Car Accident Wipes Out Family’s Thriving Small Business Overnight

Pivoting a Small Business after a Tragic Car Accident

A small business owner named Emily discussed on “The Ramsey Show” how a catastrophic car accident hampered her family’s thriving organic skincare and candle business.

Impact of Car Accident on Family Business

Following the accident, Emily was left with a brain injury that led to additional complications, forcing her to take medical leave. Consequently, this impacted their flourishing business that was generating $350,000 in annual revenue with a growth rate surpassing 20% annually. The couple’s small business was wholesaling to over 1,100 retailers globally.

Financial Struggle after Storefront Closure

Emily’s injury made it impossible for her to continue running the business, leading to the closure of their physical store, a significant revenue stream. The loss of their in-person sales led to a revenue loss of over $220,000 annually. The family now struggles with $250,000 in business debt and $89,000 in personal debt, including a credit card consolidation loan and student loans, as well as $71,000 in car loans.

Surviving with Residual Inventory

Emily’s business still has an inventory worth $100,000, which could either be sold or used for production. However, with their slower online sales, moving the inventory has been a challenge despite efforts in digital marketing and discount offers. To cope, they have downsized their home and have two months of savings left in the business account.

Looking for Possible Solutions

Emily is considering reaching out to previous customers and retailers who appreciated her products, hoping to sell off the inventory and alleviate their financial constraints. Ken Coleman, one of the hosts, suggests that Emily’s husband could help in selling the inventory as a side hustle.

For more business survival stories, check out more articles on Benzinga.com. To better understand managing finances, check out our post about consolidating credit cards.