Are you interested in creating a new passive income stream? Read this guide to learn how to start a laundromat business with no money!
Have you ever considered starting a laundromat business that can endure the ongoing recession?
You're not the only one!
Opening a laundromat is a more common idea than you think, as it makes for an easy passive income source.
And if you don't have the money for it, you've come to the right place!
I'll tell you how to start a laundromat business with no money in 7 easy steps, so keep on reading!
The most recent statistics on laundromats in the US industry reveal that the market size is estimated to be worth six billion dollars, with a little over 19k businesses and 52k employees.
However, the national revenue created by laundromats has decreased at a CAGR of 1.4%, and it’s expected to increase by only 0.1% during 2023.
This profit margin decrease, along with the unstable economy and rise in costs of rental housing, will result in a market decrease. Some laundromat services and chains will leave the industry or consolidate.
More so, the annual mean wage of laundry and dry cleaning workers is $27,630.
That’s why one-shop businesses often have laundromat owners working in them.
According to the Coin Laundry Association, these businesses can range in market value from $50,000 to $1 million.
A coin laundry can generate between $15,000 and $300,000 every year.
In addition to having the numbers, it’s essential to keep in mind that profitability depends on several factors, including (but not limited to) the following:
Starting a laundry laundromat business with no money can be more complex, requiring careful planning and considering business loans.
Going into the laundry industry can be an excellent start for creating passive income all year round.
However, people considering starting a laundromat business without money should be more than simple enthusiasts.
The estimated average cost for starting up a laundromat business can vary between $20,000- $500,000 for an average size company.
When it comes to starting a laundromat service in the United States, several expenses need to be taken into consideration:
In addition to the cash needed to launch the venture, starting a laundromat business may require a general business license, depending on your state.
The requirements for operating a laundromat business can also include a business entity, operation permits, and sanitary regulations.
Starting an always-in-demand side hustle is an excellent option for generating a new passive income stream.
Here are a few reasons why you should choose a laundromat business.
Starting a laundromat business with no money requires a creative approach to managing funds.
Your primary goal is to decrease starting costs as much as possible, and here are a few steps on how to do it:
By identifying the potential needs for laundromat services in the general area, you can narrow down key elements for developing a good business plan.
This can help determine your idea’s feasibility and the scope of the opportunities needed to help your laundromat business stand out.
A good business plan should help identify the target market, pricing strategy, marketing plan, and financial projections.
Combining this with your visions and goals can help narrow the scope of your startup’s services.
Securing business loans and combining them with crowdfunding campaigns or potential investor partnerships can ease the financial burden of starting a coin laundry service.
In this line of business, location is everything.
For example, opening a laundry service near student housing can be profitable since most student condos don’t include a washroom.
Secondhand commercial washing machines, dryers, and all necessary supplies can be acquired for less money when properly negotiated with suppliers.
Make sure to check for all potential licenses and permits.
If you aren’t sure of the researched information, contact business lawyers that can provide the secure, first-hand information.
Using word of mouth, social media, and hand-out flyers have proven to be the most efficient marketing strategies for laundromats and similar trade services.
Starting any business with limited funds can be a daunting task, especially when it’s a one-man operation.
Even though the laundromat industry is easily accessible to anyone, some elements should be considered, especially when the resources are limited or non-existing.
Being the boss is one thing, but running a laundromat business on your own can be challenging.
Workload management, from customer service to maintenance of all kinds, is yours to keep, which can sometimes be a bit overwhelming.
Many people who try to do so end up with severe burnout early after opening a shop.
Secondly, having a steady incline of clients can help increase revenue over time, so it’s in your sole interest to cover all fronts regarding your business operations.
With some out-of-the-box thinking, you might find the best low-cost solution for starting a laundromat service.
By personalizing it, you can ensure that the company’s brand has a unique appeal on the market. Here are a few ideas to consider:
Are Laundromats a Dying Business?
There has been a slight decline in the number of laundromat companies, but they aren’t a dying business.
With the rise of urbanization and gentrification, some residential zones in urban surroundings largely depend on laundromat services.
Is It Hard to Own a Laundromat?
Owning a laundromat can be as challenging as owning any other trade or service business.
However, with careful planning and research, it can be a profitable venture.
Depending on the type of trade and your budget, there are many great businesses to buy or start that are similar to laundromats.
Here are a few ideas:
Some resources that we suggest checking out to help you along your journey.
Discover the best businesses, just like this, to buy and profit from.
Read these business plan examples to help you create a winning strategy.
Learn the ins and outs of recurring revenue businesses and how to use them for passive income.