Laundromats are changing. They were once the refuge of those who didn’t have access to their own washing machines or dryers. They served a low-income clientele who didn’t have other options. They’ve always been a great way to make passive income, but due to changing dynamics, their passive income generating ability is getting even better.
If you are looking for how to start a coin operated laundry business and generate passive income, here are 5 things to know when starting a coin op laundromat business.
1. Do the Math
The first step in determining how to start a coin operated laundry business is doing the math. You need to get a general idea of just how much it’s going to cost to open the business and how much you can make in it. It’s important information needed to come up with your business plan.
First off, you should look at the equipment needed to start a laundry business. For sure you need quotes on washing machines and dryers. You’ll want to look at commercial washing machines for sale and get a good idea of how much they will cost. Secondly, you will want to run some numbers with potential customers based on standard washing machine and dryer prices. Look at how much electricity will cost to run those machines and you’ll have an idea of the profit per customer. You should have a reasonable idea about how much you should pay for location rent. You should have the very basic information needed to proceed with your laundromat business plan.
2. Find a Location
Finding the best location means looking at how many competitors that you have. Depending on the area you choose, there might not be any competitors. In some cities, laundromats are still clustered in lower income areas so locations with higher income customers are not served by any laundromats. If an area already has more than 2 laundromats servicing an area, you might do well looking at a different area. The best location is one without any competition.
3. Size Up the Competition
Check out any competition and see what they are offering. Are they offering eco friendly washing machines? What kind of services are they offering? What is the quality of their machines? Is the facility well maintained? Does it have wifi? How busy are they? All of these factors play a part in not only sizing up the competition but also the local laundry market in general. Look for areas that you can improve upon like a better snack bar or faster wifi.
4. Find Commercial Washing Machines and Dryers
With a location in place and evidence that you can succeed in the business, it’s time to find your washing machines and dryers. Eco friendly washing machines are a good selling point for your new laundromat business and can pay for themselves in lower costs. You will look for washing machines that are the most efficient at the lowest cost. Remember to factor in maintenance costs. You’ll want to find commercial washing machines for sale since they will have lower maintenance costs than non-commercial machines.
5. Offer the Right Services
Finally, you are going to want to come up with the right services to offer in your laundry business. Drop off laundry services are real money makers. You are going to want to have an attendant watching your laundromat and there is only so much cleaning the worker can do. Put the employee to use handling the drop-off service. You’ll also want wifi to keep customers happy while doing their laundry and a snack bar to supply their snack needs. You could also choose to offer no other services and make it a completely passive income business. The choice is up to you.
Running a laundromat can be very lucrative in the changing economy. Find the right equipment needed to start a laundry business, find the right location, and find the right mix of services and you’ll be on your way to passive income generation. Laundromats are a great way to make a passive income without doing a lot of management. It’s a business that is in tune with the changing dynamics of the economy and is poised for growth.