Each year thousands of small businesses close their doors. Every business owner wants to avoid this unfortunate end for their business so the question then becomes, what causes businesses to fail? There is no one concrete answer but experts can agree on a list of criteria that those businesses who close their doors have in common. The mistakes that business owners make range from financial issues to underestimating their competition. More than 500,000 businesses are started each month per Forbes magazine. Avoid these common mistakes and improve your business's chance at success.
Looking to diversify your business investments? Consider opening your own laundromat. The coin-op laundry industry is great for owners who want to generate income without tying up a lot of their time. A laundromat is a recession proof business opportunity that requires minimal staffing. If you are interested in laundromat ownership, give T & L Laundry Equipment a call. We have over 40 years of experience in the vended laundry industry and would love to show you why owning a laundromat is a great investment. For more on owning your own laundromat, check out our previous blog post.
The financial reasons businesses fail are extensive. According to Forbes magazine, having inadequate cash in reserve is the most common financial reason a business fails. Ideally you need at least six months worth of cash in the bank to carry you through the initial startup phase. Consider both business and personal expenses when determining how much cash you need. Failing to price the product or service your business is offering correctly is another reason that businesses fail. When you are in the initial planning stages of your business it is a good idea to consult a financial planner or business analyst who can help you accurately assess the costs of running your business. Other factors include not understanding your market, who your customers are, or the changes in the marketplace that can affect your business's ability to remain profitable.
Another common reason for failure is the misconception many entrepreneurs have that they need to do everything themselves. By giving your employees responsibility and authority you are free to concentrate on the items that truly require your time and attention. Also, as your business grows ensure that your management resources grow as well. Many companies fail because owners try to wear too many hats for too long. The Economic Development Center recently completed a study of failing businesses that identified that management's failure to act, react or plan during periods of growth was detrimental to the business’s viability.
Being overly dependent on a single type of customer is also a common reason that many businesses close their doors. Analysts agree that for beginning businesses it is important to have a large base of customers. When it comes to your coin-op business, consider taking on several routine clients who need laundry services. These clients can help ensure that your operating costs are covered each month. Avoiding overgeneralization is key to the success of your business as well. Your business can’t be everything for everyone. Adding wash, dry, fold service can be tempting, but adding that service in later, after you have an established staff and clientele, can be more profitable.
T & L - Affordable Alternative To Electrolux Dealers in Charleston, SC!
T & L Laundry Equipment proudly offers laundromat and commercial laundry owners a vast product selection. Come see why T & L customers are customers for life. Ask about our scheduled maintenance plans to help keep your business running in tiptop shape! We proudly offer in-house financing options. Whether this is your first laundromat or you are expanding your chain of locations, come put our over 40 years of industry experience to work for you. Even though we're not Electrolux dealers in Charleston, SC, we do have a vast selection of Speed Queen and Continental machines for you to choose from. Give T & L Laundry Equipment a call today!
