Considerations Before Investing In A Laundromat Business
Operating a laundromat can be an excellent way to make money. However, it is important to be well educated concerning the laundry business before investing, especially if you are planning to assume an existing facility. Here are a few important considerations to keep in mind before you purchase a laundry business.
How Expensive Is the Lease?
The cost of renting the building that will be used for the laundromat is one of the heftiest costs associated with the business endeavor. Negotiating a favorable rental agreement at the start of the lease is important.
With many other types of businesses, a relocation may be relatively inexpensive. However, many of the features that are specific to a laundromat are a part of the building structure. These features include the electrical wiring and plumbing that is needed to operate the machines.
If a business owner does find it necessary to relocate a laundromat, the set-up costs may be substantial. In addition, the new landlord will need to agree to the physical changes to the new building.
Where Is the Facility Located?
The location of laundromat will affect its profitability. A laundry business that is located far away from residential areas and is inconvenient to access will not generate as much traffic as a laundromat in a better location.
A laundry unit that is near apartment complexes and dormitory facilities is likely to have a large customer base. In addition, the facility should feel safe and have adequate parking.
It can also be helpful to find a facility that is near other businesses, such as clothing or grocery stores. Many laundromat customers do not remain inside the laundromat for the entire time that their clothes are being washed or dried. The other businesses can offer additional activities for the patrons during their visits.
How Much Were the Water Bills?
The utility cost associated with the use of water in the facility can play a large role in the profitability of the laundromat. Thus, before settling on an existing facility, it is best to review the utility bills of the last couple of years. The review can help with budget estimates and projected costs of operation.
Additionally, water usage costs that seem unusually high could indicate problems with the plumbing system. Leaky, inefficient plumbing can elevate expenses.
If you are considering the purchase of a laundry business in the near future, schedule a meeting with a laundromat consultant at companies like FLUFF AND FOLD 101 in your local area.