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Laundromats provide an essential service that never goes out of demand. People will always need to wash their clothes! And not everyone has the luxury of a washer and dryer in their home.
That’s why laundromats thrive in apartment communities, college towns, hotels and other locales where people don’t have in-unit laundry.
In this comprehensive guide, we’ll walk you through everything you need to know to start a successful laundromat business.
Key Takeaways
- The laundromat industry brings in over $5 billion in revenue each year in the US.
- Startup costs range from $200k – $1 million. Financing is available.
- Focus on an ideal location near apartments or colleges.
- Commercial washers and dryers are a big equipment investment.
- Differentiate yourself with services like wash & fold.
- Market locally and build loyalty with rewards programs.
- Manage staffing, maintenance, inventory and finances closely.
Alright, let’s dig in and cover all the steps for starting your own laundromat!
Size Up the Laundromat Industry
First, let’s look at the lay of the land. The coin-operated laundromat industry brings in over $5 billion in revenue each year in the United States alone. There are about 35,000 laundromats operating nationwide.
So while the laundromat business is not flashy or glamorous, it is a stable and viable industry. These key statistics help sum up the current laundromat industry outlook:
- Industry size of $5+ billion
- Over 35,000 coin laundromats in operation
- Typical cash-on-cash ROI of 20-35%
- Average gross revenue of $15k – $300k per year
- New locations have 87% chance of success
With numbers like those, it’s no wonder that laundromats remain attractive to entrepreneurs and investors seeking reliable returns. Plus, the laundry business model is simple and straightforward compared to more complex ventures like restaurants or retail stores.
Now let’s consider your potential customers. Who uses laundromats the most? The Coin Laundry Association’s customer surveys found:
- 53% of patrons live in apartments without laundry units
- 60% are female
- 50% are 18-34 years old
- 87% live within 1 mile of the laundromat
So you’ll want to locate your business in dense apartment complexes or urban areas frequented by younger demographics. Being convenient for customers to access is also key.
It’s wise to analyze competitors too. Visit or research other laundromats in your desired geographic area. Gauge their pricing, offerings and customer service. This competitive analysis will help you spot opportunities to differentiate your laundromat.
Choose Your Laundry Niche
When starting a laundromat, you have options beyond just a basic self-serve coin laundry. Consider which of these laundry niches makes the most sense given your target market:
Coin Laundry
This is the classic business model – a storefront space filled with coin-operated washing machines and dryers for the public to use. Customers insert coins, start the machines, and return when cycles finish to collect their laundry. It’s convenient and affordable for those without in-home laundry.
Private Laundry for Apartments/Multi-Unit Housing
Many apartment buildings and condo associations outsource laundry facilities for their tenants. This removes the cost and maintenance responsibilities from property management. You could approach new complexes under construction or existing properties to install and operate laundries.
Commercial Laundry & Linen Services
You could focus on commercial accounts – cleaning linens, towels, uniforms, napkins, and other textiles for hotels, restaurants, medical offices, gyms and more. This B2B niche has high-volume potential but more complex operations.
Wash & Fold Laundromat
Upgrade your offerings with a wash & fold service. Customers drop off laundry and for a fee your staff will wash, dry, fold and return their clothes. This provides convenience for busy households. Many laundromats also allow online ordering and delivery.
Pickup and Delivery Service
Further convenience can come by picking up dirty laundry and returning clean clothes on a scheduled route. You could start as a mobile service and eventually open a brick-and-mortar laundromat with routes for residential and commercial clients.
As you can see, coin laundries can take several forms. Choose a focus that you’re most interested in and fits the needs of your local community.
Craft Your Laundromat Business Plan
Now it’s time to start planning in earnest! A detailed business plan is crucial for launching a laundromat. This strategic document will help you secure financing, permits, employees and more.
Let’s explore what key sections to include in your laundromat business plan:
Vision Statement & Objectives
Start with an overview of your laundromat concept and what you hope to achieve. Clearly convey what will make your business stand out.
Location Analysis & Site Selection
Describe the ideal location traits suited for your target customers. Share your criteria for evaluating potential laundromat locations and options you’re considering. Outline any zoning laws that will impact your site selection.
Services, Pricing & Revenue Model
Detail the laundry services you’ll provide, along with pricing structures competitive for your area. Project your revenue streams – such as wash & fold services in addition to self-service – and estimated sales.
Startup Budget & Financing Needs
Outline your laundromat startup costs for property purchase/lease, equipment, renovations, inventory and operating expenses. Then explain where financing will come from – whether loans, investors, crowdfunding, etc.
Marketing Plan Framework
Discuss how you’ll promote the laundromat before and after opening. Share digital marketing, print ad, event and other marketing tactics tailored for your location.
Follow this outline to craft a strong business plan for your laundromat. The more detailed and well-researched your plan is, the greater your chance of success!
Outfit Your Laundromat with Equipment
Once you have a business plan in place, acquiring laundromat equipment is the next big step. The machines represent a major startup cost, but it’s an essential investment.
Here’s an overview of the key equipment your laundromat needs:
Commercial Washers & Dryers
Washing machines and dryers suitable for high-volume commercial use are a must. Top-load washers start around $1,000 each while heavy-duty front-loading washers run $5,000 to $10,000. Expect to pay at least $5,000 per commercial dryer. Invest in energy-efficient models to save over time.
Change Machines & Card Readers
You’ll need change machines so customers can convert cash into quarters. Bill changers start around $1,000. For convenience, also install debit/credit card readers on each machine. This can be an upfront expense of $40,000 or more.
Carts, Folding Tables & Supplies
Provide laundry carts for easy transport between machines, folding tables, and hampers or bins for sorted clothes. Have laundry detergent and supplies for purchase. Also invest in quality signs and decor.
Layout Design & Workflow
Work with experienced laundry consultants or equipment companies on the optimal equipment configuration. Make sure your floor plan allows for efficient customer workflow and meets Americans with Disabilities Act (ADA) standards.
Outfitting your laundromat will be a big chunk of your startup budget. But purchasing durable commercial-grade machines will give your business the best foundation for longevity and profitability.
Handle Laundromat Licensing & Legalities
While not the most glamorous part of starting a laundromat, handling the licensing and legal aspects is critical. Don’t skip these steps!
Here are the key legalities to address for your laundry business:
Register Your Business Entity
Choose a business structure – sole proprietorship, partnership, LLC or corporation – and complete the registration. This establishes your business from a legal standpoint and protects your liability. An LLC is a popular option.
Acquire Licenses & Permits
Look into federal, state and local licensing requirements for laundromats. Common permits relate to wastewater management, environmental impact, signage, occupancy and more.
Get Insured to Reduce Risks
Purchase adequate business insurance policies to safeguard your assets. General liability insurance is a must. Also consider commercial property, workers’ comp, and other coverages recommended for laundromats.
Hire Employees Compliant with Regulations
Research laws related to hiring, paying and managing any employees. Comply with regulations around minimum wage, overtime, employment eligibility verification, unemployment insurance, workers comp and more.
Don’t start your laundromat until you have the proper licensing, insurance and legal framework in place. This prevents issues down the road!
Promote Your Laundromat Opening
Now for the fun part – getting customers in the door! Use these tactics to market your new laundromat:
Digital Marketing & SEO
Start with the basics: create a google profile, build a laundromat website, and claim listings on directories like Yelp. Optimize with local SEO keywords. Run Google and social media ads. Offer online laundry ordering if applicable.
Local Ads & Community Networking
Don’t neglect local channels like newspaper/radio ads, direct mailers, flyers and community sponsorships. Attend local events and partner with apartment complexes to get referrals.
Grand Opening Event & Promotions
Make a splash with a ribbon cutting, deal giveaways and prizes for your laundromat’s grand opening. Consider offering free laundry days or discounts to build buzz.
Customer Loyalty Program
Offer laundry rewards cards, punch cards or refer-a-friend programs. This incentivizes repeat business. Loyalty programs retain customers longer.
Promote your laundromat across digital platforms, through local outlets and with creative events and deals. Consistent marketing is key – avoid “flash in the pan” grand openings with no follow-through.
Manage Laundromat Operations
Once open for business, it’s vital to manage laundromat operations wisely. This covers:
Staffing, Training & Payroll
Hire friendly, reliable staff as needed. Train them on customer service policies and equipment usage/maintenance. Set up payroll and keep detailed records.
Maintenance & Repairs
Inspect machines routinely and establish relationships with appliance repair technicians. Parts like belts and motors require frequent replacement in laundromats.
Inventory & Supplies
Keep detergent, softener and other laundry products stocked. Maintain a budget for supplies and linens if offering wash & fold services.
Bookkeeping & Finances
Use accounting software to track all income and expenses. Pay bills and taxes on time. Regularly monitor the performance and profitability of your laundromat.
Hands-on owners who mind the details will sustain a smoothly run, profitable laundromat. Put systems in place so you can step back from daily operations if desired.
Ready to Start Your Laundromat?
As we’ve covered, starting a laundromat takes careful planning and hard work. But the potential rewards of owning a recession-resistant small business make it an appealing investment if done right.
The secret is staying laser-focused on an ideal location, outfitting your laundry with quality equipment, differentiation with services like wash & fold, plus relentless marketing.
If you approach starting a laundromat with passion and treat customers well, you’ll be on your way to building a thriving laundry business!
Now let’s recap some of the key tips:
Choose the Right Location
Pick a spot near target demographics like apartments, hotels, college dorms or military bases. Busy pedestrian traffic is a plus.
Buy Durable Commercial Equipment
Invest in reliable washers, dryers and infrastructure built for high volume usage. This prevents breakdowns.
Offer Value-Added Services
Wash & fold, delivery, rewards programs and accepting credit cards provide incentives for customer loyalty.
Advertise Your Laundromat Heavily
Market consistently across search, social, local ads and community networking channels. Get creative!
Mind the Details
From hiring staff to fixing machines, the small daily details matter immensely in the laundromat business. Stay disciplined.
We hope this guide gave you a comprehensive overview! Please feel free to reach out with any other laundromat startup questions.
Now let’s wrap things up with some FAQs:
Frequently Asked Questions
How much does it cost to start a laundromat?
Plan on spending $200k – $1 million. Location, equipment, building renovations, inventory and operating expenses all add up. Financing is available through banks, SBA loans or private investors.
What type of location is best for a laundromat?
Aim for a spot near residential areas or colleges without in-unit laundry machines. Busy areas with lots of foot traffic are ideal. Proximity to public transportation can also attract customers.
What should I charge for laundry services?
Check competitors’ rates and factor in your utility costs. Charging $1.50-$2 per wash and $1.50-$2 per 15 minutes of drying time is typical. You can also charge per pound for wash and fold services. Offer monthly membership plans.
How do I equip a laundromat?
You’ll need commercial washers ($1k-$10k each), dryers ($5k+ each), folding tables, hampers, carts, change machines, detergent dispensers and card readers (for credit/debit payments). Buy quality machines suited for heavy usage.
What are the pros and cons of buying an existing laundromat?
Buying an existing business has lower startup costs and instant customers. But you may inherit old equipment, dated facilities and a poor location. Do thorough due diligence to value the assets and identify any issues.
How much revenue can a laundromat make?
The average laundromat’s gross annual revenue ranges from $15k to $300k. Profit margins usually fall between 20-35%. Offering wash and fold services can significantly boost your revenue. High foot traffic locations also net more income.
What are the ongoing costs of running a laundromat?
Labor, utilities, maintenance/repairs, insurance, loan payments, advertising and supplies are common ongoing overhead costs. Also factor in periodic expenses like replacing worn out equipment.
We hope these FAQs help address some of the most common questions around starting a laundromat business. Please reach out if you need any clarification or have additional questions we didn’t cover!
Disclaimer: The information provided in this blog post is for general informational and inspirational purposes only. We’re sharing this information to offer ideas, tips and motivation for starting a business, but this should not be considered professional advice. Starting a business is complex with many moving parts, and what works for one aspiring entrepreneur may not work for another. Before taking any action, please consult with legal, financial, tax and other relevant professionals to determine the best steps to take for your own specific circumstances. The financial estimates, costs, revenues, timelines etc. mentioned in this post are approximate numbers gathered at the time of researching & publishing this post and are subject to change. We do not guarantee any specific financial or other results/outcomes.
