If you are in the market to purchase an existing laundromat, you’ll need to consider several things before you make that big investment. From location, to coin operated laundry equipment NC services, to the cost for monthly utilities, you’ll need to see if the laundromat you are interested in will be viable enough to help you recapture your money within a few years.
Here are some ways to evaluate an existing laundromat before making the leap.
How To Evaluate an Existing Laundromat
Check the finances.
Of course, checking the finances, including the tax records, lease and utilities bill will be your first step. Make sure the records the previous owners gives you are accurate. In a business based on cash, there can be times when things weren’t recorded properly. If you see that the records contain a lot of discrepancies, then the information you get isn’t going to be accurate and won't be helpful in determining if you are purchasing a profitable business.
Check the lease.
You do not want to buy a laundromat only to find that the lease is up soon. You will either have to move, which is not an easy feat, or renegotiate the lease, which may cause you to lose money you weren’t expecting to spend. A store with more years left on the lease is going to be a better choice than one with only a few years.
Check the location.
Location is important in all real estate dealings because you can’t exactly move a business to a better place. If you are already considering a particular laundromat, then you are probably okay with the location. Make sure it is in an area that will get traffic, and that there is ample parking for your future customers. It should also be clean and well-lit and safe for your customers. Drive by at different times of the day to see who is there and what is going on in the surrounding areas.
Check the equipment.
Commercial washers and dryers, like the ones that T & Laundry Equipment sell, are built to last for a long time. However, they will eventually need to be repaired or replaced. Check out the equipment in the laundromat to see how old they are and if they appear to be in good working order. A washer may have a life of 10-15 years, but if it was maintained regularly and repaired when needed, it could last a few more years. See if there are service records on the equipment to help you gauge how much longer they can be used.
A few other things to consider are ancillary profit, which includes money made from vending machines, pay phones, paid Wi-Fi or other amenities the laundromat offers. Also, if there is someone working on-site, you will need to factor in the costs for labor.
Once you have evaluated these factors, you can determine if the asking price is reasonable. A laundromat will usually sell for a price that is 3-5 times the annual profit with the lease and equipment factored in. If the lease is going to end soon, or the equipment needs to be replaced within a few years, then you can probably negotiate price.
Affordable Coin Operated Laundry Equipment NC Services
If you are ready to discuss how to install or update your commercial washers and dryers, call T & L Laundry Equipment. From replacing old units to helping you create a new floor plan, our years of experience and knowledge can help you make the right choice for your business. We're the local experts for coin operated laundry equipment NC services. Call us today.
