How to Open a Laundromat

You can really clean up in a laundry business after you follow these easy steps.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Business Plan
• Direct Mail Pieces
• Business Licenses
• Business Loans
• Business Services
• Commercial Real Estate Broker

1. Find a location that needs a Laundromat. A high-profile location, such as a spot on a busy street with good visibility and plenty of parking, is a necessity for a business such as this to succeed.
2. Contact the city or county department that handles business licenses and request an application.
3. Ask what other requirements there are for opening a business. You may be required to have insurance, or you might have to follow certain restrictions for the area.
4. Go to the Franchise Tax Board to get a wholesale permit, if required. This will allow you to purchase goods without paying tax if they are to be used in your business.
5. Research Laundromats. Decide if you want a fully automated Laundromat, or a partially automated one that includes additional services such as ironing and folding.
6. Decide whether you want to purchase a franchise or open an independent business.
7. Make a business plan. You'll need to have all of the aspects of opening and running the business worked out for the short and long term.
8. Get financing. Unless you have a lot of money lying around, you will need to borrow money to build.
9. Advertise your new business. Let people in the area know that you're open for business.
10. Consider the cost of maintaining washing machines and dryers. Plan for repairs and replacement as a normal cost of business.
11. Talk to owners of existing Laundromats and ask them what problems they've had, what they would do differently if they could, and whether they want to sell their business. Buying an existing business is a lot easier, but could be more expensive than starting your own.

Tips & Warnings

• Areas where there are lots of renters need Laundromats. Consider this when choosing a location.
• Consider locating near a college; students always need Laundromats.
• Spice up your business by adding a secondary service such as coffee or baked goods to lure in more customers.
• Be prepared to deal with some less-than-desirable characters wandering into the Laundromat late at night, although this will depend partly on your location.