This is my second post on this sub. I got some good feedback last time, so I’m hoping for some advice.
VERY long story short, my business hasn’t been making money since Covid. We are in the event industry, so though we are doing better than we were, we still never fully recovered from the world shutting down for a year.
Before Covid, we were doing amazing and had 0 debt. Now the business has over $800k in debt. We will end the year with about $1.1mil in sales and will have a net loss of about $150k all said and done.
Our brand is very well known and our social media presence is very strong.
My question is this:
Do I try to sell or do I just give up and file bankruptcy?
The main issue is, I am a single member LLC, but signed personal garenteea for the loans (I didn’t know how else to survive).
Thanks in advance for any/all feedback.
$1.1 M in sales and $150k net loss…whats causing the loss…is it primarily the carrying cost of the $800k debt?
Would the $150k result in an equal amount increase in debt?
This is a great question. The loss of sales is not including the debt. The debt is separate from the loss. We have been struggling with sales since Covid honestly and haven’t been able to catch up.
Can you clarify why you mean in your last question? Not sure I 100% understand.
Give us a breakdown of your expenses is what he’s asking, I think. If you’re bringing in $1.1M in sales, then that means your total expenses are $1.25M?
What contributes to that number? There has to be some things in there you can reduce to get back to profitability.