When thinking about starting a business, many choose to start from scratch. This means planning from the ground up. However, there is another way to start a business without having to work from the very beginning stages.
Some individuals choose to purchase an existing business that is either struggling or in a bad location. Then, they take necessary measures to "flip" the company, turning it around into a profitable and successful business.
In the housing market, flipping homes is very popular. It's also becoming more common for entrepreneurs, as well. Flipping a business can mean two different things. One, you purchase a struggling laundromat, turn it around and keep it for yourself for years and years. On the other hand, you might acquire the business, do what it takes to make it successful and then sell it for a large profit. Whatever you choose is up to you. Either way, flipping versus starting from scratch can be a great option for many entrepreneurs.
If you are interested in owning a laundromat but aren't sure about starting from the ground up, consider the following information on how to flip a business.
When purchasing a business to flip, be sure that, despite issues, it's making some money. Whether the business was suffering due to bad service, employee's attitudes, owner issues or terrible location and presentation, the business should at least be breaking even in order for you to consider it a smart choice for purchase.
Be sure you're buying for cash flow versus assets. Remember, you're looking to flip this business in a way that makes you money. Purchasing a laundromat full of expensive, up-to-date equipment might mean a large purchase price with no room for negotiations. This is something to watch out for. Purchase only with cash flow options in mind. Then, invest in new equipment for your acquired business after the fact.
With cash flow in mind, it's important to take a serious look at the numbers. Can this business make you more per month, as soon as it changes over to your hands, then one that you've started from scratch? The business should be running at 25 percent capacity, at least, the minute you open the doors as its new owner. Even more, you should be able to increase that capacity to at least 70 percent within three month's time. Always take a look at the numbers and bottom line advantages.
Always look at available properties with a business mindset. It's easy to fall in love with a location, fixer-upper idea or low price. Don't become attached to something until you taking a look at the overall big picture. After all, this investment is something that's going to make you successful. Don't let big ideas get in the way of profitability.
Laundromats with poor marketing tend to be an easy fix. Take a look at the area you are interested in purchasing in and see which available properties have no management in the advertising department. This opens the door for a great opportunity in terms of increasing repeat business and targeting new customers, as well.
Use this information as a guideline to help you find and purchase the perfect laundromat to flip. While it might not be easy, your efforts will pay off in the long run. Good luck with your journey into flipping a laundromat!
Once you get your new business up and running, consider upgrading your laundry equipment. It's a great way to invest in your newly purchased business. Contact T & L today to learn more about the best washers and dryers on the market. We also offer financing! Call now to learn more.
Affordable Laundromat Equipment NC | T & L Laundry Equipment
T &L Equipment can be a key factor in your success as a coin operated laundromat owner. We are a full service distributor for North Carolina and South Carolina providing investment opportunities, commercial laundromat equipment NC products, and even assistance in financing and a small business plan. We have helped people for 40 years, so you can be assured you will be working with professionals who know the industry inside and out. Call us today!