Overall, dry cleaning industry is on a long-term decline. Fewer companies are operating, and fewer people are in the industry.
However, increased demand from hospitals, restaurants, and hotels is expected. The industry is expected to grow slightly in the next few years.
The industry is highly competitive and environmental regulations are expected to cut into profits.
The safest bet is to consider getting in the industry now and exiting in the next few years.
Dry Cleaning Business
As with any type of industry, running a company successfully should begin with experience. Work in the industry in whatever way you can. Customer service skills are the most important to learn first.
If you have the opportunity, spend whatever time you can in all different positions. Learn how to make every possible alteration. If you're skilled enough, you'll be promoted to management.
If you haven't already, be sure to learn the business skills necessary to succeed. Learn what your profit margins should be. Learn how to manage cash flow so you don't find yourself with a sudden shortage.
Once you have at least some experience, identify a potential spot for operations. You may also consider a dry cleaning business for sale.
Know who and where your competitors are. What do customers say about them? Do they complain regularly? If so, you may have identified a competitive advantage.
Ideally, your location will be somewhere with large amounts of foot and auto traffic. The more people who see your name, the better your chances of success.
Next, analyze your finances. You should have enough capital available to safely operate without making any sales at all for one year. There will be good and bad times, but this should help you through the most difficult ones.
When talking to creditors, you will also have a better chance of receiving financing if you have available capital.
Be sure also to be familiar with all local and state licensing laws. Make sure you have all necessary inspections performed prior to beginning operations.
Finally, hire honest, reliable, and trustworthy employees. If they're good, they should be able to manage themselves after initial training.
If you're considering selling a dry cleaning business, remember to hold on to it for a little bit if you can. The industry is expected to recover and grow over the next few years. However, since prices are relatively low now, buying a dry cleaning business is a great idea.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .