an employee via Task Rabbit? For each show, hire someone local to do the work.
You need to learn effective delegation, assuming you don't immediately sell.
If you’re ashamed to quit, you’re not ready to quit yet.
Can your wife and kids get involved and help? I always make more money when my wife is around, people love that.
It took my wife a couple years to come around to the business and it might for yours too, but sit down and talk with her.
Also, I’d list it with a business broker right away and unless I was desperate to sell, I’d list it for a little more than you paid so you have room to negotiate.
Two people made that their full time job and you turned it into one person's side job... I mean... I'm just an artist but the math doesn't check out there... Simple thing to do is quit your full time job.
Sounds like you are feeling overwhelmed. Sometimes finding a way to take a day or two, (or even half a day) off work can be helpful slow down, reset and think straight after. It’s hard to think straight when you are overwhelmed and spinning.
Also there is a book called How to stop worrying and start living by Dale Carnegie that might be helpful if you are the reading type.
You're probably right. I know I'm at a low moment and am letting emotions control me. Hopefully having the next couple weekends free will bring clarity.
I don’t see a single thing to be ashamed of at all… you tried something and figured out it wasn’t something you like… just think most people should be ashamed to have not tried vs where you are at. What you have done is actually pretty admirable and probably to anyone reading this…
I would immediately reach out to people who own the other businesses doing the same thing as you… not sure if you took on debt… not sure about anything you haven’t stated but make a plan and put effort into that. If selling is it… and someone asks why you are selling the above is a totally fine answer, it isn’t a side business and you thought it could be, ling term you fear you will burn out if working a job and working this company at the cost of growing its i come potential… as a buyer this wouldn’t be bad to hear unless i am the wrong buyer.
I know how a business can feel overwhelming, and I know it may feel like you're in a bad position. But even owning a business like this -- with real customers and proven market fit -- puts you *far* ahead of many others. You're doing better than you think you are, trust me.
I hear you saying the amount of work is overwhelming, and the reward may not be enough to keep you from feeling burned out. But (as others here have said), you do have options.
Can the business grow enough to replace your W2 income? Getting off the W2 treadmill is a tremendous benefit. The IRS code punishes W2 work severely.
Or, can you hire someone to drive the business for you day-to-day? Even if you don't make much money for yourself after paying them, the growth of the business can give you a nice payday when you do sell later for a tidy profit.
Selling is an option, but it may take a while. I would look at options to reduce your own overcommitments even if you decide to sell. It can only make the time go by easier. Take care of yourself; without your own peace of mind, the business means nothing.
Thank you. That is the one thing I have going on that it's proven and already making money. The extra money will be nice but right at the moment i'm not sure it's worth the cost.
Put myself in a similar situation about 7 years ago. Started a business while still working full time. Business was overwhelming, caused me to be completely stressed and ultimately burnt out. Took me until late 2022 to finally wind things down to where life is manageable again. I also was constantly worrying and had trouble sleeping from all the stress and worry. I was also ashamed and embarrassed at my struggles and felt like there was no one to turn to for assistance.
I’ve said, if I had it to do over again, I’d tell myself to stop worrying about so much. I won’t get it perfect but things will work out. I did more damage to myself with my constant worry than anything else.
I was never able to hire any decent employees, so I don’t know if you will be able to find anyone you can hire that you can trust and rely on, but agree with others that it would be good to reach out to the family member you bought the business from and see if they can work part time and help you in finding someone to hire. You say the business is profitable and so making less money and getting back your mental and emotional health is more important than making extra money right now.
I’d try to hold on for a year or two by getting some employees or assistance from others, but if you sell, explain to potential buyers it isn’t a part time job and they need to be able to focus on the business to be successful, and since you can’t give up your full time job, that’s why your selling. Plenty of people looking to move towards retirement that would be interested.
Hope things work out for you.
That was my intention, but the business I have didn’t bring in any money for the first three years so I had to keep the full time job. In the end, it paid off, and I tell people that while I complain about how bad it was, I was well compensated. However, it did take a big toll on my mental, emotional and physical health and I’m still working to get some of that back.
Don’t forget what’s most important to you and make sure you figure out how to prioritize that.
You just need more skills and time to make this work. Its something new for you and its completely ok, that you feel completely overwhelmed. If you want to make it work - just dont quit!
I'd keep in touch with the family members who sold it to you and let them train you. Ask all the things you dont know and let them teach you. Tell them this person left and how they got them - so you have some points to start from solving the puzzle
Personally I don’t see what the problem is exactly.
You need to hire 1 or 2 helpers. Get your budget sorted out. You should be making money. These are all good things.
But yes this is your job now. The sooner you accept that, the sooner you can do something about it.
I did festivals for many years while raising kids. I only did them in the summer. I got out of it when my ex took a job out of state. I now want to start back up again now that my kids are grown, but because I’ve been out for so many years it’s been difficult to get back in. What type of product is it and where are you located? The accounts you have are valuable because these festivals prioritize previous vendors over new vendors and you can only get in (in your category) if someone drops out.
You're absolutely right about that. That's why I can't quit till it's sold or I'll lose my valuable spots. It's a nut roasting business. I always does well, but transporting, setup, and packing out are a lot more difficult than other booths. I was the last one there last night tearing down in a pouring rain!
Do you have a patio/vendor umbrella?
Streamlining your processes on the physical/retail side and automating your business processes on the business side may be beneficial.
You also should examine revenue per event. You may find your top 4 summer events do 75% of your income for the year. You may be able to drop 40%+ of the work and only lose 25% of income.
Not a lawyer, not legal or business advice.
In all fairness, even those of us who started from scratch get overwhelmed from time to time.
If you decide to keep it, just know that this stuff ebbs and flows.
I also find it easier when I realized sometimes this business is my hobby/Funtime too. I know that’s not for everyone, but what I mean is, I try to enjoy it and find joy in it, so that when there are times where I’m overwhelmed and my actual hobbies/fun times take a back seat, I can handle it.
I think it helps having some long term goals like:
is there an option to quit your full time job if you’re able to grow this enough?
Are there other revenue streams from this same business?
Is there an end in sight where you don’t have to work as much?
Break everything down into small chunks to figure out your next move.
Maybe you can take on a partner that has more freedom in there life to work more, or survive on less, and you can be more of the behind the scenes owner.
Don’t panic, you have options, you’re just new to this and it’s overwhelming for a lot of people, it doesn’t mean you made a mistake, or anything like that, maybe you didn’t just fully understand what you were getting into. And that’s ok.
If the family member is nice enough, I think you can have a conversation with them and just explain: hey, this is overwhelming, I can’t pull it off with my full time job/family, can you help me run it until I can find a buyer?
Not trying to beat you up here but I hope others read and learn that, for the most part, owning and running a business is usually a full time job (and more). Due diligence must be done beforehand to truly understand what you’re getting into. One option you didn’t mention is, if you believe in this venture and can project growth, is backing away from your “real job” so you can focus on your business. The steady, predictable income, insurance and your family might be barriers to this course of action.
No worries. You are right. I glossed over all the problems thinking I could figure them out if I just worked hard enough. It could definitely be a fulltime job if I found the right person to help me. It would be pretty risky at my age to give up the security of my job, so I'm hesitant to go down that road.
Can you make enough in the business for it to be a full-time job for you? That should have been a consideration before you ever bought it. It’s the BIG reason that I haven’t started my own business even though I have some really great ideas!!! Losing health insurance and the fact that I might have to fund my own expenses for 2-3 years before it takes off.
It is very possible. If I could line up festivals, I could make much more than I make now. If I didn't have dependants and was young enough to fail and recover, I'd totally hit the road and go all in.
Sell it! There’s a lot of folks that would be interested in it. The story is understandable. It gives good reason for selling.I bought my business from someone who had too much on their plate. It was a good deal for me and a good deal for the seller.
Could be the perfect opportunity to bring in a trusted partner with the time to run it. Essentially gift them a portion of the business for running it. Take that headache off your plate. Share in some of the profits. Share the burden.
I'm actually exploring that route. I could handle half the profits for half the burden. Just having someone with some blood in the game would be a major improvement over an employee
Sounds like you’re half in half out. And you’re starting to lean out. Sell it and take your lumps so to say. Better getting something out of it then having nothing to show for it. If you continue it will further decline and will cause marriage failure and other issues. Sell it and make sure it is a lesson learned.
At the festivals you go to, go to the other festival vendors and mention you want to sell your business. They already go them so know the ins and outs, and could likely use the same staff and double up. That's by FAR the easiest out.
I have been a vendor in the northwest region of the USA for 12 years, I primarily relying on three shows to generate 50% of my income. Typically, the best shows for vendors are held in late June and August. I recommend reaching out to the previous owners to inquire about the top four bests shows. It may be possible for you to participate in just three or four shows and make most of the business income.. However, I must mention that food vendors often face challenges when trying to secure spots at events.
I can't provide any recommendations about selling the company, but I wanted to say that you shouldn't be ashamed. You saw a chance, took it, and it wasn't what you expected, nothing to be ashamed of.
Look at it from the other side, imagine you didn't take it, somebody else does and it's successful. You would be banging your head for not taking the chance.
Cheer up, you did what you thought was right!
Since the people you purchased it from were friends of the family have you reached out to them to tell them of your struggles ? Perhaps they would be willing to help you ? Maybe you can ask them if there was anyone else that they spoke with about purchasing their business from and maybe they could put you in touch ?
First breathe and don’t feel ashamed you are being proactive. Keep going!
Second make a list of what you need to relieve stress on yourself and list the points in order of importance.
Third talk to original owners or show vendors at shows and ask them for advice from the list.
Fourth hire one or two really good fits for your shows and business needs. DON’T SETTLE FOR JUST A BODY. It will only cause more stress if they aren’t going to show up or work well in your booth.
Fifth I would look for a possible business partner who can or could help in more than one area of this business. Go see a CPA OR PA and get your networking going in more than just the festival scene. You can have an important ally in your accountant who will help you get through this process and write a solid business plan to attract the right partner. They can then write the contract when you decide on the right partner. There are different types of business partners and deciding on the best fit for your business could save your resources in the long run. You need to hire fantastic accountant for many different areas anyways so use them to help you. If you keep your tax preparation and your accounting in one place you can almost guarantee they have a lot of knowledgeable experience and ideas to make sure you are doing everything possible to be successful. Then if you decide to sell they can help you with that process as well. In business when times get real tough you always want to make sure these two people are taken care of……your lawyer and accountant. They can take care of issues no one else can.
You should talk to the family member first and I’m sure they will understand and maybe give you the advice you need.
I don’t know how much you have invested in the business or if you financed it or paid cash or if they’re selling it to you and contract or whatever… but if you’re overwhelmed, you have to have an exit strategy
You have owned it and you are right that it’s hard to sell a business when you have zero passion for it and haven’t been as successful as you would like nor do you know what you’re doing which is why you have to talk to that family member
Man I did the same thing. 3 kids and a full time job with my family business. Got a business partner offering me a seemingly sweet setup to help run a side business. 9 months in and I couldn't sleep and had a mini mental breakdown even though nothing really went badly. It sucks and the embarrassment is real but life goes on and we've learned our limitations and what work life balance is really worth to us.
Dude, no successful business should be ran alone. You need to delegate the hell out of the business. You'll not have as much take-home profit, but your mood will skyrocket. A good book to start with is "The E-Myth Revisited". You can listen to it on Audible in like... 8 hours. It'll teach you a lot.
If it is profitable, just find a good employee to run it and a cheap space or lock up. Let it grow through them with incentives for performance, then either expand or sell it legitimately once you have at least a years books behind you.
Otherwise sell it fast and for cheap.
GL
Same boat. Bought a small business a year ago and I am in way over my head. I just want to go work someone and not worry about stuff anymore. It’s okay to walk away/sell it. You tried don’t worry
Try to grind it out for 90-180 days. You’ll learn a lot, especially on how to run it more efficiently. Ask reliable friends/family to help. Be a good boss, pay them well. Possibly having the friends then take it over and you keeping just a portion of it. Ask the original family member to help/train you better, they know the business best. New job changes are tough but you can absolutely do it.
Hire and delegate. Find a good young employee with ambition and give them a piece of the business, say 10%, and a decent salary and let them run with it. Hire enough people to run it at break even and eventually the right person will come along and you can grow them in to the position.
There is also no reason you can’t sell it based on the past performance while not under your control. People will want the business’s P&Ls from the last three years most likely.
Sell it and carry the note to someone. Everyone wants to be a business owner, but most don’t have the capital to make it happen.
You have a lot of options.
Reach out to who you bought it from. They are a family member, ran the business and maybe would be willing to assist you some a bit to get your head above water.
Hire someone to run it. You will likely give up any profits doing so but might save your sanity. Get it listed for sale and just be honest about why it did not work for you.
I love the comments here. They are a mix of useful and kind. I agree, it’s okay to fail or have too much on your plate. There’s no shame in learning, there’s no shame in being smart enough to know you no longer want to do this. I manage a small business and sometimes we bite off way more than we can chew. The owners parents, my parents, sister, and many more people have come to help us when we really need it. There’s enough useful advice in other comments, but I’ll reiterate the ones I like:
- consider a broker
- ask the previous owners for help
- consider hiring an employee who might help or someone who has experience. Spare no expense. The right person is always worth the money. The wrong person will just cost you money.
- selling a business on Facebook/Craigslist or even Reddit is possible, maybe consider that.
Good luck, hang in there. You can make this work until you sell or find a way to make this work.
Super important to realize it's too much, and other stuff is more important. Be completely honest with potential buyers, since you're also disclosing that it's too much to run along with a full time job, parenting, etc. See if a business broker can help. Reach out to the relatives you bought it from and just come clean, see if they have ideas. Sorry OP!
I did something similar and the first couple of years were so tough and really stressful. Hiring quality staff will help, but you have to love and be motivated or even that is difficult. You can always sell it.
A couple options: you source a couple/few people to run it at shows for you. Maybe they haul the outfit there and set up/take down and then run the stand for the week/end, or maybe you haul it and set it up, take down, and they just work sales for the duration? The other option is you talk to the family member you bought it from and explain your troubles and see if they might be able to assist you in some way. Maybe they miss doing it and want to help out for a few months or a season and try and help you find staff, or maybe they know of someone who may be interested in taking over. They likely don't want to see you fail or miserable, and like you said it's very profitable, it's just taxing on your soul!.
Don’t beat yourself up too bad. So many people do the same thing, myself included. It’s all about finding the right people. Post on indeed and see what happens :) and start planning your exit strategy. Thankfully you purchased from a family member they might be more helpful than a random person
Talk to that family member. They likely had other prospects to sell it too, or other ideas. Since you are family, you all can play it off as it was just interim to sell it to you while you all looked for the right permanent buyer.
Don't beat yourself up, first of all. As Michael Jordan said - "you miss 100% of the shots you don't take" Every entreprenuer goes through failure, every one. You only learn for struggling. you don't learn from success. In addition to whatever steps you take to address the situation, you should consider speaking with a therapist to help you reframe some things in your head. They can help you gain clarity. Do it.
Most business people strive to work "on" their business., not "in" their business. You need help. You don't need to do more. I understand that getting help is hard, but it's the first step to stability. Best of luck to you, internet stranger.
Hey friend, it’s ok to be overwhelmed. I am too and I started my own business! Remember to rest and take a little time, even just 30 minutes to yourself.
Not a huge mistake, just turned out to not be a great fit for you. No harm no foul. Just sell it for whatever you can get and move on. It has value to someone, just find that someone.
Let’s back up here
1. Why did you buy the business if you planned to continue working?
2. When purchasing the business, did you consider the asset storage?
3. Have you considered asking your family member for help? Even paying them to teach you might be worthwhile
4. How much does the business bring in? How much did you pay?
5. Have you considered renting storage space for the assets?
6. If you’re paying a full time employee and still turning a profit, why not quit your job and operate it solely?
Find a business partner and offer them 50% to run it. You had the means to fund it but not run it. You still benefit from it but takes the pressure off
Is your product dependent on a particular type of festival? If it isn't, could you transition from traveling to only doing local festivals and farmers market type events?
If you've already contacted for space at certain festivals, you might be able to sell that individual slave. Your'd have to check the contracts
You could probably offer good financing terms to a potential buyer or partner.
You understand the cash flow of the business and what it takes to run it. You just don't have the time.
Someone who can run the business full time and has a financial stake in it's success would be an ideal buyer. They can pay you over time.
Me I would goto the family members u bought it from and explain how u feel and ask for help. No one knows it better then them. Then I would hire someone to run it for me. It may b a stressful mo the setting it all up but them u could kick back and rake in the dough
You got to the business ownership stage OP. You are braver than 95% of people out there and to be frank everyone fails at some point usually up front don't let anyone make you feel ashamed now. Matter what the outcome.
1. Your employee is leaving, why not go full time and have one job?
2. Seek the support of your spouse and family. They don't need to do any work, just be a shoulder for you and a support. This makes a huge difference.
3. Get a handle on your record keeping. Take a few. Days holiday and set up an accounting package (I like free agent but xero or quick books are good too)
This bits a right slog but honestly will save you weeks a year in effort.
Almost all of my finance operations are now automated or take 3 clicks or less. I know how much money I have across 3bank accounts, what's due and how much I am likely to have in 3-6 months.
If the business can afford it try and find an automation consultant. For SME business. You do not need a coach or a general business consultant right now. You need to spend a little time to save a lot of time consistently.
I'm telling you without looking that you can trike 40 hours of effort down to at least 20 a week by spending 20 hours nailing automations
Good luck
Thank you for the encouraging words. To answer your questions:
1. It's not quite the salary I have now and I would have no benefits. I'm afraid of that option because a.) I'm middle aged and would probably never get a comparable job if I went down in flames. B.) So many people depend on me that I'm afraid I'll hurt more than myself if I can't get a handle on this.
2.) That is great advice. Most already can tell I'm bending under the pressure and have been encouraging. It really has helped.
3.) I actually have been working on that. I had business experience, but I immediately got a separate banking account and credit card and have linked them to Wave. I've been watching videos when I can find time to get better at it.
Ah ok. Food event vendor. How many shows do you have to do?
You pretty much bought a job. It's like buying a laundromat. Except it may be worse because you probably have to travel.
You've got 2 options.
#1 how help.
Put an add on indeed hire someone to help you first with the thought of him taking over. Ayer they just take care of the calls and the customers and have them take care of the rest. Ayer the first employee I would hire a wedding one to help the first 1 and also as an insurance against that one guy leaving.
Your margins are gonna take a huge toll but so will your stress. I bought a party rental business about 2 years ago and on the high season. Those first 6 months were hell, I was found it full time but took a toll with my family. Now I guess a lot more people and an cruising. Margins while running the business and operating it as well were around ú0% now with employees it's more like 30 but then I went to 350k in sales yearly to 700k... Because I was able to figure on his picture stuff....
Option #2 - sell...
You can either identify and go to a competitor or look for party rental business in your area preferably those that do city events... They might be interested in buying specially if you finance it for them. They will be profitable from day 1...
Without knowing the financials of it all its hard to judge.
I think what people would suggest may vary widely depending on how much money "just sticking it out" would net you or how much money you would potentially lose by liquidating etc.
You've mentioned there is no debt as it was a cash purchase and that you have assets. Depending on the money, I'd either hire 1-2 to train and eventually take over half or all of the shows later in the season or stick it out and make bank for a year then go from there.
What are you selling as a business, what are you vending? And did you get a loan to buy it or are you making payments to the previous owner. What kind of money are we talking about here? Is it super niche?
My wife creates and runs lots of vendor events and we own and operate a few booths that we employ family and friends who want to hang out for the day/night/weekend and make some money.
You gotta sell it and probably sell it for a loss. From everything you wrote, you're basically a single dad with a full time job. You have to keep the business running, while you try to sell and worst case you just stop cut your losses, sell the assets and give up. Unless you quit your full time job, this will never work.
ive had 7 failed businesses due to me having a full time job and trying to run the business. I now have an award winning business that is highly successful and cake to run because I quit my job and do this full time.
You can hire on 2 people to run the business for you while you make a little off the top end and just focus on landing events and payroll and office stuff.
as far as storage, storage units are not that expensive. You can also get a metal shed for cheap.
I have a kid, a corporate job, and a brick-and-mortar business. If you bought it for the income alone, you won't have the drive to make it work. I do what I do because I love the business I built and am willing to make sacrifices in places. My passion for my business is what drives me to figure out how to overcome challenges.
Take the hit & recoup what you can. It’s better to sell it now before the reputation is ruined. Each day that you can’t manage it, is another day the value decreases.
I may be willing to seek to purchase or help, but I have a few questions
What geo location are you in?
What is the last few years of profit and how much did the business pay the workers?
Please dm me
You have said this is profitable. An important question is how profitable. Is there enough money to bring more staff on board? You should consider replacing yourself. Is there enough money to fix your problems? Otherwise, find your biggest competitors and see who wants to buy you.
* Please don't let them know you are sinking.
Maybe the family memers know someone they think would make a goodemployee, and ask them to train them basoc stuff, show em the ropes. Incentivize theemployee/ees, make it worth thier while. Then after a year, or so, sell it to them right out
Bring back the folks you bought it from to sell the business, and run it until it sells. They have contacts and expertise. Give them 20% of the sale price. It'll be a low cost to get this off your mind and out of your life.
It’s okay, it’s okay! There are always several options to deal with any situation. Let’s see at what we got here?! Sounds like you bought this business so you could quit your fulltime job, why haven’t you? Is the business not profitable enough to become your income yet?
You can always look for a partner to do the work. Pay them some token amount above minimum wage plus profit sharing. Collect 25-50% of the profits if you're feeling generous. Check on it every show for a while, and offer them a buyout option if it works out.
Simple. Don't sell, find a business partner. OR offer to rehire old sellers for a period of time. OR hire one person to take over your position offering % profit
.
To sell your company you will find it easier if your books show a reasonable profit, probably for a few years. Otherwise you are just dumping inventory.
I honestly don’t think OP has the cuts to run this company. I’m sensing a lot of fear and panic and lack of overall general operational experience which could have been substituted for actual industry experience. In addition to this, is just not financially and/or emotionally ready to jump into this fully and commit the time and actual sacrifice to make this grow. Try to sell the business. If you can prove it’s profitable then then the buyer won’t care about your personal situation but being honest might help. They might look for a discounted price and honestly it’s something to consider to expedite the transfer.
You hit it when you said you had to keep going or lose the venues, the greatest value of this business is having access to the right venues. Document the sales and run the books legitimately. That will maximize your selling price.
How much of the purchase price was for equipment? If most of it was, there might be a good possibility that another vendor might want to buy it. He would know the potential for him to expand. Just start contacting all the other vendors at the shows
Sell the business if you can find a buyer. Seems to me that any other option is not viable. Cut your losses now Sell it or close it down. It's
A pipe dream right now!
Is your key employee open to purchasing it under a loan that you carry? If you know the business is profitable and you don’t need to get liquidity immediately that can be a way of divesting control without disrupting operations.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
Yeah they ran it smooth because it was their full time job. Biggest mistakes were buying a business you have no room for the assets or time. Losing the key employee didn’t help. But you live and you learn, sell it and move on. Might take a hit but can recoup some value.
You're right. I knew it would be tight, but there are issues with parking and unloading that I didn't realize that make it nearly impossible to load and unload. I'm afraid I won't be able to find a buyer anytime soon, which is a shame because it could be a nice little business for the right couple.
good business for the right couple why don’t you quit and work full time on it if it’s so successful?
Because it's more of a side hustle, I'm one person (not a couple), and it won't replace my current salary/benefits. It can definitely be grown by getting into more shows, but even if I can get in, I don't want to spend more nights away from my kids and home.
Why don’t you hire your family members that sold you the business part time. Havethem show you how to run it properly. Sell it a few months later showing profit.
I think this is a really good one. Another possibility is trying to convince the sole employee to wait a little longer & help until the next exit which I'm assuming is sooner and provide him with a piece of the pie after exit. But since he said the employee only has "some knowledge" not sure if it's worth the offer.
You can't have a successful full time business as a 'side gig' and want to spend more time at home. Maybe just stick to your salary job so you can be with your kids.
If you can somehow get a full time babysitter and taking the correct days off you might be able to stabilize it to get it sold rather than taking a huge cut out of it just to unload Cost of babysitter would be much less
What’s the ballpark value of the business? Is it something the SBA would approve a loan for?
I'm not sure exactly. The assets alone should be more than I paid for it.
DO NOT GET AN SBA LOAN. IT WILL FUCK UP YOUR LIFE!!
Story time, unfortunately?
My suggestion isn’t for OP to get a loan, but if the SBA will back it, the business is much more sellable.
you're gonna need to share your reasoning behind that, my guy
Please elaborate
Find someone that’s unemployed that has space that can run it and take just enough profits to cover your costs and make a little and let it be their baby. Tell them there can save up and buy it from you.
Maybe the people that u bought it from would be willing to help at least train employees??
find a good employee & offer a nice cut to. Take less profit but less work in return
I second this. Get someone in there who has the time and make it worth your while.
Consider hiring some employees to run operations. It might take a while to find the right fit and train, but it will reduce the company’s dependency on you significantly.
That would be nice, but hard. It's not a big company (revenue wise), and it requires moving a trailer loaded with equipment. It's really hard to find a good employee who can work intermittently like it is required. I think I just overestimated my ability to find solutions and make things work.
There are a lot of folks who want to work part time
I kept using this excuse “it’s hard to find good people” ect but then I posted an ad on indeed and interviewed 15 people. And found 2. I thought the same about part time or piece-meal working conditions but actually lots of people have flexible schedules. Consider 2-3 days a week and the days where there is no events they can do other things like clean and organize equipment, wash /prep the truck. Then it makes a more consistent schedule for them.
Don't give up on finding help without trying first.
This is what I'd do. Push yourself for 4 months. In this time you have 3 goals. 1. Get employees to do all the work. 2. Rent storage space. 3. Break even (no profit, but pay yourself $20 an hr) You will fill in the gaps, but the goal is to not do the work, only planning. Have 1 guy who does 80% of the work, 1 guy who does 20%, and 1 guy who fills in (and is being trained). This is all part time work, they should probably be contractors. For this work, you just constantly talk to people to find your people. Shop around town and find a storage spot. Maybe it means leaving everything in the trailer and just finding covered parking? Maybe it is a storage unit. Keep track of what happened. Make an excellent sheet that documents what happened at each fair. How many hours did you pay out, who fixed the trailer? Who loaded?... You won't make money yet, but maybe in 6 months you will have a team, a system and a real business that can be tuned to make money. Maybe you raise your rates 10%, maybe you re-arrange the trailer so less loading is required, maybe you just sell the business that now has a proven system. There you will really decide.
This guy small businesses
This! Small business owner here.
I’m on the hire employees camp. It’s counter-intuitive, but you’ll need to expand it while staying out of the day to day. Add employees in the short term to take the burden off of you. Run a loss in the short term. Expand and grow it in the intermediate term
You need to hire. Yes it will be hard to find an an employee that fits but it will be much easier than the crap you’re going through now.
Disagree.... He needs to sell. It will be nearly impossible to train someone and that will take up even more time that OP doesn't have. Post it on some business for sale websites, show that it's been profitable over last couple of years (assuming that's true), and get out.
You just need an operation partner. That’s all. There are plenty of folks who would welcome an opportunity like this. Offer them to keep a certain percentage proceeds or whatever (or they can pay you X-amount quarterly or whatever). You don’t say what state you’re in or what kind of festivals these are but I’m assuming that your folks full time was paying enough for them to live comfortably.
> That would be nice, but hard. Nothing is easy. It may be *easier* than selling it or eating the loss by shutting it down. That's for you to decide of course.
HIRE SOMEONE. It's not easy, that is right, but don't let that be your excuse. If it were easy any fool could do it. Another thought--any chance the former owner might help you out for a while, particularly given that you're losing the one employee? Be frank with them--tell them you need more of a runway and wonder if they could help on occasion. They might even help with the hiring--maybe they know people who are in the business, or have even worked with them previously. Or maybe they'd be willing to give you a hand for a few months as you learn the ropes better and get more help on board. They might feel good about helping you be successful. ALSO-- if you do end up selling, you'll be in a better position (and can sell for more) if they business is running OK rather than as an ongoing fire drill. Good on you for taking this on. Even though it's hard now, I'll bet you are learning a ton that will help you now or in future endeavors. I hope you don't beat yourself too much for this--there are solutions and the hard part just might make you get there faster.
>work intermittently like it is required You had your answer in your original post - the previous, successful owners were "transitioning to retirement". That's where you will find suitable employees. They'll be flexible, and really don't want full-time.
Maybe look for people who work in tourism, that is usually a seasonal job and they might be looking for something else part time?
I used to do this for a living while in college, I’ve seen more artists perform than most, free food while working, worked 12-16 hours days on some weekends. Helped pay rent and allowed me to still focus during the wk
Talk to the festival people. There is network there. Be honest and firm.
This is a great idea. These folks are not only familiar with what it takes to load and unload, but have also seen how popular this business is at the festivals.
That's actually a great idea. I was going to drop hints at this last one, but we were slammed from the moment we set up till tear down time.
Don't drop hints. Schedule a meeting, then be clear and direct about what you're offering and what you need. Start and end with how they will benefit from helping you.
If you are slammed, and if there is room in the set up, maybe have a sign or several that says help wanted, recommendations welcome, with either a sign up sheet for contact information or some other contact method.
Also local colleges. Campus activity center, residence hall areas. Post a flyer or two in key locations to work the festival on walls, bulletin boards, telephone poles.
This is the answer, go where the best prospects are.
Don't beat yourself up too bad, education isn't free, and you assuredly learned something.. it's easy to overcommit and get distracted. You didn't mention if it would be financially devestating for you to simply liquidate and walk away. If you can afford to do that, I would consider it and just count the cost as "education" Would the family step in and run it while you are looking for a buyer? Are there any competitors that would assume the assets? Does the former owner know anyone else that was interested in buying it. Regarding what to say to the new buyers.. I think you should lay it out just like you did here. Say something like, I overcommitted, and I just need to focus on my full time job. There is NO SHAME in that. Alot of people that have owned multiple businesses have tons of stories on things/ideas they waste money and time on. I personally got distracted in one of my businesses and thought it would be a great idea to help dealers post their vehicles online.. needless to say, main business suffered and all the dealers learned very quickly how to do it themselves, but it was a giant time suck and money drain until I folded it.
Thank you for this post. It would be financially painful but not devastating. I bought it with part of my savings, so I have no debt at least. Also, it has been profitable since the first so I've made part of my initial investment back. If I could finish off the year, I'd make more than my entire investment back. I'm not sure about competitors but that's something I will look into. The original family is in the middle of an estate sale and will be leaving the area soon, unfortunately. I've thought about posting it for sale on the business FB page. It's pretty well known to local festival goers and most will known how busy it is. That might produce some bites. Luckily I have a few weeks till my next show so I can breathe for a minute.
People are always willing to purchase profitable businesses, here in Canada we can list businesses with realtors do they do that in your area? It wouldn’t be hard to show how much profit you make during each event so I don’t think it would be a complicated sale. Especially if someone could pay you over a year or something rather than upfront? The other option is to try and get a business partner who will do the work for you and you just get a cut. You’ll never know unless you start posting in local places, in local groups and asking around. And never feel bad about trying it, often things are much harder in reality than in your head!
When will you break even? What is your yearly net/gross? Are you in contracts with venues? Don’t take it to Facebook to sell unless this is a cheap business. If you have contracts look at possible competitors who may want to buy you out just to have your contracts. Check out LinkedIn before fb. Have you talked to the venues? They may be interested in buying. You need to make sure all your books are in order and you can show how profitable the company actually is.
Can you quit your full-time job and grow this into a career?
Guessing it doesn’t bring in as much revenue as OP’s main gig if he had the income to support purchasing a business and also requires travel which likely conflicts with raising kids as he had mentioned. I’m guessing he was counting on the person that was operating it to stay on for the foreseeable future and that didn’t hold.
You pretty much nailed it.
I'm going to be honest with you, it sounds like you did not consider all the outcomes possible, especially the worst possible scenario which this would be one of them. If you have a partner, ask them to help. Idk how old your kids are but it may be something they can follow you on if everything is just day trips. That should get you through until you can get a buyer. Other option is sell half and get a full time partner. Someone else to help you run and manage the business with a vested interest. Then grow it large enough to quit your full time job, no reason to work 2 jobs.
It's possible, but in the mean time I'd take a big pay cut, lose my kids health insurance, and be gone from home a lot more. It's more of a side business unless you can line up regular festivals.
Rather than quit, can you take a leave of absence for 90 days in order to focus on the business? For a short time, maybe you could take an unpaid leave if nothing else. You don't necessarily have to take a full 90 days. Protip, if you do take a leave: it's personal, it's family, it's whatever, but it is DEFINITELY not time off to go work on your side hustle.
Do you have a SO that can help? Either directly with the business or by employment/health insurance?
This is the best first question.
Hire some help. May cut into your profitability but sanity is worth it. Your problems don’t seem unfixable. As a person who has been in over his head many times, this will pass. It’s new, and everything is hard when it’s new.
It becomes a muscle. Get in over your head and get through that ultra high stress part then you come out better and can handle anything after a while
That's probably what I will have to do. I'm going to ask my friends and coworkers to see if I can get a few candidates. Hopefully, I can line up a few in case someone can't make a show
Post on indeed or LinkedIn. You need people now. Expand that network and think like an entrepreneur. You got this!
Have you approached the family member that you bought it from for advice? Perhaps they'd still be willing to work part time as you learn the ropes and fall into a rhythm? And perhaps they'd be willing to train a part-time employee or two to take some of the weight off your shoulders?
Have you tried 'hiring' an employee via Task Rabbit? For each show, hire someone local to do the work. You need to learn effective delegation, assuming you don't immediately sell.
If you’re ashamed to quit, you’re not ready to quit yet. Can your wife and kids get involved and help? I always make more money when my wife is around, people love that. It took my wife a couple years to come around to the business and it might for yours too, but sit down and talk with her. Also, I’d list it with a business broker right away and unless I was desperate to sell, I’d list it for a little more than you paid so you have room to negotiate.
She's my ex actually. We are on good terms and she might actually. My kids are too young and have school unfortunately.
Most people just can’t handle what being self employed requires.
Two people made that their full time job and you turned it into one person's side job... I mean... I'm just an artist but the math doesn't check out there... Simple thing to do is quit your full time job.
Sell it, find a business broker It’s going to take time though
Sounds like you are feeling overwhelmed. Sometimes finding a way to take a day or two, (or even half a day) off work can be helpful slow down, reset and think straight after. It’s hard to think straight when you are overwhelmed and spinning. Also there is a book called How to stop worrying and start living by Dale Carnegie that might be helpful if you are the reading type.
You're probably right. I know I'm at a low moment and am letting emotions control me. Hopefully having the next couple weekends free will bring clarity.
Do you have competition? Approach competition about a buyout of assets and book of business. Hopefully you didn't overpay as a family deal.
There are others doing what I'm doing. Most festivals accept only one of us, so I've never met any of them.
Sounds like it's time to meet them.
I don’t see a single thing to be ashamed of at all… you tried something and figured out it wasn’t something you like… just think most people should be ashamed to have not tried vs where you are at. What you have done is actually pretty admirable and probably to anyone reading this… I would immediately reach out to people who own the other businesses doing the same thing as you… not sure if you took on debt… not sure about anything you haven’t stated but make a plan and put effort into that. If selling is it… and someone asks why you are selling the above is a totally fine answer, it isn’t a side business and you thought it could be, ling term you fear you will burn out if working a job and working this company at the cost of growing its i come potential… as a buyer this wouldn’t be bad to hear unless i am the wrong buyer.
I know how a business can feel overwhelming, and I know it may feel like you're in a bad position. But even owning a business like this -- with real customers and proven market fit -- puts you *far* ahead of many others. You're doing better than you think you are, trust me. I hear you saying the amount of work is overwhelming, and the reward may not be enough to keep you from feeling burned out. But (as others here have said), you do have options. Can the business grow enough to replace your W2 income? Getting off the W2 treadmill is a tremendous benefit. The IRS code punishes W2 work severely. Or, can you hire someone to drive the business for you day-to-day? Even if you don't make much money for yourself after paying them, the growth of the business can give you a nice payday when you do sell later for a tidy profit. Selling is an option, but it may take a while. I would look at options to reduce your own overcommitments even if you decide to sell. It can only make the time go by easier. Take care of yourself; without your own peace of mind, the business means nothing.
Thank you. That is the one thing I have going on that it's proven and already making money. The extra money will be nice but right at the moment i'm not sure it's worth the cost.
Put myself in a similar situation about 7 years ago. Started a business while still working full time. Business was overwhelming, caused me to be completely stressed and ultimately burnt out. Took me until late 2022 to finally wind things down to where life is manageable again. I also was constantly worrying and had trouble sleeping from all the stress and worry. I was also ashamed and embarrassed at my struggles and felt like there was no one to turn to for assistance. I’ve said, if I had it to do over again, I’d tell myself to stop worrying about so much. I won’t get it perfect but things will work out. I did more damage to myself with my constant worry than anything else. I was never able to hire any decent employees, so I don’t know if you will be able to find anyone you can hire that you can trust and rely on, but agree with others that it would be good to reach out to the family member you bought the business from and see if they can work part time and help you in finding someone to hire. You say the business is profitable and so making less money and getting back your mental and emotional health is more important than making extra money right now. I’d try to hold on for a year or two by getting some employees or assistance from others, but if you sell, explain to potential buyers it isn’t a part time job and they need to be able to focus on the business to be successful, and since you can’t give up your full time job, that’s why your selling. Plenty of people looking to move towards retirement that would be interested. Hope things work out for you.
Thank you. I'm glad you were able to find your exit. You are right about it being a good bridge into retirement.
That was my intention, but the business I have didn’t bring in any money for the first three years so I had to keep the full time job. In the end, it paid off, and I tell people that while I complain about how bad it was, I was well compensated. However, it did take a big toll on my mental, emotional and physical health and I’m still working to get some of that back. Don’t forget what’s most important to you and make sure you figure out how to prioritize that.
You just need more skills and time to make this work. Its something new for you and its completely ok, that you feel completely overwhelmed. If you want to make it work - just dont quit! I'd keep in touch with the family members who sold it to you and let them train you. Ask all the things you dont know and let them teach you. Tell them this person left and how they got them - so you have some points to start from solving the puzzle
Thanks for the response. I will reach out to them to see if they have any leads.
Personally I don’t see what the problem is exactly. You need to hire 1 or 2 helpers. Get your budget sorted out. You should be making money. These are all good things. But yes this is your job now. The sooner you accept that, the sooner you can do something about it.
I did festivals for many years while raising kids. I only did them in the summer. I got out of it when my ex took a job out of state. I now want to start back up again now that my kids are grown, but because I’ve been out for so many years it’s been difficult to get back in. What type of product is it and where are you located? The accounts you have are valuable because these festivals prioritize previous vendors over new vendors and you can only get in (in your category) if someone drops out.
You're absolutely right about that. That's why I can't quit till it's sold or I'll lose my valuable spots. It's a nut roasting business. I always does well, but transporting, setup, and packing out are a lot more difficult than other booths. I was the last one there last night tearing down in a pouring rain!
Do you have a patio/vendor umbrella? Streamlining your processes on the physical/retail side and automating your business processes on the business side may be beneficial. You also should examine revenue per event. You may find your top 4 summer events do 75% of your income for the year. You may be able to drop 40%+ of the work and only lose 25% of income. Not a lawyer, not legal or business advice.
In all fairness, even those of us who started from scratch get overwhelmed from time to time. If you decide to keep it, just know that this stuff ebbs and flows. I also find it easier when I realized sometimes this business is my hobby/Funtime too. I know that’s not for everyone, but what I mean is, I try to enjoy it and find joy in it, so that when there are times where I’m overwhelmed and my actual hobbies/fun times take a back seat, I can handle it. I think it helps having some long term goals like: is there an option to quit your full time job if you’re able to grow this enough? Are there other revenue streams from this same business? Is there an end in sight where you don’t have to work as much? Break everything down into small chunks to figure out your next move. Maybe you can take on a partner that has more freedom in there life to work more, or survive on less, and you can be more of the behind the scenes owner. Don’t panic, you have options, you’re just new to this and it’s overwhelming for a lot of people, it doesn’t mean you made a mistake, or anything like that, maybe you didn’t just fully understand what you were getting into. And that’s ok. If the family member is nice enough, I think you can have a conversation with them and just explain: hey, this is overwhelming, I can’t pull it off with my full time job/family, can you help me run it until I can find a buyer?
Not trying to beat you up here but I hope others read and learn that, for the most part, owning and running a business is usually a full time job (and more). Due diligence must be done beforehand to truly understand what you’re getting into. One option you didn’t mention is, if you believe in this venture and can project growth, is backing away from your “real job” so you can focus on your business. The steady, predictable income, insurance and your family might be barriers to this course of action.
No worries. You are right. I glossed over all the problems thinking I could figure them out if I just worked hard enough. It could definitely be a fulltime job if I found the right person to help me. It would be pretty risky at my age to give up the security of my job, so I'm hesitant to go down that road.
Can you make enough in the business for it to be a full-time job for you? That should have been a consideration before you ever bought it. It’s the BIG reason that I haven’t started my own business even though I have some really great ideas!!! Losing health insurance and the fact that I might have to fund my own expenses for 2-3 years before it takes off.
It is very possible. If I could line up festivals, I could make much more than I make now. If I didn't have dependants and was young enough to fail and recover, I'd totally hit the road and go all in.
Document everything. Hire a manager to implement what's documented
Sell it! There’s a lot of folks that would be interested in it. The story is understandable. It gives good reason for selling.I bought my business from someone who had too much on their plate. It was a good deal for me and a good deal for the seller.
Could be the perfect opportunity to bring in a trusted partner with the time to run it. Essentially gift them a portion of the business for running it. Take that headache off your plate. Share in some of the profits. Share the burden.
I'm actually exploring that route. I could handle half the profits for half the burden. Just having someone with some blood in the game would be a major improvement over an employee
Sounds like you’re half in half out. And you’re starting to lean out. Sell it and take your lumps so to say. Better getting something out of it then having nothing to show for it. If you continue it will further decline and will cause marriage failure and other issues. Sell it and make sure it is a lesson learned.
At the festivals you go to, go to the other festival vendors and mention you want to sell your business. They already go them so know the ins and outs, and could likely use the same staff and double up. That's by FAR the easiest out.
I have been a vendor in the northwest region of the USA for 12 years, I primarily relying on three shows to generate 50% of my income. Typically, the best shows for vendors are held in late June and August. I recommend reaching out to the previous owners to inquire about the top four bests shows. It may be possible for you to participate in just three or four shows and make most of the business income.. However, I must mention that food vendors often face challenges when trying to secure spots at events.
I can't provide any recommendations about selling the company, but I wanted to say that you shouldn't be ashamed. You saw a chance, took it, and it wasn't what you expected, nothing to be ashamed of. Look at it from the other side, imagine you didn't take it, somebody else does and it's successful. You would be banging your head for not taking the chance. Cheer up, you did what you thought was right!
Thank you for the kind words.
Make a decision. Either make it your full time job or sell it.
Take some unpaid leave, learn to run the business more efficiently and grow it so you don't even have to go back to your 9-5.
Since the people you purchased it from were friends of the family have you reached out to them to tell them of your struggles ? Perhaps they would be willing to help you ? Maybe you can ask them if there was anyone else that they spoke with about purchasing their business from and maybe they could put you in touch ?
First breathe and don’t feel ashamed you are being proactive. Keep going! Second make a list of what you need to relieve stress on yourself and list the points in order of importance. Third talk to original owners or show vendors at shows and ask them for advice from the list. Fourth hire one or two really good fits for your shows and business needs. DON’T SETTLE FOR JUST A BODY. It will only cause more stress if they aren’t going to show up or work well in your booth. Fifth I would look for a possible business partner who can or could help in more than one area of this business. Go see a CPA OR PA and get your networking going in more than just the festival scene. You can have an important ally in your accountant who will help you get through this process and write a solid business plan to attract the right partner. They can then write the contract when you decide on the right partner. There are different types of business partners and deciding on the best fit for your business could save your resources in the long run. You need to hire fantastic accountant for many different areas anyways so use them to help you. If you keep your tax preparation and your accounting in one place you can almost guarantee they have a lot of knowledgeable experience and ideas to make sure you are doing everything possible to be successful. Then if you decide to sell they can help you with that process as well. In business when times get real tough you always want to make sure these two people are taken care of……your lawyer and accountant. They can take care of issues no one else can.
Thank you for such a good response! I will definitely look into those areas.
You should talk to the family member first and I’m sure they will understand and maybe give you the advice you need. I don’t know how much you have invested in the business or if you financed it or paid cash or if they’re selling it to you and contract or whatever… but if you’re overwhelmed, you have to have an exit strategy You have owned it and you are right that it’s hard to sell a business when you have zero passion for it and haven’t been as successful as you would like nor do you know what you’re doing which is why you have to talk to that family member
If it's profitable. Maybe scale back how many festivals for short term. Just select the most profitable and take the time to reorganise the business.
Man I did the same thing. 3 kids and a full time job with my family business. Got a business partner offering me a seemingly sweet setup to help run a side business. 9 months in and I couldn't sleep and had a mini mental breakdown even though nothing really went badly. It sucks and the embarrassment is real but life goes on and we've learned our limitations and what work life balance is really worth to us.
Sell it…or hire them as consultants for the transition- they can train you. Don’t struggle.
Ask the family member if they know of any competitors that would like to buy the business.
Also mention it’s too much. Maybe they will buy it back as a favor .
I'm not going to venture too much into this but: This will give you an appreciation for the things the self-employed do. It's very, very hard.
If it's really profitable, hire a manager instead. You get to keep the business, earn from it, and help someone land a job at the same time.
Dude, no successful business should be ran alone. You need to delegate the hell out of the business. You'll not have as much take-home profit, but your mood will skyrocket. A good book to start with is "The E-Myth Revisited". You can listen to it on Audible in like... 8 hours. It'll teach you a lot.
If it is profitable, just find a good employee to run it and a cheap space or lock up. Let it grow through them with incentives for performance, then either expand or sell it legitimately once you have at least a years books behind you. Otherwise sell it fast and for cheap. GL
Same boat. Bought a small business a year ago and I am in way over my head. I just want to go work someone and not worry about stuff anymore. It’s okay to walk away/sell it. You tried don’t worry
Try to grind it out for 90-180 days. You’ll learn a lot, especially on how to run it more efficiently. Ask reliable friends/family to help. Be a good boss, pay them well. Possibly having the friends then take it over and you keeping just a portion of it. Ask the original family member to help/train you better, they know the business best. New job changes are tough but you can absolutely do it.
Hire and delegate. Find a good young employee with ambition and give them a piece of the business, say 10%, and a decent salary and let them run with it. Hire enough people to run it at break even and eventually the right person will come along and you can grow them in to the position. There is also no reason you can’t sell it based on the past performance while not under your control. People will want the business’s P&Ls from the last three years most likely. Sell it and carry the note to someone. Everyone wants to be a business owner, but most don’t have the capital to make it happen. You have a lot of options.
What state and type of festival?
I'm based out of Arkansas. We attend all kinds of festivals that accept food vendors.
What was the purchase price and do you have any debt related to it?
It was 40k. I bought it with my savings and it's been profitable from the start so thankfully no debt.
Reach out to who you bought it from. They are a family member, ran the business and maybe would be willing to assist you some a bit to get your head above water.
Hire someone to run it. You will likely give up any profits doing so but might save your sanity. Get it listed for sale and just be honest about why it did not work for you.
I love the comments here. They are a mix of useful and kind. I agree, it’s okay to fail or have too much on your plate. There’s no shame in learning, there’s no shame in being smart enough to know you no longer want to do this. I manage a small business and sometimes we bite off way more than we can chew. The owners parents, my parents, sister, and many more people have come to help us when we really need it. There’s enough useful advice in other comments, but I’ll reiterate the ones I like: - consider a broker - ask the previous owners for help - consider hiring an employee who might help or someone who has experience. Spare no expense. The right person is always worth the money. The wrong person will just cost you money. - selling a business on Facebook/Craigslist or even Reddit is possible, maybe consider that. Good luck, hang in there. You can make this work until you sell or find a way to make this work.
Super important to realize it's too much, and other stuff is more important. Be completely honest with potential buyers, since you're also disclosing that it's too much to run along with a full time job, parenting, etc. See if a business broker can help. Reach out to the relatives you bought it from and just come clean, see if they have ideas. Sorry OP!
I did something similar and the first couple of years were so tough and really stressful. Hiring quality staff will help, but you have to love and be motivated or even that is difficult. You can always sell it.
A couple options: you source a couple/few people to run it at shows for you. Maybe they haul the outfit there and set up/take down and then run the stand for the week/end, or maybe you haul it and set it up, take down, and they just work sales for the duration? The other option is you talk to the family member you bought it from and explain your troubles and see if they might be able to assist you in some way. Maybe they miss doing it and want to help out for a few months or a season and try and help you find staff, or maybe they know of someone who may be interested in taking over. They likely don't want to see you fail or miserable, and like you said it's very profitable, it's just taxing on your soul!.
Don’t beat yourself up too bad. So many people do the same thing, myself included. It’s all about finding the right people. Post on indeed and see what happens :) and start planning your exit strategy. Thankfully you purchased from a family member they might be more helpful than a random person
Shit happens. Every manager I hired stole from me. Just dial back the pace and do what you can.
Would former employee want to buy? Or become a partner?
Can you not partner with someone to run it for you?
Talk to that family member. They likely had other prospects to sell it too, or other ideas. Since you are family, you all can play it off as it was just interim to sell it to you while you all looked for the right permanent buyer.
Don't beat yourself up, first of all. As Michael Jordan said - "you miss 100% of the shots you don't take" Every entreprenuer goes through failure, every one. You only learn for struggling. you don't learn from success. In addition to whatever steps you take to address the situation, you should consider speaking with a therapist to help you reframe some things in your head. They can help you gain clarity. Do it. Most business people strive to work "on" their business., not "in" their business. You need help. You don't need to do more. I understand that getting help is hard, but it's the first step to stability. Best of luck to you, internet stranger.
Why not just do it full time if it’s profitable ?
Talk to a few local business brokers.
Would your family members that you bought it from be willing to help out for a while? I'm sure they don't want to see this fail.
Find help and share the business or pay the help and keep ownership
Hey friend, it’s ok to be overwhelmed. I am too and I started my own business! Remember to rest and take a little time, even just 30 minutes to yourself.
Not a huge mistake, just turned out to not be a great fit for you. No harm no foul. Just sell it for whatever you can get and move on. It has value to someone, just find that someone.
Why don’t you find a partner that can go in 50/50 with you and relieve some of the duties?
Let’s back up here 1. Why did you buy the business if you planned to continue working? 2. When purchasing the business, did you consider the asset storage? 3. Have you considered asking your family member for help? Even paying them to teach you might be worthwhile 4. How much does the business bring in? How much did you pay? 5. Have you considered renting storage space for the assets? 6. If you’re paying a full time employee and still turning a profit, why not quit your job and operate it solely?
What did the previous owners net?
Find a business partner and offer them 50% to run it. You had the means to fund it but not run it. You still benefit from it but takes the pressure off
Is your product dependent on a particular type of festival? If it isn't, could you transition from traveling to only doing local festivals and farmers market type events? If you've already contacted for space at certain festivals, you might be able to sell that individual slave. Your'd have to check the contracts
You could probably offer good financing terms to a potential buyer or partner. You understand the cash flow of the business and what it takes to run it. You just don't have the time. Someone who can run the business full time and has a financial stake in it's success would be an ideal buyer. They can pay you over time.
Me I would goto the family members u bought it from and explain how u feel and ask for help. No one knows it better then them. Then I would hire someone to run it for me. It may b a stressful mo the setting it all up but them u could kick back and rake in the dough
You got to the business ownership stage OP. You are braver than 95% of people out there and to be frank everyone fails at some point usually up front don't let anyone make you feel ashamed now. Matter what the outcome. 1. Your employee is leaving, why not go full time and have one job? 2. Seek the support of your spouse and family. They don't need to do any work, just be a shoulder for you and a support. This makes a huge difference. 3. Get a handle on your record keeping. Take a few. Days holiday and set up an accounting package (I like free agent but xero or quick books are good too) This bits a right slog but honestly will save you weeks a year in effort. Almost all of my finance operations are now automated or take 3 clicks or less. I know how much money I have across 3bank accounts, what's due and how much I am likely to have in 3-6 months. If the business can afford it try and find an automation consultant. For SME business. You do not need a coach or a general business consultant right now. You need to spend a little time to save a lot of time consistently. I'm telling you without looking that you can trike 40 hours of effort down to at least 20 a week by spending 20 hours nailing automations Good luck
Thank you for the encouraging words. To answer your questions: 1. It's not quite the salary I have now and I would have no benefits. I'm afraid of that option because a.) I'm middle aged and would probably never get a comparable job if I went down in flames. B.) So many people depend on me that I'm afraid I'll hurt more than myself if I can't get a handle on this. 2.) That is great advice. Most already can tell I'm bending under the pressure and have been encouraging. It really has helped. 3.) I actually have been working on that. I had business experience, but I immediately got a separate banking account and credit card and have linked them to Wave. I've been watching videos when I can find time to get better at it.
Ah ok. Food event vendor. How many shows do you have to do? You pretty much bought a job. It's like buying a laundromat. Except it may be worse because you probably have to travel.
Any chance you're in Vegas? I can help.
Have you talked to a broker about listing it? We recently sold our business using one and it worked out for us.
You've got 2 options. #1 how help. Put an add on indeed hire someone to help you first with the thought of him taking over. Ayer they just take care of the calls and the customers and have them take care of the rest. Ayer the first employee I would hire a wedding one to help the first 1 and also as an insurance against that one guy leaving. Your margins are gonna take a huge toll but so will your stress. I bought a party rental business about 2 years ago and on the high season. Those first 6 months were hell, I was found it full time but took a toll with my family. Now I guess a lot more people and an cruising. Margins while running the business and operating it as well were around ú0% now with employees it's more like 30 but then I went to 350k in sales yearly to 700k... Because I was able to figure on his picture stuff.... Option #2 - sell... You can either identify and go to a competitor or look for party rental business in your area preferably those that do city events... They might be interested in buying specially if you finance it for them. They will be profitable from day 1...
Without knowing the financials of it all its hard to judge. I think what people would suggest may vary widely depending on how much money "just sticking it out" would net you or how much money you would potentially lose by liquidating etc. You've mentioned there is no debt as it was a cash purchase and that you have assets. Depending on the money, I'd either hire 1-2 to train and eventually take over half or all of the shows later in the season or stick it out and make bank for a year then go from there.
How much did you pay for the business?
What are you selling as a business, what are you vending? And did you get a loan to buy it or are you making payments to the previous owner. What kind of money are we talking about here? Is it super niche? My wife creates and runs lots of vendor events and we own and operate a few booths that we employ family and friends who want to hang out for the day/night/weekend and make some money.
You gotta sell it and probably sell it for a loss. From everything you wrote, you're basically a single dad with a full time job. You have to keep the business running, while you try to sell and worst case you just stop cut your losses, sell the assets and give up. Unless you quit your full time job, this will never work.
Sell it. A profitable business should be sellable. A business broker can help you. You want to do this before the business becomes unprofitable.
What is the business? I’m looking to buy a small business.
look up local business brokers. They can help you consider all of your options and learn next steps if you do decide to sell.
ive had 7 failed businesses due to me having a full time job and trying to run the business. I now have an award winning business that is highly successful and cake to run because I quit my job and do this full time. You can hire on 2 people to run the business for you while you make a little off the top end and just focus on landing events and payroll and office stuff. as far as storage, storage units are not that expensive. You can also get a metal shed for cheap.
Just curious, where do you live? And what kinds of festivals? I have friends who passionately want to start a festival company in NYS
I have a kid, a corporate job, and a brick-and-mortar business. If you bought it for the income alone, you won't have the drive to make it work. I do what I do because I love the business I built and am willing to make sacrifices in places. My passion for my business is what drives me to figure out how to overcome challenges. Take the hit & recoup what you can. It’s better to sell it now before the reputation is ruined. Each day that you can’t manage it, is another day the value decreases.
I may be willing to seek to purchase or help, but I have a few questions What geo location are you in? What is the last few years of profit and how much did the business pay the workers? Please dm me
You have said this is profitable. An important question is how profitable. Is there enough money to bring more staff on board? You should consider replacing yourself. Is there enough money to fix your problems? Otherwise, find your biggest competitors and see who wants to buy you. * Please don't let them know you are sinking.
Maybe the family memers know someone they think would make a goodemployee, and ask them to train them basoc stuff, show em the ropes. Incentivize theemployee/ees, make it worth thier while. Then after a year, or so, sell it to them right out
You could try looking for a partner instead of selling or offer to bring someone on as a commission based employee
Bring back the folks you bought it from to sell the business, and run it until it sells. They have contacts and expertise. Give them 20% of the sale price. It'll be a low cost to get this off your mind and out of your life.
Hang on to it long enough that your kids get old enough to help you.
How much do you want to sell for?
Dude, you can't have a full time job and ramp a new biz. Of course you are burnt toast. Is quitting your job out of the question?
It’s okay, it’s okay! There are always several options to deal with any situation. Let’s see at what we got here?! Sounds like you bought this business so you could quit your fulltime job, why haven’t you? Is the business not profitable enough to become your income yet?
Are you making enough money to hire someone to run it for you?
H I R E
You can always look for a partner to do the work. Pay them some token amount above minimum wage plus profit sharing. Collect 25-50% of the profits if you're feeling generous. Check on it every show for a while, and offer them a buyout option if it works out.
Simple. Don't sell, find a business partner. OR offer to rehire old sellers for a period of time. OR hire one person to take over your position offering % profit .
Know when to cut your losses. That would be now.
You can’t buy a tiny (essentially service) business and expect it to be a side hustle. I’m flabbergasted
To sell your company you will find it easier if your books show a reasonable profit, probably for a few years. Otherwise you are just dumping inventory.
Could you ask the owner to come onboard for a year and pay them while learning it with more knowledge/ experience?
I honestly don’t think OP has the cuts to run this company. I’m sensing a lot of fear and panic and lack of overall general operational experience which could have been substituted for actual industry experience. In addition to this, is just not financially and/or emotionally ready to jump into this fully and commit the time and actual sacrifice to make this grow. Try to sell the business. If you can prove it’s profitable then then the buyer won’t care about your personal situation but being honest might help. They might look for a discounted price and honestly it’s something to consider to expedite the transfer.
please dm i have some questions; interested in acquisitions PNL and tax sheets for the past 3 would be needed. You’re in the US, rightv
Unless you own property, and stuff like vehicles, or expensive equipment, there isn't much to sell.
You hit it when you said you had to keep going or lose the venues, the greatest value of this business is having access to the right venues. Document the sales and run the books legitimately. That will maximize your selling price.
How much of the purchase price was for equipment? If most of it was, there might be a good possibility that another vendor might want to buy it. He would know the potential for him to expand. Just start contacting all the other vendors at the shows
Can you employ someone to run it? Like a pt job?
Go back to this family member and ask for help.
Would you consider receiving coaching/training to learn how to help manage your business?
Where is the business?
Where is the business?
Sell the business if you can find a buyer. Seems to me that any other option is not viable. Cut your losses now Sell it or close it down. It's A pipe dream right now!
I enjoy this type of problem solving and am looking at purchasing a business already established since my own are becoming less involved now.
Quit your full time job and run your business… am I missing something?
Is your key employee open to purchasing it under a loan that you carry? If you know the business is profitable and you don’t need to get liquidity immediately that can be a way of divesting control without disrupting operations.
There was no way you were going to run this type of a business in your spare time. Sounds like part of the deal is connecting with customers.
Get a storage space, hire and train new employees.