| Thinking about owning a laundromat? The coin laundry | | | | Purchasing a Laundromat |
| business has a track record of 20% to 40% average | | | | - Find a few laundromats for sale that meet your |
| return on investment. Best of all, owning a laundromat | | | | criteria. Do some research online and connect with |
| does not require prior experience, higher education | | | | local business brokers. |
| degrees, or full time labor. So how do you plan and | | | | - Do your due diligence on information obtained from |
| prepare for starting and operating a successful coin | | | | the seller - financial statements, water analysis, lease |
| laundry business? Read this article to learn some | | | | review, equipment inspection, etc. Go back to the seller |
| important considerations when planning to start your | | | | and re-negotiate if necessary based on your findings. |
| laundromat business. | | | | - Buy it right and your coin laundry business will be |
| Planning to Start a Laundromat | | | | profitable from the start. |
| The best way to get into the coin laundry business | | | | - Secure financing. Do you want to pay all cash or |
| might be buying an existing laundromat (the business | | | | finance part of the purchase price? If you are financing |
| and the location lease) at the right location, and at the | | | | the purchase then prepare a detailed business plan for |
| best price and terms. | | | | your laundry business and contact local lenders or |
| So, you need to: | | | | negotiate favorable seller financing terms. |
| - Determine the type of store you want to buy (e.g. | | | | - Avoid common mistakes made when purchasing |
| attended or unattended) and at what price point. | | | | your first laundromat: buying an undesirable location, |
| - Have your funds ready, including a reserve to start | | | | over-paying because the income was over-stated or |
| with as working capital. | | | | expenses were understated by the seller, not seeing |
| - Check out some financing options from traditional | | | | major changes in demographics, etc. Many people are |
| lenders (banks, SBA) as well as seller financing. | | | | attracted to the coin laundry industry because of the |
| - Find out for your area what requirements exist for | | | | high success rate and good return on investment from |
| permits and licensing. | | | | owning a laundromat. The best way to ensure your |
| - Do location and demographics research for your | | | | success and maximize your return on investment is |
| area. | | | | starting with a good business plan. |