Here are the important points to consider before starting a laundromat business:
Check the Trade Area
Having a location is crucial. The important criteria are:
Being close to the business district
Easy walking distance to shopping center/mall
Find the location of the laundromat that is cost-effective in relation to the estimated amount of rent. Figure out your expected rent and apply for the place according to the formula
(Estimated Rent x Your potential profit)
Rental analysis: How much can you afford to pay per month?
How much can you afford to pay per month? Profit margin (Profit/Cost)
Profit margin (Profit/Cost) Inventory (Determine the number of washers & dryers you need)
3.) What to Do With the Landlord
How do you get the landlord interested in leasing your laundry location? Depending on the location and the type of the building, you may need to offer some sort of business/service incentive.
4.) Monthly Receipts
Estimate your minimum monthly salary and find out how much of that amount is spent on rent. Multiply this figure by 12 to estimate monthly income, which equals your profit margin.
To calculate monthly profits, it is important to know the standard rates for operating a laundromat and household laundry facility in your area. To do this, you should purchase the following items from a reliable online source:
Advertising & Marketing Supplies – A lot of businesses are putting a lot of money into marketing. Use these supplies to create a simple yet effective advertising campaign to get the target audience in the habit of checking their nearby laundromat.
A lot of businesses are putting a lot of money into marketing. Use these supplies to create a simple yet effective advertising campaign to get the target audience in the habit of checking their nearby laundromat. Chalkboard – Sharpies are a cheap and easy way to sign your customers’ hands and showcase your logo. You can also use chalkboards to showcase specials, upcoming events, etc.
5.) Operations and Financial Tracking
Using a cash register and a computerized system that tracks both incoming and outgoing money is the best way to manage money in your business.
Track your money in monthly or quarterly statements and a monthly cash flow statement, which will tell you when the money is coming in and going out, how much was spent on inventory, staff, and repair expenses, etc.
6.) Training Staff and Part-time Helpers
Taking care of part-time help, cleaning and organizing require a bit more work, and so, it may be best to hire people to do the work. Hand-washing machines are pretty easy to operate, so it is recommended to get an employee to handle these responsibilities. This way, you can focus on managing the whole business and supervising those who will do the laundry. The staff will always get to check out the laundromat in your absence and leave the place in better condition than when they came in.
Creating Team Spirit
Sharing experiences and getting to know each other are the ways to build a strong team spirit and make your work feel fun. Additionally, being friendly and helpful to all of your clients are the best ways to make your team feel appreciated and keep them in good spirits.
You should also develop good communication skills with your part-time help. Ask them how they’re feeling at work, how they’re coping, and listen to their opinions and suggestions. Find out what they need, and see how you can work together to get the job done.
7.) Opening Day
Success and failure have a great impact on your emotional and professional growth. How you react when things are not going well is an indication of how strong you are as a person. After launching a new business, it is important to be open and flexible, no matter what happens. All you need to do is stay positive.
It is also important to stay away from comparing your business with others. It is better to get feedback about your business from others and share your successes than to ask for praise or recognition when things are not going well.
8.) Sales Tax
If you don’t want to be taxed on the business itself, then you need to remember to submit sales tax payments from the customers. The state and the local government take their share, and there is no tax refund for customers who are not residing in your state.
9.) Advice from a Financial Expert
Finances in any business are no joke. But they are not that complicated either. Once you have figured out how you want to manage your money and your staff, it will be easier to run your business. First, you will need to manage your cash flow, and then you will need to manage your stock, your inventory, and anything else that is tied to the business, such as employee pay. It is important to invest in your business by increasing the amount of equipment that you need for the job, such as a copy machine, paper, and ink. If your business is selling anything, such as services or products, then you will need to work to increase your margins, for example, by improving the price. You may also want to find a financial expert who can advise you about how to open a business and who will help you to run the business and generate income.
It will take some time for the initial excitement to wear off and to deal with the day-to-day problems that arise in a small business. But in the end, it will be worth it. And you will finally find the time to pursue all of the hobbies that you’ve always wanted.
About the Author:
Eric Reyes is a passionate thought leader – featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought-after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.