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.

How To Start A Laundromat Business In This Market

For building a coin-operated laundromat business facility or how to buy a coin-operated laundromat business, you will want to learn as much as you can about it. Purchasing a laundromat business is something every person should consider. You can buy a laundromat uncomplicated without worrying about hidden costs and expenses. The Laundry service is one that can remain for a long time because of the endless supply of laundry to be done. The main concern in starting a laundromat business is that you have the wisdom to research it properly. This is the most important thing you need to do before buying or starting a coin-operated laundromat business.

The area and neighborhood is the most crucial element when starting a laundromat service. When you purchase a laundromat business or procuring a coin-operated laundry business, ask why the seller is selling. Be determined in your questions. It is in your best interest to find out why they are selling because you will be the one holding the bag later. It is possible that other coin-operated laundry services are available in the area or the equipment is too old to maintain, or lease or property taxes are increasing too high. You must do you research, and do it thoroughly.

One of the other key items is to find out what you can expect to make from the laundromat business. Figure out what your potential income can be, and then spend some time to research the business in question and make sure you can get what you are expecting. Never underestimate the ability of a seller to inflate his numbers to make the business look more profitable then it really is!

You need to determine where your initial capital comes from. There are many options you can pursue when it comes to business funds. You can pursue a personal loan from friends or relatives. If you already have an existing relationship with a bank or other financial institution and lots of information about the laundromat revenue stream, you should be able to obtain a business loan from any financial institution. With a recent recession, the banks are approving less loans. It might be easy to build a coin-operated laundromat business, but maintain a reasonable profit margin is a lot harder. If you don’t do you homework, your laundromat may be doomed.

If you are going to buy a business or you are building a coin-operated laundromat, buying or replacing the coin-operated equipment may be needed. Can you run a laundromat without the right machines? If you are buying a coin-operated laundry business, you should have the laundry machines inspected by a professional service. the general status of the machinery should be taken into consideration into the price of the business. Remember, there is always some type of maintenance needed on an on-going basis - machines need fixing, parts replaced, etc. If you are willing to get dirty, you can do it all yourself too..

Now that you own your own laundromat business, all you have to do is keep it running, fix any problems, keep it tidy and clean, and count your coins at the end of every day. Owning and operating a laundromat is very easy to do, but the issue is usually in finding the right one and not over-paying for a laundromat. Whether you are building a laundromat service or you want to buy a business, you need to do your research.