Many want to own a Laundromat because it affords them a potentially good or supplemental income, flexible work hours and a less stressful work life. These are certainly good reasons and all possible but one still has to do the work. Running a Laundromat is simple, yes, but it's not easy. In this article I will cover what it takes to increase business and get your laundromat in top shape ready to sell for top dollar!
In recent articles I have discussed how to evaluate laundromats for sale and suggested some financing options. Perhaps now you have that store. What next?
Many want to own a Laundromat because it affords them a potentially good or supplemental income, flexible work hours and a less stressful work life. These are certainly good reasons and all possible but one still has to do the work. Running a laundromat is simple, yes, but it's not easy. I don't mean it's not easy like brain surgery isn't easy but that you have to be consistently doing the right things. Put another way; the right things aren't hard but they have to be done! Contrary to what many think and what many operators do you cannot simply "collect and neglect".
Like our teachers and coaches told us when we were young and starting something new; "start with fundamentals!" So we will:
First and foremost remember, and always remember; CLEAN, BRIGHT and SAFE. Live by these three simple words and you will be a step ahead of many, many laundromats! I am constantly amazed at the number of stores I see where the owner seems to embrace the exact opposite!
Clean: people are there to clean their cloths. The last thing they want to see is a bunch of filth around them. And you know what? Most people just flat out like a clean environment.
Bright: Unless you plan on having people enjoy a romantic dinner in your store keep it nice and bright. For one thing people want to be able to see what they are doing and that their cloths are in fact clean, two, brightness tends to lead people to a brighter more cheerful outlook and, three, it aids in the next of these fundamentals; safety.
Safe: Who are the majority of people doing laundry? Our Mothers, sisters, wives and daughters. You need to keep them safe and have them feel secure. You need to have cameras, avoid blinds spots where one cannot be seen by people or the camera, have a bright atmosphere and you need to run the loiterers out of your store.
Another very basic component of a successful laundromat is to make sure you have working equipment. Sounds obvious but as you are in and out of stores take note of how many "out of order" signs you see. If your equipment is out of order people can't deposit money (so you can earn money) and it also means people will wait longer for an available machine thereby driving them away and to your competition.
Your task will either be to fix the problems immediately (if you are able) or establish a relationship with a repairman or get him out there quickly when needed. Preventive maintenance agreements with your repairman would also help to keep out of orders signs to a minimum.
Many manufacturers will conduct complimentary service schools. Maintenance and basic repairs are not too difficult if you are so inclined so you may find these schools valuable. For more difficult repairs you can send your maintenance person to the advanced service schools.
Another important task that some forget, as a Laundromat is supposed to be self service, is CUSTOMER SERVICE. Yes, you still have to pay attention to this even at a Laundromat. Get to know your customers, help them bring their laundry basket to the car, get them refunds promptly, ask questions as to how you can serve them better, give that good customer a free wash or a cold drink.
I visit a lot of stores and though many stores with no owner or employee presence can do quite well there is a different and more attractive vibe, which usually lead to more business, in a store that is serving their customers well.
A task that seems to be neglected in the Laundry industry that I highly recommend is marketing. Obvious and many do it, but not consistently. In a recent survey by one of the industry magazines it was found that less than 20% of laundromat owners did marketing on a regular basis. Remember that many of your customers are people that rent. Renters tend to be a bit more transient so you want to make sure those coming into the area know about your store. Of course consistently reminding those that do live in the area for the long run can only benefit your cause.
Now it's time to collect all of that money. Woo hoo! Got to like that! Absolutely, but know that it can be time consuming. Even if you just dumped all the money in a bag, put the quarters in the changer and went to the bank with all the bills you will find that it takes a bit of time and effort. But when you pull that money out of the coin boxes you will also want to evaluate the performance of your various pieces of equipment. Which machines are bringing in more money? Do some size machines do better than others? Is the positioning of the machine affecting how much money it makes? Do some machines do better during weekend versus weekdays? You want to evaluate all of these things so you can buy the right equipment in the future, increase or decrease prices or promote certain machines that aren't doing well. This does take a little more time but it is critical to the success of your business.
There is much more detail to these several day to day tasks I have mentioned but for now at least be aware of them. You will learn more as you go and will refine them based on your style of management but stick to them and you will be on your way to running the successful Laundromat you envisioned at the outset.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Peter Siegel, MBA: Business Purchase Financing Solutions
Niche business purchase financing advisory and loan placement services with SBA and Non-SBA Financing, Retirement Fund Rollover Solutions, Combo Financing Packages. To get professionally pre-qualified or more information on the ProBuy/ProSell Programs: 925-785-3118.
|Chuck Post: Laundry Buyer Representation, Consulting, Due Diligence
32 years experience in the laundry industry, specializing in assisting laundry buyers with buying or starting up, re-tooling, laundries in Southern CA. Laundry buyer representation, consulting, due-diligence, lease negotiations, laundry valuations. Call 619-227-5711 (Cell).
|Larry Larsen: Laundry Consulting, Brokerage, Insurance
I have over forty years of experience in the sales, ownership, management, and construction of coin laundries. He is a licensed broker active in the sale of coin laundries, a licensed insurance agent specializing in coin laundry insurance. Phone me at 714-630-9274 or 714-630-Wash.
|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.
|Peter Siegel MBA, BizBen Founder, ProBuy, ProSell, ProIntermediary Programs
Founder Of BizBen.com (since 1994). I am the Lead Advisor for the ProSell, ProBuy, & ProIntermediary Programs. I consult daily with buyers, sellers, and brokers daily about buying and selling California small to mid-sized businesses. Call 925-785-3118.
|Steve Erlinger: Laundry Broker, Consultant - Southern California
I specialize in the laundry industry broker and consultant in Southern California. I assist buyers navigate the many facets of finding, evaluating, and operating a laundry business. I also help current laundry owners find additional stores, sell, evaluate an existing laundromat. Call 949-500-5893.
|Mike Hurrell, Broker: Laundry Specialist - Southern California
Providencia Properties Inc in association with Golden State Laundry Systems is a full service Coin Laundry Real Estate Broker. At GSLS you will receive personalized attention from our professional staff of coin laundry experts. To sell or buy a Southern CA laundromat call Mike at 310-223-2240 X209.
|William F. Ziprick, Attorney: Legal Services For Buyers And Sellers
Through creative problem solving, attention to detail, accessibility, & understanding that unnecessary delay is often a deal killer, I work closely with my clients and other professionals to consistently achieve a high rate of closings. Office: 909-255-8353, Cell: 509-951-7230.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Laundromat Business Valuations: Could Buyers Of Laundries Be Overpaying?
Chuck Post (laundry buyer rep, consultant, due-diligence expert) discusses the factors of appraising laundries. Why such high purchase prices is baffling - many times the value is so misunderstood that it results in laundry buyers over-paying for a laundromat. Reach Chuck direct at 619-227-5711.
|What Critical Factors Contribute To Coin & Card Laundry Business Valuations?
We are finding that many laundry buyers and investors are not being given true light to selected elements of value or there are inconsistencies in the interpretation of these elements of value. This common error needs to be addressed. In this BizBen Discussion we address many of those factors.
|Determining The Value Of A Laundry Business: What Factors Are Important
Steve Erlinger (laundry Broker & Consultant at 949-500-5893) discusses how to value a laundry. Issues that affect a value include: demographics, the lease, past financial performance of the laundromat, age and condition of the equipment, utility costs, competition and other factors all play a role.
|Who Is Today's Laundry Business Buyer/Investor: Blue Collar Or White Collar?
Today, we see more growth in the white-collar sector than we do in blue-collar entering the laundry business. We are also happy to see a rapidly growing representation of Black and Hispanic investors; women entrepreneurs are possibly one of the fastest growing segments. Chuck Posts explains.
|When Buying A Laundry Why Buyers Should Have An Exit Strategy When Buying
Chuck Post (reach him at 619-227-5711) a laundry consultant, specialty broker, buyer representative & due diligence advisor starts this discussion on why it's important to have an exit strategy in mind while buying a laundromat! He & others explain why this concept is so important to serious buyers.
|Laundry Broker Explains Laundry Leases: 4 Big Issues For Buyers And Sellers
Chuck Post (Laundry Buyer Rep, Consultant, Due Diligence) discusses what laundry buyers and sellers should consider when reviewing and considering a laundromat lease. A must read for potential laundry buyers and owner/sellers of card and coin operated laundromats. Reach Chuck at 619-227-5711.
|Laundromats: Are They Good Investments For Business Buyers? We Discuss This.
Are laundries good investments for buyers? Chuck Post, (at 619-227-5711 - California laundry consultant, due diligence services, and laundry buyer representation) discusses this topic with other advisors & brokers in this BizBen Discussion about laundry investments and if they are good investments.
|Interview: With Chuck Post On How To Buy A Laundry Business Successfully
Chuck Post (and his Associate Chris Mason) a California laundry consultant, due diligence specialist, buyer representative for laundry buyers shares his thoughts with Peter Siegel, MBA on this BizBen Podcast & Webinar. Chuck and Chris cover all related topics on buying a California laundromat.