How to Open a Coin-Operated Laundry Service

Start a coin-operated laundry service in your area.

A coin-operated laundry business is a valuable service to those who live in apartments or other residences without laundry facilities. Providing a clean environment that offers additional services like dry cleaning or wash and fold can increase the amount of customers and monthly revenue. As the owner, you can choose to operate the laundromat yourself, hire employees to oversee day-to-day duties or open an unattended laundry that requires you to visit daily to clean and collect daily earnings.

Things You'll Need

• Business license
• Washing machines and clothes dryers
• Folding tables
• Change machine
• Vending machine

Instructions

1. Choose a location in a busy shopping plaza, near a college or multiple apartment complexes that is accessible to those most likely to use a laundromat on a regular basis. The space should be at least 2,000 square feet to accommodate laundry machines and dryers, folding tables and waiting areas. Avoid areas where there are one or more established laundromats as this increases competition.

2. Lease or rent equipment such as washing machines, clothes dryers, industrial laundry baskets (large laundry baskets on wheels), change machines, vending machines for detergent and other laundry items and tables to fold laundry. Contact at least three laundry equipment leasing companies to compare prices and maintenance options.

3. Provide additional comforts like snack machines or offer prepared snacks like sandwiches or pretzels. Provide coffee or video games to attract new customers. Contact the health department and apply for a food vendor's license if you're preparing and serving food. There might also be other permits needed. Depending on local business zoning laws, you might need a sign permit and an air and water pollution control permit.

4. Contact your local small business office or department of revenue to obtain a business license and fire and safety permit. Contact the regional fire inspector for a complete safety inspection. Purchase business insurance, general liability insurance and worker's compensation insurance to cover customer or employee injuries that occur on the property, as well as lawsuit and settlement costs.

5. Determine the hours of operation for your laundromat. Regular business hours allow customers to plan visits to wash their laundry or pick up their laundry or dry cleaning. Opening an unattended, coin-operated laundromat is an option if you do not want to hire employees. Laundromats usually are open 10-12 hours a day, although some are open 24 hours a day.

6. Hire service attendants to help customers during business hours. Service attendants are also responsible for general cleaning, trash removal, answering customer questions, monitoring machines and washing and folding laundry. Plan to hire at least two employees, one for the morning shift and one for the evening shift depending on hours of operation.

Tips & Warnings

• If applying for a small business loan, writing a clear, concise business plan is necessary to convince lenders that your business will be profitable. Include in the business plan a list of additional services to offer customers such as dry cleaning services, wash-and-fold services or laundry pick-up and drop-off services, start-up costs, utility costs, labor costs, maintenance costs, hours of operation and how much you expect to earn for the first year. Bring a copy of your credit report, banking statements for the past two months and other requested financial documentation.

• Open unattended, coin-operated laundromats in low-crime areas to avoid vandalism or theft. Visit at least once a day to clean, refill vending machines and remove and count money collected.

References

• Entrepreneur: "How to Start a Coin-Operated Laundry"
• Laundromat Business: "How to Open a Laundromat"

Resources

• The Money Source: Laundry Equipment Vendors