Owning a business offers a lot of advantages. It’s a great way to create your own job security, reap tax benefits, and allow for flexibility in your schedule and lifestyle.
Of course, small business owners also assume a lot of risk. They may have to put in long hours or acquire additional skill sets and business expertise.
If you plan to open your own business, consider starting or purchasing a laundromat. Laundromats are an excellent source of reliable revenue, given that clean clothes never go out of fashion and doing laundry is always a necessity. It’s a recession-proof business model that offers simplicity of operation and low labour costs while promising the potential for steady income.
Here are 5 reasons why a laundromat is a great option for small business owners, and how you can make yours a success.
1. Everyone does laundry.
Establishing a client base is one of the most important aspects of any successful business model. Laundromats have a big advantage because everyone has to do laundry, so you’ll have lots of potential customers to draw from no matter where you’re located.
Because there’s a constant need to do laundry, you can attract regular clientele who will continue to support your business year-round and irrespective of recessions or economic downturns.
2. It’s a relatively straightforward business to run.
Laundromats are considerably easier to run than many other industries, like restaurants. You’ll still need to write a business plan, secure financing, source a location and equipment, and deal with things like insurance and staffing, but generally it’s quite straightforward.
Buying an existing laundromat has a lot of benefits, like an established customer base and immediate revenue. You won’t have to worry about licences or water and sewer connections. You’ll also start with a good idea of what the costs and profitability of the business are. However, taking over someone else’s business means you inherit their reputation (good or bad) and existing equipment may be older or in need of repair.
If you start your own, you’ll have to source equipment but newer machines are typically more reliable and often come with warranties. They may also operate more efficiently, reducing your energy and water costs.
The availability of in-unit laundry appliances in newer or gentrified areas may make them less profitable. Instead, consider establishing a laundromat in close proximity to apartment buildings, universities or colleges, touristy hotels and motels, and family neighbourhoods without in-unit laundry.
3. There’s a lot of variety in how you can deliver service.
In addition to having flexibility in your own schedule, owning a laundromat offers extensive flexibility in how you deliver service. Self-serve coin-operated establishments are the most common, but laundromats are continuing to innovate. You could opt to provide pick up & delivery and wash & fold services, or specialize in commercial laundry needs for uniforms, linens, or larger facilities. If you locate your business within a multi-tenant building, you can offer additional services that create a sense of community.
The framework for your business will also depend on the kinds of services you decide to offer. Laundromats have options for franchising, operating as a sole proprietorship, initiating a partnership, or incorporating. An accountant can help you identify the advantages of each and offer insight into how your taxes and financial security would be impacted by these options.
4. The startup requirements are manageable.
Starting a laundromat requires a physical space, laundry equipment, minimal staff, and a marketing plan. The business model for laundromats has excellent potential for return on your investment.
Seek expert guidance to ensure you understand your obligations for licences, permits, and insurance requirements. You’ll also want to be knowledgeable about taxation and your financial responsibilities.
Additional expenses for a laundromat typically include payroll, utility bills, water and a water heater, ozone injections, electricity and gas, maintenance or equipment repairs, and your rent or mortgage.
5. We can help you with reliable laundry solutions.
Coronet Equipment is a leader in the industry, supplying Albertans with reliable commercial laundry solutions.
We carry a full range of heavy duty equipment backed by exceptional warranties. You’ll be assured of dependable machinery that can withstand constant use, like our selection of Continental Gibrau laundry systems that have proven reliability for laundromats and other commercial applications.
Find out how we can provide you with the equipment and service you need to turn your business plan into a successful and profitable laundromat today.