Are you thinking about buying a laundromat? It is a big investment that will need a lot of thought before you make the leap. Not only will you need laundry equipment NC services, but several other things as well. Let us help you decide if it is the right decision for you.
Here are a few things to consider before buying a laundromat.
The Top Things to Evaluate Before Buying a Laundromat
Finances
Obviously anyone who is thinking of buying a business is interested in the money aspect, so that is the first thing we will address. Ask the current business owner for the financial statements to make sure the business is actually making money. Sure, you may have ideas to increase revenue, but if it is in the hole already due to location or another factor that you can’t change, then it may not be worth taking on the challenge. Don’t forget to look into the ancillary income, which means the money made from amenities such as snack machines, pay phones or internet.
Equipment
Check the age and condition of the equipment. You may not want to buy a business and have to replace the equipment at the same time. Get a list of the makes, models and years of each piece of equipment and when it was installed. You can use this information, along with the model numbers inside the door of the machines to see how old they are.
Front load washers and dryers have a lifespan of 15-20 years. Top load washers can last 7 to 10 years. If the equipment was serviced regularly, it can last longer. Check to see if the current business owner has records of the maintenance on the units. Some of the units may be newer, so you may only need to replace a few. Factor in those costs when working out the cost of business.
Location
One thing you can’t change is the location, so it should be a huge factor in your decision. If the laundromat is located near apartment complexes or in a busy area, then it is an ideal location. It also should have lots of parking near the laundromat. No one wants to carry bags of clothes across a parking lot. Check crime reports for the area if you aren’t familiar with the neighborhood. An area where people feel safe will get more business, especially if you plan to have a laundromat that is open 24 hours a day.
Utility Bills
Check the energy and water bills from the last two years as they will factor into the profit margin. If they are unusually high, they will eat into what you’re actually going to make. Older equipment could be a reason for higher bills, so that is something to consider as well.
Lease
Make sure that the current lease is good for as long as you need it to be. You don’t want to buy a business only to find out that you will need to find a new location in two years. Moving a laundromat is virtually impossible. A lease that is good for at least eight years should give you enough time to establish your business and recapture your investment. A longer lease is even better.
Expert Laundry Equipment NC Advice from T & L Laundry Equipment
If you’re thinking of buying a laundry facility? Want affordable help with installation and purchasing laundry equipment NC services? Look no further! We have 40 years of experience helping people with their commercial laundry equipment NC needs. We can help you make the right decision in choosing commercial washers and dryers for your laundromat. Call us to day to get started!
