There are many perks to becoming an entrepreneur. For one, you don’t always have to reinvent the wheel. Sure, you could be a part of the next big thing, but there can be something rewarding and humbling about just doing whatever you want to do. From car washes to food carts, there is a large array of choices. One of those choices can be owning a laundromat. This article will explain what it means to make money at a laundromat, how to generate income at a laundromat, and the associated costs of starting one.
Everyone needs clean clothes, making it a sound business choice. You could set up an area for people who need their clothes washed, such as in college apartments. Not to mention, a laundromat can bring in anywhere from $15,000 to $300,000 in profit. That sounds like a pretty good idea! How hard can it be?
Let’s get started!
How Much Does A Laundromat Cost?
Owning and maintaining a laundromat is a lot more money than it sounds. Regardless of whether you are a startup company or buying into an established one, an entrepreneur will have to fork over a lot of money. Consider your financial resources before starting this endeavor. On average, an entrepreneur can spend between $200,000 and $500,000 when owning a laundromat.
You may wonder why it would cost so much. Well, like any business, there are a lot of guidelines and rules as to how you handle your business in that industry. For example, what kind of laundromat will it be? Will it be brand new, or will you purchase one that already exists?
Buying into the existing business has its advantages. For instance, if you buy an existing laundromat, then it is already running efficiently, and all you have to do is maintain it. That way, you don’t have to invest money in buying, renting, renovating, etc., when owning a laundromat.
When it comes to an existing franchise, you need to have liquid cash of around $75,000 to $300,000. Additionally, you have the option to receive assistance from the business for any support you may need.
However, if you need funding for the business, consider partnering with others, seeking investors, or obtaining loans. When owning a laundromat, you can invest in equipment loads that allow you to rent equipment without being in the business, so you can do it whenever you need to. That makes it easier for laundromat entrepreneurs to manage their budgets.
Property
The one thing that every laundromat needs is a location. It can’t be done without it. However, before you can have your building, you need to know where it will be located. How does one solve that?
A good starting point is to conduct market research by examining existing laundromats. The primary objective of all the research is to gather information and insights into what you need for the location of your laundromat. This all depends on the market and where you live. So that means that prices will increase or decrease depending.
Once you have found a suitable location for your laundromat, you need to secure a space for it within that location. You need to ensure that it has the space you need to operate your business. The cost of purchasing or renting a space will also depend on the market and location. Be sure to conduct thorough research, or your business may fail before it even begins.
If you’re considering opening a laundry business, research high-traffic areas near residential neighborhoods, tourist hubs, or student housing. A well-placed laundry Fort Lauderdale can attract steady customers year-round, especially in areas with limited in-unit laundry options.
Utilities
An important part of the laundromat is the utilities and equipment that will be part of the building. From the machines to the plumbing and lighting, everything needs to be up to code to ensure a successful laundromat.
Ensure you conduct thorough research to determine the proper lines for your infrastructure. This will significantly impact your budget.
Equipment
When it comes to owning a laundromat, the washers and dryers are the stars of the show. A washing machine can cost up to $1,000, while front-loading machines typically range between $700 and $2,000, depending on the model. The dryers can also cost several thousand dollars.
There is also the question of what system you want to use. Will you accept public use of coins, or will you opt for the card payment route? Note, the card route is extremely expensive and can cost over $50,000. Meanwhile, the card machines can range from over $500 to nearly $10,000.
There is also the cost of the water-heating system, which can cost thousands of dollars. Every laundromat is different, so you need to consider what else you want there. For instance, a laundromat can have the following:
- Laundry Detergent
- Fabric Softener
- Laundry Carts
- Furniture
- Office Supplies
- Vending Machine
Marketing
The key to attracting customers to your laundromat is effective marketing! If you buy into an existing franchise, then you already have the name on the building. Name recognition will get you far! If you’re starting out, you need to establish your name in the market.
You want to allocate nearly 10% of your revenue to marketing and advertising. It is essential to understand how marketing works, as well as your target demographic. Consider ways to retain your customers, such as business emails and rewards systems.
Conclusion
Managing and owning a laundromat is a lot of work. It can be expensive, but it’s essentially like any other business. You need customers, a suitable location, and the necessary resources to provide them with a product or service. How you obtain those things and how you approach them is up to you.
Don’t go rushing into these things. Otherwise, you won’t be the successful entrepreneur that you were dreaming about.
Photo by Oli Woodman; Unsplash
