According to reports published by the Small Business Administration, around a third of all companies survive for at least 10 years, while half of new enterprises can expect to last five years or more.
This means that a significant proportion of businesses will flop. While you may not want to focus on the possibility of failure when starting out with your event hire enterprise, it can help you to avoid the most common causes of a company going into liquidation.
Have an interest in the event hire business
Most people will employ an event hire company at some stage of their life, usually for a special event like a wedding, anniversary or other memorable occasion. Hiring someone to provide the equipment, furniture, venue and food makes everything easier, while ensuring that the day itself is perfect.
For this reason, you should start an event hire business because you want to help people to prepare for a huge celebration that is memorable for all the right reasons, rather than providing a cheap service to make a sizeable profit. A lack of care for clients is one of the reasons that businesses fail.
Know your industry
To be able to provide an excellent service that will stand out in this competitive industry, you must have an in-depth understanding of the sector and your clients’ requirements. You will also need to be fit and healthy, as you may have to work long hours, especially in the first couple of years when you may feel that you are on the job every minute, juggling your clients while balancing the books.
It may help to outsource accounting positions, so that you will be assured of remaining compliant with HMRC. Also, learn from any mistakes that you do make, rather than being afraid of them. If you try something that isn’t successful, just make necessary changes to improve. Flexibility is the key to successful events, especially when something goes wrong at the last minute. Improvise when necessary and don’t be afraid to ask for help.
A lack of finance
Don’t underestimate the amount of finance that you will require. In this type of business, you will usually be paid by the client after the event has taken place. As such, once you have delivered the occasion, issue the invoice with clear payment terms. Be wary of extending these conditions and carry out credit checks before offering generous terms.
To find out how to avoid having your event hire business going under, give us a call today.