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This question is about laundromat manager.
How much does it cost to start a laundromat?
It costs anywhere between $200,000 to $500,000 to start a laundromat. This can be the case for both starting a brand new laundromat business and purchasing an existing laundromat business.
The amount of money needed to start a laundromat company all depends on the type of laundromat business you are starting. Are you launching a completely new business or are you buying one from a previous owner? Yet another option is to purchase into a laundromat franchise.
Purchasing a pre-existing laundromat business does have many benefits. If you can buy one that is already operating relatively smoothly, you can avoid most of the difficulties of starting a new business. You also are likely to have a built-in clientele for your laundromat.
The franchise laundromat route usually sees franchises requiring potential owners to have existing liquid capital on hand in the range of $75,000 to $300,000. There are major benefits to the franchise route, though, as you are able to receive the support and guidance of the franchise, as well as having a recognizable company name on your laundromat's storefront.
This also gives you some built-in clout and possible customer loyalty if customers in your area have previously washed their clothes at one of the franchise's locations.
To open a brand new laundromat of your own, there are a few costs, in particular, you need to keep in mind:
Commercial space for your laundromat is an unavoidable cost and this can be quite expensive, depending on where you are starting your laundromat business. You also should seek to find a space that is located close to many apartment buildings. Some apartment buildings have laundry machines, while others don't.
You need to be the chosen place to do laundry in your immediate vicinity. If you can be within walking distance of a fair amount of apartment buildings, you are off to a good start.
The actual cost of leasing or purchasing a commercial space varies widely. Cities with a high cost of living statistics are going to be far more expensive than cities that have the middle-of-the-road cost of living data.
Utilities are the next cost to think about. You need a space that has adequate plumbing and water line hook ups to operate your business. Utility bills are going to be really high, especially if your business is booming, because that means many washers and dryers will constantly be running.
Sewer connection fees might be another cost you have to account for. These are also referred to as tap fees and can sometimes cost $1000 or more per washing machine unit.
Getting the equipment you need to start a brand-new laundromat business is another big cost. You obviously are going to need many washers and dryers. Top-loading washing machines average around $1000 per unit. Front-loading washing machines range anywhere from $700 to $2,000 per unit.
Dryers can cost as much as several thousand dollars as well. So depending on the size of your commercial space, you might be spending a lot of startup capital on washers and dryers.
Also, if you are choosing to go with an electronic card payment system versus the traditional coin-based payment system, you can expect to spend at least $40,000, and sometimes considerably more, to set up that electronic card payment system.
If you are going the traditional route with a coin-based payment system, you still need to invest in a dollars-to-coins machine, which can cost anywhere from $700 to $7,000 per unit.
Other smaller items you should account for include:
Laundry detergent
Fabric softener
Laundry carts or buggies
Furniture for your space (benches, couches, chairs, desks, etc.)
Entertainment for your customers (televisions, speakers, internet connection, etc.)
Supplies for your laundromat office (standard office supplies, computers, accounting programs, etc.)
Business insurance is another cost you need to look into. These insurance plans come in all sorts of models and sizes and are designed to help protect small business owners. When running a business that sees all types of customers walking through your doors, you automatically open yourself up to some risks.
There are also safety concerns, such as a customer slipping on a wet floor or Acts of God, such as a hurricane, earthquake, flood, or tornado. Having a good business insurance policy can help you recover from all of these unfortunate scenarios.
The cost of business insurance depends on what policy you select to purchase. Commercial property insurance, which covers fire and water-related damage, vandalism, and theft, typically costs somewhere between $1000 to $2000 per year.
Marketing and advertising for your laundromat business is the last cost to consider. This one is easy to forget about but is essential if you are starting a new laundromat business. The Small Business Administration advises small business owners to devote 7% to 8% of their gross revenue to marketing and advertising.
There are many ways to market your new laundromat, and the costs will vary with each tactic. Social media is one of the cheapest routes unless you actually pay for ads on social media sites.
You also might need a social media manager or marketer as well if you can't handle this task on your own. You can hire them on a freelance basis to save on costs, or full-time if you have the funds to take on this position within your new business.
Print advertisements, radio spots, and local billboards are all great options as well. The costs of these will vary depending on your location and how long you plan to employ your advertising campaign.
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