Why Start a Laundromat?

Since the first coin-op Laundromat opened, (reportedly in Austin, Texas around 1940), the laundromat business has been an ideal business opportunity for entrepreneurs and families looking for a way to escape traditional employment and become their own boss, or in some cases simply add substantially to their household income with a business that can, managed well, require relatively little time on behalf of the owner.

Even in times of financial uncertainty, coin-op laundries have performed well: clean laundry is something every household needs, and during times of economic downturn, households tend to be less willing or able to afford purchasing or repairing their own washing machines.

While the costs for starting a Laundromat are not small, nearly anybody with a decent amount of equity in their home and some cash in the bank can afford to open a coin-op laundry center. Your primary up-front expenses will be the costs of leasing and remodeling your retail space. As for the most expensive part, the actual coin-op washers and dryers, most commercial laundry manufacturers offer attractive lease terms which will require little money up front and payments spread out up to 7 years.

One of the attractions to owning a Laundromat is that it can be a family-run business, and require as little or as much time as the owner would like to commit. As a family affair, different members of the household can take care of the different chores in operating the store. Generally, the 3 biggest time requirements of the Laundromat owner are janitorial, maintenance, and money handling. If you are envisioning a smaller, non-staffed type of laundry operation, these requirements could require as little as 10 to 15 hours per week. If you plan on opening a larger staffed store, you might spend even less time, though you’ll have to pay for an appropriate level of staffing to accomplish this (and especially at the beginning, you’ll want to spend as much time as possible “on-site” to train employees and cultivate your growing clientele).

Today's modern laundromat systems have eliminated much of the risk associated with what was previously an all-cash business that invited employee fraud, criminal theft, and IRS audits. Computerized laundromat equipment and "smart card" payment systems eliminate the need to count endless stacks of quarters and insure that all income is easily accounted for, and make your daily accounting chores a breeze.

Remember, Laundromats are unique in the business world. There is no inventory to sell. Customers pay for services up front, so you never have to chase receivables. And your customers will provide most of the labor! A well-run Laundromat business in a good location can be a very profitable endeavor, and many a coin-op laundromat owner have gone on to open multiple locations and leave their normal 9-to-5 job far behind.