Want to start a profitable laundromat business? In this blog post, I’m going to go through the 14 key steps needed to get started.
Almost everyone reading this at some time has probably used a laundromat. If so, you already know that they are a cash-producing business. Everyone needs to wash their clothes, and if you don’t have a washer and dryer at home, you’ll find yourself at the laundromat.
Some of you may be wondering how you can start your very own laundromat business. That’s what we’re going to talk about in this article. Of course, anyone can start a laundromat, but to be successful, you’ll want to stay focused on a few key things that will separate you from the competition.
Table of Contents
14 steps to starting a laundromat business
1. The first thing you’re going to need is money
Of course, you’re going to need an investment to start your laundromat. You’ll probably need about $250,000 to start. You can’t use washers and dryers that people use in their homes. You need special heavy-duty commercial washers and dryers that are coin-operated.
Should you consider buying used washers and dryers? Well, it depends on how much they cost. You should go the route of buying new machines for your business. If you can get them cheap enough, consider it, but in all reality, going the used route is probably a huge mistake.
2. It’s all about the location in the end
The location of your laundromat is key to it being profitable. Great locations include near colleges, large apartment buildings, and anywhere with large concentrations of people. Of course, you’ll want to pick a location that is easily accessible to as many people as possible.
You also need to make sure the building has ample parking so people can come and go without worrying about finding a place to park. There should be a convenient place for people to drop off their laundry bags so they can go directly into the building.
This should make it extremely easy for you to market your laundromat to people. Not only will you be able to market it in person, but you’ll also be able to advertise on the laundromat’s websites and on social media as well.
3. The next step is to choose a name for your laundromat
Usually, the name of a laundromat has something to do with washing, clothes, or cleanliness. Therefore, you’ll want to choose a name that is easy to remember and simple enough so that a customer can easily find your laundromat in an online search.
Keep the name of your laundromat short and sweet. If you try to go overboard with it, everyone will have a tough time remembering the name. Keep in mind that your laundromat’s name will be the essential thing that you use to market your business.
4. You’ll need a bank account before you open your laundromat
The first thing you’re going to do is make sure that you have a bank account to deposit your money. You will be depositing coins, and you’ll also need a source for coins for your change machines. That’s why you’ll need a bank account.
You’ll also want a credit card processing account once your laundromat is fully operational. Your customers will need to pay for their laundry loads with a credit card. If you don’t accept credit cards, you’re going to put your business at a disadvantage.
5. A credit card for your business is a must also
A credit card or debit card attached to your bank account is a must so you can pay your vendors. Without one, you won’t be able to pay rent, taxes, and utility bills. You have a lot of stuff to pay, and you can’t pay it with a bag of quarters.
6. You’ll need to hire some people to help you run the laundromat
Every business needs help. You can’t be there all the time. You’ll need people to help you with various tasks around the laundromat. Someone has to clean the place, answer questions, and watch over people.
You can do all of these tasks initially, but you’ll eventually want to delegate them to other people. If you don’t have anyone to help you out, you’re going to wind up working all the time, and you’ll hate the fact that you opened up a laundromat.
7. You also need to decide if you want to provide clothes washing services
You’ve got all those washers and dryers, and they’re not always going to be in use. So why not offer clothes washing services to those who don’t have the time to sit in the laundromat and wash their own clothes?
You can also have your workers wash the clothes when they’re not doing anything else. By offering clothes washing services, you can get a higher return on the investment you make by having employees.
Now let’s turn our attention to how to market your laundromat.
8. The most obvious thing for a new laundromat is to have a great sign
A great sign that attracts people as they walk and drive by is a must. There is no better advertising money spent than that on a sign. It’s used as a means of attracting potential customers and bringing in money.
One thing to remember about signs is that they need to be put up where you want them to be seen. You don’t want your sign covering someone’s property or blocking other signs from view. You might even consider buying a sign that lights up at night to attract even more attention.
9. Put up flyers around colleges
You have to be where people are looking. That’s why you should place flyers around colleges and universities. There is no better place to advertise than in students’ dorm rooms or on college campuses that people walk by every day.
You don’t want to put up so many flyers that they become a nuisance. Just make sure that everyone knows that you’re in business and are aware of your location. Putting up flyers once or twice a month is more than enough to get your word out.
10. Set up a Facebook page for your laundromat
Facebook is by far the most popular social media site that is used in today’s world. It is a great place to advertise your services and to get your word out there. You can post pictures of your laundromat there and market it to all the people in your area.
Try to be active with other people in your community on Facebook so that your page gets some extra traffic. Also, try to get on a few local forums to spread the word about your laundromat.
11. How much should you charge your customers?
The price you charge people to wash and dry their clothes is pretty simple. All you have to do is check to see how much the other laundromats are charging. You don’t want to charge significantly more than what they do because people will go elsewhere.
The people who travel to your laundromat by foot are limited to where they can go, but anyone with transportation will have a multitude of laundromats to choose from, and they will go elsewhere if your prices are too high. Go to a handful of other laundromats and see how much they charge, and then set your prices the same as theirs.
12. Have vending machines stocked with delicious snacks
Who doesn’t feel tempted by the delicious snacks at the laundromat? No one can refuse the ice-cold soda pop and snacks in the vending machines. You can charge more for those snacks than stores because people love the convenience of getting them from the machine.
People have nothing to do while the machines wash their clothes, and snacking is a way to kill boredom. You can buy candy, ice cream, and snacks in bulk and have them out for people to take. Sometimes customers will feel compelled to purchase more things because they are so hungry. It’s also an excellent way to make people feel comfortable spending a little bit of extra money on you.
You also want to have vending machines that dispense soap and other laundry-related products. You can charge a premium for these and add a significant portion to your bottom line.
If you’re a business person looking to make money and be your own boss, consider opening up a laundromat. You’ll have to put in a lot of work initially, but you can reap the benefits of hard work in the end.
The best part about being the owner of a laundromat is that you’ll have all the money you made at the end of the day to spend on whatever you want. You’ll never have to worry about a boss telling you what to do ever again, and you’ll be your own boss.
The laundromat business model is a great one, and you should consider it as an opportunity to make money. There will never be a time when people don’t have to wash their clothes. People always need a way to wash their clothes, and that’s why you should consider it.
If you want to turn your laundromat into a cash cow, make sure that you hire a few people to wash clothes. The added service will bring you in more money and more customers because not everyone has the time to wash their own clothes.
The best part of starting a profitable laundromat business? It’s being able to collect your money every night. There’s no waiting around to get paid, and you can put that money to work for you right after you receive it.
