Yes, a business license is required to open a laundromat. Depending on where your laundromat will operate, more than one license may be necessary. Some municipalities require a local business license as well as one at the county or state level.
For most laundromat owners (and most entrepreneurs in general), an LLC is the best choice. That's because you'll have fewer regulatory requirements than S Corps or C Corps, but you'll be able to keep your personal assets separate from your business assets — something you couldn't do with a sole proprietorship.
² Deciding on the right business is key to creating a lasting, profitable small business. A small profitable business idea you may not have considered yet is opening a laundromat, and there are many reasons why the laundry industry is a good choice for a new entrepreneur.
Yes, a business license is required to open a laundromat. Depending on where your laundromat will operate, more than one license may be necessary. Some municipalities require a local business license as well as one at the county or state level.
On a typical scale, launching a laundromat will set you back anywhere from $200,000 to $500,000. Your financial footprint hinges on whether you're breathing new life into an existing establishment or embarking on a ground-up venture, coupled with the prevailing real estate climate in your locale.
Most laundromat owners and regular laundry customers in the U.S. don't even think about laundry taxes—as in most states laundry or use taxes are not applied—yet Hawaii, New Mexico, and West Virginia each have laws associated with the collection of taxes on coin laundries within their state lines.
In conclusion, while owning a laundromat may seem like a promising hands-off business, it is a venture that requires dedication, active involvement, and sound management skills. If you're willing to put in the work, it can provide a rewarding income stream and the opportunity for substantial business growth.
Finance, law, real estate, health care, and software development are among the most profitable industries in the US. If you're looking to make as much money as possible, consider starting a legal services business, a brokerage, a health care company, or a software-based venture like a virtual assistant business.
We talked to the Laundromat Millionaire, Dave Menz, who owns four laundromats and makes nearly $2 million annually. He even helps other business owners navigate the industry to get more customers, become a full-service laundromat, and outshine absentee owners.
A great laundromat location is on a main roadway, highly visible, and has plenty of parking with easy access. Also take note of the surrounding businesses and what type of clientele they draw in. Grocery, convenience, auto parts, and check cashing stores make excellent neighbors for laundromats.
A coin-operated laundromat can be a profitable business, but there's also a high risk of it attracting thieves. You'll also need to keep cash on hand to provide customers with change for the washers and dryers.
Starting a wash and fold laundry business from home can be a viable small business opportunity, especially in communities where there is a demand for such services. Here are some tips to consider when starting this type of business: Research and Planning: Conduct market research to understand the demand in your area.
Question- How many washing machines and dryers should I have in my laundromat? Answer- The number of machines depends on the size of your space and anticipated customer demand. A common starting point is around 2-3 washers and dryers per 100 square feet.
Operating Hours: Laundromats are typically open between 6 a.m. and 11 p.m., while some offer a 24-hour model. Number of Employees: Most laundromats operate with a small team, with the number of employees ranging from 0-8, depending on the business model and service offerings.
Understanding laundromat value
U.S. Laundromats post impressive numbers with a 95% average success rate and 20 - 35% profit margins. But whether or not your laundromat can meet (or exceed) these industry standards depends on some important factors.
Building a New Laundromat
You'll save money over the first few years of operating your new business because the new laundry equipment comes with warranties and is in good working order. PRO: It's all yours.
Reimagining this business model can help you provide more value to your customers. The laundromat business isn't fully passive income. Even once your laundromat is up and running, it's still only semi-passive or flexible at best.
While not legally required, there's a compelling case for starting your laundromat as a limited liability company (LLC).
The cost of equipment required to start a laundromat varies from around $20K to as much as $500K or more. Initial startup costs can be quite significant for a seemingly 'set-and-forget' kind of operation. However, the lack of required labor once a startup is complete can outweigh the cost of starting a laundromat.
On average, smaller laundromats might earn between $1,500 to $5,000 in profit per month, while larger, well-established ones in prime locations might see profits of $10,000 to $30,000 or more per month.
Entrepreneurs normally spend between $100K and $1 million to start a new laundromat or buy a laundry business for sale. Dave suggests that you should normally spend between two and five times revenue, but that you should base your business valuation on what it's worth to you.