Are you looking into starting a new investment or business? You may want to consider having your very own laundromat. After all, you won’t find any place in the country that has a community that doesn’t need their clothes washed! It’s a recession-proof business that won’t experience the typical business cycle. While there may be a few peaks and dips now and then, the industry remains steady.
In fact, the average laundromat in the USA can garner revenues of up to $300,000! The best part is that operating a laundromat is pretty safe, with up to 95% of laundromats living past the first five years while still providing good returns of investment from their equipment and laundry parts from stores like Laundry Replacement Parts.
While those statistics are lucrative, you shouldn’t take the leap without proper knowledge and considerations. We talk about the factors that may affect your laundromat’s profitability, so read on.
This is a major aspects that new investors possible get in over their heads. Operating a laundry business is expensive, particularly in the short-term. The startup cost can go up to $200,000 or higher, including your location, renovations, equipment, alliance laundry parts, staff, and other necessary expenses.
But once you get over that initial hump of upfront costs, things become easier over time and that’s when you can begin gaining profit.
Laundromats offer essential services because people will have to wash their clothes regardless of the times. This means that your laundromat has a built-in demand that can easily satisfy. Unfortunately, it’s not that simple, since you’ll be among the many competitors within your area!
That’s why it’s important to perform market research before you begin operations to know how your business can stand out and reach your target market. Remember, you aren’t only competing with fellow laundromats, but apartment complexes offering laundry equipment to use, too.
Location is also key to bringing customers in, but it’s also a major factor into your cost. Laundromats rely on locals for business since the industry is very location-restrictive. Most people won’t want to travel over a mile for their clothes, so you must select a location people can easily access by car or foot. You must also ensure that the building your store will be in is structurally strong and with minimal renovations needed.
For your business to thrive, your target market needs to know it’s there. That’s where forming marketing strategies come along, as you must raise awareness for your business. That way, you can gain more profit from the higher number of customers entering your business.
Regardless of the business and industry you pursue, you must maintain it. For laundromats, this will mean repairing or replacing broken equipment, fixing plumbing issues, repainting walls, and the like. You must ensure you’re on top of everything in the business so small issues don’t grow and become costlier.
Wrapping It Up
While laundromats are indeed profitable, you must ensure you consider the factors above rather than purely see dollar signs!