You have to consider who is going to use your laundromat service. People who have clothes are already washing them somewhere, and will wash them again, probably at the same place they did last week. So the question becomes, how do you get them to come to your place of business of the laundromat they already go to?
There are a few things you need to consider if you are buying a Laundromat or building one. The first obstacle you have is going to be how to get those customers who already use another laundromat to come to yours. If you can, be more convenient for them to get to, or use. Having newer and better equipment, a nicer atmosphere and environment as well as a very clean store will be the best ways to attract your customers. If you are considering buying an existing laundromat business, you should look at it as if you were going to build it yourself and if it has all the amenities you would put into it. A well equipped laundromat will do more to bring in new customers then having the best advertising or locations.
Time is limited and for most people they want to get in and get out. So, one of the biggest draws will be larger capacity machines that complete the wash and dry cycles in faster times. Larger and higher capacity machines usually mean a bigger investment up front if you are having to buy equipment for your laundromat, but the rate of return will be higher. This will allow you to serve more customers in less time, bringing in more revenue.
If you don't know this by now, then you should not be looking at this article. You need the right location to make your business successful. Location, location, location. This is true to some respects, but in today's economy and market, you do not need to be on the corner of the local street to attract business from that neighborhood. Almost everyone uses a car to get where they want to go. People drive to their Starbucks, big market stores, etc, so why not drive to the laundromat, and they do. People will travel further to their favorite store or laundromat because they like, not always because it is the most convenient or closest to them. Developing your business atmosphere will help to keep and attract those customers. So, the location is not always as important as having a convenient location. When I talk about a convenient locations, I mean a convenient location by car. So if your laundromat is easy to get to from major roads and not a hidden strip mall, you will have a better chance at keeping customers.
Research your location for your laundromat, of if you are buying an existing business, you must check out the surrounding areas. Visit the laundry rooms of any local apartment buildings, see what they are like. Most apartments I have visited usually have inadequate machines, old, and often out of order. If you find many apartment buildings in this kind of shape, you are in a prime location to receive lots of local business. There are many other factors you will need to consider about finding the right location to buy your Laundromat, or build your own Laundromat. Spend most of your time finding the right location for a new business and carefully study the area of any laundromat you are considering to purchase.
Showing posts with label coin-operated laundry. Show all posts
Showing posts with label coin-operated laundry. Show all posts
Friday, April 17, 2009
Coin Operated Laundromat Services
If you are reading this, then you are already interested or dreaming of owning your own business. Coin operated laundry services are a great business to be looking into as well. The laundromat business is one of the better businesses to buy or build on your own. You do not need a lot of capital to start or even buy an existing laundromat business. What you do need is a little knowledge of how the business works if you are not already involved or working in the industry.
Some of the services that are involved with a laundromat are obvious, yet some of the other services that tie into the business are not as evident. You can make some huge profits out of the additional services and amenities that you provide for you customers.
The primary service that will attract you customers is of course the laundry service itself. This must be your primary focus. Your laundromat must have machines that are all in good working order, clean , safe and easy to use. The better your equipment, the more efficient you can run your business. Lets put it this way, if you run top of the line, high efficiency machines, you can have a faster client turn around, which means more people through the door and more money in your pocket. You need to make sure that all your equipment is serviced regularly and inspected by either yourself ( if you know what you are looking for ) or by a service company that you would arrange a contract through.
There are also a lot of additional services you can offer that will also attract new customers and keep existing ones. You can do pick up and delivery services. Investing the time and money into a pick up and delivery service, especially for areas of your city that are in the higher tax bracket opens up a huge market.
You can also incorporate Dry Cleaning services either within your laundromat or simply offer the convenience of a pick up and drop off. Many people have dry-clean only clothes or use the dry cleaning services often. In cases where you can arrange a deal with a local dry cleaner to provide them business you can get a cut of the charges. This will in turn create additional revenue for you and you are doing very little work for it. You can incorporate this with your pick up and drop services as well.
Laundromats do not have to be only coin operated machines, you can also offer specialized services such as fabric and garment care. These type of services will usually be on site and have either yourself or an employee that can fix damaged garments and fabrics. Also , you can offer stain removal services on site. If someone cannot remove stains themselves they might be inclined to have someone else do it, and if you offer such services on site you can make a good profit margin from them as well.
Some of the services that are involved with a laundromat are obvious, yet some of the other services that tie into the business are not as evident. You can make some huge profits out of the additional services and amenities that you provide for you customers.
The primary service that will attract you customers is of course the laundry service itself. This must be your primary focus. Your laundromat must have machines that are all in good working order, clean , safe and easy to use. The better your equipment, the more efficient you can run your business. Lets put it this way, if you run top of the line, high efficiency machines, you can have a faster client turn around, which means more people through the door and more money in your pocket. You need to make sure that all your equipment is serviced regularly and inspected by either yourself ( if you know what you are looking for ) or by a service company that you would arrange a contract through.
There are also a lot of additional services you can offer that will also attract new customers and keep existing ones. You can do pick up and delivery services. Investing the time and money into a pick up and delivery service, especially for areas of your city that are in the higher tax bracket opens up a huge market.
You can also incorporate Dry Cleaning services either within your laundromat or simply offer the convenience of a pick up and drop off. Many people have dry-clean only clothes or use the dry cleaning services often. In cases where you can arrange a deal with a local dry cleaner to provide them business you can get a cut of the charges. This will in turn create additional revenue for you and you are doing very little work for it. You can incorporate this with your pick up and drop services as well.
Laundromats do not have to be only coin operated machines, you can also offer specialized services such as fabric and garment care. These type of services will usually be on site and have either yourself or an employee that can fix damaged garments and fabrics. Also , you can offer stain removal services on site. If someone cannot remove stains themselves they might be inclined to have someone else do it, and if you offer such services on site you can make a good profit margin from them as well.
Friday, March 20, 2009
Where do you start? Buying a Laundromat
How to buy a Laundromat
I decided to share with everyone the information you need to buy your own Laundromat business. Why? why not. Mostly because I don't feel that giving away the information will affect me and my business at all, and having other people with the right information in the Laundromat business will only make it better. There are a lot of lessons to learn with a coin laundry service, but they also apply to any small business venture. The coin operated laundry business is fairly simple and if well managed can produce a very good income for anyone.
This industry is a self-serve industry, also known as a coin-operated laundry service. The great thing about laundry is that it never stops... it's not weather dependent, it has no high or low season, it does not rely on tourists either. Ok, a bit of a lie, it is somewhat weather affected... meaning, the worse the weather and the dirtier it is outside, the more clothes people have to wash. They have to wash them somewhere. Once setup, you will find that you spend most of your time collecting and counting all those coins.
Finding a location and a willing seller is probably the hardest part. This business is such a profitable and easy business to manage, that many people don't give up the easy income. There are still many cases where some people have either not managed it properly or have run into other circumstances that require them to sell their Laundromat business.
Once you have found a location and seller there are many things that need to be done. First and most obvious is a purchase price for the business. Complete and LOI, which is a Letter Of Intent. This letter documents your desire to purchase and the sellers desire to sell. Remember that this letter is not a legally binding document to sell, rather like a promise, if you want to call it that. You need to also clearly list all the assets and other stuff that will transfer with the sale of the Laundromat business. Once of the key features of the LOI is that is prohibits the seller from discussing or pursuing other potential buyers. Do not rush this process, make sure that you establish the sellers intentions and document a standard 90 day evaluation period in the LOI. This period will allow you to determine if the selling price and other clauses in your negotiation are a fair to you. You can also use this time to understand every facet of the sale, especially if this is your venture into owning your own business. You must also spend the time to determine the actual value of the business.
Get yourself a good lawyer to review your contract. Either to review or draw up the contract and terms of the sale. An experienced and skilled contract lawyer will save you time, money and prevent you from getting into a deal that is not beneficial to you. Ensure that both the seller and buyer have their own lawyers, this will prevent any conflicts or bias any one lawyer could have.
Determining the value of the Laundromat is similar to evaluating any business really. Review the last year of the books and determine the cash flow, expenses, debts, taxes, etc. Find the property value and property taxes. Equipment, leased or owned by the business? does any need replacing? if so, negotiate that into the purchase price or conditions. What is your competition? What are the employees like and how long have they been with the business? What is the community feel with the business? You should also check any local business associations like the better business bureau for complaints or other filled paperwork regarding the Laundromat in question.
There are some points you need to consider before you buy a Laundromat. The business itself , as well as many others, has it's share of dis-honest people. You need to take all precautions to prevent being taken to the cleaners ( if you know what I mean ). Coin operated Laundromats are very appealing to investors, such as yourself because they are profitable and fairly easy to manage. They are not always transparent in the operating costs, you need to take the following steps to ensure you are evaluating the business as it is represented. Have an analysis done by verifying the gross sales with the water and fuel usage. By doing a detailed analysis of the water and fuel usage you should be able to see if the claims by the seller are accurate or exaggerated.
If you are not fully comfortable with doing the evaluation and analysis on your own, hire an expert. Look for someone experienced in the coin laundry business, they will be able to identify all the pros and cons with the Laundromat you have selected or intended to buy. Remember that the seller or broker will almost never tell you about any problems the Laundromat is facing and in most cases will try to hide or re-direct you from them. A contract lawyer is not going to do this, at best they can evaluate the business in general, but will not be able to give you an accurate evaluation of the coin operated Laundromat business.
Ok, now that you have determined all the legal and financial stuff, there is still more you need to consider. Maintenance and service can be a large cost, if you are able to maintain and service the equipment yourself, you will save a large amount of money. Many of the newer equipment and machines require very little maintenance and are designed to be heavy duty, long lasting items. However, with any coin-operated laundry machine, something can always happen.
Building instead of Buying a Laundromat Business.
Building a Laundromat in a new location still requires the same, if not more commitment and research. There are many laundry equipment distributors that have experience with building and setting up a new Laundromat. Inquire with a distributor in your area first, they will often offer a full service and build everything for you. Acquire a proposal from the distributors in your area, as well as a review of the demographics, locations and competition, then consult your coin laundry expert.
All the other research applies , but without buying an existing business you will have to determine your startup and running costs with an expert in the coin laundry business. If you don't you might be getting in over your head and have to sell. This is the type of business you actually want to buy, from someone who did get in over their head and must sell the business at a loss, don't be that guy.
This article was posted as a supplement to your research and is not intended to be a guide. This information should not be regarded as comprehensive.
I wish you well in your search for buying a Laundromat and may you find exactly what you are looking for.
I decided to share with everyone the information you need to buy your own Laundromat business. Why? why not. Mostly because I don't feel that giving away the information will affect me and my business at all, and having other people with the right information in the Laundromat business will only make it better. There are a lot of lessons to learn with a coin laundry service, but they also apply to any small business venture. The coin operated laundry business is fairly simple and if well managed can produce a very good income for anyone.
This industry is a self-serve industry, also known as a coin-operated laundry service. The great thing about laundry is that it never stops... it's not weather dependent, it has no high or low season, it does not rely on tourists either. Ok, a bit of a lie, it is somewhat weather affected... meaning, the worse the weather and the dirtier it is outside, the more clothes people have to wash. They have to wash them somewhere. Once setup, you will find that you spend most of your time collecting and counting all those coins.
Finding a location and a willing seller is probably the hardest part. This business is such a profitable and easy business to manage, that many people don't give up the easy income. There are still many cases where some people have either not managed it properly or have run into other circumstances that require them to sell their Laundromat business.
Once you have found a location and seller there are many things that need to be done. First and most obvious is a purchase price for the business. Complete and LOI, which is a Letter Of Intent. This letter documents your desire to purchase and the sellers desire to sell. Remember that this letter is not a legally binding document to sell, rather like a promise, if you want to call it that. You need to also clearly list all the assets and other stuff that will transfer with the sale of the Laundromat business. Once of the key features of the LOI is that is prohibits the seller from discussing or pursuing other potential buyers. Do not rush this process, make sure that you establish the sellers intentions and document a standard 90 day evaluation period in the LOI. This period will allow you to determine if the selling price and other clauses in your negotiation are a fair to you. You can also use this time to understand every facet of the sale, especially if this is your venture into owning your own business. You must also spend the time to determine the actual value of the business.
Get yourself a good lawyer to review your contract. Either to review or draw up the contract and terms of the sale. An experienced and skilled contract lawyer will save you time, money and prevent you from getting into a deal that is not beneficial to you. Ensure that both the seller and buyer have their own lawyers, this will prevent any conflicts or bias any one lawyer could have.
Determining the value of the Laundromat is similar to evaluating any business really. Review the last year of the books and determine the cash flow, expenses, debts, taxes, etc. Find the property value and property taxes. Equipment, leased or owned by the business? does any need replacing? if so, negotiate that into the purchase price or conditions. What is your competition? What are the employees like and how long have they been with the business? What is the community feel with the business? You should also check any local business associations like the better business bureau for complaints or other filled paperwork regarding the Laundromat in question.
There are some points you need to consider before you buy a Laundromat. The business itself , as well as many others, has it's share of dis-honest people. You need to take all precautions to prevent being taken to the cleaners ( if you know what I mean ). Coin operated Laundromats are very appealing to investors, such as yourself because they are profitable and fairly easy to manage. They are not always transparent in the operating costs, you need to take the following steps to ensure you are evaluating the business as it is represented. Have an analysis done by verifying the gross sales with the water and fuel usage. By doing a detailed analysis of the water and fuel usage you should be able to see if the claims by the seller are accurate or exaggerated.
If you are not fully comfortable with doing the evaluation and analysis on your own, hire an expert. Look for someone experienced in the coin laundry business, they will be able to identify all the pros and cons with the Laundromat you have selected or intended to buy. Remember that the seller or broker will almost never tell you about any problems the Laundromat is facing and in most cases will try to hide or re-direct you from them. A contract lawyer is not going to do this, at best they can evaluate the business in general, but will not be able to give you an accurate evaluation of the coin operated Laundromat business.
Ok, now that you have determined all the legal and financial stuff, there is still more you need to consider. Maintenance and service can be a large cost, if you are able to maintain and service the equipment yourself, you will save a large amount of money. Many of the newer equipment and machines require very little maintenance and are designed to be heavy duty, long lasting items. However, with any coin-operated laundry machine, something can always happen.
Building instead of Buying a Laundromat Business.
Building a Laundromat in a new location still requires the same, if not more commitment and research. There are many laundry equipment distributors that have experience with building and setting up a new Laundromat. Inquire with a distributor in your area first, they will often offer a full service and build everything for you. Acquire a proposal from the distributors in your area, as well as a review of the demographics, locations and competition, then consult your coin laundry expert.
All the other research applies , but without buying an existing business you will have to determine your startup and running costs with an expert in the coin laundry business. If you don't you might be getting in over your head and have to sell. This is the type of business you actually want to buy, from someone who did get in over their head and must sell the business at a loss, don't be that guy.
This article was posted as a supplement to your research and is not intended to be a guide. This information should not be regarded as comprehensive.
I wish you well in your search for buying a Laundromat and may you find exactly what you are looking for.
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