The laundromat business is one of the most popular and predictable business models. Laundromats typically have low payroll expenses and can be successfully run by absentee business owners. With predictable cash flow and sales numbers, these businesses often fetch an agreeable selling price when owners are ready to leave the industry. However, knowing when to sell your business can be challenging. You'll want to consider multiple factors and ensure that you're getting the upper hand in the sales process if you want the most significant return on your investment. Here are some things you need to know before you decide to sell your laundromat. If you're searching for the best Speed Queen distributors in Charlotte NC, call T & L!
Think About What Potential Buyers See
Before you put your laundromat on the market, be aware of what potential buyers see when they look at your business. If your equipment is old, outdated, or needs significant repair, you can expect to face objections and concerns from potential buyers. Keeping detailed service records for your equipment and receipts for the equipment that you have purchased during your time of ownership can help reassure a buyer that things have been well maintained and replaced when necessary. Don't just include receipts for your washers and dryers. Look at other improvements that you have made to the store like flooring, new fixtures in the bathroom, upgraded seating, and the addition of a new or larger water heater.
Additionally, the location of your laundromat may raise concerns for potential buyers if it is in a more urban area. Have the crime statistics for the area surrounding your business available and be prepared to discuss any issues that you have faced during your time of ownership. Share strategies and systems that you have put into place to protect against crime. These could include security systems, increased exterior lighting, removal of cash from the premises, and additional staffing. Transparency is crucial in the initial stages of a deal with a potential buyer.
What Buyers Are Wary of
Across the industry, buyers of laundromats report that sellers are reluctant to replace equipment that is near the end of its life cycle and that, as a result, many buyers then face the reality that in order to purchase the laundromat, they need to prepare for an expensive equipment replacement shortly after purchase. Sellers who opt to sell while business is stable and their equipment is in excellent condition can expect a shorter sale cycle and a higher price for their business. Buyers are also wary of business owners who have not kept accurate financial records or who do not have service records for their equipment.
Reliable Speed Queen Distributors in Charlotte NC
The laundry experts at T & L Laundry Equipment have been helping laundromat owners and prospective laundromat owners manage their businesses and understand the industry for more than 40 years. We're passionate about the vended laundry industry and can help you evaluate a potential store, inspect existing equipment, and help you consider improvements to the business. Our team stays ahead of the latest trends in the vended laundry industry and knows that it takes more than just the newest equipment to make your business successful. Before you buy or sell a laundromat in 2019, call the professionals at T & L Laundry Equipment.
Join us next time for more things you need to consider before you sell your laundromat.
