Opening laundromat businesses can provide a constant income stream and a hefty one at that. Here are some tips and information on how to get started.
Starting a new business is a huge undertaking. It requires more than entrepreneurial spirit and the burning desire for success, though these are a fantastic start. Establishing your own laundromat will take careful planning but by understanding the start-up and maintenance needs, you will be able to fulfill your dream of owning your own profitable business.
Each business comes with its own set of advantages. Laundromats are no exception. If you are unsure if a laundromat business is right for you, consider the potential benefits and determine if they would fit your desired lifestyle.
• A laundromat does not require a large workforce. To run smoothly, the business only need staff capable of performing basic opening and closing responsibilities, keeping the facility clean, and assisting customers. If you choose to have a drop-off option, these employees will also need to be able to wash, dry and fold laundry.
• This type of business basically runs itself. When you are not filling drop-off orders, the facility is simply there for customer use, and unless there is a problem, you won't really need to do anything.
• Owning a laundromat does not require maintaining an inventory or depending on sales. You are offering a necessary service that is recession proof. People will always have clothes that need to be washed.
• Beyond offering the basic coin-laundry services, laundromats are highly customizable. You can add details such as a snack bar or small sundry and grocery store, space permitting, that will entertain customers while their clothes are washing and drying, offer another line of revenue, and set you apart from your competition.
Start-up Costs
Knowing how much capital you need to invest initially is the first step in preparing to start your business. With any business that involves money coming in to your bank account, you must expect some to go out beforehand.
• Finding a building to house your laundromat is your first expense. You will need to consider either purchase price and expenses or a deposit and first-month's rent to a landlord. This amount will vary widely depending on the area that you are starting in and the type of building you choose.
• Unless you are purchasing an already-established laundromat, you will incur construction costs associated with turning a building into a laundromat. These include updating the electrical system, plumbing, and carpentry to build platforms and waiting areas. You should expect to pay between 100 and 200 thousand dollars for these costs.
• Obviously, machinery will be an important start-up expense. For the average-sized laundromat, you will need a mix of approximately 75 washers and dryers. Depending on the specifications of the machines, including size, functionality and set-up, this machinery will require an investment of between 200 and 250 thousand dollars.
• During start-up you will also encounter smaller costs that include licensure, legal fees and smaller equipment such as cleaning agents, chairs, decorative elements and any entertainment you intend to provide.
Earning Potential
A viable laundromat business can produce several lines of revenue. This presents an opportunity for large earning potential, limited only by your creativity and devotion to marketing and follow-through.
• Obviously your main line of revenue will be from the actual coin-operated machines. You must decide how much to charge for each machine, with regards to things like dryer time and machine capacity, in order to produce a profit while still remaining affordable for customers.
• Many coin laundries utilize video games as a means of entertaining customers and increasing monthly earnings.
• The face of the laundromat is changing as owners move toward multifunctional facilities. Some laundromats are adding small restaurants, snack bars and miniature convenience stores to their facilities. These give customers something to do while they are doing their laundry and give more opportunity for money-making.
Laundromats are evergreen businesses. People will always have clothes, and as long as there are homes without included washers and dryers, and people that do not want to do their own laundry, there will be a need for laundromats. Owning one of these businesses can mean a substantial income and few working hours each week, increasing your quality of life both financially and in terms of the amount of time you have for yourself and your family.