Tips for How to Start Your Own Laundromat
Many people want to start their own business. Unfortunately, few ever do because of the serious investment of cash this requires. There is also a lot of risk and if you lose your business, you may lose your house!
One small business that is within the [...]
Tips for How to Start Your Own Laundromat
Many people want to start their own business. Unfortunately, few ever do because of the serious investment of cash this requires. There is also a lot of risk and if you lose your business, you may lose your house!
One small business that is within the reach of most people is a laundromat business. Laundromats are great because they don’t require that much in terms if an initial investment (not compared to other businesses that is), and you don’t have to hire employees. It’s one of those businesses that do not require you to marry it.
There is a demand for a laundromat in almost every neighborhood. Unlike many other businesses, you can target low income neighborhoods and still make good money with a coin operated laundromat service.
Now I’ve been a laundromat owner for a while now and there are certain things you absolutely must know in the business before buying a laundromat. Below, I give a list of some of the more important things to know, but the best thing you can do is to get some hands on some “training” before committing to buy a laundromat. I personally recommend the Secrets of Buying and Owing a Laundromat program as one of the best out there. It doesn’t cover everything you might encounter when you purchase and run a laundromat business, but it does a pretty good job.
I’ve broken down 3 advantages to owning your own coin operated laundromat business. You should understand these before you buy a laundromat.
1. You get to be your own boss
2. You receive immediate cash flow
3. There’s a demand for the service.
As your own boss, you don’t have to answer to anyone. No being yelled at, not being to to do stupid things. If you are the sort of person that chaffs under the thumb of other people, a laundry may be what you need to break out of the 9 to 5.
With a coin laundry business, you will start making money as soon as you set the business up. No long waiting period – you are profitable as soon as you open the doors. There is a big demand for laundromats, and people will readily frequent your business.
There are a couple things that you need to first determine before starting your search of laundromats to buy.
1. Your ultimate income goals
2. How much start up capital you have
3. location of your laundromat business
4. Starting a laundromat business from scratch or buy an existing laundromat business
5. Expected start date
Your Income Goal:
It’s crucial the you know exactly how much money you ultimately want to make. You need this to gauge your progress. This is the general plan that guides your every move. You can’t get somewhere without first having a plan. Having an income goal can really help guide you to the perfect opportunities.
Your Initial Start Up Capital:
You need to have a certain amount of startup capital. Alas, as much as you would like to be able to start a business with no cash, it doesn’t work like that (well, unless you are trying to make money online, but that’s a whole another ballgame). It’s an established fact that most of the successful entrepreneurs don’t touch their own money when starting a business. They use other people’s money. They will borrow from people or from banks. Now, this depends on your ability to secure financing from a bank or from people you know. But you need money to make money – so don’t plant to start or buy a laundromat business without having capital.
Business Location:
More than anything else, the location of your business with determines its success or failure. You don’t want to set up a new laundromat besides a well established (and successful laundromat business). Likewise, you don’t want to start a laundromat in a wealthy neighborhood where everyone owns laundry machines. They key to getting the business’ location right is to make sure you do enough research about the competitors, the target customers, the income level of the residents, etc.
Buy an Existing Business or Start it from Scratch:
The next thing you need to worry about is whether to start a coin operated laundry or whether to buy a coin laundry. Both have advantages and disadvantages. If buying a laundromat, you need to find out WHY they are selling it. If it’s because of illness or retirement, then the business is ok. If it’s because a new super laundromat business opened in the neighborhood and they are going out of business, then no. You don’t want to inherit problems that you can’t overcome without throwing down lots of money. Start from a solid foundation and work your way up – you don’t’ want to build on a faulty foundation – you will just end up rebuilding.
Your Equipment
You need to establish what type of equipment you will have or need to purchase. You will need commercial washing machines, commercial dryers, and other machines (coin machines, vending machines, etc). Make sure you know what you need and add the costs to your budget. If you are purchasing a laundromat business, then make sure you have an inventory of all the equipment — and make sure you know how old everything is and all the features they have!
Business Start Date:
You should pick a firm date for starting your new laundromat business. Pick one that makes sense and one that you can realistically work towards.
These are some key tips to consider when starting a new laundromat business. Laundromats are a great way to make money, however, like any business there is some inherent risk. No business is risk free, which is why you need to put some work in to do research before you consider buying a laundromat. However, if you do your research and follow some of these principals I’ve laid out, you should be able to start a successful laundromat business and become your own boss.
