The laundromat business is growing, as more and more people are looking to have their clothes cleaned in more convenient ways. This has enticed a lot of businessmen to invest and take on the challenge of running their own laundromat.
But before you create a business plan and reach out to firms like Clean Venture Fund for funding, you should first weigh the pros and cons of having your own laundromat business.
Read on to acquaint yourself of the good and bad behind owning and running a laundromat.
The Pros of a Laundromat Business
These are the advantages of having your own laundromat business:
- High Return of Investment
The laundry industry has the potential to give businesses a 20-35% return on investment, along with a 5-year survival rate. This is almost double than other business startups.
Compared to food or retail startups, there isn’t any inventory management needed, or any significant requirements when it comes to ongoing item ordering and stocking.
- Work-Life Flexibility
Because you are the owner, you can set the operation hours of the business, having it function according to your schedule and what fits best for your target market.
Did you know that laundromat owners can either take this business on as a full-time job or part-time gig? This is because of how easy it is to manage today, thanks to technological advancements such as management systems and coinless payment options.
- Growth Potential
Laundromats can either be operated at a small scale, or they can grow to several branches around a city or region. You can even make it into a family business and introduce it to future generations, handing it down to your children when they grow up.
The Cons of a Laundromat Business
These are the disadvantages of having your own laundromat business:
- The Startup Costs
The initial startup costs of a laundromat are quite significant, as you have to consider the location, equipment, accessories, and the like. Depending on the business location and size, a laundromat can range between $200,000 to $1,000,000!
Again depending on the laundromat’s location and neighborhood demographics, you might have a lot of competition with existing laundromats in the area. That’s why you need to research the competition and have a unique selling point for your laundromat to stand out. Fortunately, this can be fairly easy, as there are many facilities you can add to make your laundromat even better, such as Wi-Fi, TV for entertainment, food, and the like.
- Demand is Unpredictable
Expect customer service complaints that can be stressful to manage, along with the need to be flexible according to the laundromat and consumer needs. This means having to spend more time in the laundromat, which can disrupt vacations and breaks.
Wrapping It Up
While having your own laundromat business is interesting and shows potential, it also has its downsides. If you believe that the laundromat business is for you and you can rise amid any disadvantages, do begin planning today!