Recession-Proof Laundromat Business

Laundromats have been around for a very long time, they have not shown any sign of slowing stopping either. The commercial laundry industry in general has been through several recessions and booms. The affect on the business as a while is very minimal. Yes, you will see some laundromat businesses close, but I am talking as a general rule of thumb, it is a very recession-proof industry. If you think about it, everyone wears clothing everyday, and every has laundry to do.

It does not matter who you are and where you live, you will have laundry to do. What changes is where people end up doing their laundry. In some cases business actually improves during lower economic times because there are more people on lower incomes or out of work completely. People that frequent laundromats on a regular basis either don't have their own washer and dryer, live in large apartment complexes with busy laundry machines or use them because of the Superior clean you can normally get out of a laundromat machine then a regular home laundry machine and dryer.

The key part of running a business is profit, so continually showing a profit during recession times is not that hard, you just have to stick to what works. Running a profitable laundromat business includes a few key components such as a good location, balanced energy use per load of laundry done, good quality equipment, regular maintenance and a selection of services that meets your customers needs. You can also through in a few bonuses such as vending or arcade games within you laundromat to increase profit while your customers wait for their clothes.

A laundromat does not require a large staff to run either, so you can save a lot of money from staffing issues that cripple other businesses during low economic times. Expenses vs income is a balancing game that every business owner has to play. A laundromat business is no different, but in my opinion it is a simple calculation to do. On average most laundromats run a profit, yet there are still some that don't and operate over 100% of income generated from customers.

When it comes to numbers, it is often hard to see the full picture either. Businesses that report an operating expense higher then the income often have secondary sources of income within the business that show a high profit, yet are reflected differently or not even associated with the core laundromat service. I don't now how long those businesses actually stay in business, but there are a lot of ways people try to make money and some of them are not legit. I don't want to get into how to cheat the books or anything, just be aware that people do in every business you can think of at some level or another.

An ideal situation would be a laundromat that was established in a prime location, with a reasonable lease rate, no competition in the area and new or close to new equipment. Now, before you go and say " good luck with that ", lets look at how easy that can actually be. Establishing a customer base is key and finding a good location does a lot for you, so finding that right spot is probably the most important. Location is like free advertising. Being visible by more people without spending money to advertise is golden.

Another reason that a laundromat is recession-proof is that banks and lending companies will still loan money out for these types of businesses and franchises during questionable economic outlook. Based mostly on statistics and numbers ( there are those numbers again ), laundromats do very well in most cases and provide the lender with more security on investment then other start ups and businesses.

The profitability of your business is just a number, the amount of income from your customers compared to the total cost of running that business. That might be a little simple, but that is it. Keeping your laundromat running at a high efficiency will ensure success in any market.

Making your laundromat efficient includes only a few simple items. The primary being the laundry machines themselves. Equipment that is of high quality, with good warranties and service plans usually provide the best income in the long run for any laundromat. By spreading out the higher cost over a longer period of time helps reduce the cost of investment in the better machines, but the better machines will operate more efficiently. Cost effectiveness of the energy, water and soap used by the laundry equipment out-weights the price of the machines.

There are a few other ways you can add to your pocket. If you have ever used a laundromat to do your own clothes, you will find that you have time on your hands while you wait. Many people will read a book, newspaper, watch TV, etc. My recommendation is that you don't have television, but you have a coffee bar, vending machines, magazines and other snacks for sale on the side as well. People like to keep busy, whether they admit it or not. So, if you can provide those distractions ( that all have profit ) inside the doors to your business, people will tend to spend more money on those little things then you might expect.

A joint business, or connecting business might be the next thing you invest in. Such as an attached sandwich or coffee shop, fast food restaurant or kiosk type franchise like a subway or something like that. Making income from both businesses while each help feed each other more customers. Win win situation if you ask me.