According to the Coin Laundry Association, there are nearly 30,000 laundromats across the U.S., and that number only grows each year. These businesses provide a valuable service, especially for renters who don’t have access to their own washers and dryers.
Although this business model is in demand, opening one can still take time and effort. If you’re wondering how to start a laundromat successfully, take a closer look at the steps you’ll need to take to set yourself up for the best possible outcome.
7 Steps to Opening a Laundromat Business
Learning how to open a laundromat can be an exciting venture. Here are seven steps you’ll need to take to achieve your mission if you’re looking to open and run your first laundromat business.
1. Research and Planning
Before you consider opening one of these businesses, you need to assess your competition. A quick Google search can show you how many laundromats are in your area and the kinds of services they offer. Then, decide where you can fill gaps and add value in terms of service offerings or new technology.
You also need to develop a budget and business goals. It’s a good idea to figure out the costs of key elements, such as:
- Buying or leasing a space
- Getting licenses and permits
- Paying utility bills
- Purchasing equipment and supplies
- Hiring staff
- Marketing the business
You can use this information to estimate how many customers you’ll need to turn a profit.
2. Laundromat Business Model
Once you’ve done your research on how to open a laundromat in your particular area, it’s time to decide what type you want to open. Some of the most popular business models include:
- Coin-operated
- Wash/dry/fold services
- Commercial
- Pickup and delivery
Remember that you don’t have to choose just one model. Your business can and should incorporate multiple services when market demand exists for them.
3. Location and Setup
It’s important to know that the neighborhood in which you want to set up shop will be able to support your new business venture. Make sure to compare the size of your target market to the number of similar businesses in the area.
You’ll also want to assess the demand for services. When you discover an area without much competition, evaluate whether it’s because most of the residents live in single-family homes with their own washers and dryers. In these scenarios, you might reconsider the location. It’s best to go for an easily accessible and highly visible space.
4. Buy a Laundromat
You can either build a business from scratch or buy an existing one. Starting from scratch means you have to find and lease space, buy and install equipment, and market the business heavily. However, you get to choose your location, offer new equipment, and avoid any legal issues or a bad reputation attached to the previous business.
On the other hand, buying a business can mean you’ll have to do less marketing to a customer base who already knows the business. You can also save money on equipment costs. However, you may run into trouble if the equipment needs serious repairs, or if the business is in a less-than-ideal location.
5. Create a Business Plan for Your Laundromat
Your business plan should include the following:
- Mission statement
- The type of services offered
- Business model and hours
- How much staff you’ll need for each service
- Your marketing and customer acquisition plan
- How you will handle customer service
- Your expense analysis and plans for funding
Having this written plan will help you secure funding and remain focused as you set up and open your business.
6. Purchase Laundromat Equipment
It’s important to stay within your equipment budget, but you’ll also want to purchase high-quality equipment. This will not only help you provide the best service, but it can also result in fewer repair bills.
You might consider leasing equipment as well. When doing so, make sure to carefully review the terms of your lease and evaluate the long-term costs and rewards of this decision.
7. Invest in Laundromat Management Software
Investing in software can save time and resources and help you deliver impeccable customer service. How laundromat software works to create operational efficiencies and assist with marketing is by:
- Tracking productivity data to identify opportunities for improvement
- Tracking and generating tickets for orders
- Allowing customers to schedule delivery and pickup
- Optimizing routes, service areas, and delivery times
- Ensuring great customer service with SMS text updates
Curbside Laundries offers these robust features and more to help you streamline your business and stand out in the market.
Laundromat Business Tips for Success
Flourishing in the laundromat business requires the right combination of research and action. Here are a few tips to help you achieve it:
- Adapt to industry trends in terms of service offerings and technology to meet customers’ needs and keep them coming back
- Request customer feedback about their needs and experience with your service, making adjustments as necessary to keep them happy
- Consider buying energy-efficient equipment to save money on bills and attract environmentally-conscious consumers
- Use data from your management software to streamline and adjust your business practices for maximum efficiency
Following these tips can help you get closer to your goal of building a thriving laundromat business.
Planning and Preparation Are Key to Industry Success
Opening a laundromat can be a worthwhile investment. While it may seem daunting, success is possible with careful planning and preparation.
Whether you’re considering opening a new business or buying an existing one, Curbside Laundries’ laundromat software features can help you streamline your operations and build an efficient business that serves customers well. Schedule a demo today and see the difference using our platform can make.
