Episode 25: Why Do Shops Fail?
May 26, 2021 2:55 pm
In this episode of Machine Shop Talk, Ian Sandusky discusses some of the reasons why machine shops fail and shares some valuable tips.
Why do machine shops fail? Like for any other business, the causes can be many. Business and financial decisions typically play an important role in the unfortunate event of a shop bankruptcy, but external factors, such as economic conditions or unexpected events can play a pivotal role as well.
Many internal factors can lead a shop to fail. In the video, Ian pinpoints three of the most common ones:
- Failure to diversify
- Not maintaining an adequate cash flow
- Growing too quickly
Do you agree with Ian? Share your thoughts and experience in the comments or join the conversation on Practical Machinist’s forum.
Stay tuned for more machining videos!