If you are planning to invest in a laundromat business, then you must know that it’s a lucrative and profitable choice as long as it’s done correctly. There are many factors to consider, such as the location, business model, and even the equipment and commercial laundry parts from stores like Laundry Replacement Parts!
Numerous people choose to purchase laundromats because it’s a great way to generate income. To reach that goal, we share tips on how to buy a laundromat and what to consider.
Type of Laundromat
You must consider the type of laundromat you want before purchasing any business. There are three major laundromat businesses:
- Self-service laundromats: These are the most common and low-maintenance, where customers would wash and dry clothes themselves for a fee.
- Full-service laundromats: Customers have the option to wash, dry, and fold their clothes themselves or ask the staff.
- Drop-off laundromats: Customers drop off their laundry and staff will wash, dry, and fold them.
Questions to Ask
If you plan to purchase an existing laundromat, these are the things to ask the owners before making a decision:
- What is the business’ condition? Before purchasing an existing laundromat, you must inspect the business, ensuring it is in great condition. Ask the owner for a list of the major repairs that’s been done before.
- What’s the average monthly revenue? Of course, you need to know how much money the laundromat makes monthly. You can get this by asking the owners for their most recent bank statement.
- What are the average monthly expenses? You also need to take into account how much money the laundromat spends monthly. The owners can provide a copy of their latest Profit and Loss Statement.
- What’s the current rent? When purchasing a laundromat, you will become responsible for the rent or lease. Ask for a copy of the lease from the owner to review the costs and policies.
- How is the current staff? When purchasing the laundromat, you become responsible for the employees. Get a list of existing employees to review.
What You Must Know
Here are the things to look into before you buy a laundromat in the first place:
- Startup costs: This can be between $50,000 to $400,000, or even more. It all depends on the laundromat’s size and necessary laundry supplies.
- Location: There are various things to consider like the competition, foot traffic, building size, and rent.
- Laundromat size: Laundromats would range in 500-5,000 square feet.
- Commercial equipment needed: You must ensure the laundromat you’re buying has all the quality equipment and dexter laundry parts necessary, such as washing machines, dryers, laundry carts, and the like.
- Financial considerations: Take into account the costs of maintenance, equipment, staffing, marketing, advertising, utilities, repairs, maintenance, and rent.
- Legal considerations: You must be familiar with the laws governing businesses in the area, looking into the licenses and permits required, zoning regulations, health and safety regulations, tax laws, liability insurance, and more.
Wrapping It Up
Keep all that information in mind to make a sound decision on what laundromat you will buy for profit.