Laundries are interesting business ideas that have been around for decades. Laundries seem to be an omnipresent chore in most homes, so it can be a valuable opportunity to build a business around it. If you want to spin this into a true business strategy that was tested, keep reading and find out how to buy a laundromat.
How to buy a coin laundry
If you want to buy a coin laundry, it can be difficult to know where to start. After all, it’s not as easy as buying a home or building an online business.
To make it easier to understand, we have compiled a step-by-step guide to purchasing the coin laundry below.
1. Please talk to another owner
The first step to buying a laundromat is to talk to other owners. Before you proceed with your purchase, you’ll want to make sure you understand what you’re into.
Spend time asking questions. You can learn from listening to other laundromat owners.
If you hear something interesting, don’t be afraid to ask for more information. You may be surprised at how many owners want to share.
You can find other Laundromat owners near you using a simple Google search along with business contact information. You can contact them to ask if you don’t mind chatting with you about their business experience.
2. Do your research
Next, it’s time to do your research on owning a laundromat. This includes determining the average cost of a laundromat in your area, how much you can spend, what you can expect, and the time commitment that comes with the process. loopnet.com and buybizsell.com are the best places to start valuing your purchase price.
Looking at the situation in your area, you need to determine whether the costs associated with purchasing a laundromat are valuable.
3. Find the right place
It is also important to research your city when finding ways to buy a laundromat. In some areas, if everything is full of houses with their own washer and dryer, you may not need a laundromat.
But for others, laundromats (or dry cleaning costs) are an important part of life for many residents who don’t have a washer and dryer in their home.
As a business owner, it’s important to find the perfect place to start your business.
To do this, it is most common to check out some potential neighborhoods and find what kind of facilities, such as apartments, homes, condos, etc. Next, check if there are already other laundromats in your neighborhood.
Plus, look at the parking lot and see how easy it is for people to access the laundromat. This is all part of choosing a good location.
4. Working with brokers
Brokers often have ears on the ground for potential laundromat sales. If you’re interested in purchasing, you may find some leads through a broker.
Brokers earn commissions on sales prices, but they also help you find a deal in the first place.
Planet Laundry explains that when you’re looking for a broker, you should check out your local laundry distributor. He also explains that he can pay attention to advertising and see who sells pastors in your area.
If you’re not in luck finding a deal through a broker, consider running around town to your local laundromat. Current owners may be interested in selling. It never hurts to ask.
5. Run the number
Like all potential business ventures, it’s important to run the numbers and answer the question “How much does it cost to buy a laundromat?” You need to make sure your business is profitable or at least make a profit.
According to the Laundry Solutions Company, some of the costs to consider are utility bills and leases. The average amount spent on a laundromat per month is between $4,000 and $8,500 per month.
Another potential cost is to maintain the equipment. Older machines tend to have higher maintenance costs.
Consider all costs when considering the potential benefits.
6. Find funding
Like more new businesses, you will likely need to make an upfront investment of capital. If you’re like most entrepreneurs, you don’t necessarily sit for thousands of dollars to invest.
Some ways to fund your purchase include obtaining a small business management loan or obtaining a business loan from a local financial institution.
Plus, you can consider a personal loan.
However, the best way to buy a coin laundry is to have as little debt as possible. This means it can take time to create a savings plan before you buy and save money.
7. Manage your business
After purchasing, it’s time to manage your business. Basic management tasks include working the machine, collecting cash, bookkeeping and ensuring that everything is clean for the customer.
Some tweaks you may make to your business include providing finishing services from the start, including cleaning and folding clothes. Other potential revenue streams through laundromats include coin-operated vending machines and laundry sales.
As a manager and owner, you also have many other tasks in addition to dealing with the day-to-day operations of your business, such as marketing your business, hiring employees, and more.
Expert Tip: Don’t forget that passive income takes time
Laundries can generate passive income. But like all passive income streams, you will need to work ahead of time to generate reliable amounts of income from this asset.
If you want to purchase a laundromat in pursuit of passive income, take prepaid jobs into consideration. Even if you buy an existing laundromat, it may take some time to speed up how everything works.
Is it a good idea to buy a coin laundry?
Buying a coin laundry is a good idea, and the potential for profit increases the likelihood of buying a coin laundry. It makes sense to buy a laundromat if you have the right place and opportunity through the eyes of a business owner.
According to the Coin Laundry Association, the average market value of Coin Laundromat is between $50,000 and over $1 million. Based on Coin Laundry Association estimates, these Coin Laundry can generate between $15,000 and $300,000 a year.
Why buy a coin laundry?
Laundromats offer many advantages to owners. If you are considering this opportunity, look into the following potential benefits:
Possibility of passive income
The appeal of passive income is that you no longer have to exchange your time for dollars. Laundromats open the door to one of the best passive income ideas.
Of course, the advance payment effort to find and open a laundromat may not be passive. However, previous jobs can be rewarded later in the form of relatively simple income.
New revenue flow
Multiple income streams may help you build a more stable economic future. If one of your income streams is unexpectedly confused, you can lean towards your other income streams to cover your costs. Laundromats can add another revenue stream to the mix.
For example, let’s say you open a laundromat in addition to your full-time job. If you unexpectedly lose your job, funds from this laundromat will help you keep your family floating.
Minimum labor costs
Business models tend to rely more on machines and equipment than on labor. This may allow you to operate the coin laundry with minimal labor costs.
You may decide to work on running your own business. Or they may hire an employee or two to help them carry out operations.
In either case, reliance on machines can help keep labor costs down.
Cash is the king
The laundromat works with pre-payment models. Unlike some other business models that rely heavily on providing credit to customers, laundromat owners can expect immediate payments.
As a business owner, the appeal of advance payments is undoubtedly appealing.
Full-time or part-time commitments: how to decide
You’ll want to learn how to buy a laundromat and see how long it will take. Depending on the situation, you can choose more handoff approaches by hiring a business manager.
Generally, managers open and close the facility, keeping things clean and source maintenance when necessary.
However, they may choose to play a more active role. This generally includes full-time commitments. As a full-time focus, you may open and close your own business. Additionally, they may handle customer issues more regularly.
Your full-time or part-time job decision will depend heavily on your financial situation, such as whether you plan to hire an employee or the amount of time you have to commit to the business.
How much does it cost to buy a coin laundry?
Knowing how much it costs to buy a laundromat depends on you, but it usually ranges from $200,000 to $500,000.
There are many factors that determine the price. You will also need to determine whether you have a brand new coin laundry open or if you are purchasing an existing coin.
Plus, do I need to buy equipment? What else do I need to buy? Answer these questions and help you find your answer.
Can I buy a coin laundry without money?
If you are asking yourself, “Can I buy a laundromat without money?” You are not alone, and that is possible. Buying a laundromat can cost hundreds of thousands of dollars, so most new business owners will need to find funding.
Generally, it is difficult to buy a laundromat or get a loan to make a purchase without a down payment. However, if you have a solid business plan and ample experience, lenders may be willing to offer loans that do not include down payments.
So is this a good time to invest in a laundromat? It’s very possible if you can secure the necessary funds.
How are coin laundries rated?
Coin laundries are evaluated through the evaluation process. Evaluation is a way of understanding what a business is valuable.
Understanding value involves many aspects of your business, including net profit, leasing, competition, stores and equipment, according to the Laundry Solutions Company. Furthermore, they say that assessing laundromats involves using net profit and selected multipliers.
Laundries are generally evaluated based on multiples of net operating income (NOI). By subtracting costs from the total revenue, you can determine the NOI of your coin laundry.
For example, if your business is making $200,000 a year and costs $50,000, your NOI would be $150,000. The size of multiples is usually 3.5 to 5 times. Therefore, 3.5-5X NOI gives you the answer to the value.
Is buying a coin laundry a good investment?
Laundries can be a good investment as US laundries see cash in 20% to 35% of cash, according to Speed ​​Queen Commercial. That’s a pretty high return.
Compared to investments such as stocks with an average return rate of 8%, laundromats seem to be a good investment. However, you will need to decide for yourself whether the laundromat will make a good investment in your portfolio.
What do I need to know before I buy a coin laundry?
Before you jump into buying a laundromat, here are some useful things to know before you buy.
Funding costs may be summed
If you choose to fund your laundry purchase, be sure to be clear about the terms of your loan. You’ll want to determine exactly how much the funds cost you. It is important to consider these funding costs in the overall profitability of your laundromat.
When you’re looking for a fundraising solution, shopping can help you save a lot on your interest fees.
Maintenance may be involved
Laundries rely heavily on machines that can break. When the laundry machine is not in use, it is missing out on the possibility of making money for you. So, working quickly is our number one priority.
As the owner, you can hire someone to help repair the machine. However, if you are comfortable working on these projects yourself, you can save a lot.
You may need to hire employees
Coin laundries are relatively hand-offs. After all, the machine handles clothes for you. However, many laundromats need employees at hand to help their customers, keep things clean and provide additional services.
If you’re not used to hiring employees, opening a laundromat may not be the right solution.
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