Share This Info:  

Don't Buy A Laundry Business Without First Reading These Five Tips


Laundromats are excellent business opportunities for entrepreneurs who do their homework. Many small business owners look to existing facilities when they want to start their business. However, don't buy a laundry business before you consider these five points.

Find The Right Lease Term To Buy A Laundry

The lease will be one of the largest monthly expenses for anyone who wants to buy a laundry, so the terms and price of the lease can make or break a business from day one. While many businesses can pick up and move locations if their lease no longer works for them, Laundromats do not have the same luxury. The equipment, plumbing, and wiring for a Laundromat are all unique compared to other businesses so moving locations is a drastic measure.

Overall, the lease needs to last long enough to recoup your investment, or at least eight years on average. Even entering into a lease of over 15 years, with the right terms and options, is a good business move. When you buy a laundry, expect to pay up to 20 percent of your gross revenue on the lease; any more than that creates a substantial business risk.

Efficient Water Usage And Management

Water and sewage expenses are another big ticket item when you are looking to buy a laundry. When evaluating a potential Laundromat, look at the last two years of water bills and usage. These numbers will give you an accurate portrayal of how much business the Laundromat pulls in and how efficient the equipment runs. Unusually high numbers also suggest plumbing leaks that can turn a good deal into a lemon.

Location, Location, Location

Some Laundromats are located for success; only buy a laundry business with an ideal location. Buy a laundry that is situated close to customers and is convenient to access. This means you need to buy a laundry that is in close proximity (within a mile or so) to a large number of apartment complexes which will provide a strong base of regular customers. A convenient location to buy a laundry includes ample parking, access from a major road, and a number of neighboring businesses to keep patrons busy while they wait on their next load.

Evaluate Existing Equipment

If you buy a laundry with old equipment, you are going to be hit with a big expense fairly quickly. Get the make and model numbers of all the equipment in the Laundromat. Your typical front load washers and dryers should last 15 to 20 years with top load washers around 7 to 10. At best, if well maintained, front loaders can last 30 years and top loaders up to 15 years. Anything beyond these timeframes is potentially ready to retire.

Extra Income Sources

Do you have room for vending machines, snack machines, soda machines? How about internet stations, video games, or even tanning beds? These accessories can bring in good money as well from customers as they wait on their laundry.

In the end, these five tips will put any aspiring businessperson in a strong position to buy a laundry business.

Looking to buy a laundry business? See all laundry businesses for sale in California - or sell a laundry business and reach thousands of laundry buyers. Also keep up to speed on the California coin laundry market (with industry business brokers & experts) with upcoming BizBen Online Talk Shows & Webinars.

About The Author: Peter Siegel, MBA is the Founder of www.BizBen.com (established 1994 - 7000+ California businesses for sale, 200 new listings daily) and the Director of the BizBen Network (16,000 business buyers, 4,000 small business owners, 1,800 California business brokers & agents). Peter Siegel can be reached direct at 925-785-3118 to discuss selling a laundry, financing a laundry purchase, or buying a California laundry.

Categories: BizBen Blog Contributor, Buying A Business, How To Buy A Business







  Helpful Resources To Assist In Selling And Buying California Businesses
Diane Boudreau-Tschetter: Escrow & Bulk Sale Services - CA

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence

Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.

Helen Yoo, New Century Escrow - Escrow Services In Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Janet Carrera: Escrow & Bulk Sale Service - SF Bay Area

Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.

Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California

Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.

Elizabeth McGovern: Escrow Services - San Francisco Bay Area

McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.

Brad Steinberg, Business Broker: Laundromat Specialist

PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
How Many Listings Is Too Many For One Broker To Handle? Is It 5? 10? 20?

Peter Siegel, MBA in this Vlog/Podcast discusses how many listings is too many for one business broker to handle at one time. Is it 5 is it 20? I recently had a coaching call with one of my BizBen broker clients who asked that question this week. There are many factors that go into the answer.

Selling Your Business To One Of Your Employees - A Good Idea? Pros And Con

After investing years of time and talent into a company, many small business owners want to feel like they are leaving their business in good hands and for that reason, some sellers opt to sell their business to an employee. Peter Siegel, MBA talks about the pros and cons to taking this route.

Why Isn't My Business Selling? 6 Great Questions To Ask Yourself For Answers

It can take months, sometimes longer to sell a small business. Here are 6 questions from Peter Siegel, MBA (Business Purchase Financing Expert, ProSell Program Advisor with BizBen) at 925-785-3118 to ask yourself to help you determine why your small to mid-sized California business isn't selling.

Buyer Beware: Does A Company's Culture Effect The Sale Of A Small Business?

When purchasing a small to mid-szied CA business, there are a many items to evaluate. One area that is often overlooked is the business's office culture. Peter Siegel, MBA with BizBen discusses with business buyers the importance of understanding how the business "feels" on a day-to-day basis.

Find Out Why 80% Of California Business Buyers Never Find And Buy A Business

First the dreaded statistic: 80% of all California business buyers looking to buy a small to mid-sized business in California never end up doing so! Peter Siegel, MBA BizBen Founder And Director at 925-785-3118 covers successful tactics all business buyers of small businesses should utilize.

Thinking Of Selling My Business: What Factors Create Value And Drive Price?

There are a lot of misconceptions about what enhances the value of a business. The following factors in this Discussion Post on BizBen are aspects of a business that really drives its value and pricing. Business owners thinking of selling should check these out these factors before selling.

If You Plan To Offer Seller Financing: 3 Things Owner Sellers Need to Know

When selling your business, offering seller financing is a great way to help your business standout from others on the market and it is also a good strategy to consider that can help you close a sale. Peter Siegel, MBA (BizBen ProSel Program & Financing Expert) explains. Reach him at 925-785-3118.

Absentee Run Businesses - A Myth Or Reality When Buying A Small CA Business?

Some buyers search for an absentee business to own, wanting to collect profits generated by a successful enterprise without having to stand at the sales counter or cash register, without having to cook, operate equipment or talk to customers. Here's some insight about finding such a business.


Escrow Services Diane Boudreau-Tschetter
Jim Saxton SF Liquor Licenses
SF Bay Area Business Broker Manjit Singh
Willard Michlin Due Diligence Services
Facebook
Twitter
Linkedin
Vlogs and Podcasts
Advertise On BizBen
BizBen ProSell Program
BizBen Blogs And Articles
New Postings Reports On BizBen Sign Up
BizBen ProBuy Program

BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2019, All Rights Reserved



Clost Login


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Buyer Beware: Does A Company's Culture Effect The Sale Of A Small Busine...
Read More News
Find Out Why 80% Of California Business Buyers Never Find And Buy A Busi...
Read More News