Have you ever considered starting a laundromat business that can endure the ongoing recession?
You’re not the only one!
Opening a laundromat is a more common idea than you think, as it makes for an easy passive income source.
And if you don’t have the money for it, you’ve come to the right place!
I’ll tell you how to start a laundromat business with no money in 7 easy steps, so keep on reading!
- How Profitable Is Owning a Laundromat Business With No Money?
- Why You Should Consider Starting a Laundromat Business With No Money As a Side Hustle
- How to Start a Laundromat Business With No Money in 7 Simple Steps
- Things to Consider When Building a Laundromat Business With No Money
- Frequently Asked Questions
- Similar Businesses to Consider Starting
- Wrapping Up
How Profitable Is Owning a Laundromat Business With No Money?
The most recent statistics on laundromats in the US industry reveal that the market size is estimated to be worth six billion dollars, with a little over 19k businesses and 52k employees.
However, the national revenue created by laundromats has decreased at a CAGR of 1.4%, and it’s expected to increase by only 0.1% during 2023.
This profit margin decrease, along with the unstable economy and rise in costs of rental housing, will result in a market decrease. Some laundromat services and chains will leave the industry or consolidate.
More so, the annual mean wage of laundry and dry cleaning workers is $27,630.
That’s why one-shop businesses often have laundromat owners working in them.
According to the Coin Laundry Association, these businesses can range in market value from $50,000 to $1 million.
A coin laundry can generate between $15,000 and $300,000 every year.
In addition to having the numbers, it’s essential to keep in mind that profitability depends on several factors, including (but not limited to) the following:
- Startup costs
- Laundromat location
- Competition in the area
- Pricing structure
- Quality of equipment
- Operation expenses
Starting a laundry laundromat business with no money can be more complex, requiring careful planning and considering business loans.
What You’ll Need to Start a Laundromat Business With No Money [& Associated Costs]
Going into the laundry industry can be an excellent start for creating passive income all year round.
However, people considering starting a laundromat business without money should be more than simple enthusiasts.
The estimated average cost for starting up a laundromat business can vary between $20,000- $500,000 for an average size company.
When it comes to starting a laundromat service in the United States, several expenses need to be taken into consideration:
- Type of Business: It’ll determine the overall costs, as opening a new shop and buying out from someone are two completely different business investments. By buying a franchise, you can get the current customers and attempt to expand, while starting from scratch can be a more significant (and more expensive challenge).
- Location: Location is everything, especially for business owners that are renting space. Those fortunate to own a room can significantly cut down their expenses. The average price for renting a laundromat ranges from $4000 to $8500 monthly.
- Utilities: These need to be efficient, especially with coin laundromats. Proper waterline and plumbing are essential, usually connected with tap and sewer connection fees. The average cost of utilities for a laundromat surpasses 20% of the gross revenues.
- Laundry Equipment: Laundry equipment can cost you an average of $10,000 to $200,000, depending on the number of washers and dryers you buy.
- Staff: Salaries for laundromat employees range from $1500 to $2500 per month.
- Insurance: Insurances for any business can vary, and it takes more research and understanding of this topic to choose the best option to protect the company’s interest.
- Advertisement: The price you pay for advertisement depends on the type of marketing you choose. Online marketing on social media platforms can cost you anywhere from $2500 to $10,000 per month. Meanwhile, street ads can cost you anywhere from $750 to $10,000, depending on your neighborhood and city.
Do I Need a License or Certificates to Start a Laundromat Business With No Money?
In addition to the cash needed to launch the venture, starting a laundromat business may require a general business license, depending on your state.
The requirements for operating a laundromat business can also include a business entity, operation permits, and sanitary regulations.
Why You Should Consider Starting a Laundromat Business With No Money As a Side Hustle
Starting an always-in-demand side hustle is an excellent option for generating a new passive income stream.
Here are a few reasons why you should choose a laundromat business.
- Low Overhead Costs: Laundromat businesses operate with very low overhead costs compared to other business types. The most significant overhead cost you’ll have to endure is the rent.
- Stable Cash Flow: An average-sized laundromat is a recurring revenue business because people always need to wash their clothes. This allows a predictable annual cash flow and can cut down actual costs.
- Flexibility: LLC coin-operated laundromats have flexible hours, which ensures more operative independence.
- Scalability: Starting a laundry service business can allow you to grow the profit margin quickly.
How to Start a Laundromat Business With No Money in 7 Simple Steps
Starting a laundromat business with no money requires a creative approach to managing funds.
Your primary goal is to decrease starting costs as much as possible, and here are a few steps on how to do it:
Step #1 Market Research
By identifying the potential needs for laundromat services in the general area, you can narrow down key elements for developing a good business plan.
This can help determine your idea’s feasibility and the scope of the opportunities needed to help your laundromat business stand out.
Step #2 Creating a Business Plan
A good business plan should help identify the target market, pricing strategy, marketing plan, and financial projections.
Combining this with your visions and goals can help narrow the scope of your startup’s services.
Step #3 Research Options for Funding
Securing business loans and combining them with crowdfunding campaigns or potential investor partnerships can ease the financial burden of starting a coin laundry service.
Step #4 Secure a Location
In this line of business, location is everything.
For example, opening a laundry service near student housing can be profitable since most student condos don’t include a washroom.
Step #5 Equipment and Supply Hunting
Secondhand commercial washing machines, dryers, and all necessary supplies can be acquired for less money when properly negotiated with suppliers.
Step #6 Acquire All Permits
Make sure to check for all potential licenses and permits.
If you aren’t sure of the researched information, contact business lawyers that can provide the secure, first-hand information.
Step #7 Prepare for Launch
Using word of mouth, social media, and hand-out flyers have proven to be the most efficient marketing strategies for laundromats and similar trade services.
Things to Consider When Building a Laundromat Business With No Money
Starting any business with limited funds can be a daunting task, especially when it’s a one-man operation.
Even though the laundromat industry is easily accessible to anyone, some elements should be considered, especially when the resources are limited or non-existing.
Can You Run a Laundromat Business With No Money By Yourself?
Being the boss is one thing, but running a laundromat business on your own can be challenging.
Workload management, from customer service to maintenance of all kinds, is yours to keep, which can sometimes be a bit overwhelming.
Many people who try to do so end up with severe burnout early after opening a shop.
Secondly, having a steady incline of clients can help increase revenue over time, so it’s in your sole interest to cover all fronts regarding your business operations.
INSPIRATION: Laundromat Business With No Money Ideas
With some out-of-the-box thinking, you might find the best low-cost solution for starting a laundromat service.
By personalizing it, you can ensure that the company’s brand has a unique appeal on the market. Here are a few ideas to consider:
- Portable Laundromat: Your business can be a small mobile laundromat that is available to users at their doorstep. By being remote, the market scale of potential clients rises exponentially.
- Local Laundromat Partnership: This can be a perfect opportunity to open a business with no initial investment (given that the partner can ensure or already owns everything you need).
- Crowdfunding: This is a common solution many business owners opt for to raise money. You can incentivize potential investors directly using a solid marketing strategy, especially a presence on social media platforms.
- Joint Business Venture: Using local community centers or churches as partners, you can help contribute to those who might need the services at a lower cost and still secure some kind of revenue.
Frequently Asked Questions
Are Laundromats a Dying Business?
There has been a slight decline in the number of laundromat companies, but they aren’t a dying business.
With the rise of urbanization and gentrification, some residential zones in urban surroundings largely depend on laundromat services.
Is It Hard to Own a Laundromat?
Owning a laundromat can be as challenging as owning any other trade or service business.
However, with careful planning and research, it can be a profitable venture.
Similar Businesses to Consider Starting
Depending on the type of trade and your budget, there are many great businesses to buy or start that are similar to laundromats.
Here are a few ideas:
- How to Start a Laundry Business: Having a laundry business would include a laundromat, but it can ensure more elements like dry-cleaning, ironing, folding, and even delivery.
- How to Start a Mobile Car Detailing Business: Cleaning and detailing vehicles (from carts to SUVs) can be a great side hustle or a primary day job for people who are passionate about cars.
- How to Start a Cleaning Business: Starting a cleaning business is fast and easy, as it only requires cleaning supplies and some attractive ads, and you’re good to go!
Starting a laundromat business with no money is a challenge on its own. But with creativity and a resourceful approach, it can become a secure stream of income.
Do you have any ‘secret sauce’ stories for enhancing a laundromat business startup? Share your stories in the comments, and share this article with anyone you think might enjoy it!
Through networking, we can strengthen the entrepreneurial community and make many dreams come true!