Are you looking to start a business that’s profitable, recession-proof, and relevant no matter the season?
Are you interested in owning a company that earns around $300,000 a year on average? How about one that has a 95% chance of outlasting the dreaded five-years-or-less timeline that most new businesses face?
If you answered “yes” to any of these questions, a laundromat business is a fantastic investment to consider.
In addition to the benefits listed above, laundromats provide returns up to 25% higher than the average mutual fund. In other words, they’re a no-brainer for savvy entrepreneurs who want to start a company.
Keep reading for our how-to guide!
Secure Your Start-Up Costs
Opening a new company is usually the most expensive in the beginning.
The average start-up costs for opening a laundromat company are about $200,000, which typically includes a down payment, machinery, and any repairs required of the building. That number can vary depending on several factors, such as whether you intend to lease or own your machinery, whether you buy an existing laundromat or start from scratch, how many employees you hope to hire, etc.
Once you’ve determined how much money you’ll need, you have a few options:
- Self-funding
- Apply for an SBA loan
- Find investors (which requires a well-researched business plan)
- Crowdfunding
Choose a Location
Finding the best location for your laundromat requires you to consider a few factors—the proximity of customers, the competition in that area, and how many people live nearby (even within walking distance).
Is the location in a spot that gets great foot traffic? Does it have nice visibility? Is it the only laundromat in the area? Does it have plenty of parking spots for customers?
These are all important questions to ask before settling on a location. One example of a bad location would be right next to an apartment complex that provides on-site laundry, as you’re sure to lose out on your closest potential clients that way. If you find that the competition’s stiff, you’ll need to stand out somehow—by providing a fluff-and-fold service, housing a café, offering flexible hours, etc.
The building itself should also be well-equipped to handle the operations of a laundromat.
Check All the Legal Boxes
Before you open up shop, and after you’ve secured your financing and settled on a location, you’ll have to jump through all the legal hoops.
Like any other new business, you’ll need to cross your T’s and dot your I’s when it comes to things like:
- Obtaining permits and licensure
- Getting insurance
- Registering for an LLC
- Filing for a federal tax ID
In addition to those steps, you’ll also have to decide how you’d like to operate your business from a financial perspective. You’ll need to set up accounting (and hire an accountant if desired), open up your business bank account, and more.
Gather Your Laundry Equipment
Next on the list is securing all the machinery you’ll need to open your laundromat.
Many owners go through commercial laundry equipment providers like Laundry South. These providers typically tackle a range of services—from sales, repairs, and installation to rentals, parts, and more. Look for a company that offers more than one service to enjoy the convenience of a one-stop-shop.
Remember that laundry equipment includes more than washers and dryers. You should also consider offering your customers soap, bleach, fabric softener, dryer sheets, detergents, stain removers, laundry carts, and other laundry accessories.
There’s Nothing Fluffy About Owning a Laundromat Business
Once you’ve secured financing and a prime location, ordered your machinery, and gone through all the legalities, it’s time to market your laundromat and prepare for opening day!
As the proud new owner of a laundromat business, we’re sure you’ve got more questions than answers. Any time you need tips, tricks, or advice, be sure to come back to our page! We have all your business needs covered.
