Everyone wants to wear clean clothes. But with the kind of busy schedules most people have, getting to watch their clothes themselves may not be possible. It is not only strenuous but also requires a lot of time, especially when you need to move laundry to weekends. So, if you are looking for a business that will help you make money from what people actually want, then it’s okay to ask about Laundromat business.
This is a lucrative business that helps you generate passive income without stress. Although it can be a bit capital-intensive, a Laundromat business promises good profits on investments. If you are looking for Starting a Laundromat business, then you should keep reading!
What Is a Laundromat Business?
Perhaps you only heard about the business from someone and are not really sure what it is; let’s start from there. A Laundromat business is a business where customers pay a certain amount of money to use washing machines and clothes dryers.
The business is a bit different from a dry cleaning business because, with Laundromat, you don’t have to do the washing. You will only need to provide washing machines and dryers that the customer will come to use. Laundromat business is increasingly becoming popular now since everyone is getting more loaded in their schedules.
How Much Can You Make from a Laundromat Business?
Again, this is one of the most profitable businesses out there. So if you are asking, ‘is Laundromat business lucrative,’ then the answer is yes. A Laundromat business can make between $15,000 and $300,000 per year. This is good money anyone can make from their business.
You only need to get your location well figured out, get many machines, and include additional services in the business. You will be surprised how huge your income can be at the end of the year.
How Much Do You Need to Start a Laundromat Business?
This is another important aspect to consider when talking about Laundromat business. Well, the amount you will need to start the business depends on how big you want to start out. However, you should know that the business is capital-intensive. You may need between $20,000 and $500,000 to set it up.
The bulk of the startup capital will be going into buying the necessary equipment for the business, including washing machines and dryers, and renting a suitable space for the business.
Can You Start a Laundromat Business With no Money?
It is not uncommon to see people ask if they could start a Laundromat business without having their own money. Well, this is possible. There are a couple of ways to get a Laundromat business started with no money of your own.
Another way is to reach out to investors to invest in the business. That way, they will provide you with all you need to start in exchange for equity in the business. That is much better than taking out a loan because you won’t have to pay interest on the money given to you.
You can also start a Laundromat business through a franchise meaning you will be starting and operating the business under someone else’s trademark and business model. It is also a brilliant way to start a Laundromat business with no money.
How to Start a Laundromat Business: A Step By Step Guide!
#1: Choose a suitable business model for the business
This is the first place to start. Decide which type of laundry you want to be doing. Are you only going to be doing laundry or add wash and fold services? You can also decide to include pick-up delivery services.
The more services you offer in your business, the more money you will be able to make. However, adding too many services at the start can also jeopardize the success of the business.
#2: Write a solid business plan
Once you have been able to decide how you want to run your business, the next thing is to write a comprehensive business plan for it. A business plan will serve as your guide through the business. It will help you know the right things to do at every stage of the business. A well-thought-out business plan can also help you get loans and attract investors to the business.
Your business plan will include everything from the name of the business to location, startup capital, machines you will need, your target customers, service fees, etc.
#3: Choose a business entity
There are many options available to you in this regard. You can decide to run the business on sole proprietorship, partnership, Limited Liability Company, or corporation. Each of these entities has its own unique advantages and disadvantages. So, before settling for one, consult the appropriate people to help you decide. You can talk to your attorney or a business advisor for help!
#4: Conduct market research
It is not advisable to start any business without first learning what goes on in the market. Conducting comprehensive market research will help you understand the market and how you can take advantage of it. It will help you earn an edge over other businesses in the market by helping you avoid some loopholes many of them have fallen into.
Comprehensive market research will also help you decide on an appropriate pricing system for your Laundromat business. It will give you an idea of what services to include and which ones your target customers would love to have because it’s missing in your competitors. You shouldn’t skip this part for anything!
#5: Select a good location
The location you choose for your Laundromat business is very important. It will determine the success of your business. A good location is one that is easily accessible for your target customers and without much competition. Your location will also play a huge role if you intend to start the business with a franchise – starting a Laundromat business with no money.
#6: Register the business
When you now have a business model and entity for your Laundromat business and have also chosen a location, the next thing will be to get the necessary license and permits. Get your business registered in your operating state. Inquire about how to get an employee identification number and open a bank account for the business. You need all of these to run the business legally – you don’t want to run it against the law!
#7: Buy the necessary equipment
Laundry Business is more of equipment. If you don’t have the necessary equipment for your business, no one will come to patronize you. Customers want to use a Laundromat they are sure has everything they need to get their laundry done. So choose the best equipment, depending on your target customers and business model.
However, here are some of the common equipment you will likely need for a Laundromat business.
- Laundry machines
- Dryer
- Washer heating system
- Soap machine
- Laundry carts
- Cleaning supplies like fabric softener, soap, wall clock, and trash bins.
#8: Come up with an effective marketing strategy for your Laundromat business
When you are asking to start a Laundromat business, one major thing you will need to get right is marketing. No one will patronize your business if they don’t know you exist. And that is bad for your business. So after getting all the necessities, consider the best way to get the word out to your target customers.
Whether you want to use traditional methods like newspaper and TV or digital marketing strategies like social media, email marketing, building your own website, doing local SEO, etc., make sure you choose the best suitable for your target customers.
Your customers should determine the kind of marketing strategies you choose. For instance, if your customers are mostly seniors and elderly, you will have little business with social media marketing because most of them aren’t fans of social media.
Final Note
A Laundromat business is a lucrative one. And with the way life is getting busier for most people, there will definitely be more demand for this type of business. So if you are looking for Starting your own Laundromat business, then you are on the right path to making passive income for yourself.
We have highlighted all the things you need to know about starting this type of business. Follow the tips and get yourself a successful Laundromat business!
