The vended laundry business has several advantages. Here are just a few:
Laundromats are a cash business. The advantages of a cash business are there are 'no checks in the mail', no inventory, no debts, and no account receivables because the customer pays in advance and supplies their own labor.
A vended laundry is a recession resistant business. Vended laundries thrive in periods of both growth and recession. During periods of recession, when home ownership decreases, the self service laundry market expands as more people are unable to afford to repair old washers and dryers, to purchase new washers and dryers, or as they move to apartment housing with inadequate or nonexistent laundry facilities. Economic conditions have little effect on the overall volume of business. Some of the best times for Laundromats have been in times of economic down turn. Available monies are limited and people will defer purchasing and repairing household laundry equipment.
Because they are primarily a service business, Laundromats require little to no inventory. And because they are mostly self serve, there are also few to no employees to manage.
Laundromats require a lower level of expertise to operate successfully when compared to other industries such as restaurants or trade based businesses. In fact, many entrepreneurs seek additional locations once they have established their first.
There are several major tax advantages that are available to the Laundromat owner including equipment depreciation and the deduction of any financing interest. These situations may lead to a very favorable tax position.
