Thanks for joining us for the second part of our series on why small businesses fail. In the first installment, we discussed how failing to plan properly and not scaling your business with its growth can doom your business. Go back and read it when you have a chance.
The Small Business Association Office of Advocacy estimates that only about two-thirds of businesses with employees make it two years, while only 50 percent make it five years and just one-third of businesses make it to the 10 year mark. These staggering numbers have small business owners asking more and more, why do small businesses fail?
T & L Laundry Equipment has been your industry leader for coin-op and commercial laundry equipment for over 40 years. Whether you need new seating for your location or are ready to upgrade to an entire laundromat full of Energy Star rated washers and dryers by Speed Queen, make T & L your first call. We proudly offer in-house financing. Whether you are considering expanding your business ventures into vended laundry, own a commercial laundry or you are opening another store, we are ready to put our extensive experience and industry knowledge to work for you.
Forbes estimates that more than 500,000 businesses are started each month. Many of these businesses are started without clear direction or accurate information. The problem with this is that bypassing these steps is the first step towards failure for your small business.
Understanding the demand for your product or service is key. For example, putting a laundromat in a college town is a great idea. See our previous post to learn more about why this is true. Knowing the demographics of the people who will seek out your business is key. If you haven't done the research, hire a business analyst to do it for you. They can provide you with the information you need to make a smart decision about your business model, your business location and the kind of demand there is for your business.
One of the biggest issues that small businesses face is out-of-control growth. It is possible to ruin a successful business by over expanding. Many small business owners are in such a hurry to improve their business or expand their business that they fail to do the due diligence required to ensure that their investments will keep being profitable. In many cases, less is more. Having a good handle on your business's actual profits and losses is key. These numbers will tell you when and if you should expand your business.
The most damaging blow to a business's viability is poor accounting. Many business owners are under the common misconception that an accountant who is hired to do their taxes will keep an eye on the books, too. That is not the case. Hiring a bookkeeper is essential to know exactly where all your money is coming from and where it is going.
Also, lacking a cash cushion is especially damaging. Your accountant can help you determine how much each and every month needs to be going towards maintaining a cushion for your business. These funds are important for those unforeseen expenses and events that you cannot plan for. Consider choosing planned maintenance contracts or mechanical services for your facilities to help keep unexpected repair costs low.
Thinking About Dexter Dealers SC Services? Consider Speed Queen or Continental Instead!
Thinking of buying a laundromat and need help with installation and purchasing equipment? Looking for the top Dexter dealers SC companies? Why not consider using Continental or Speed Queen vended laundry equipment instead? At T & L, we have 40 years of experience helping people with their Speed Queen and Continental commercial laundry equipment needs. We can help you make the right decision when choosing commercial washers and dryers for your laundromat. We also offer financing. Call us today to get started!
