If you’re thinking of opening a laundromat, you generally have two options — purchase an existing laundromat or build a new laundromat. Purchasing an existing laundromat can be an enticing and profitable investment, but there are some pros and cons to consider. Let’s dive in…
Pros
It’s set up as a laundromat
One of the nice things about purchasing an existing laundromat business is that it’s just that — a laundromat. That means the building is, theoretically, all set up to operate as such. So theoretically, renovations and updates will mostly be focused on aesthetic and efficiency (such as painting or updating the commercial laundry equipment and technology) rather than building a new facility or updating major building components (such as the plumbing and electrical components). The building will likely be zoned properly and have all the necessary permits. This can make for a much simpler process for investors.
Already has a customer base and business model
Because it has been set up and operating as a laundromat, it may be easier to get your business off the ground. You may have a built-in customer base of regulars and an ongoing cash flow that comes with that. While it may need some updating, you’ll also likely have commercial laundry equipment and an existing business model to get you started. Cash flow and collateral may make it easier to get financing, as it’s less of a risk.
Cons
It’s likely a “fixer-upper”
Most investors aren’t going to sell a successful, high-performing laundromat unless they’re retiring. That means you’ll likely be buying a “diamond in the rough” or a “fixer-upper” type business that could use a little TLC. You may inherit laundry equipment that needs to be updated, outdated business plans and policies, and employees that aren’t necessarily loyal to new management.
Higher costs
Because you’re purchasing a whole business — including the existing laundry equipment, marketing, and other assets — instead of just a building, the initial costs to purchase the business may be higher. On top of that, you’ll likely have to pay for repairs and upgrades to the facility.
If you’re thinking of investing in a laundromat, the laundry experts at Speed Queen are here to help. From financing to laundry design services to high-quality laundry equipment, we can help set your laundromat on the right track. We’ll help you weigh the pros and cons of various locations and find the right next step.
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