Then came some negotiations with the landlord on the lease.(We documented the purchase process in much more detail in our earlier blog posts.)And at 6am on the dot, the automated door locks disengaged, and our first customer walked through the door, laundry in tow.” Before you purchase your store, consider these factors: COMPETITION Who will you be up against?
So I let the phone ring and just as I’d hoped, it went to voicemail.
I left a brief message explaining who I was and that I was interested in getting more information about a local laundry that was for sale.
Plus, as with any small business, what you put into your enterprise will have a great impact on what you get out of it.
So you may be wondering what the features and aspects are that influence the answer to the question, “How profitable is a laundromat business?
However, that doesn’t mean that you can sit back, put your feet up, and expect to make a fortune from a laundromat.
Profitability depends on a variety of features and can vary dramatically from laundromat to laundromat.If either of these sound like you, then you need to download a copy of our Laundromat Business Planner. Just enter your name and email below, and it’ll be on its way to your inbox in a matter of seconds. And lastly, if you’re the curious type, and want to see some before/after pictures of our first laundry, and some gnarly before photos of our second laundry, check out THIS post.We created it for anyone who is interested in pursuing laundromat ownership, and we feel it’s so critical to getting the start, that we give it away. We’ll send you a couple more freebies to keep up your momentum. Or, just start digging around the site, there’s plenty more to see! EXPENSES Your profits will heavily depend on your expenses.For example, how much will you be paying for electricity and water?Of course, as we just mentioned, being too near other laundromats could affect your ability to attract customers.In addition, being near a major road, having visible signage, and offering lots of parking will help you gain attention. A neighborhood of wealthy families is less likely to need a laundromat than an area with many apartments and young people.Based on some historical financials provided by the seller, we took the average annual gross revenue for the prior 3 years, subtracted the most recent annual operating costs (expenses), subtracted the annual debt payments we’d be making and determined our annual profits/cash flow.(Note: Eventually we reviewed the seller’s bank statements, tax returns and profit/loss statements.These documents allowed us to validate his stated revenue/expense/profit numbers.Before heading into a new venture, an entrepreneur must consider the profitability and risk. Many entrepreneurs are attracted to laundromats because they seem to run on their own.Although the owner must purchase and maintain the facility and equipment, the customers typically complete the labor and the machines handle the financial transaction.