Have you ever wondered how much it would cost to start a laundromat? In this post we are going to help you figure it out so that you can see if it is something you and your finances can manage. If you have ever wanted to own a business, a laundromat might be a good option for you. It has a simple business model that nearly anyone can understand, and it has flexible hours so it's possible you could keep your current job and use the laundromat as supplemental income.
When you start a business you have to register it. Depending on the type of business it is – a corporation, a LLC or a sole proprietorship, among others – the cost to register it will vary. It can range from $100 to $1000.
The cost of the business will depend on what type of laundromat you open. Are you going to build your own? If so, the cost will be higher because you have to buy land, build the structure and pay any fees for development. An estimate to build your own 2,000 square foot laundromat is $200,000 to $500,000. There are also city utilities and sewer lines you will have to pay to install, which can range from $200 to $8,000 per washer. You would need to have a local city employee determine the exact cost.
You can’t have a laundromat without equipment, so you will have to invest in washers and dryers. Costs vary depending on whether you buy used equipment or invest in new equipment. New washers and dryers come with a lot of options that can cost more, but could be beneficial in the long run if they provide improved customer convenience and faster turnaround of loads. Card reader systems are an option that many go with because it gives customers more options for payment, but those can add an additional $40,000 to the cost of equipment. However, being able to keep track of payments can make it easier to manage your budget.
New commercial washing machines can run from $500 for a top-load all the way up to $20,000 for front loading machines. A dryer will cost between $5,000 and $6,000 for stacked units. Your total costs for equipment will depend on how many you need to fill your facility. Keep in mind that you will also need to install a water heating system in order to offer hot water washing options. The cost can range from $15,000 up to $40,000.
Now that you have the main equipment, you will need to invest in smaller items such as hangers, folding tables, carts or other convenience items for your customers. You may also want to have amenities such as television or Wi-Fi, which will require equipment and service.
If you want to offer drinks or snacks, you can purchase vending machines or outsource them to a company. If you purchase and stock them, you will generate the revenue rather than having an outside company do it for you.
Now that you have an idea of what it will cost to open a laundromat, you will need to secure funding. You will probably need a down payment in order to get the loan, so you will have to see how much you can pay upfront. Check out the next post in this series to see if you can get grants to help open your laundromat.
For more information about how you can own your laundromat, please check out the other blogs in this series. You'll find lots of helpful information that'll show you how easy it is to get started.
- The First Steps to Owning a Laundromat
- Other Factors to Consider When Buying a Laundromat
- Hiring Laundromat Employees | Contractors vs W2
- Differences Between Contractors and W2 Employees
- Start New, Buy Existing, or Franchise?
- Start New, Buy Existing, or Franchise - continued
- Buying a Laundromat Franchise
- Here's What Laundromat Customers Expect
- Here's What It Takes to Own a New Laundromat
- We Can Help You Finance a New Laundromat
Thinking About Dexter Dealers SC Services? Consider Speed Queen or Continental Instead!
Thinking of buying a laundromat and need help with installation and purchasing equipment? Looking for the top Dexter dealers SC companies? Why not consider using Continental or Speed Queen vended laundry equipment instead? At T & L, we have 40 years of experience helping people with their Speed Queen and Continental commercial laundry equipment needs. We can help you make the right decision when choosing commercial washers and dryers for your laundromat. We also offer financing. Call us today to get started!
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