Is a Laundromat Business Right For You?
Before you get too far into the laundromat investment process, you first have to determine if the laundromat business suits your financial means, personal needs and investment goals. Here are a few questions to ask yourself to determine your compatibility:
How much Do I need To Invest?
Your investment depends on many factors, including how large of a laundromat you wish to open and what percentage (if any) you plan to finance. In general, the average range of up-front investment is $100,000-$300,000. With Speed Queen® Financial Services, you can finance up to 70% of the total project cost with a 30% investment requirement.
How Much Of My Time Will Be Dedicated To
Operating My Laundromat?
You decide. Your laundromat investment can be either a full-time or part-time commitment. Many successful laundromat owners choose to keep their current jobs since the business is so flexible. In 2012, 63% of laundromat investors listed their laundromat business as their full-time occupation, while 36% were part-time. Your time commitment also depends on how many employees you wish to hire. Employees add to your overhead costs but allow you to offer additional profit-generating services, such as laundry drop-off. 70% of laundromat business investors employ 0-2 attendants 7. Coin Laundry Industry Survey. (2003-2012). Coin Laundry Association. http://goo.gl/vB90dB .
How much space do I need?
Laundromats range in size anywhere between 1,500 and 6,000 sq. ft. The average new facility is 3,600 sq. ft.
How many machines will I need?
You can tailor your laundry business to match the size of your investment and the demographic needs of the area. The amount of equipment you will need largely depends on the size of your store. Your Speed Queen representative will assist you in choosing the ideal amount and types of machines, but in general, you will need a combination of between 40 and 100 washers and dryers.
Is it a better business investment to build a new laundromat or purchase an existing store?
That depends on many factors, such as location, build-out costs and available options. Both business investment models have proven successful, but each provides their own unique advantages. Your Speed Queen representative will present you with the pros and cons of each to help you make an informed decision as to which investment opportunity is right for you.
Should I invest in a stand-alone laundromat or rent space in a shopping center?
The number of U.S. laundromat business investors who rent is virtually equal to those who own. As with the previous question, both investment models have been profitable, and the choice depends on many factors. When making the decision with the help of your Speed Queen representative, consider things like taxes, total costs and the pros and cons of ownership versus leasing.
How many hours per day does my laundromat business need to be open?
Your business hours are up to you. Keep in mind that the longer you are open, the more opportunity for revenue you’ll create. When you also consider that laundromats do not require large staffs, long business hours won’t require major increases in labor costs. Typical laundromat hours are from 6 a.m. to 11 p.m., with many choosing a 24-hour model.