Location of Your Business
This is one of the most essential parts of your laundromat. Finding the right location with the perfect demographics, great access, a good footprint and other factors will be essential to your success.
The most successful businesses in the world are those that meet a genuine personal need — they provide basic necessities to people to help them feel safe, comfortable and looked after. The laundromat is a great example of this type of business, providing a basic but essential service. If online selling or being a digital nomad isn’t for you, a laundromat is a reliable, sustainable alternative.
Like cleaning businesses, laundromats help your customers meet their most basic needs — cleanliness and comfort. It might not have the kudos of consultancy or the flashy screens of the latest consumer device, but people will always need clean clothes. Coin-operated laundromat businesses don’t need a huge amount of administrative overhead either, so they can be a good way to break into the entrepreneurship space
Laundromats are also referred to as coin-op laundries, coin laundries, coin-operated laundries or self-service laundries.
In this guide we’ll explore everything you need to do to set up your laundromat business and maximize your chances for success. We’ll cover:
Understanding the world of the laundromat
Paying taxes and for your laundromat business
Deciding if you’re ready to start a laundromat business
Hiring employees, managing finances and administering your laundromat business
Planning out your laundromat business
Locating other resources for your laundromat business
Determining the best legal structure for your new organization
Following various rules and regulations
And much more
By the time you’ve read through our complete laundromat business guide, you will have all the information you need to set up and manage a thriving laundromat business. Let’s get into it.
Key Laundromat Business and Background Data and Statistics
The size and success of laundromat businesses might surprise you:
Revenue of laundromats in the U.S. in 2016
Revenue is expected to grow by 2020
Total wages in the industry in 2016
People are employed by Laundromats
This all points to the laundromat industry being ripe with new opportunities for focused entrepreneurs, so now might be the perfect time to dive into starting your laundromat business. Incfile is here to help you form your laundromat business and understand the ins and outs of owning a laundromat company.
A laundromat is a simple concept: you provide reliable, efficient, commercial washers and dryers in a retail space and request payment for the usage of the machines. Most laundromats are self-service, simply requiring that the customer purchase a certain amount of time using a washer or dryer.
Your customers want simple, easy-to-use machines that provide fast, effective washing and drying of clothes at a reasonable price. Ideally, you will want your laundromat business to be well-located, so placing your business in densely-populated, renter-occupied areas is a very good idea.
Access to and from your site needs to be straightforward, and you should have adequate parking for all your customers. Coin-operated machines are the standard in the industry, but card operated machines are also available — you can even combine these with membership schemes and incentives to keep customers loyal.
There are two main types of laundromat businesses: standard independent retail laundromats, and laundromats that are located inside apartment buildings to serve the residents. This second type of laundry business is known as the multi-housing laundry business.
If you want to start a laundromat business, it’s important to know what to expect.
Before you start your business, there are a few key areas you need to focus on. You will need to establish whether there’s a demand for your laundromat in your area, look at potential benefits and pitfalls, understand how your business finances might look and ensure everything is in order.
In short, you need a business plan — here’s how to think about your business idea.
Before you launch your laundromat business, you need to understand if there’s a demand. That means carrying out market research and “validating” your services. Here’s how to go about it:
All businesses need a business model, which is how you will generate sales, provide services and make money. Think about your business model now, because it’s better to have that in place so you can start acquiring customers and generating revenue from day one.
You will also need to look at financial projections for your laundromat business. What are your expected sales and revenues? What is your profitability? How much money will you keep in the business to grow it? How much will you pay yourself and others?
If you can, try to plan your revenue for the next month, three months, year and two years. It’s vital to take into account the high capital cost of setting up a laundromat in the first place, also factoring in utility, staff and other costs.
Finally, you should put your business plan together. Business plans do vary slightly, but they should cover the following areas:
Now that you have all the background information for your laundromat business, it’s time to make it into a reality. Starts by choosing the right structure or “legal entity” for your business. In the U.S., there are four main business structures. They are:
For more information on the advantages and disadvantages of different types of businesses, please see our in-depth guide. If you’ve still got questions, we’ve answered them to help you choose the right business structure for your laundromat business.
In most cases our recommendation would be to create an LLC. We have a complete guide to everything you need to do, and we can set one up for your laundromat business. LLC formation does vary from state to state, but we’ve got you covered, wherever you are.