If you are asking how to start a Laundromat business with no money, then you must have seen how lucrative the industry is. The laundry industry is recently receiving more attention as men become more encompassed with busy work schedules every day.
A Laundromat is a business where customers pay a certain fee to use washing machines and clothe dryers. Since everyone loves clean clothes, and there is no time to do the washing themselves, Laundromat business is now a big deal in our society.
The business is one that anyone can start and promises good profits on investments. There are a variety of options available to you as to how you want to start the business and what machines you want to use. Furthermore, you can start with no money. So in this post, while we will be showing you the intricacies of the business, we will also show you how to start a Laundromat business with no money.
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Is Starting a Laundromat Business Profitable?
Yes. The business is profitable with promising income for any skilled entrepreneur. On average, a Laundromat business owner can make between $15,000 and $300,000 annually. However, the amount of money you can make from a Laundromat business depends on a couple of factors, including your location, business model, number of machines, and services you offer in the business.
How Much Does It Cost to Start a Laundromat Business?
This also heavily depends on your chosen business model and how big you want to start out. However, to start an average-sized Laundromat business, you will need between $20,000 and $500,000. Yes. It is a capital-intensive business, with a chunk of the money going to purchasing equipment and renting space.
How to Start a Laundromat Business with No Money
Perhaps you are also asking if you can start the business on a low budget or with no money at all. Well, that is very possible too. There are a variety of options available to you, which all make it easy for you to start your Laundromat business without having your own money.
In the later section of this post, we will dwell more on that. But first, let’s see how you can start a Laundromat business from home or from a rented location.
How to Start a Laundromat Business
Let’s learn about “How To Start A Laundromat Business” in detail:
#1: Choose a specific business model
Starting a Laundromat means you will need to first decide on which type of laundry to concentrate on. You will have to choose if you will only be doing laundry, add wash and fold services, or even include laundry pick-up and delivery services. But the more services you add to your Laundromat business, the more money you will be able to make. But don’t add too much that it begins to affect your quality service.
#2: Conduct a comprehensive market research
Research your target market to identify who your potential customers are. Conducting comprehensive market research will also give you a helpful insight into who your competitors are and what you can do to have an edge over others in the market. You shouldn’t start a Laundromat business without first conducting market research.
#3: Find a suitable location for the business
This is one factor that can determine the success of your business. Choosing the wrong location can mean doom to the business. So choose a suitable location and avoid unnecessary competition. Choose a place that is closer to your target market. Consider the cost of renting a space there as well as security too.
#4: Choose a business entity
This is another important step when considering how to start a Laundromat business. There are several options available to you here, including sole proprietorship, partnership, Limited Liability Company, or corporation. If you are not sure which is best for you, consult a business advisor to help you out.
#5: Create an effective business plan
Writing an effective business plan comes with a lot of benefits. This includes helping you find your way through unforeseen circumstances in the business. It serves as a roadmap telling you what needs to be done at every stage of the business. At the same time, a well-thought-out business plan can help you secure funding for the business. So if you are looking for how to start a Laundromat business with no money, this is one aspect you need to put a lot of effort in.
#6: Register your Laundromat business and get all necessary licenses and permits
Run your business being on the good side of the law. So when starting a Laundromat, enquire about what it will take you to register the business and get that done immediately. Registration varies from state to state. But one common thing is that you obtain an Employee Identification Number. This is what qualifies you to open a bank account for the business and also pay tax.
Apart from registering your business, you should also obtain all licenses and permits that allow you to run such a business in your chosen location. Visit your state secretariat to know what licenses and permits you will need.
#7: Buy the necessary equipment
The type of equipment you buy will depend on your business model and target customers. But typically, below are some equipment you might need for a Laundromat business:
- Laundry machines
- Dryer
- Washer heating system
- Soap machine
- Laundry carts
- Cleaning supplies like fabric softener, soap, wall clock, and trash bins.
#8: Devise a strong marketing strategy
How do you intend to make people know about your Laundromat business? Come up with an effective marketing strategy that will target your customers and bring them to your business in their numbers. You can use traditional marketing methods like newspapers, etc.
At the same time, you can invest in social media marketing, building your own website, and getting the business listed on relevant platforms for more visibility. Good examples include Google My Business and Bing Places.
How to Start a Laundromat Business with No Money
Now that you know the steps to take to open a Laundromat business let’s see how you can do it with little or no money. Really, the business is a capital-intensive one. So, looking for a cheaper alternative is a welcome idea for anyone. Below are some ways you can start a Laundromat business with no money.
#1: Take a business loan
This is nothing new. But do you know it can help you start your Laundromat without having your own money? You can take loans from the bank or other financial institution to finance and run the business.
However, you will need to have a well-thought-out business plan and a very good credit score before you can be qualified for a business loan in any bank. At the same time, you should know that this type of loan often comes with high-interest rates.
#2: Reach out to investors
Yes, this is another interesting option to explore when you’re looking for how to start a Laundromat business with no money. Here, you won’t have to wallow in debts because of the interest on bank loans. You only need to attract an investment partner that could finance the business.
This will mean sharing part of your equity with the partner, and this is a good option that can help you reach your goals faster than you can expect.
#3: Starting a Laundromat through a franchise
This is another option to get you started without money. You can get a good franchise that will be willing to finance the business while you only run the business under their trademark. Sometimes, all you need to attract a franchisor is to have your business situated in a good location. But taking this path means you cannot run your business any way you like – you will follow the rules and ethics of your franchisor. Some franchises you can consider for a Laundromat business include Speed Queen, WaveMAX laundry, Zoom Express, Maytag Commercial Laundry, SuperSuds.
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