How to Start a Laundromat Business
The laundromat business has come a long way. Laundromats now often are no longer dark, dingy places where people have to go to get their laundry done and have nowhere to sit but in a broken plastic chair and have nothing to do but wait for the dryer to stop tumbling. According to Entrepreneur.com, "Laundromats are becoming fun and attractive multi-service centers that customers enjoy visiting." To keep up with the evolution of the new and improved Laundromat business, learn here how to make yours stand out from the competition.
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Things You'll Need
- Initial capital
- Washing machines
- Dryers
- Coin machines
- Card system
- Licenses
- Permits
- Laundry carts
- Folding tables
- Vending machines
Instructions
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Consider the area where you want to start your Laundromat business. Look at the competition and assess the clientele. According to Entrepreneur.com, "Save for areas that are seeing high population growth, pretty much every neighborhood that needs a laundry has one―or two or three that are competing vigorously." (Reference 1).
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Consider start-up costs which could run anywhere from $200,000 to $500,000, especially if you're looking at a major remodeling project. Write up a valid business plan to present to loan companies setting forth your start-up and operational costs. They'll look at your credit history to decide if your laundromat business is worth their risk. Apply for a secured loan--one where you put up assets as collateral--instead of an unsecured one--and the interest rate may be lower. (Reference 1, para. 2)
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Get a business license, fire department permit, an air and water pollution control permit, and a sign permit, if required by your municipality. Check with your municipal water district and ask what their sewer hook-up fees are. In some areas, they can cost anywhere from $200 to $8,000 per washing machine, and can be quite costly to the new laundromat owner.
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Build a laundromat business based on customer needs. If you start a laundromat business near a college, consider staying open all night or offering quiet study stations with computer hookups. Build a play area for children if your laundromat is situated near a residential area with lots of growing families.
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Offer convenient services and amenities to draw customers to your laundromat. Drop-off or delivery wash-and-fold and dry cleaning services attract busy people. Snack bars, vending machines, play areas, wall-mounted televisions, internet access, pinball machines and video games offer customers pleasant distractions while they wait.
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Buy equipment to start your laundromat business, including washers, dryers, coin change machines, laundry carts, large folding tables, vending machines, and a large utility sink. Decide if you'll hire one or more employees to work in the store to help customers, maintain machines, and clean and close up shop, or if you'll do all the work yourself.
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Determine what days and hours your laundromat will stay open. Some laundromats stay open all night seven days a week while others open and close at certain times. Decide if your laundromat doors will lock automatically on a timer to keep people out at a certain hour but still let those who're on their last load to be able to leave, or whether you or an employee will lock up yourselves.
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Tips & Warnings
A business owner doesn't need experience to start a Laundromat.
Apply for a health department permit if you're serving food.
Subscribe to a trade magazine, such as American Coin-Op.
Talk to other Laundromat owners and join associations to learn the business.
Coin-operated washers and dryers are more secure and cheaper than card readers.
Weekends are the busiest times for Laundromats.
Consult with your insurance agent regarding liability if you decide to have a play area for children inside your Laundromat.
Laundromat expenses can run between 65 and 115 percent of gross earnings.
Coin machines cost anywhere from $1,000 to $3,000 each.
Card readers are more expensive than coin-operated machines and can be hacked by anyone with a card reader.
References
Resources
- Photo Credit laundromat image by Scott Patterson from Fotolia.com
