How much money can you really make by starting a laundromat business? And how much will this business cost you?
Today we are trying to figure this out. And I think many people are because you’ve used a laundromat and you realize that there is a lot going on, or there isn’t a lot going on.
Rather, it’s almost like a vending machine business. You set it up, and then you go empty the machines and you make money. So I did a lot of research here because I wanted to find out for myself just how profitable a laundromat was.
How Much Money Do I Need to Start a Laundromat
And if it was something that anyone could get into easily. And today, I’m going to share everything that I found. So if you’re looking for new ways to make money, be sure to stick around to the very end of this article. Also, if you already have a laundromat, or you had one in the past, or even if you know someone that does, drop me a comment down below and tell me what you think about this business? Is it profitable? And what are the pros and cons that you found?
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How Much Does it Cost to Open a Laundromat Business
Now, this article is about owning the laundromat and not just working there for $8 an hour. Now, right off the bat. In my research, I realized that laundromats were very, very expensive. It’s a simple business because all you do is charge people to come and wash their clothes. But it’s really an expensive business. And the average cost of a new laundromat will run you anywhere from $200,000 all the way up to $500,000.
Now, this is a lot of money and will outprice or regular people who want to start a business for extra income. But that’s if you want to purchase or create a new laundromat because there would be building costs, equipment costs, and other large startup costs. So we’re not going to be talking about that. Instead, we will look at the easier ways to go about doing this. So the other option here is to either purchase a laundromat, one that is already working, or you can lease one.
Now purchasing a laundromat is very risky. It’s risky because it’s a cash business. So people may have proof of income on paper. But who really knows if those numbers are correct since the business’s cash, where they take the cash from the machines for all we know they could be lying. The other risk that I ran into was that, unlike other smaller businesses that you can start, this one costs so much.
And since it costs so much, if it makes a person a lot of money and businesses all good, then they wouldn’t want to sell the business in the first place. Now, sure, there will be exceptions, but unless they are leaving town, or they’re not healthy enough to manage your business anymore, I would really be concerned because if I had a laundromat and I was making several $1,000 per month in profits, then I could simply hire one person to stay there all day. And that would be passive income for me, I wouldn’t want to give that business up. So purchasing a laundromat just poses too much risk, in my opinion. Also, unlike other businesses like landscaping, or lawn care, for example, if you choose to buy one of those businesses, you get an account with clients.
That’s the main difference in terms of the wrist.
How Much to Start a Laundry Business
So you can know that, for example, you have 100 clients, and they each pay you $100 per month. So unless you mess this up, then you’re supposed to make $10,000 every single month. Now with a laundromat, people can choose not to come there, so it’s a bit riskier. So the best way I found to go about this was to lease a laundromat. Now when you lease one, you will get everything you get the building and all the equipment and all you do is take over management and run the business. However, you still have the same problem here a game that you would have if you were to purchase a laundromat. Again, think about it. Why would anyone lease you a cash cow when they can use it themselves and make money? Well, they wouldn’t. And they shouldn’t unless they need the money or the business isn’t so good. So you would need to find a laundromat in a good location but with a lot of potential now potential to be better or to be a better laundromat. So for example, if there’s a laundromat in a very good location, but it’s rundown, with a couple of machines being broken and inside is dated as not the best or in the best shape, then you could reach out to the landlord and ask them to transfer the lease to you. And you have to of course promise to pay them and also refresh the laundromat over time. And also in this deal, if they accept you can get them or ask them to do some of the work. Now usually, landlords don’t like when tenants have rundown businesses on a property. So if they can find another tenant who is going to keep the place in a plus condition, they will happily transfer that lease again. Think about it if I have a laundromat and my lease is $1,000 per month.
And I have broken machines, maybe only one or two working and the laundromat is rundown and not the best looking, I’m also barely making my payments and sometimes being late, then you could come into the picture and approach the landlord and say, Hey, I think I could do a better job with that unit, at least it for $1,010 per month, and I’ll install new machines. And I’ll redo the entire place. But I want you to give me the first three or six months free, that landlord is most likely going to happily take that deal because they get more money, the place gets fixed. And it’s now a more attractive unit our property that they own. So if I were to get into this business, this is how I would approach it because this is the best way that I found to do it without costing you or without it costing you an arm and a leg and also with the least amount of risk involved. So I’m not going to be trying to get into this business because I still think it’s risky. And it seems easier than it really is. However, there are a lot of successful laundromat owners who have multiple businesses. So if you’re one of them, and you’re watching this video right now, drop me a comment down below and let me know how you went about starting your laundromat business.
What do i need to start a laundry business?
Did you purchase one? Did you start from scratch? Or did you go around trying to find existing laundromats to take over to leases and run them Now one important thing that I didn’t mention is how much money you can make from a successful laundromat business? And the answer is that it can be anywhere from 15,000 to $300,000 per year. Now this will depend on your location, and how good your laundromat is.
You can also do additional things to make more money like offering a drop-off and pick-up service where you charge people for doing the laundry for them. And you can also install vending machines inside with Wi-Fi and TV. So people can come and wait for their clothes to be done. And they’ll most likely use the vending machines which in turn creates more earnings for you. So I hope you guys found this article helpful even though I don’t think this is the best type of business to get into with little money or if you’re just looking for some side income. And it’s definitely not as easy as it looks. If you’d like to see more articles like this one, bookmark us
