Wondering about the viability of starting up a laundromat to bring you steady income to fund your other ventures? Simply looking for a recession-proof business model that can serve as a steady investment? Starting a laundromat can be a great idea, provided you understand how to get started with the venture, how to market it, and how to keep customers happy.
This short guide will break down some of the costs of starting a laundromat, as well as where you can turn to help to get started.
What Are the Costs of Starting a Laundromat?
The costs of starting a laundromat will vary based on a variety of factors. Among these are where you are in the country, what equipment you’ll be using to outfit the laundromat, whether you want to own or lease, whether you construct a new facility or simply buy an existing one, and of course, the size and scope of the operation.
In addition to these factors, you will need to consider the following:
- Property location and price (if building a new facility)
- Property taxes/rental (if purchasing an existing facility)
- The cost of leasing or purchasing new laundromat equipment
- Average monthly utilities costs (water, electricity, etc.)
- Employee wages (dependent on the type of staff you’ll need)
- Insurance costs (to protect your business against liability)
- The cost of peripherals (detergent, carts, other laundry supplies, furniture, etc.)
- Ongoing costs associated with marketing and advertising the laundromat
With all of this said, if we look at average costs associated with starting a middle of the road laundromat (in terms of size), they should be somewhere in the area of $200,000 to $500,000, of course, subject to other factors and conditions.
Why the Costs of Starting a Laundromat May Be Merited
Now that we’ve taking a somewhat closer look at the costs of starting a laundromat, here are some of the reasons that they may be well worth it:
- When well-run, an established laundromat can provide steady, passive income
- The market is not a volatile one and not subject to technological shifts, developments, etc.
- The laundromat industry is a recession-resistant one (we all need clean clothes, regardless of market conditions!)
- When marketed effectively, a laundromat can provide high cash flow
- Laundromats can be a relatively hands-off investment and are not generally associated with high staffing and maintenance costs
- It is a low-risk business
- They are scalable and produce a low-skills barrier (opening one is not difficult
- Laundromats often serve as community hubs, so they’re good for the places where they’re located
Getting Started with a Little Help from Garment Machinery Company
Thinking about getting started with launching a laundromat? If you’re in the New England area, you’re in luck, because you can lean on the experience of Garment Machinery Company.
For over 75 years, Garment Machinery Company has been a reliable laundromat business partner serving New England. They offer marketing and design services, as well as purchasing and leasing options. They even service the top brands in the industry, and offer brokerage services as well – good news if you’re interested in buying rather than building one. For more information visit their website or contact them directly.