We all love wearing clean fresh clothes and therein lies a business opportunity. So, how much does it cost to start a laundromat?
Off the top figures would put it at anywhere between $100,000 and $500,000.
Instead of a coin-operated laundromat, you may also opt to start a full-service home-based laundry business.
This may just require you to purchase and install a heavy-duty laundry machine and dryer. These may cost between $200 and $5,000 each.
Nevertheless, for coin-operated laundromats the total figures differ depending on a few key factors such as location and size.
To get a better and more realistic approximation that will work for you, consider the following factors.
Construction Costs
Once you find your perfect location to set up your laundromat, you will have to incur some construction costs. The cost of starting a laundromat will include new plumbing, upgrading of the electrical circuits, carpentry, develop the sewer lines and drainage, and upgrade the gas lines of an existing building.
A realistic ballpark figure for a small laundromat’s construction needs would be between $100,000 and $200,000.
Equipment Costs
The cost of starting a laundromat includes the purchase price or lease price for coin-operated washing and drying machines. These may range between $150,000 to $450,000 depending on brand name, sophistication, size, and strength.
You may also need coin change machines, industrial-size folding tables, laundry carts, utility sinks, and vending machines as part of your laundromat equipment costs.
Licensing Costs
All businesses need to be licensed and for a laundromat, the licenses required may include a general business permit, a health department permit if you will serve snacks and food, a water and air pollution control permit, building permits during the construction phase, a fire department permit, and a sign permit depending on your municipality.
These may add up on the cost of starting a laundromat as they may range between $150 and $8,000 per washing machine.
Personnel Costs
A coin-operated laundromat may not need much in terms of staff though you may need someone to open up and close up on a daily basis. You may also need a cleaner and someone to maintain and repair the various machines.
You may also need a dry-cleaner if you are offering dry-cleaning services and some of the staff you will employ may need to be put on a salary rather than wages. Analyze your staffing needs and add that up to your laundromat starting costs.
Financing Costs
As an entrepreneur, you may not always have enough funds to start your business and that may necessitate borrowing.
The cheapest lender would probably be an investor since all they will ask for is a share of profits rather than charge interest on the loan. However, too many investors will diminish your profits.
On the other extreme, the most expensive financier may be the manufacturer of the laundry equipment as they will usually take out a loan from elsewhere to charge you a higher interest rate.
Whatever financing option you choose, make sure you factor in the interest rates when calculating your costs of starting a laundromat.
Cost of Extras
To run a successful laundromat you may need to offer some convenience services to attract customers. These may include putting in electric sockets and internet connection for those who may want to work on their computers as they wait for their clothes.
You may also put in mounted televisions, pinball machines, and video games. Running a snack bar may also be a good idea and so is installing a few vending machines.
Having a vehicle to provide delivery services may also endear your business to busy people.
