Every industry has its good points and bad points. As you assess some of the business opportunities that are available it is up to you to weigh up the pros and cons. Your aim should be to find a business model that is a perfect match for you, your skill set and the kind of lifestyle that you want to lead. Let’s look at some of the great reasons why you should consider starting a coin operated laundromat business.
The fundamentals that are driving the growth of the laundromat business are all positive. More people are renting these days and they tend to stay in one location for shorter time periods. The people that fit this demographic usually make for great regular customers. With double income families, more travel and less time, people are also looking for laundromats that offer full service. There are many sectors to this market and they all look bright over the coming decade.
Broad Customer Base
The customer base for a typical laundromat can be much wider than you would first expect. While only a small percentage of the population could be classed as regulars at a laundromat there are many occasions where every day people from middle class and even wealthy households use laundromats. Some families do not have a dryer and thus will use a laundromat when the weather is rainy. Others will use a coin laundry to wash large items that will not fit inside their washing machine at home.
Increasingly, consumers are looking to ‘full service’ laundromats as they simply don’t have time to take care of all their washing, folding, mending and ironing themselves. ‘Wash and fold’ services where customers simply drop off their laundry and pick it up later are becoming more common. Laundromats with attendants are well positioned to take advantage of this opportunity and profit margins are great.
The great thing about the laundromat business is that the earnings potential is excellent for a business that does not have to involve a lot of the owners time. Income potential will depend on many factors. A small well-run laundromat could earn you an extra $10,000 a year while a larger operation could easily provide you with a six figure income. It depends how much effort you are willing to put into it. There are also many tax advantages that go with having your own business.
Go Big or Small
The great thing about the laundromat business is that you can be involved on a scale that suits you. It is possible to own one or two laundromats without giving up the security of your job. And it is possible to go full-time into the coin laundry business, run multiple laundromats and make a six figure income in this industry alone. You can do the work associated with running your laundromat yourself or you can hire people to do it for you.
While not being completely immune to economic downturns, the laundromat business is one of the most recession proof business models around. People have to wash and dry their clothes no matter what the economy is like. It is estimated that around seven million households in the US use laundromats on a regular basis and many others use them occasionally when they are away from home.
Collect Cash Up Front
One great thing about the laundromat business is that customers always pay before they use your service. Unlike other kinds of service business you will never have to chase your customers around if they have an invoice outstanding. Some laundromats are starting to offer their customers the option to use systems that take credit cards although machines that take quarters won’t be disappearing for a long time yet.
Low Failure Rate
Statistics from the Coin Laundry Association indicate that coin operated laundries have a much higher success rate compared to new businesses in other industries. If you research and plan well then there is generally less risk associated with a laundromat compared with other retail or service business models.
Barriers to Entry
The main barrier to entry in the coin laundry business are the startup costs. These can be considerable and will likely run into six figures and possibly even get close to seven depending on how big you want to go. It is possible for everyday people to get in though if they start small and learn how to secure the right kind of financing. Apart from this, anyone can get started in the laundromat business without any kind of degree or formal training.
Lifestyle and Freedom
Many people these days are looking to get away from the constraints of a nine to five job working for somebody else. A coin laundry business can give you the opportunity to be free to live the lifestyle that you want.
The laundromat business may not be as easy as some may imagine. You cannot just sit back and expect to earn an entirely passive income from a bunch of machines that are working for you around the clock. However, with a little experience and the right systems in place, this business can be fairly ‘hands off’ compared to other business models. Once you have your coin laundry running smoothly it can really free up your time to do the things that you want to do. Spend more time with your family or focus on growing your business even more.
Prove That You Can
Lastly, another great reason to start a coin laundry business is to simply prove to yourself that you can do it. Being a successful entrepreneur takes a lot of hard work and a winning mindset. Imagine the satisfaction of building a business into a stable, reliable income earner for yourself and your family.