How to Run a Small Business Laundromat

 How to Run a Small Business Laundromat

Before you can create a business plan for starting a laundromat business, you’ll have to understand what’s entailed in setting up and running your business. The easiest route is to buy an existing laundromat business that you can simply buy and continue managing as is. However, most people will have to build their laundromat from the ground up, and that’s where this process becomes more exciting and more complicated.

Will You Buy or Rent?

Your first step in running a small business laundromat is determining whether you will rent or buy a commercial property. If you decide to rent, you’ll be able to get a tax credit for your rental payments. You’ll also have a property owner who will be responsible for maintenance and repairs. The downside of renting is that you may not be able to modify the building at all. This can be an important consideration when running a laundromat because you’ll need to set up multiple hookups for the washing machines and dryers you will have to install. Before you make a final decision, consider the full range of pros and cons for each option.

Choosing Laundry Machines

On average, you should expect to pay from $150,000 to $300,000 just in buying coin operated washer and dryer machines for your laundromat. Of course, a larger facility will require more machines and a higher amount of capital to invest. The cheapest option for washing machines is between $500 and $700 for top loading machines. If you opt for front load washing machines, expect to pay $3,500 up to $20,000 per machine. Each stacked dryer, which consists of two dryers stacked on top of one another, will cost between $5,000 and $6,000. In addition to these machines, you’ll also need folding stations or tables, chairs, a water heating system, laundry soap dispensers, and laundry carts. Altogether, these additional items will cost you an additional $45,000 or more.

Add Extra Services to Maximize Income

While there are certainly some significant expenses in starting your own laundromat, you can maximize the income your business generates once you get past that startup phase. For example, you can bring in some food and beverage vending machines to offer refreshments to your customers. You can also offer dry cleaning, full-service laundry, and other premium services to generate more revenue from your business. You can also provide extra services, such as installing televisions, providing free WiFi, and investing in more comfortable seating for your customers. By emphasizing comfort in this way, you’ll entice customers to make your business their regular laundromat.

Market Your Laundromat

By the time you have set up the equipment and services your laundromat will offer, you’ll be ready to open your doors. While people in the nearby neighborhood will see that your laundromat is open for business, you shouldn’t just rely on word-of-mouth advertising. You don’t need a big advertising budget to set up a website, blog, and social media accounts. You can use these resources to spread awareness about your business and to establish your business as an authority in the care and cleaning of textiles. This will help you grow a following in your community. Through the use of SEO (search engine optimization) in your regular blog posts, you’ll ensure your site will appear in more relevant search results as well. While paid advertising will certainly help, the resources mentioned here can help you do more with a limited budget.

Now that you know how to run a laundromat business, you’ll be better able to create an actionable business plan. Your business plan will be used to help you create a business model and obtain funding, so you should be as detailed as possible. Modifying your plan as you move forward will help you keep your strategy actionable, and it will help you consistently grow your small business laundromat.

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