We often talk about the benefits of investing in a Laundromat. These range from fantastic potential profits to the ease with which one can be set up and run from virtually any location. A laundromat can be the ultimate in passive income. But what we haven't talked about is how you could invest in a laundromat, and what that might look like.
You have two options:
1) Buy an existing laundromat/laundrette.
2) Find a site and set up your own.
How to buy an existing laundromat
The downside of buying an existing business is that you are paying a premium for the work they have done to set up the business. The advantage is that you are reducing risk - you can see the revenue and profit from the business because you can see exactly what all the costs are.
The best existing laundromat to buy is one that is run-down. Buy old - not recently opened. Updating the equipment often reaps massive rewards - increasing revenue significantly. One laundromat we recently updated equipment on saw turnover increase by a massive 400% - partly due to including cashless payment as part of their refresh.
A warning - be careful how much you pay. If equipment is old, it will need replacing - so don't overpay!!
A recently opened site commands a significant premium to simply avoid a bit of work and decision making - all of which we help you with. You are probably better off building your own. Talk to us about how we can help make that happen.
How to start a new laundromat
Setting up a new laundromat isn't rocket science - we walk you through the entire process. When thinking about investing in their own laundromat, most people jump to looking for a location, but we recommend you do something else first...
Securing the capital
A laundromat can make you amazing profits (an example being midland's astonishing monthly profit of $43,000) however they require an up front investment. We recommend you secure up to $100,000 to finance your laundromat. The remainder can be funded through one of our finance partners - who specialise in funding laundromats.
Why do some companies say you need less capital?
We know how to build successful laundromat businesses. There is a reason we are over 100 years old and our Australian re-sellers have amazing repeat customers... we tell it to you straight. If you don't do it properly, your business won't succeed.
So you've secured funds, what next?
Now find the perfect site
We've written a few articles on how you can do this, but here's a quick summary. Location: is the site near a significant residential area, where the right demographic of customer can easily reach it? Size matters: depending on where it is, does your site need to handle significant volumes, or would a smaller footprint work well? Parking: people won't walk for ages with their washing! Physical environment: find somewhere that you can make light and appealing. All other things being equal, people prefer a nicer experience.
This may all sound a little complicated, but that's where the next step comes in.
Find an excellent supplier
A good supplier will not only supply you with the machines you need to run your laundromat, they will also provide extensive industry knowledge and advice. Speed Queen has regional distributors who have decades of experience in building laundromats. They can supply specific advice on your location. These distributors are:
- Queensland: Andrew Barton Laundry Systems
- New South Wales, Australian Capital Territories, Northern Territories: F.L. Costello
- Western Australia, South Australia: F.L. Costello
- Victoria, , Tasmania, : Speed Queen Equipment Sales
Our distributors will help you at every stage of establishing your laundromat. They can help you select the perfect site, providing extensive and up to date demographic information. Our distributors will also help you design your site, from the floor plan to specifically which machines to include.
Want to set up your own laundromat? Get in touch!
Selecting your machines
Selecting the right machines for your site can be overwhelming, there are so many variations! Do you need hardmount or softmount? Gas or electric? Stacked or not? What size do you need? The answers to all these questions depend on your location, so we recommend getting in touch with your distributor to find work out the best possible solution for you!
Promoting your laundromat
Lastly, you need to remember to promote your new location! Attracting and holding people's interest is key to your laundromat's success. Your local distributors will likely have some local advice, but here are some general methods you can use:
- Local letterbox drops
- Signage
- Website/ social media
- Google-AdWords
- Using the local business environment
- Specific promotional material
- In-store amenities
Want to find out more about investing in a laundromat?
Get in touch here
