How do some small businesses stay in business? (health insurance, retirement plan, debt)
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I'm referring to those small mom and pop shops that are literally hidden, do no advertising and seem to never have any customers-and provide a service that not many people need and if they do there's other places that do it better + cheaper. There's this cleaners shop across my house that does alterations and shoe repair, I never seen a single customer in there and I know the rent is probably pretty high for that location. There tons of such little shops around and I was just curious if they are indeed making profit or are they ran by people waiting to retire?
There are plenty of small business owners that are simply earning a small wage with the thinking that they will strike it rich someday......too stupid/proud/ignorant to realize they would make more money, have a better quality of life if they just got a job!
I have a relative that makes 30k +/- but she touches about 50-55K in gross revenue, she honestly believes she makes 50-55K! She has no retirement plan/savings, no health insurance and honestly would be better off working a regular job with benefits and with her years accrued she would easily make more than the 30K she makes now! But she loves to say how she makes her own hours, takes time off when she wants etc. and probably avoids a real 40 hour job because she is lazy.
A lot of those places are doing more business than you think. There's a local shoe shop in our town that does work for the local (huge) dinner theater. They are constantly busy, so he is getting constant work, even though you rarely if ever see someone standing in his shop.
I'm referring to those small mom and pop shops that are literally hidden, do no advertising
and seem to never have any customers-and provide a service that not many people need...
In most instances it's unfair to call them a business.
Most small operations are little more than jobs that people sort of own rights to.
On any sort of objective basis...
I'm referring to those small mom and pop shops that are literally hidden, do no advertising and seem to never have any customers-and provide a service that not many people need and if they do there's other places that do it better + cheaper. There's this cleaners shop across my house that does alterations and shoe repair, I never seen a single customer in there and I know the rent is probably pretty high for that location. There tons of such little shops around and I was just curious if they are indeed making profit or are they ran by people waiting to retire?
Maybe they have a contract for alterations with Macy's. Lots of B2B sales.
I know what your saying i often wonder the same thing whether it be a retail store, restaurant, etc. there's some places where its a niche, its hidden, everytime you go its empty, maybe its even a decent business but you wonder how they can pay rent, expenses and make a living selling things so cheap or with what the are selling.
i think there's two anwers to this. i think a lot of small businesses are losing money and in debt and aren't successful but are spending theiir own money to hangout. the other thing i think maybe these companies have a lot of regular customers who have some online way they are making money
If you look for these kinds of businesses for sale , you can often see they don't make too much.
There are little stores on the market for little money that make little money. Like a net of 20k-30k.
Another thing could be they do a lot of business on certain days/times.
Another could be that they own multiple businesses which allows them to get by.
Online says could be another way...but probably not likely with an shoe repair/alteration place.
It wouldn't be surprising though if they did have some kind of contract work they did with some local businesses.
Another thing could be that these shops are being run by retired people that are getting a pension or SS..but are working there instead of being home.
I could see that a small business could give you more flexibility than a job. You don't have to request time off and if it's a family business you could have people fill in for you ,etc .
In seasonal areas there are businesses that close or have limited hours for long stretches of time.
Sure they might not be making a ton of money..but they are more 'lifestyle' businesses that give people time.
If you are running a business and only making 20-30k profit a year..I hope you aren't busting your ass off.
These kind of small businesses can stay in business with:
• building a compelling marketing message about their product or service
• improving their standard
• attracting local customers with quality service and within budget
In most instances it's unfair to call them a business.
Most small operations are little more than jobs that people sort of own rights to.
On any sort of objective basis...
Yep, there is a difference between owning a job and owning a business. Most people go into business end up just owning the job.
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