Everybody has dirty laundry, and we don’t mean that figuratively. While different items require various washing frequencies, it all boils down to the fact that doing laundry is an inevitable part of life.
The majority of houses have their own washers and dryers, but those can break down. Plus, not everyone can afford to buy these machines, so there’s definitely money in starting a laundromat business.
Entrepreneurship can be a complicated process though, so you might want some help. Here’s how to start a laundromat business broken down into easy steps.
Research the Market and Identify a Location
There’s no point starting a business if the area’s already oversaturated, so do your due diligence first. Otherwise, you might be making an unwise move.
Look into current laundromat trends, then see the market demand in your local area. Is there actually a niche that needs filling? Or does it seem like everyone has their own laundry machines in their homes?
Take a look at your competitors too. Understand how many laundromats are in the city and what they offer. Can you provide better services or additional value?
Create a Business Plan
After you’ve done your research, you’ll have a better idea of how you can better serve your community while making a profit. This means that the next step is fleshing out exactly what you’ll do, and this is possible through a business plan.
The first item is outlining the business concept and the specific market need you’ll be addressing. This is called the executive summary, and there are plenty of examples online if you need some help.
In addition, you’ll want to estimate your startup costs, including:
- Machines
- Rent
- Renovations
- Utilities
- Ongoing expenses
You should also outline a revenue plan based on customer volume and pricing.
Another thing to include in your business plan is your marketing strategy. Detail how you’ll attract customers, such as through promotions, discounts, or special services.
Lastly, write out your operational plan. Determine your staffing needs (if any), daily operations, and how you’ll manage maintenance.
Secure Financing
In most cases, you’ll have to secure funding to start your laundromat business, which is why the business plan will come in handy; you’ll have something concrete to hand over to potential investors.
Plus, you’ll have to calculate startup costs to figure out how much funding you need. Even if you can self-fund the company, it’s important not to skip this step, as it’ll help you have realistic expectations about spending. Costs you should factor in include purchasing or leasing:
- A building
- Machines
- Renovations
- Business licenses
- Insurance
- Initial utilities
Once you have these things down, you can explore your funding options. In addition to loans from banks, consider Small Business Administration (SBA) loans or personal investments. Some companies offer equipment financing specifically for laundromats, so look into that too.
Develop a Pricing Strategy
In your earlier research, you should’ve found out what the local rates are for washing and drying cycles. Based on those numbers, you should offer competitive pricing while covering costs.
To entice customers, think about adding premium services such as dry cleaning, ironing, or a wash-and-fold service at higher rates. This can also help bring in extra revenue.
You can add convenience by giving customers the choice to use card and app-based payment systems too. These can save them the annoyance of lugging around heavy coins and needing exact change for coin-operated machines.
Obtain the Necessary Permits and Licenses
Decide what kind of business entity you want to run. Many entrepreneurs choose limited liability companies (LLCs) as opposed to corporations since they’re easier to deal with and have great benefits.
No matter what type of business entity you pick, we can help. We have free business registration services you can use to get everything sorted out; just pay the state fees! And if you have more questions about how to open a laundromat, our experts can give you excellent advice.
Local governments will have different requirements and rules for business licenses, so check with yours to see what you need to get. Also, you might need specific permits for water usage, environmental regulations, and handling chemicals if you’re offering dry-cleaning services too.
To cover yourself and your customers, you should obtain liability insurance and coverage for your equipment and property. Worker’s compensation is a must too if you have employees.
Purchase or Lease Equipment
When you’re figuring out the answer to the question, “How much does it cost to start a laundromat business,” a huge part of it has to do with the equipment you get. Commercial-grade equipment is necessary for durability and efficiency, so start there.
You can either buy new or used, or lease the machines. In addition, energy-efficient laundry machines might cost more upfront but they can reduce long-term utility costs. They can appeal to environmentally conscious customers too, so they can definitely be a worthwhile investment.
You might also need:
- Soap vending machines
- Coin or card systems
- Seating
- Folding tables
- Security cameras
Set Up Utilities
Your laundromat will need a sufficient water supply and drainage system. If it can’t handle the capacity of washing machines, then your business is doomed to fail. On top of that, ensure that you have the necessary electrical and gas hookups, especially for dryers.
Also, will you be offering wifi as a service? Then make sure to set up a reliable internet connection so customers don’t get frustrated.
Design the Laundromat
A user-friendly layout is essential if you want people to keep coming back. Having enough space is just one part of the equation; the other part is placing the machines, folding areas, and seating just right.
In general, create a clean, safe, and inviting space with good lighting, comfortable seating, and entertainment. For the last part, you can have fast wifi and TVs. Basically, put yourself in your customers’ shoes and think about what you’d like to have while doing laundry outside of your house.
Market Your Business
Before you officially open your doors, you’ll want to market your laundromat to get the word out. But before you do that, you should create a website and list your company on Google My Business. Build upon that online presence by using social media to promote special offers.
You shouldn’t forget about local advertising either. Use flyers, local radio, and community boards to advertise.
Know How to Start a Laundromat Business
If you were wondering about how to start a laundromat business, then this article should be an outstanding reference. We’ve laid out every step clearly so it’s easy and you won’t be stressed out.
Plus, if you use our services, you can further reduce your troubles. We’ll ensure that your laundromat company gets set up without you having to do the paperwork yourself.
Sign up with Business Anywhere today to use our free business registration service. It comes with a free year of registered agent services too.
