Let’s be honest with one another – being an owner of a dry cleaning and laundry business can be tough. Considering all the industry factors, economic changes, labor challenges, and client demands, most of us have experienced some sleepless nights overtime. I can attest, for me, this has certainly been the case.
And now, after almost thirty years of long hours, hot summer working conditions, and financial challenges, I still find the work we do exciting, frustrating, and even maddening, but also rewarding. (Often, this happens in a single day.)
And yet as we begin the new year, I am encouraged by reports of folks taking on these challenges by opening their own dry cleaning businesses. So, to these brave new entrepreneurs, I say welcome…and get ready for the ride of your life!
Looking back at my own experiences, I can honestly say I wish I had reached out for guidance and assistance from others early on – I could have saved myself a great deal of time, trouble and money.
Maybe it was foolish pride, my professional background as a banker and accountant, or a lack of knowledge as to where I could learn the ins and outs of running a dry cleaning business, that I subjected myself and my family to the university of hard knocks. Reflecting on these days, I can certainly see the foolishness of some of my decisions.
I wish I had realized there are resources that both new small business owners and those entering our industry can use to help them through the fragile first years of operation. Of course, there are publications and books that offer guidance. A simple trip to any local library or google search can lead you to a plethora of information.
In addition, many local colleges may have a Small Business Development Center on their campus. These offices offer many instructional seminars and workshops on topics such as marketing, accounting, human resources, business plan development and management. They also offer counselors who have expertise in specific areas of small business operations. And the best part is most of support they offer is free of charge. Visiting an SBDC offers valuable guidance for starting a business or getting objective advice.
SCORE, the Service Corps of Retired Executives, is a nonprofit organization that provides business mentoring service at no charge. Because of their valuable experiences, these volunteers may be a valuable resource and support system for new entrepreneurs as well.
And don’t be afraid to reach out to others who are in our industry. Over the time spent in this business I am convinced that most dry cleaners are very willing on share their knowledge with peers in the business – this may not be universally true, but I have been surprised with how much information owners are typically willing to share. (Even with competitors.)
I also recommend becoming involved in appropriate trade organizations, such as the Dry Cleaning and Laundry Institute (DLI) and their connected regional associations, National Cleaners Association, or other relevant groups.
There are also for-profit firms that offer expertise on topics that may help you grow your business by focusing on how to market your services. These firms can certainly help one grow a cleaning business, but they do require a financial investment.
May I also suggest you connect with a qualified attorney, a knowledgeable banker and an accountant early on in your firm’s existence.
An attorney can certainly assist you with structuring your firm to protect you from potential liability and by reviewing documents which can be a major help if “you-know-what” happens.
In my case, we signed an agreement with a contractor without having it reviewed by an attorney, and when “you-know-what” happened the results were devastating. Without going into the details, the resulting legal fees alone crippled our company for years to come.
Of course, prior to getting into this business I was an accountant, but even so, I found I really did not have the time to properly keep up with the bookkeeping and financial records as closely as I should have. And I do believe it very important to know your numbers, so having a bookkeeper or accountant is an investment I recommend you make.
I certainly hope I haven’t been too preachy so far, but I have made some critical errors in my years in this industry that I hope you may avoid. We all are aware of the cliché, “We learn from our mistakes,” but if that’s the case, I should be as smart as Albert Einstein was because we have made some doozies. Again, we can all learn from other’s experiences.
When we look at our businesses, they are usually more complex than many retail operations. We obviously have elements of sales and customer service, but our work also incorporates elements of manufacturing, logistics and order fulfillment. We are dependent upon team members following processes to ensure our work is completed professionally and on time. There are raw materials that go into our finished products, and we are dependent on a variety of machines to clean, spot and press garments – which are quite unique in their design and construction. And let’s not forget the final delivery process to our customers be it through retail locations or pick-up and delivery services.
All this comes as our industry faces several challenges. It has been reported that finding skilled workers is becoming more difficult along with continued wage increases. Further, rising costs for utilities, rents, supplies and insurance seems to becoming the norm. Equipment costs continue to rise as well.
And let’s not forget the impact of changing consumer behaviors. Customers today have requirements which will continue to evolve with the ongoing growth of digital platforms and less formal work environments. The growth of technology will certainly impact spending patterns by clients depending upon incomes and lifestyles.
So how does anyone, and in particular, a new business owner, keep up with these issues and challenges? Although there is much we can learn from online research, publications and other materials, may I suggest there are additional ways we can learn and move our businesses forward?
My experiences have taught me that sometimes it just makes sense to ask questions to someone who has my best interests at heart. Be it a paid consultant, an organization that caters to the needs of our industry or small business, a nonprofit organization, a peer, a supplier, or sometimes even a competitor, we are all in this together.
I wish I had not been so reluctant to ask others who might be able to help during my early tenure as a dry-cleaning business owner. Sometimes pride (or fear) really can get in the way of our own success…
For those of you just starting out, again I welcome you to the party and I hope you enjoy the ride!
