How to Buy a Laundromat Business

How to buy a laundromat business depends on what you are looking for in such a business. A coin operated laundry can be a great first time business to cut your teeth on. But there are also some pitfalls to worry about too – pitfalls that can cost you the business.

Many people want to know how to buy a laundromat, but they aren’t willing to do the associated groundwork to ensure the business starts on the right track. Laundromats are very dependent on location. If you don’t have the proper location, then you have no chance of making any money.

It’s very easy to start up a laundromat and realize 6 months down the road that you are only just covering costs. Ideally, you want to purchase a coin laundry and start generating profits right away to pay for the investments. The ROI (return on investment) of a laundromat can be as high as 30%. So traditionally, a laundromat is a very profitable enterprise.

However some first time business owners make mistakes when purchasing a laundromat. The first mistake people make is that they don’t do adequate research on the cliental of the Laundromat’s location. Laundromats generally thrive in lower income neighborhoods. But there needs to be a balance here. You need to have lots of apartment buildings, tenant housing, or some sort of large facility like a university to garner enough traffic to make good money. If you don’t have enough clients, you will likely only just break even – if you are lucky.

You also need to scout out the competition. Are there any other laundromats in the neighborhood – if so, how many and how modern are they? I’ve heard a couple cases where young new buyer buys a laundromat only to find out there is brand spanking new franchise laundromat right across the street.

Now, one of the biggest mistakes you can make is NOT to get a professional to check out the laundromat equipment. You need to know exactly how old the equipment is and get track record of any such repairs made on machines. Generally, you don’t’ have to have machines older than 5 years – this is the point where you will start having to spend money to repair the commercial washing machines; this can really eat into your savings. You can buy a laundromat with older equipment – but you need to make sure you take this into account when you make an offer on the business.

How to buy a laundromat business? Through solid research on your part and a thorough understanding about the laundromat business as a whole. You should spend some time getting books on how to start and run a coin laundry service and you should consider hiring a laundromat consultant for advice. The more informed you are about the business, the more likely you are to run a profitable coin laundry service.