Expert Tips for Aspiring and Current Laundromat Owners

Whether you’re considering diving into the laundromat business or you’re already an owner looking for practical advice, these nuggets of wisdom can serve as your guide. Here are some solid pieces of advice you don’t often hear, each designed to help you make informed decisions and enhance your business operations.

1. Immerse Yourself Initially

Spending significant time at your laundromat after acquisition to fully understand its operations sounds like the opposite of what most people want to do. Laundromats are often sold as passive businesses. Your desire to buy one might be rooted in the same thing that hooked me initially: passive income. And while laundromats can be relatively passive, it often takes some time to get them set up to be able to be hands-off.

• Practical Application: Before delegating tasks, work closely with your staff and observe the daily workflow. This detailed understanding will aid in making informed decisions and managing the business remotely in the future.

2. Prepare for Unexpected Challenges

Imagine an employee quitting soon after you acquire your laundromat. Or a main sewer line rupturing (that has happened to three separate friends of mine). Or even someone’s clothes getting stuck in the washer. These types of things (and more) happen. Frustration and overwhelm happen when your expectations and reality don’t match. So if you can expect and prepare for the unexpected to happen, you’ll be able to navigate issues as they come. Be ready for quick adaptation and lean on your operational knowledge, and more importantly, get into a community, like the Laundromat Resource Pro Community, that you can lean on when things go awry.

• Practical Application: Have a contingency plan for staffing, such as a list of potential hires or cross-training current employees on multiple roles. This preparation can help mitigate disruptions and maintain business continuity.

3. Leverage Technology and Services

The technological tools available to us humble laundromat owners are better than ever before. We have the ability to integrate delivery services like Uber and DoorDash for wash and fold services and use digital payment systems to improve operational efficiency. We have access to data we never had before. Don’t shy away from technology. Leverage it to serve your customers better and to build a better business.

• Practical Application: Diversify your revenue by offering convenient services like delivery and prioritize transitioning from cash to card/digital payments to enhance transparency and ease of accounting.

4. Maintain Accurate Record-Keeping

Skimming money from a cash business is a thing of the past. Don’t do it. You don’t need to. Instead, utilize advanced tax strategies and smart business practes to make more money and keep it. Ensure that your laundromat sales are well-documented for potential buyer loans and operational insights. Accurate financial record directly impact the value of your laundromat. Don’t leave equity on the table with falsified financial records. Run clean books and sell for top dollar when you’re ready.

• Practical Application: Use accounting software or hire a bookkeeper to track earnings accurately. Regularly compare your tax returns and profit & loss statements to verify financial data and make sound business decisions.

5. Create Comprehensive Training Manuals

Clarity on what is expected of your employees and proper training on those expectations will elevate your laundromat more quickly than just about anything else. Having training manuals or standard operating procedures (SOPs) can help clarify expectations, train great employees, and create accountability for performance. Kiera Hamilton, a San Francisco laundromat owner, created a 9-tab Google spreadsheet manual that serves as a reference and communication tool for employees. You can create your own or join the pro community to get access to our live working SOPs.

• Practical Application: Develop a similar digital manual accessible on a tablet used by employees. Cover crucial areas such as team updates, shifts, payroll, cleaning schedules, and specific procedures. This helps ensure consistency and clarity in operations.

6. Take Calculated Risks

Understanding what your dream goal is, educating yourself on the vehicle that can help you acheive that goal, and taking bold steps for personal and business growth is the path to building a life you’ll love. The key here is that, at some point, you have to jump. You have to take that first step. Don’t get caught in a learning loop. Learn enough to take that first step, then take the step. Then learn some more and take another step.

• Practical Application: Evaluate potential opportunities and risks thoroughly. Be prepared to step out of your comfort zone, whether it’s buying your first laundromat or expanding your services. Learning from setbacks is equally important.

7. Build a Supportive Network

I say it all the time. We acheive bigger goals faster when we work together. It’s why we created the pro community. It’s why mastermind groups have been so powerful (you can join a mastermind group when you join the pro community!). Connect with other laundromat owners, forums, Facebook groups, consultants, or experienced SBA lenders.

• Practical Application: Join relevant online communities like the Laundromat Resource Pro Community and attend industry events to network with peers. Having a support system can provide invaluable advice, share experiences, and offer solutions to common challenges.

8. Focus on Customer Retention and Operational Efficiency

We often spend much of our time thinking about ways to get new customers. That makes sense, because new customers means more revenue. However, it’s usually more lucrative to serve your current customers so well they would never even think of leaving. Implementing strategies to retain customers and improve operational efficiencies are crucial for business success.

• Practical Application: Invest in high-quality equipment, maintain a clean and welcoming environment, and offer loyalty programs or promotions. Regularly review and optimize your operational procedures to stay competitive.

9. Have Realistic Expectations

Again, mismatched expectations and reality cause much of our frustration and stress in business (and life). In your journey to acheive your financial and lifestyle goals, understand that buying a laundromat is a significant investment and often requires lifestyle adjustments initially. However, I truly believe that laundromats are one of the best vehicles to build solid cash flow and create time-freedom for the average (and even not-so-average) person.

• Practical Application: Take time to assess your readiness and willingness to commit. Be realistic about the effort, time, and resources required, and align your expectations with the realities of running a laundromat.

These practical insights are a valuable roadmap for anyone navigating the laundromat business landscape. Whether you’re just starting or looking to optimize your current operations, these expert tips can help set you on the path to success.