If you’ve ever dreamt of being your own boss, you’re not alone. According to Forbes, some 62 percent of Americans would like to own a business. Of course, wishing that you owned a business and making the moves to do so are very different things, and not everyone who dreams of being a business owner will put in the time, effort, investment, and courage to make their dream a reality. However, if you’re one of the millions of entrepreneurs who do take the plunge, owning a laundromat may be a smart way to make a clean break with corporate America. To decide if it’s the right choice for you, you’ll need to answer a couple of questions. For starters, how much does it cost to open a laundromat? Why can it be such a smart choice for aspiring business owners?
How Much Does It Cost to Open a Laundromat?
Opening a laundromat often requires a hefty initial investment. Real estate prices always vary depending on your location and the desirability and condition of the specific property, but you can generally expect the average size laundromat to cost somewhere between $200,000 and $500,000, according to Entrepreneur.com. In high-cost regions, you might encounter a higher price tag. However, a well-run laundromat can repay a smart initial investment by generating a steady income for its owner.
Laundromat Startup Costs
Why does it cost so much to start a laundromat? Whether you’re purchasing an existing business or starting fresh, you’ll need to acquire the pieces and parts that make a laundromat a laundromat. These items all come at a cost, and those costs quickly add up:
- Business Entity Fees: You’ll need to legally establish your business. Whether you choose incorporation or formation, you’ll have to pay certain fees. You may also choose to seek out advice from either legal or accounting professionals to make sure that you’re starting your business on a solid footing.
- Commercial Property Costs: You may find an existing laundromat for sale, or you may decide to purchase land and build a new facility from the ground up. Whatever approach you take, there will be a price to pay.
- Equipment Costs: Laundromats require commercial equipment. Determine how many units you’ll need, what kind of equipment you’d prefer, and where you’re going to get it. Think carefully about cost, value, and durability. After all, if your machines aren’t reliable, then your customers will go elsewhere.
- Water Heating System: Laundromats use a lot of hot water, so extra capacity is required.
- Municipal Fees: Cities typically charge laundromats fees to connect to water and sewer lines. Contact your municipality to learn more.
- Supplies: Expected supplies like laundry carts, detergent vending machines, signs, trash cans, light bulbs, and basic cleaning supplies will all add to your bottom line.
- Accessories: Today’s laundromats often thrive by creating a comfortable atmosphere for customers. Furnishings like tables for folding and chairs for relaxing while they wait are expected. Drink and snack machines and restrooms are also common features. Free Wi-Fi is also a good way to win goodwill.
The Benefits of Opening a Laundromat
Few people consider laundry fun. In fact, when The Daily Mail put together a list of America’s 20 most-hated chores, doing laundry came in at number 15. So, why is opening a laundromat a good choice for budding entrepreneurs? For starters, you don’t need experience with the laundry business to be successful. There’s also the fact that clean clothes are a necessity. No matter what happens with the stock market, well-run laundromats generally produce a steady income. There’s also a surprising amount of room for innovation. You’re already paying the rent for a certain amount of space. How you use it to generate additional income is up to you. Some laundromats also offer additional services like dry cleaning or wash and fold. Some put in a small café or store. Understanding your market can help you make the best use of your space.
How much does it cost to open a laundromat? Sourcing your equipment will have a major impact on the answer to that question, and the equipment that you choose will certainly affect your odds of success.
If you own a laundromat or are planning to purchase one soon, check out Laundry Solutions Company‘s products and services. We’re 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, please give us a call at 800-383-9274 or contact us online. We look forward to hearing from you!