As with many new ventures, opening a coin laundry business can be exhilarating at first. As new customers spill in the door, it’s easy to feel like you’re on cloud nine. After all, you’re now a business owner! That’s a great reason to celebrate. But after a few months, you may encounter some bumps in the road. If you’re considering opening a laundromat, it’s important to be optimistic, yet realistic. Keep reading to learn more about coin laundry business pros and cons.
Coin Laundry Business Pros and Cons
Pros of Owning a Laundromat
According to the Coin Laundry Association, there are currently 29,500 coin laundries in the United States, and they generate nearly $5 billion in gross revenue annually. There’s obviously plenty of people who choose to go into this business, so let’s explore the reasons why:
- Opening and operating a laundromat is relatively simple. Unlike retail stores where you must stock and track endless amounts of inventory, there aren’t many products you have to deal with besides washing machines and dryers (though you may choose to sell detergent, fabric softener, and similar supplies). In addition, you don’t have to go through a licensing process or get a degree. However, earning a business degree and having a basic knowledge of machine mechanics can help you make decisions that allow your laundromat to thrive.
- Business is steady. Everyone needs clean laundry year-round, and not everyone has a home with a washing machine and dryer. The only months that certain laundromats might see a slight decrease is in the summer, when many college students go home for break.
- Laundromats are profitable. If you invest in reliable machines from the start, you’ll begin to reap the cash benefits quickly.
- You get to be your own boss. Forget office politics. Rather than working an 8-5 desk job, you can enjoy flexibility. With a great staff, you most likely won’t need to be at the laundromat 40 hours a week. Brunch on a weekday – why not?
- You have the chance to expand your business. If you’re a self-starter, it’s easy to open to multiple locations to serve several parts of town.
Cons of Owning a Laundromat
Does that list of benefits make you want to go out and buy a laundromat? Even the best jobs have their drawbacks, and it’s up to you to determine if it’s worth the effort. Here are some of the less-glamorous aspects of owning a laundromat:
- Things won’t always be neat and orderly. No matter how much effort you put into making your laundromat shine, not everyone will treat your space with the same respect.
- The initial investment can be substantial. If you try to cut corners and purchase cheap machines, you’ll pay for it in the long run. And as with any business, there’s a risk that things might not work out. Conduct plenty of research beforehand to ensure you’re making a solid investment.
- Utilities can be high. Those machines aren’t going to power themselves!
- Long business hours are recommended. In order to stay competitive with other laundromats, you’ll most likely need to be open about 100 or more hours a week.
- Accidents happen. In the case of an emergency, as the laundromat’s owner, you’ll be the first one called. This means you need to be prepared to make an occasional visit to the laundromat at strange hours.
After learning about coin laundry business pros and cons, you should be able to make an informed decision about opening a laundromat.
If you’re ready to take the plunge, review our laundry business tips and partner with a reliable distributor. Be sure to check out Laundry Solutions Company, a full-service provider of premium vended, on-premises, and multi-housing commercial laundry equipment. Our leasing program provides no mileage fees, no service fees, and no parts fees. You will be able to use high-quality Speed Queen equipment while enjoying a flexible lease and predictable payments. To learn more about our products and services, please give us a call at 800-383-9274 or contact us online. We look forward to hearing from you!