If you’re thinking about opening your own Laundromat, there’s good news and bad news. The bad news? It’ll cost you thousands to get set up, and you’ll have to sink more money into your business once it’s up and running to succeed in this industry.
The good news? You don’t actually need that much money to start a Laundromat, as long as you know what kind of Laundromat works best in your area—and how to keep costs low while still making enough to get by.
Preparation
First, decide if you really want to open a Laundromat. You have limited funds and even more limited time, so you need to make sure opening a Laundromat is something that you’re ready and willing to do. Are there other ways you can generate income? Do your research about Laundromats in your area. Don’t be afraid to reach out for help!
Do some market research
One way to avoid spending too much money on getting your new Laundromat up and running is by doing some good old fashioned market research. Find out what locations are popular for Laundromats, and if there are any competing Laundromats in your city or town, contact them and see what it would take for you to set up shop nearby. This way, you’ll be able to decide if opening a Laundromat is really something you want to do, instead of just thinking about it.
Check your local laws
You’ll have more flexibility if you set up shop in an area that allows Laundromats, so check your local zoning laws and regulations. If you’re not sure how to find them, try reaching out to your local planning commission—they can help steer you in the right direction.
Create your business plan
A Laundromat may seem like an odd choice for entrepreneurs with little money. However, it’s one of most cost-effective and efficient businesses you can open. You’ll need very little startup capital—the average is $37,000—and your operating expenses will be low. There’s also no staffing required because all your work can be done by yourself or an employee/contractor.
Find your location
The first thing you should do when thinking about opening your own Laundromat is determine if there’s enough business in your area for another Laundromat. It’s also important to find a location that is easily accessible by foot, bike, and car; ideally, you want people to see it from a distance and think, That’s convenient!
Save some money while you’re opening
Opening a Laundromat takes up a lot of capital. That’s why you should wait until you have at least $10,000 for startup costs. Getting that amount of cash together isn’t easy, but it is possible—even if you don’t have savings to draw from or any investors who are willing to invest in your business.
Start small and work your way up
Opening your own Laundromat might seem daunting, but there are ways you can do it with as little cash as possible. Consider starting out with one washing machine and one dryer, then later adding more machines as needed. You’ll want to find a location that allows for minimal overhead expenses and maximum visibility—think high-traffic areas like shopping malls or grocery stores.
Get new customers quickly
In order for your Laundromat business to succeed, you need customers. The best way to get new customers is by word-of-mouth advertising. Ask your existing customers if they know anyone who would be interested in setting up their own Laundromat, and do not be afraid to offer incentives (such as discounted prices or free washers and dryers) in exchange for referrals. You can also place flyers on nearby college campuses or in local retail stores that serve lower income communities.
Keep growing
The first two years of owning your business are crucial. If you’re not making profit by then, you may have to make some tough decisions about whether or not you can afford to keep going. The best way is always trial and error – but even if that means closing early, it’s far better than sinking more money into an unprofitable venture.