The amount of interest in the coin laundry business is staggering! I specialize in the laundry business thus I am unaware of other industries and the amount of interest they garner but I do know that I speak to many, many people who want to get into this business.
Why do so many people explore this business? Why do you want to get into the Coin Laundry business? I assume you have your reasons; many that may be common and some very personal.
Let's explore some reasons why many people find this to be an interesting or attractive business (outside of the shear glamour of it all!).
1. Simplicity. It is quite simple, certainly more so than other businesses. Your clients do much of the work, you don't have to get a degree or go through licensing procedure and there is little that is overly technical.
2. It is a steady business as all people do laundry and do it on a regular basis.
3. It can be a very profitable business and there are no receivables. People tend to like collecting cash too!
4. Flexibility in work hours is a very attractive feature of the laundry business. There are no set hours and it is highly unlikely you need to be at a store 40 hours a week.
5. Potential for multiple locations. Once you own and operate a store you can develop a system and rhythm and learn how to efficiently duplicate your efforts. You don't have to reinvent the wheel on subsequent stores.
6. Little management or need to deal with employees.
7. Potential for your children get an early start on work and an introduction to entrepreneurship.
8. Tax benefits by means of depreciation and general business expenses.
These reasons motivate the self starter or the person who wants to get away from the corporate life, the commute, the 8-5 hours, the business suit and politics that goes with that world. The Laundry business is truly the poster child for the "KISS" concept.
Ok, let's buy a Laundromat! Woo Hoo!
Well, I would be remiss if I didn't point out a few things you may want to consider. This is by no means meant to discourage you but you may want to ponder these aspects of the business before jumping in with both feet.
By way of example; I recently sold a store for a gentleman who thought owning a store would be fabulous for many of the reasons I mention above. On top of that his son owned a store and told his Father how much he enjoyed and profited from the business.
This gentleman was a retired Fireman, an owner of another business that required little time or customer service and he was a man who liked things neat and in order. Also, the store he bought was about 45 minutes from his home. To top it off he was, for all intents and purposes, retired and really didn't need to make extra money.
He quickly determined that he didn't like the business. The occasional drive at odd hours was too far, a Laundromat is not always a neat and orderly place and people don't always treat your store with the utmost in respect. And this store was on the smaller side so the profit, though it had more potential than he realized, was never going to make him enough money to change his already comfortable life.
In short the day he sold the store was similar to the day the proverbial man sold his boat; it was the happiest day of his life!
Time to explore some reasons the Laundry business may not be for you.
1. The capital investment can be substantial
2. All businesses are a risk and this is no different. It's very competitive
3. Costs keep on rising. Utilities and Rent can consume up to 50% of your revenue
4. A store is typically open 100 or more hours a week
5. You may need to handle emergency situations at odd hours or the weekends
6. Customers will abuse your store and maybe your psyche
7. Consider your personal safety due to locations of some stores
8. Are you willing to deal with the public and give good customer service?
9. Are you mechanically inclined? (not mandatory but it helps)
10. Are you ready to wear many hats? (janitor, clerk, mechanic, accountant, marketing and advertising specialist, bookkeeper)
11. Glamorous it is not!
Ok, let's buy a Laundromat! Woo Hoo! Or, maybe not.
Again, this is not meant to discourage anyone. There are many great reasons to get into the laundry business and to be sure many love the business and profit greatly from it. Since many reading this may not have owned a store and have no way of knowing some of these things I suggest you consider these aspects of the business in addition to the many good reasons you have for jumping in.
All businesses, jobs or any endeavor have their down side or challenges. Hopefully this will help you to determine if your personality, desires and skill sets are conducive to the Laundry Business. After all, the last thing you want from your new Laundry business is to be put through the ringer!
|Helpful Resources To Assist In Selling And Buying California Businesses|
|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.
|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.
|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).
|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.
|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.
|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.
|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.
|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.
|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.
|Laundromat Due Diligence - Use Of Water Records, Conducting Investigation
A laundromat needs to be thoroughly looked over before a buyer should complete an acquisition. The income is important of course but, the path forward is even more important. Chuck Post, Laundry Advisor, Due Diligence Consultant offers laundry buyers valuable advise on this BizBen blog post.
|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.
|Is The Laundry Business For You? Pros & Cons From A Laundry Broker / Advisor
Is a laundry business for you? Read the Pros and Cons of buying and operating a small or medium sized card or coin laundry. If you have ever thought about buying a card or coin-op laundromat you should read this BizBen blog post by Steve Erlinger (Laundry Broker & Consultant at 949-500-5893).
|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.
|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.
|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.
|Laundry Expert Reviews: The Laundry Lease And Its Effect On The Valuation
Read why longer leases increase the value of a card or coin laundromat when buying or selling a laundry. Chuck Post (Laundry Broker, Consultant at 619-227-5711) expands on the topic of lease structures on the purchase or selling of a laundromat. Laundry sellers and buyers will want to read this.