Who would think that starting a laundromat business could be done without money down, or at least very little money down. The following will discuss how to start a laundromat business with no money down.
One might also think that laundromats are obsolete, but that is not true.
People still need to wash and dry their clothes and linens, but not everyone has the money to buy washers and dryers for their dwellings.
Believe it or not, starting a laundromat business is a lucrative undertaking.
If you are considering opening your own laundromat in a medium to large city, you can expect to see at least $250,000 yearly in revenue.
Overhead and expenses can range from 65% to 115%, so can experience gains of $87,500 or losses of -$37,500. This is a wide range, but it depends on the location and the expenses incurred over a year.
Initially, your profitability will be lower than in future years when you become more adept at managing your business and learn to get higher profits.
It depends on how you go about getting into the laundromat business.
Starting from Scratch or Buying an Existing Laundromat Business
Also, your profits will depend on whether you are starting from scratch where you have to build a laundromat or find a rental space for one, or you buy an existing laundromat.
If you start from scratch, you will be buying land to build or renting space for the laundromat. Both come with high startup costs.
You will also require supplies and equipment like washers, dryers, change machines, clothing baskets and racks, folding tables, office equipment, etc. You must also factor in the marketing expenses and overhead.
If you choose an existing laundromat to take over, it is easier.
If the laundromat is highly successful, the owners are likely to want a premium price for it, so that could cost more, but with today’s prices for building, it may not.
The benefits of buying an existing successful laundromat business is that it will continue to make profits for you from the moment you begin ownership.
This also results in less risk of failure, which limits losses.
Another way to start a laundromat business with no or little money down is to invest in a franchise.
You will owe the franchise royalties paid from your profits, but you also get ongoing support and financing options suitable for most budgets.
No matter which way to go for starting your laundromat business, there are steps to take for owning a business.
How to Start a Laundromat Business With No Money
You need to write your business plan to get started. This will require information like services you will offer, a marketing analysis, a company summary, an executive summary, your business strategy, financial plan, personnel plan, business objective, target market information, competitor analysis, budget, power structure, marketing plan, and your financial objectives and goals.
This is a standard part of starting a business of any kind. You will need this business plan regardless of how you plan to finance your laundromat business.
Taking out a business loan usually comes with no upfront money. This is one way to start a laundromat business with no money.
Before you apply for a business loan, consider the profitability of the laundromat business path you choose.
If you do not want debt and want to open a laundromat with no money, find an partner to invest in your venture.
Friends or relatives may want to get in on that action, which means you will be sharing your profits with them. However, this option could ensure you get started faster and begin to make profits sooner.
You can also appeal to other investors, or turn to crowdfunding to get the money to start your business.
As mentioned previously in this article, you can start a laundromat business with no money by going through a franchise like Speed Queen, Zoom Express Laundry, or SuperSuds to name a few.
They will be paid royalties out of your profits.
Steps to Start Your Laundromat Business
- Choose a Business Name
- Register Your Business
- Apply for Licenses or Permits
- Buy Business Insurance
- Open Your Business Bank Account
- Create Your Website
- Develop a Marketing Plan
- Set Up Social Media Accounts
- Start Your Business
Regardless of the method you choose for how to start a laundromat business with no money, you do have to make sure to go through the above steps to make it legal.
You should get business training or consult with a professional to help you go through this process, so you can feel confident that you are doing things right.
You do not want to go through all the effort of starting a laundromat business without feeling sure that there will be no problems in the future.
Neglecting to take the necessary steps to starting any business could result in penalties that you definitely want to avoid.
Once you get things done properly, you can confidently market and promote your services through your website, offline, and via social media marketing.