If you are interested in opening and operating a laundromat, you first need to see if you can afford it. Learn how to calculate the start-up cost for a laundromat to estimate the expenses and to predict how profitable your new business can be. Looking at the cold, hard numbers now can help you plan for the future, so that you don’t waste your time and money on a fruitless endeavor.
How to Calculate the Start-Up Cost for a Laundromat
Opening a laundromat involves many start-up costs. You will first need to decide what type of business your laundromat should be. You can form your business as a C corporation, S corporation, LLC, or sole proprietorship, amongst many other business entities. The state in which you list your business will have fees that vary according to the business entity you choose. However, registering your business will usually cost between $100 and $1000.
Your next big expense when learning how to calculate the start-up cost for a laundromat will be the cost of the actual building. If you are renting a laundromat or taking over an existing laundry business, then you will have less capital costs than if you are building your own laundromat. If your budget is tight, consider renting your laundromat or taking out a loan so that you can make affordable monthly payments. Real estate costs vary dramatically depending on your city, your location within the city, and the size and condition of the property, so take a look at listings in your area to estimate the cost.
You will have to pay your city for utilities as well as any licensing fees for your laundry establishment. These will include wastewater fees and sewer fees as well as electrical utilities. The amount you pay will be based on how many washers and dryers you own, their energy efficiency, other electrical items, and more. Start-ups should budget approximately $200 to $2000 per machine for utilities.
Equipment & Supplies
You will need to purchase commercial washers and dryers for your laundromat, of course, which will vary in price based on their quality. You can purchase machines fitted with coin trays (in which case, you may also need a change machine) or invest in card readers. Remember that high-quality, energy-efficient, and durable machines can save you money in the long run. Additionally, you will need a water heating system and miscellaneous items like laundry carts, detergent supplies, and vending machines. Estimate the total cost of your equipment and supplies by finding example purchases online.
Who will maintain your laundromat? If you need to hire employees, determine how much they will cost based on your hours and rate of pay. In addition, even excellent machines break down every once in a while, so remember to account for maintenance expenses and repairs. Create an emergency fund, so that unanticipated expenses like an on-the-fritz washing machine don’t destroy your budget.
Are you ready to build a successful laundry business? Be sure to check out Laundry Solutions Company, a full-service provider of premium vended, on-premises, and multi-housing commercial laundry equipment. Since 1976, we have been providing exceptional sales support, laundry design services, commercial laundry equipment, and laundry equipment service and parts. 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!