Every investment has its advantages and disadvantages depending on your own personal business goals. Owning a laundromat is no different. But with a unique combination of stability, flexibility, and profitability, laundromat investments are in a class all by themselves. 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.
Become an Investor
Do you like to be your own boss?
Are you a strong independent, entrepreneur?
Most of all, are you looking for a healthy return-on-investment (ROI)?
If you've answered "yes" to these questions, the vibrant laundromat industry may be an exciting industry for you to explore.
Since two income households now make up the majority of the workforce, busy families save time and money by doing their wash at the local self-service laundromat. Furthermore, many young couples have neither the need nor desire to buy washers and dryers. Their priorities are nice clothes, entertainment, and leisure activities. They are happy to leave laundry chores up to a professional wash/dry/fold service at a local professional laundromat.
Become an Investor
Benefits of Investing in a Laundromat
Reliability, efficiency, and profit-producing control platforms
- Absentee ownership.
- Tax deductions are available using section 179 and bonus depreciation.
- Laundromats have always been considered recession-resistant. Now with the current pandemic, it has built on this strength with an "essential business" title.
- Average of 30%-40% ROI!
- Washing laundry is a repetitive necessity of life like food, clothing and shelter.
- Virtually no inventory control shrinkage, spoilage or theft.
- Laundromats can be run successfully on a part-time basis.
- The card system or the coin box is a cash register, and you get paid up-front for use of the machines.
- Good for Retirement!
- Stable Income!
- Laundromats are scalable, therefore future expansion or multiple-store ownership can be achieved.
- Labor is minimal. An attendant keeps the store clean and handles the wash/dry/fold service.
- This is not a franchise therefore there are no franchise fees.
A laundromat from Aaxon can be a very rewarding experience! We have worked with many entrepreneurs like you. At Aaxon, we are your full service laundromat source! We can guide you with such things as securing a location, lease, permits and installation of the equipment, with you the customer making all the final decisions.
Long-term value of investing in a Laundromat
Laundromats with proven track records are sold with relative ease and at top dollar. Just like other types of real estate, laundries appreciate in value. If you've run a profitable laundry and five years later decide to sell, you may expect to find a buyer quickly and, in most cases, your laundry will command a much higher price than you paid.
In many cases, stores pay for themselves in just a few years, leaving you with a 'nest-egg' that may be far better than a conventional savings account, IRA, 401k, money market, or mutual fund.
FAQ for Investors
How much money can I make owning a laundromat?
This will depend on several factors. On average you can expect to gain from 30% to 40% return on your investment.
How much money do I need to open a laundry?
It depends on the size of your new laundromat and the cost to build it. Typically, investors put around 30%- 40% into the beginning costs of construction and equipment, and then finance the balance. It is recommended to have additional cash available that can be used while your new laundry ramps up its customer base and gross revenue, up until you have reached your initial breakeven point.
What characteristics make a good laundromat?
It is important to know 80% of your laundromat's success is going to be attributed to location, location, location.
How much space do I need?
Laundromats range in size anywhere between 1,500 and 6,000 sq. ft. The average new facility is 4,000 sq. ft.
How much 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.
What demographics should I look for in an ideal laundromat location?
An area's overall population, family size, average age, percent of renter population, and median household income are all important factors in determining an ideal laundry location. These mentioned elements, plus others that an experienced distributor will examine, determine whether the location will be successful.
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 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.
How much of the total cost of building a laundry can be financed?
About 70% of the total project cost can be financed. The total project cost includes equipment, leasehold improvements, and impact fees.
How many hours per day does my laundromat 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.
Why should I open a laundromat?
This is typically the first question always asked. When considering additional benefits such as independence, flexibility, modest costs, recession resistant and pandemic resistant, there truly is nothing like owning a laundromat.
Ready to turn bubbles into ROI?
*This is not a Franchise or Business opportunity. Nothing contained herein shall be construed as creating a franchise relationship.