Laundromats are great if you don’t have a washing machine at home or have too many clothes to wash at home. Customers can also buy detergent, soap, dryer sheets, and other laundry-related items at laundromats.
Laundry Service Types Include:
Laundry services come in various types, with different rates and costs, like:
There are two kinds of laundromats: full-service and self-service. In the self-service area, you can use the washing machine and dryer on your own and pay with cash, a debit card, or another electronic method. Due to the fact that full-service stores offer full-time customer service, they cost more to staff.
This is a special way of cleaning clothes without water, so they don’t shrink. Dry cleaning is often more expensive than laundromats, which is why it is mostly used for precious and formal clothing. As an alternative to dry cleaning, wet cleaning is booming.
How Laundromat is Set
Before you start to consider starting your own laundromat, you should first realize that starting a business takes more than just registering it. The steps below will show you how to set up the laundromat.
- Create A Business Plan
Entrepreneurial success depends on a clear plan. It’ll help you figure out what’s known and unknown about your business. A few things you should think about are:
- How much does it cost to start it up and keep it going?
- Who are you trying to reach?
- Is there a limit to what you can charge?
- What’s your business name going to be?
The costs of starting a laundromat are high. A business can cost between $100,000 and $200,000 or even up to $1 million, depending on where it is.
With a home business, you don’t need much money upfront. Start-up costs for a small business outside the home will likely range between $100,000 and $250,000.
- Establish A Legal Entity
Corporations, partnerships, limited liability companies, and sole proprietorships are the most common business structures.
You’re protected if your laundromat gets sued if you’re in an LLC or corporation. A good LLC service can help you form an LLC for a small fee, or you can form an LLC yourself and pay just the state fees.
- Set Up A Business Bank Account And Credit Card
Your assets are safer when you have a business bank account and a credit card.
You could lose your home, car, and other valuables if your business gets sued if you mix your personal and business accounts. Also, building business credit will let you get business credit cards (instead of your own), better interest rates, and bigger lines of credit.
- Get Your Business Insured
For your business to be safe and legal, you need insurance. The purpose of business insurance is to protect your company’s financial well-being in case of a loss.
Businesses have different risks, so there are different types of insurance policies. General liability insurance is a good place to start if you don’t know what kinds of risks your business faces.
Choose The Right Commercial Laundry Equipment
Don’t buy equipment for your laundromat until you double-check the dimensions. Aside from renting, you’ll probably have to spend the most on washing equipment. An average laundry machine costs between $800 and $2,000.
- Get A Website For Your Business
Make sure your brand is defined, your logo is designed, and you move on to building your website. Even though creating a website is essential, some might be intimidated by it because they don’t know how. A few years ago, this reluctance to create a website made sense, but now there are so many website-building tools that make it pretty easy.
You should definitely create a business website, as every legitimate business does. No matter how big or small your business is, you can get online. Remember, having a Facebook page or LinkedIn profile isn’t the same as having a website.
Tips for Picking the Ideal Laundromat Location
- Low-Speed Street
It’s best to put your store on streets with lower speed limits so drivers can see it. Consider a location with easy access to and from the road so that your customers can easily get in and out.
- Drivers Should See You
Street visibility is important for your store. Put up signs where people will see them if you think it’s hard for them to see you.
- Traffic-Heavy Location
Choosing a location on a busy street is a good idea. The ideal location for this street would be on the route into or out of your community, with lots of people passing by.
- Parking Is Easy
It’s important to have parking spaces in your store. Make sure your customers have a place to park, especially on weekends and in the evenings.
- Locations Near Local Anchor Points
Take a look at where your potential customers go. Start near these anchor points or on the way there. Having a coin-operated laundry near a supermarket lets customers do laundry and groceries in one trip. Choosing a location that is in close proximity to elementary and high schools or a high-population area is also an excellent option. Your store is easy to get to after school pick-up or drop-off.
- Glass-Fronted Store
Laundromat businesses love commercial properties with glass fronts. If you have the right equipment, new customers will come to your store, so look for prominent positions to place your best high-capacity Electrolux washers.
Laundromat: An Investment that Pays Off
Investing in a small business has many benefits. Becoming your own boss and having direct control over your business, as well as making money and making a difference in your community, are all things that make being a small business owner appealing.
Another thing to consider when starting a business, especially a laundromat, is the opportunity to create family wealth and an asset that can be passed down.
Most people who dream of owning their own business have considered the types of businesses they could invest in. Having a laundromat can offer a lot of opportunities you may not have considered.
Compared to most alternative investments, laundromats have an average cash-on-cash return of 20–35% (9). The flexible hours and low labor costs make laundromats a great option.
- Benefits of Taxation
Many countries allow businesses to claim depreciation on equipment as a tax deduction. Get in touch with your tax advisor to find out what tax breaks you can take advantage of.
- Financial Simplicity
Cash, coins, or the Speed Queen app are the only ways to pay, so laundromats don’t have to deal with the accounting requirements that come with other investments.
- Fits Your Lifestyle
You can make your laundromat fit your life by running it how you want.
- High Success Rate
The success rate is almost 94.8% (5). Investing has all the benefits, but none of the risks.
- Cost-Effective Labor
You don’t have to do anything because your machines do it for you. Approximately 70% of laundromat investors own companies with 0-3 employees.
- Good ROI
Compared to other investments, cash-on-cash returns of up to 35% are impressive.
- Strong in Downturns
The laundry industry is less affected by economic downturns than other sectors since people constantly require clean clothes.
- There Is No Franchise Fee
There aren’t usually franchise fees for laundromats like there are for fast food. In addition, you won’t have to follow any franchise rules, so you can build your business how you want.
- Being Flexible
A lot of laundry owners say this is one of the best things about the job. Your hours are up to you, and you’re unlikely to have to work 40 hours a week once you’ve got things down. It’s not uncommon for investors to work two jobs or pursue a hobby full-time.
- Inventory Is Minimal
There’s not a lot of physical inventory in laundromats. There’s no need to order, rotate, or discard products, so you can manage them better. In addition, you won’t have to prepare and store a bunch of expensive inventory in advance.
Successful Laundromat Management
Start by focusing on the details so you can build a strong foundation. Running a laundromat involves performing basic tasks like keeping things clean, maintaining equipment, scheduling repairs, answering customer questions, and (of course) collecting money. You can run a successful laundromat if you remind yourself to focus on the day-to-day operations. Without them, you have nothing.
- Machine Inspection
You should inspect your machines every once in a while. Check for the following things.
- Do they seem clean?
- Are they experiencing any operational issues at the moment?
- Are there any visible signs of damage?
- Is there any leakage from them?
- What is the health of the washer’s drain system, and is it functioning properly?
- Are there any out-of-date items in the equipment?
As soon as you notice that certain equipment is malfunctioning or damaged, you must act immediately in order to avoid losing money.
- Shop And Equipment Cleaning
If the environment is dirty, why would anyone want to clean their clothes in it? Maintain a regular cleaning schedule for the laundromat. The filth and grime in your shop will make customers go to other laundromats.
- Regularly Check The Store
Someone needs to manage your store’s day-to-day operations, even if you don’t spend much time there. Even though your equipment enables self-service, your shop cannot be left unattended all the time. Regular visits are needed to collect earnings, clean the laundromat, and maintain it.
- Customer Service
Laundromats with proactive owners who interact with their customers tend to make a better first impression. Find out what your customers want and how you can improve their laundry experience by getting to know them, responding to complaints quickly, and asking questions. You should do so to ensure complete client satisfaction. The more client satisfaction you have, the more money you earn.
- Make Sure It’s Safe
Make sure your laundromat has security elements and systems in place to prevent crime, particularly if it will be largely unsupervised. A well-lit store and parking lot, as well as cameras, will aid in the capture of criminals.
Laundry Machines for Commercial Use
Laundry machines are a must, but the amount you need depends on your business’ size. Nowadays, you don’t have to carry around a bunch of coins anymore, thanks to modern commercial laundry machines. There are still people who expect to pay cents at the laundromat, but you can make it easier. Modern commercial washing machines have a built-in QR code.
This guarantees that you will receive the proper payments and that your clients won’t need to carry large amounts of cash with them at all times.
Laundromats wouldn’t be complete without dryers, right? Easy-to-use commercial dryers can match your coinless washer. They’ll also be able to connect to your phone, like many modern commercial laundry machines. You’ll be able to send alerts when your machines aren’t working correctly, so your customers don’t have to deal with clothes that never dried.
Dispensers for Detergent
Often customers forget to bring detergent and realize it just as they are about to start their laundry. Losing a customer because they decide their laundry can wait until tomorrow is not a good idea. Make sure your commercial laundry business has enough detergent dispensers. We all have our favorite scent and detergent brand, so keep a few different types on hand so you can satisfy everyone. Just as we say client satisfaction is key to your business’s success.
Carts for Commercial Laundry
You also need laundry carts because you don’t want your customers carrying drenched loads of laundry from one machine to the next. There are all kinds of laundry carts that can match your laundry store’s look. Don’t forget to have different sizes of carts; you can get them in sizes ranging from two bushels to 40 bushels.
Why Is It Important To Keep Dryer Vent Clean?
- Keep Yourself Safe
There is no question that safety is the most critical factor. There are many dangers associated with drying clothes due to the fact that they run hot and lint is highly flammable.
Each year, clothes dryers cause more than 15,000 structure fires, 80% of which are caused by clogged dryer vents. There’s a fix for this.
Clogged vents can also bring fumes into your home. You and your family could be breathing gases and carbon monoxide that should be released outside.
- Keep Your Dryer Vent Clean So It Lasts Longer
Clogged vents indicate that the drying cycle is not proving to be as efficient as it should be. Your dryer will gradually lose its effectiveness if it is used for longer than normal or if you use it for more than one cycle per load.
Overworked dryers wear out a lot faster. There’s a chance it will malfunction and need repairs. If you run your dryer this way, it can eventually break down.
- Efficiency of Your Dryer
You can use the dryer vent to its full potential by eliminating dust and dirt. Your clothes will dry faster and shine for longer. It’s time to hire a professional if it takes many cycles to dry your wet clothes.
Where the Dryer Vent Goes
Keep your laundry area clean and less humid with dryer exhaust vents that lead outside. It’s best to vent your dryer horizontally through an exterior wall close to it. You can also find them in the basement or attic (but not inside).
On dryer models, the length of the exhaust duct from the dryer to the exhaust port is limited. Lint builds up in ducts if they’re too long and straight.
You can use these dryer vent locations:
A Basement Vent to the Outside
Basements are installed with dryers so they don’t get in the way. If your home is already constructed in this manner and you need to find the exhaust vent outdoors, search for a wedge-shaped plastic or metal cowl that is positioned one to two feet above the ground.
It Is Convenient To Vent through a Window
If you’re in a hurry, you can vent your dryer out of a window. This is something someone might do if they are planning to build a house and are waiting for the installation of a professional dryer. They may also do this if they have a portable clothes dryer that they need to use.
Proper Attic Venting
Roof vents aren’t a feasible option since animals can obstruct them and ducts are longer. But sometimes it’s the only option. Don’t vent your dryer into your attic; you should vent it outside through a roof vent. Maintaining dryer vents is a must, but roof vents are tough. Our dryer vent cleaners will be able to help.
Venting Through a Wall on The Outside
You should make sure that, regardless of where you have set up your washing machine and dryer, your dryer should be vented to the exterior along the most straight and direct path possible.
Where It Takes Water?
You have the option of choosing how you want the water to be drained from most dryers. There is a condenser reservoir on the appliance that collects the water, which is then drained by a drain hose into a drainage system. Both heat pump dryers and condenser dryers do that. There’s an attached drain hose on most dryers, so you can connect it yourself. Water can also be collected in the dryer’s reservoir. The hot air is vented through a tube in a vented dryer.
You need to follow a few steps in order to start your own laundromat business. Creating a business plan, setting up a business bank account and credit card, getting your business insured, choosing the right commercial laundry equipment, and getting a website are essential.
One of the greatest advantages of a laundromat business is that economic downturns don’t impact it since people have a definite need for cleaning clothes. Additionally, it’s a profitable business with flexible working hours.