Daily Business Operations Questions

Hey all, I am in my due diligence period now weeks 2 of 4. I will be a first time laundromat owner in 6 weeks if all goes well.

So I have been joining the current owner on coin dumbs and am noticing this particular laundromat does not have any systems in place.. no checks and balances.. no clear method of straight accounting etc.

He does a coin dump 2x week (Mondays and Thursdays, I noticed he does not count the coins, is this normal? He collects all the coins.. tops off the cash machines and then only counts the cash. Then at the end if there is leftover he just keeps it and takes it to the local Constar machine and that’s spending cash for the next few days. This “spending cash” is adding up to about $300-$400 weekly. I guess here my main concern is the “lack of knowing the true revenue” by not counting coins but what do I know maybe thats the norm.

After week 1 the coin collection was $2800, in addition to that there was about $850 in WDF. This is a small town of only 8500 people total, it is mostly upper middle class folks who own homes. There is a handful of rental buildings but it seems only what is required by the town for affordable housing. This laundromat has been in place for 25 years and is the only one in 2 town radius. The next town over has similar demographic. The WDF uses quarters for the machines so some of those coins from the collection are from WDF (about $30-$50 a day).

Rent is VERY high because of the location and demographic. We are talking $4300 month in rent, what are your thoughts on that?

They are saying NET profits are 40-50k a year on a 150k gross revenue. (this is factoring in the extra spending cash weekly). Machines are all about 20 year old Wascomats. Store looks to be in fairly good shape otherwise. Even the 20 year old machines look decent.

I have a lot of DD left to do but in your opinions how is this shaping up so far?