Businesses that fail (sales, how much, bankrupt)

[drsmiley06]

Now I know I'm beating a dead horse here but I seem to see more and more businesses failing these days than ever before. I know everyone will say its the economy and the fact that it's still weak, but how much of it is really the economy versus actually running the business? Just the other day I saw a news report that said Mt. Laurel Resort had closed and it was due to an inspection. Appearantly the resort itself wasn't doing that great, again probably because of the economy and the lack of travelers coming into the area, but it seems as if the owners weren't even up to code on certain safety issues. Another restaurant in the area seems to be having problems, not necessarily because of the lack of patrons but because of the people that are in certain positions within the company and not running it properly.

So how much of it is really the economy versus actually running the business? Lots of business properly operative at a loss, doesn't necessarily mean they are bankrupt. Maybe it's certain people within the company that are driving it downwards. Are more and more people trying to make this jump into business without really having the experience? It just seems to me that the you can only blame the economy so much, after that people will start looking into the actual business and seeing how it was managed.

[ChosenReject]

Can't really help you with your core question because it is so broad. But i would say it is probably pretty hard to keep things up to code if you don't have any income to fund doing so.

There are so many variables also, if you are just talking about any random business in general there can be many different reasons why they fail. Some places that you mentioned that are just services like a restaurant and a resort might lean more towards the economy since people are cutting back on leisure spending or they are just not providing a good service that people want...

[thecoalman]

Originally Posted by ChosenReject

But i would say it is probably pretty hard to keep things up to code if you don't have any income to fund doing so.

...or you might just be broke because of all the expense keeping up with over regulation and red tape.

[poconogirl]

The economy definitely has a huge part in any business failing. If the economy is doing good, people are more willing to take trips, spend more on meals, upgrade on rooms, take more tours. When a business make good money, the morale is high and owners are more encouraging to their worker --- which gives more incentive to work harder and better. You can imagine what would happen if it were the opposite.

Businesses are not doing so well even in NYC; however less businesses close down in here just because there are so many more people in NYC than in the Pocono.

Poconogirl.

[fisheye]

Right now my computer is at a repair shop. Because they did not get back to me, when they said they would get back, we checked with the Better Business Bureau - the BBB site has them rated as “F”. They obviously have a problem communicating.

You cannot run a business unless you have a good line of communications. I was in business many years ago (1970’s). I had a lawnmower sales and repair shop. There are a few lessons that I learned the hard way - I lost customers. I originally tried to please everybody - I promised unrealistic repair times or lower repair fees than what was necessary. Over time I found out that I had the wrong approach. When I gave my estimates if I told customers longer and more expensive that I thought; they were always surprised and happy when the repairs were done faster and less expensive. The customers, that did not accept my estimates, ran to my competitors and drove them nuts. The customers, that I had, gave me plenty of free word-of-mouth advertising.

You cannot be egotistical or self centered in business. You have to be able to communicate. Many of today’s big businesses have turned to robotic phone trees. If you aggravate your customers; you are going to loose your customers. Pleasantly surprising customers with less time for repairs or lower than expected cost will gain more customers. You also have to be good about your word - if you tell your customers that you will get right back - then get right back.

[quiet life]

Originally Posted by fisheye

Right now my computer is at a repair shop. Because they did not get back to me, when they said they would get back, we checked with the Better Business Bureau - the BBB site has them rated as “F”. They obviously have a problem communicating.

You cannot run a business unless you have a good line of communications. I was in business many years ago (1970’s). I had a lawnmower sales and repair shop. There are a few lessons that I learned the hard way - I lost customers. I originally tried to please everybody - I promised unrealistic repair times or lower repair fees than what was necessary. Over time I found out that I had the wrong approach. When I gave my estimates if I told customers longer and more expensive that I thought; they were always surprised and happy when the repairs were done faster and less expensive. The customers, that did not accept my estimates, ran to my competitors and drove them nuts. The customers, that I had, gave me plenty of free word-of-mouth advertising.

You cannot be egotistical or self centered in business. You have to be able to communicate. Many of today’s big businesses have turned to robotic phone trees. If you aggravate your customers; you are going to loose your customers. Pleasantly surprising customers with less time for repairs or lower than expected cost will gain more customers. You also have to be good about your word - if you tell your customers that you will get right back - then get right back.

You about hit the nail on the head with this assessment. That's why it is hard to find good help in the Poconos. Many contractors, since I deal with an assortment in my field, need to learn to tone down their ego. Just my 2 cents.

[thecoalman]

Originally Posted by fisheye

Right now my computer is at a repair shop. Because they did not get back to me, when they said they would get back, we checked with the Better Business Bureau - the BBB site has them rated as “F”.

Which means they didn't pay off the BBB.

[fisheye]

Originally Posted by thecoalman

Which means they didn't pay off the BBB.

Actually; that is not true. We also checked out every one of the ten or so computer repair shops in our area. Only two of them were BBB certified. Three had failing grades ’F’ and the rest were listed as ‘A’ or ‘A+’ - even though they did not pay the Piper.