Is It Easy to Own a Laundromat?
As a laundromat coach and consultant, I get asked all the time how hard it is to own a laundromat. In fact, that’s the question I had when I first got into the industry, too. It seems so simple that it can feel too good to be true. But, is that really the case? How easy is it to own a laundromat, really?
Owning a laundromat is relatively easy as compared with other businesses. Some of the qualities of laundromats that make them relatively easy include the fact that they are cash businesses, customers pay you up front, and customers do the actual work of doing their laundry.
Laundromats aren’t without their challenges, however. Let’s explore some qualities that make them relatively easy businesses to run, and also some of the challenges that laundromat owners face. This will help you decide if owning a laundromat is the right business decision for you.
What Makes Laundromats Easy Businesses?
One of the main appeals to owning laundromats is that they are relatively simple. They can be run on the side while you work a full time job, or free up time for you to do the things that you enjoy. This simplicity makes the laundromat business appealing for many investors and business owners. It’s what attracted me to the business and, if you’re reading this, is probably one of the things that attracted you to the business, too. So, what are the qualities of laundromats that make them easy businesses? Let’s go through some of them here. But, warning, if you have a pre-existing heart condition try not to get too excited!No Invoices
One of the great things about laundromat is that customers pay you up front. You don’t need to spend your time tracking down customers to get paid, sending invoices, following up on invoices, and getting frustrated when customers don’t pay. And there is no frustration when customers haven’t paid but you still have bills to pay. When customers pay up front, it makes business MUCH easier. You can spend your time and energy focusing on creating a great experience for your customers instead of trying to get paid. I have a good friend who owns a manufacturing business and he is constantly trying to juggle his cash flow. He will bill out to clients he has done work for and if they are slow to pay, he has to make sure that he has the cash reserves to cover the bills, salaries of his employees, and costs to begin manufacturing for new jobs. That’s stressful. Being paid upfront spares you that headache. Customers pay before they do their laundry. Your cash flow is more stable and your life is much simpler.Cold Hard Cash
The majority of laundromats are still cash businesses. Similar to the previous point, accepting only cash cuts out a lot of the headache that many other businesses suffer from. When your business receives cash, you don’t have to worry about checks bouncing, credit card claims, or any of the rest of the payment headaches. Also, your money is available right away, since, you know, it’s cash. You have it available to pay bills, pay employees, and pay yourself right when you need it. There’s no waiting for checks to clear or credit cards to process, and no paying fees for transactions. Cash is simple and clean. Not literally clean. Wash your hands after handling it.Customers Do The Work
This is unbelievable. Laundromats are a business where people pay you to use your machines themselves. They pay you so that they can do the work! If you want to know why laundromats are relatively easy businesses, this is the heart of it, right here. You’re not providing a service (there are, of course, exceptions). You’re providing a tool for other people to do their work. The laundromat business is a tool rental business. Since the main business of most laundromats is renting out these tools, i.e. washing machines and dryers, and those tools are bolted to the ground, the amount of work to be done is minimal. This is why laundromats are easy businesses to run.You Don’t Make Anything
Similar to the point above, laundromats don’t produce anything. There are no complex processes to manage, no manufacturing headaches, and no sales team needed. The laundromat business is not really a goods business and it’s not really a service business (unless you add Fluff ‘n Fold and/or laundry pickup and delivery). It’s a leasing business.Minimal Employees
Ask any business owner and they will tell you that one of the hardest parts about running a business is managing employees. Keeping everyone focused, on task, and working well together is quite the challenge. There are libraries worth of books on the topic of managing employees and it is an industry in itself. When you own a laundromat, you have very minimal employees to manage. The employees you do have generally have very simple tasks to perform. The combination of few employees and their relatively simple jobs makes laundromats easy businesses to own compared to most other businesses.And More…
There are plenty of things that make laundromats much easier than most businesses to run. We covered a few of the bigger ones here. However, ask any laundromat owner if owning a laundromat is easy and they will laugh. Although I would contend that laundromats are far closer to the easy side of the scale to operate, they are by no means easy to run. Let’s talk about some of the challenges you will face if you own a laundromat.Challenges of owning a laundromat
I hear it all the time in my coaching calls. “I want to own a laundromat because all you do is collect quarters once a week and you make a bunch of money!” There is a bit of truth in that, but really it’s only a bit. Two huge factors that you can’t overlook when considering whether or not owning a laundromat is for you or not are:- Laundromats are a business
- Laundromats deal with people
