spaceman:
Why would this case break your company? Surely she’s not claiming that much?
Simply put, when the company was first formed it started from the front room of a house, the banks would not get involved because they had no faith that the product would be so popular, a lot of re-investment has taken place to get the company where it is today, 2 fully fitted out offices, computers, along with furniture and stock etc etc etc
Because of the high costs of developing the software (£15,000) and the tooling of machines i.e Moulds, PCB,s and LCD’s a further £20,000 we had to rely on re-mortgaging the house and relying on 2 shareholders who between them invested £14,000 to raise the £35,000 required to get this product onto the market place. A further £20,000 had to be paid to get the first shipment released from the suppliers, bear in mind, at the time I was a Truck driver only recieving a take home pay of £235 pw.
For obvious reasons I need to recover the costs involved in setting the business up so that the investors get their money back (Most of which has been repaid, only myself and my wife need to recover our share now), unlike most companies, I have no intentions of closing the doors and leaving our suppliers unpaid, therefore getting a bad reputation, but because the investors are now repaid the working capital has dropped drastically, where we could once order £20,000 of stock from China and pay up front, the money is no longer there for the time being. Why should investors lose their cash because of 1 person holding a grudge and claiming wild allegations because she could not get her own way?
The Hourguard is still selling very well, which pays the wages, but the investment in new products has stopped for the foeseeable future, and as any wise person knows, you dont put all your eggs in one basket, because relying on one product is risky.
A lot of people dont realise the actual costs involved with running a business, our costs alone amount to over £6,000 per month, a tribunal making an award against us of £1,500 lost earnings + Legal Fees of over £2,000 for the other party would seriously affect the cash flow within the business putting the company in serious trouble
We had to employ someone to replace this member of staff therefore despite her departure our expenditure has remained the same over the 16 weeks it has dragged on.