Stimulating Small Business: Tax Relief On The Way
While the tax rebates for individuals are getting plenty of media coverage, the economic stimulus package also includes tax relief for small-business owners. There are a couple of provisions that will help commercial laundry owners increase cash flow and lower life-cycle costs.
Todd Rice, director of financial services at Alliance Laundry Systems, recently addressed the state of our economy and its impact on the coin laundry industry, as well as beneficial aspects of the economic stimulus package.
Q: How has the current state of the economy impacted the vended laundry business?
A: While the economy certainly continues to be volatile, I don’t think it’s had much of an impact on this business. This is due in large part to a strong business model. Laundries are virtually recession-proof. Laundry is something we all need to do, and necessities don’t go away even in uncertain economic times.Q: Are you seeing the volume of new-store development being impacted?
A: Alliance Laundry Systems’ financing has seen new-store development hold steady. But I expect we could see an upward swing not only in new stores, but store retools. I think in a declining real estate market and uncertain stock market, investors begin to explore alternative options.Q: Doesn’t this counter what one would expect in our current economy?
A: Normally I would agree, but the Economic Stimulus Act of 2008 that was signed into law in February offers some outstanding incentives for new-store development and replacement of laundry equipment that many owners or potential investors may not be aware of. Simply, if you have a dated store with inefficient equipment or are pondering a second location, this may be one of the best opportunities in recent years to address your situation.Q: What specifically in the stimulus package helps those in our business?
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