All about Coin Laundry and Launderettes
Buying an Existing Store
- The first question one should ask is the reason for the sale of the Laundromat. Always question the desire to sell a successful business, especially at what seems like a discounter price.
- Research Laundromats in the area. Ask yourself what are the advantages and disadvantages of the Laundromat in consideration. How is it run relative to the competition. Is there a potential to increase sales?
- Contact the city or county department to check on the necessary licenses and permits.
- Find out what kind of insurance do you need to run your business.
- You will need to apply for a vendors license from the Franchise Tax Board to buy and sell products or snacks in your Laundromat.
- Make sure you set your expectations at the right level.You’ll need to have all of the aspects of running the business worked out for the short and long term.
- Research your options for financing. Usually, one can finance about 50%-60% of the cost of an existing Laundromat.
- Consider all costs of running the business. From maintenance to wages for employees.
- Talk to as many owner operators of existing Laundromats to get an idea and set an expectation for yourself. Ask about the problems they’ve had, what they would do differently, and whether they are satisfied with their business. Buying an existing business is a lot easier, but usually will be more expensive than starting your own.
- Seek help from experts in the industry. Preferably a broker or a consultant hired by YOU. Because of the cash nature of the business, it is sometimes hard to accurately gauge revenues. It is of utmost importance to have someone experienced to walk you thru utility bills, coin counts, revenue projections, costs, etc. A relatively small fee can save you a LOT of money, NEVER go at it alone. Especially if you are new to this industry.