Laundromats are one of the most popular types of small businesses. Opening a laundromat can be a great decision, but it’s wise to be aware of the common pitfalls in the industry too. What are the pros and cons of owning a laundromat, and how do savvy laundromat owners work with them?
What Are the Pros and Cons of Owning a Laundromat?
If you ask a successful laundromat owner, they’ll happily tell you that laundromats are one of the best small business opportunities in America today. However, if owning and operating a laundromat was that simple, wouldn’t everybody have one? Like any other small business, laundromats have pros and cons for business owners. What are the pros and cons of owning a laundromat, and how can you use that knowledge to grow your business?
PRO: Laundromats Have Immediate Cash Flow
One of the best things about owning a laundromat is that, unlike other investment opportunities, you’ll have a quick and reliable source of income right away Laundromats are high cash-flow businesses, which is a part of why they’re appealing to investors. If you want to generate a lot of money quickly, a laundromat can do that.
CON: Operating a Laundromat Can Be Expensive
While your laundromat should start generating money as soon as you open the doors, it’s important to remember that there’s a significant initial investment needed. It can cost between 200 thousand and 500 thousand dollars to start a laundromat. Laundromats are also not necessarily cheap businesses to operate. They require significant overhead costs to remain operational, as well as continual investments in things like machine maintenance. Be sure you’ve done your research and created a financial plan to stay solvent as your laundromat gets on its feet.
PRO: Laundromat Ownership Can Give You Your Time Back
Small business ownership can demand a lot of your time and attention. One of the reasons that laundromats are popular businesses is that they often require less on-site time than other small businesses. Some laundromat owners spend five hours or less at their laundromat every week. Imagine what you can do with the time you’ll get back!
CON: Laundromats Don’t Run Themselves
While some laundromats don’t require much time from their owners, others do. What’s the difference between a laundromat that’s self-sufficient and one that’s a time sink for an owner? More often than not, it comes down to daily laundromat operations. If you invest time and money into quality equipment and reliable staff who can manage while you’re away, you can reduce your time at your laundromat.
PRO: Laundromats Offer Opportunity for Business-Oriented People
Once you have the hang of laundromat ownership, you might find yourself ready to expand your business. Luckily, laundromat ownership lends itself well to business expansion and franchising. Many start balancing laundromat ownership with a day job and can transition into full-time laundromat ownership as the business grows. After that, you can expand into new locations, add new services, or otherwise enhance your business operations however you see fit. Once you’re established as a laundromat owner, the sky is the limit!
CONS: Learning the Laundromat Business Takes Time
Growing as a laundromat owner can be a great way to create a new career path, but you can’t do it overnight. The laundry business takes time and experience to understand, so don’t get ahead of yourself by expanding too fast. Take your time and rely on advice from the experts. You’ll be glad you did.
Now that you know the pros and cons of owning a laundromat, are you ready to invest in one of your own? Whether you’re a new laundromat owner or you’ve been open for a while, Laundry Solutions Company can help your business grow.
Check out Laundry Solutions Company, a full-service provider of premium vended, on-premises, and multi-housing commercial laundry equipment. Since 1976, we have provided exceptional sales support, laundry design services, commercial laundry equipment (and leasing options), and laundry equipment service and parts. To learn more about our products and services, please call us at 800-383-9274 or online. We look forward to hearing from you!