You Barked Up The Wrong Tree With A Dog Bakery, What Now?
So, you had a dream: gourmet biscuits for pampered pups, peanut butter pupcakes, and adorable branding. You borrowed $50,000 and opened a dog bakery—only to discover your town has zero love for furry friends. Now you’re in debt, the treats aren’t moving, and your bank wants answers. Let’s walk through how to explain it with clarity, honesty, and maybe even some dignity.
First Of All: Don’t Panic
Yes, this feels like a major disaster. But you’re not the first business owner to misread the market. Lenders see failed ventures all the time. What they care about most is how you handle it. A calm, professional approach—without ghosting—can be the difference between grace and garnishment.
Feel Your Feelings, But Stay Focused
Embarrassment, disappointment, and dread are normal. But when you talk to the bank, it’s time to lead with facts. Focus on what happened, what you learned, and what you can do now. Emotions cloud the conversation. Data clears the way for solutions.
Tell The Story Clearly And Briefly
Summarize the timeline: when you started, how much you borrowed, what went wrong, and your current situation. Be honest and get to the point. A clear explanation signals maturity and responsibility—and helps the bank understand you’re facing the problem, not hiding from it.
Own Your Mistakes, Don’t Dodge Them
Maybe you assumed your town was more dog-obsessed than it is. Maybe you didn’t research the market fully. That’s okay—what matters is showing you’ve learned from it. Banks respect accountability. Denial, on the other hand, is a fast track to lost trust.
Francisco De Legarreta C., Unsplash
Break Out Your Financial Paperwork
Gather your business bank statements, monthly expenses, revenue reports (if any), and loan agreement. This helps the bank see exactly where the money went—and proves you weren’t frivolous. Clear records show you made a genuine attempt at running the business responsibly.
Know How Much You Still Owe
Get a precise handle on your debt. What’s the balance? Have you made any payments? Are there fees or accrued interest? You’ll need these numbers for your repayment proposal. Banks take you more seriously when you show up prepared and informed.
Put Yourself In The Bank’s Shoes
They don’t care how cute your branding was. They want to know: can you repay the loan? Are you cooperative? Do you have a plan? Frame everything around these concerns. It shows you understand their position—and that you’re trying to work with them.
Create A New Personal Budget
Now that the bakery's closed, how much can you realistically pay toward the loan each month? Include income, bills, and debts. Even if the number is small, it shows effort. Your goal isn’t to impress—it’s to prove that you’re still showing up.
Consider A Creative Pivot
Is there any way to reuse your space or brand? Could it become a human bakery? A cat café? A pet supply shop? Even if none of these pan out, the point is to show you’re brainstorming. That effort tells the bank you’re still trying.
Bring A Realistic Repayment Plan
Don’t just say “I can’t pay.” Propose something concrete: small monthly payments, temporary deferment, or a partial lump sum. Offering even a little shows initiative—and helps the bank work with you instead of against you.
Practice Your Tough Answers
The bank may ask why you skipped market research or what steps you took to pivot. Practice your responses out loud so you’re not caught off guard. Being prepared helps you stay composed and thoughtful during what may be an uncomfortable meeting.
Share Even Small Wins
Maybe you had positive customer reviews, or your online following started to grow. Highlighting little successes—even if they didn’t lead to profit—can show that your business had potential. It also makes the failure easier for the bank to empathize with.
Offer What You Can
Do you still have equipment, packaging, or inventory? Offering assets toward the loan shows responsibility. Even small gestures count. It won’t erase the debt, but it might improve the bank’s willingness to work with you on better terms.
Ask For Flexibility, Not Forgiveness
Frame it like this: “Can we talk about a restructuring plan?” You’re not asking them to erase your debt—you’re asking to make it manageable. That kind of language helps banks see you as collaborative, not evasive or desperate.
Prepare For A Tough Response
They might say no. They might ask for full repayment or move your account into collections. Be emotionally ready for that. It’s not the end of the world. What matters most is that you showed up and handled it professionally.
Get Help If You’re Overwhelmed
Consider talking to a financial counselor, small-business advisor, or even an attorney. They can help you navigate repayment, restructuring, or legal options. You don’t have to figure this out on your own—especially if legal consequences are in play.
Treat This As An Education
Yes, it was a $50,000 lesson. But it taught you real business skills: risk assessment, budgeting, branding, and customer research. Many successful entrepreneurs have one or two failures in their story. This is just the first chapter—not the ending.
Keep The Relationship Professional
Whether or not the bank works with you, maintain professionalism. Don’t disappear or lash out. Respond to emails. Take phone calls. It builds trust—and may influence how they treat you if you apply for future financing down the road.
Be Proud Of What You Tried
Most people only talk about starting a business. You actually did it. It didn’t go as planned, but you took a shot—and that’s brave. Even in failure, you showed ambition and follow-through. That mindset will serve you again, and soon.
Final Bark: Failure Isn’t Fatal
This business didn’t succeed, but you’ve gained insight and resilience. Talk to your bank with honesty, own your story, and show that you’re ready to find a path forward. That’s what real businesspeople do—even when the biscuits go bad.
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