Have you ever wondered how to start a laundromat business? A laundromat is one of those business ideas that may not seem glamorous at first but is surprisingly profitable if you are in a busy neighborhood. The demand for laundry services is growing, and if you’re wondering how to start a laundromat business, you’re in the right place.
A laundromat is a business where people come to use self-service machines to wash and dry their clothes.
The core service is giving people access to washers and dryers, but some offer folding or ironing as an additional service. There are a couple of different types of laundromats out there, and below, we share some of them :
The short answer? Yes, but it depends on how you set it up. A laundromat can even serve as a profitable side hustle if managed effectively. Location matters—a busy neighborhood with plenty of foot traffic can bring in steady customers.
When thinking about how to start a laundromat business, you’ll need to consider your expenses, like equipment, utilities, and rent. If you manage your costs wisely and focus on providing reliable services, you’ll see how those small transactions add up over time, turning your laundromat into a solid revenue stream, even as a side hustle.
Before you jump into owning a laundromat, it’s worth digging into the local scene first. Who lives in the area? Are there high demands for laundry services? Look at your competitors as well. Surveys or online tools will give you a feel for the neighborhood and provide you with an idea of how your laundromat could fit in.
Your business plan is more than just a formality — it’s your roadmap to success. It should outline everything from your target market and operational strategy to how you plan to scale your business. A well-thought-out plan is also crucial when seeking loans or attracting investors, as it demonstrates your commitment to turning your laundromat business dream into a reality.
To make the process easier, there are business apps and tools that can help you create a comprehensive business plan. These apps often provide templates, financial projections, and guides to ensure your plan is both thorough and professional, giving you the structure needed to build a solid foundation for your business.
Running low on funds? It’s not the end of the road. There are investors you could find, you can look into small business loans or even take it out of your personal savings. And if you are thinking of how to start a coin laundromat business on a budget, grants or partnerships are also worth exploring.
Bank loans are traditional options that work, but don’t forget about equipment leasing or even crowdfunding. There are perks to each path—so if you’re pitching to investors or applying for loans, just make sure you know what you’re doing.
You want to be somewhere with a lot of foot traffic and somewhere that’s easy for people to get to from residential areas nearby. When scouting, don’t just look at what looks good, dig into lease terms and think about how the area could grow.
When picking your spot, get practical. Check out the surrounding businesses, inspect the premises, and ask yourself how this location can support your laundromat’s long-term growth.
Opening up shop will require more than just a business license. Normally, you would require health permits, zoning clearance, and other licenses. Know what your local requirements are and how to apply for them.
Stay on top of health and safety regulations, as well as environmental standards. Regular inspections are part of the deal, so having your paperwork and compliance in order is key.
Navigating the legal landscape can be complex, so it’s wise to consult a legal professional to ensure everything is in order. They can guide you through the necessary permits, help with zoning laws, and ensure compliance with health, safety, and environmental regulations.
You’ll want machines that can handle the workload and save on energy costs. Find energy-efficient washers and dryers you can rely on. After you’ve got the equipment sorted, consider layout—how will the space flow and feel comfortable for your customers?
A good atmosphere, clear signage, and good lighting can make a big difference. Make your space easy for customers and staff to navigate.
When it comes to attracting customers, think local. Social media, community events, and local advertising can spread the word. The goal? Get noticed and keep people coming back.
Loyalty programs, loyal staff, and a clean, reliable facility can help ensure a good customer experience. If you keep them happy, they will keep patronizing your business.
Running a laundromat involves more than just flipping the open sign. You'll need to manage staff, equipment, and inventory to ensure everything operates smoothly. Make sure your team is well-trained to handle daily tasks and any issues that may arise.
Tracking your expenses, setting smart pricing strategies, and using financial data to guide business decisions are crucial to staying profitable.
Business tools like accounting software, inventory management systems, and scheduling apps can help streamline operations, giving you better control over your finances and overall efficiency. Staying on top of your numbers with the help of these tools ensures your business remains in good financial health.
Learning how to open a laundromat and starting one can be a rewarding venture, but success depends on careful planning and a clear understanding of your market.
Every step, from securing financing to choosing the right location, plays a critical role in shaping your business. Prioritizing flexibility and focusing on customer satisfaction is essential. As your business grows, ensure you continue offering reliable, welcoming service that keeps customers coming back.
Sign up now at Hustle inspires Hustle to access the invaluable insights, strategies, and motivation shared by world-class entrepreneurs, business owners, and overall badasses. Start your journey towards success today. Read our valuable blogs, and feel free for contact Us.
Start by researching your community to find a location that’s accessible and convenient. Draft a business plan, secure funding, and register your business. Decide on the services you’ll offer, purchase equipment, and make sure the space feels welcoming and safe for customers.
How much does it cost to start a laundromat business? You will need around $200,000 to $500,000 to get started. This covers rent or purchase of a location, buying or leasing equipment, renovations, permits, and having some cushion for utilities, supplies, and marketing.
Buying gives you full ownership, which can be more cost-effective in the long run. Leasing is easier on your wallet upfront and might include maintenance, but it comes with monthly payments. Choose what fits your budget and comfort level.
You might be asking yourself the question, “what permits do I need to open a laundromat?” You’ll need basic business licenses, health and safety permits, and approvals for water use and wastewater disposal. Check with authorities to make sure your laundromat meets zoning and environmental requirements specific to your neighborhood.
Monthly costs include utilities like water, electricity, and gas, rent or mortgage, employee wages if you have staff, maintenance, supplies like detergent, insurance, and any loans you might be paying off. Utilities tend to be your largest expense.
Make it an inviting space where people feel comfortable. Offer perks like free Wi-Fi, clean seating, and coffee machines. Advertise through flyers, social media, and local partnerships. Offer promotions and loyalty programs to keep people coming back.
You’ll want general liability insurance to cover any customer accidents, property insurance to protect your equipment, and workers’ compensation if you hire staff. Business interruption insurance is a good safety net in case of unexpected downtime.
To boost profits, think about adding extra services like wash-and-fold or dry cleaning. You can also install vending machines or sell laundry supplies. Using energy-efficient equipment will help keep your utility bills lower while adjusting pricing for peak times can bring in more revenue.
Alex Quin is a full-stack marketing expert and global keynote speaker. Founder and Chief Marketing Officer of UADV Marketing - a member of the Forbes Agency Council.
