How to start a laundromat business

How to start a laundromat business, step by step

1. 01

   Decide to buy or build

   Buying an existing laundromat gets you customers, machines and plumbing on day one, and you can check its sales. Building a new one lets you pick the location and the equipment, but you pay for every machine, water line, vent and permit before the first load.

   If you've never run one, buy. Building suits an owner who already knows the business and has found a neighborhood with no good store nearby.

2. 02

   Read the lease first

   A laundromat can't move cheaply, so the lease is the business. Look for at least as many years left, with renewal options, as you need to pay off the equipment. Check who pays for repairs to plumbing and the roof, and whether rent jumps on renewal.

   A great store with two years left on its lease and no renewal option is a risk, not a bargain. Ask the landlord about renewal before you make an offer.

3. 03

   Check the utility bills and machines

   Water, sewer, gas and power are the largest costs after rent. Ask the seller for at least twelve months of utility bills and compare water use to the sales they report. If the numbers don't match, the sales numbers are wrong.

   Write down every machine's brand, model and age, and run each one. Older machines cost more to fix and use more water, so price their replacement into your offer.

4. 04

   Line up financing

   SBA 7(a) loans can fund buying a business, equipment and real estate, up to $5 million. Expect a lender to ask for the seller's tax returns, the lease and your own experience, so gather those early.

   Get your EIN, which is free, and form an LLC before closing so the lease and loan are in the business's name, not yours. Open a business bank account the same week.

5. 05

   Pick payment and machines

   Coin machines are simple, but need a change machine and someone to collect quarters. Card and app systems let you change prices without visiting each machine and suit customers who carry no cash. Many owners switch machine by machine as old ones wear out.

   When you replace a machine, compare water use per load as well as price. Water and sewer can cost more over a machine's life than the machine did.

6. 06

   Add wash-and-fold and pickup

   Self-service income is limited by machine count and hours. Wash-and-fold, priced by the pound, uses idle machines during slow hours and brings in customers who will never sit in a laundromat. Pickup and delivery extends that to busy households and small businesses like gyms and salons.

   Price it per pound with a minimum order, and take card payments at the counter. Check what the nearest laundromats charge per pound before you set your own rate.

7. 07

   Make the store easy to find

   People search for a laundromat near them and check hours, prices and whether machines take cards. A site with your address, hours, machine sizes and prices, wash-and-fold rates and a pickup request form answers all of that.

   Replo builds the site and the request form, and every pickup request comes straight to you. Scheduling routes and charging for pickups runs through the tools you already use.

What it costs to start a laundromat business

What the main equipment and setup cost at list price for a new store. Buying an existing laundromat usually costs less up front, since machines are already installed.

Your first 30 days

1. Week 1

   Search and shortlist

   • List laundromats for sale within a short drive of home.
   • Visit each one at a busy hour and count machines in use.
   • Ask brokers for asking price, lease terms and machine ages.

2. Week 2

   Check the numbers

   • Request twelve months of utility bills and the seller's tax returns.
   • Compare water use with reported sales for every month.
   • Run every machine and list repairs or replacements needed.
   • Read the lease for years left, renewal options and repair duties.

3. Week 3

   Finance and form

   • Get a free EIN and file your LLC.
   • Send an SBA lender the lease, returns and your offer.
   • Get a quote for replacing the oldest machines after closing.

4. Week 4

   Prepare to take over

   • Put up a site with hours, prices, machine sizes and wash-and-fold rates.
   • Set a per-pound wash-and-fold price with a minimum order.
   • Plan the first week with the seller on site to train you.

Build your laundromat's site

Frequently asked questions

Is owning a laundromat actually profitable?

It can be, when rent, utilities and machine repairs leave room after sales. That's why the seller's utility bills and lease matter more than the asking price. A store with old machines and a short lease can lose money even when it looks busy.

Can I buy a laundromat for $15,000?

Rarely as a working store. A single commercial washer costs about $2,499 at list price, so $15,000 buys only a handful of machines. It may cover a down payment on a small store with an SBA loan for the rest.

How much does it cost to start a laundromat from scratch?

Twenty front-load washers, twenty gas dryers with coin kits and one change machine cost about $91,000 at list price. Rent, plumbing, venting, permits and build-out come on top, which is why many owners buy an existing store instead.

What are the cons of owning a laundromat?

High upfront equipment costs, utility bills you can't fully control, machines that break at busy times, and a lease that ties you to one spot for years. Coin collection and cleaning also need someone on site regularly.

Can I get a loan to buy a laundromat?

Yes. SBA 7(a) loans, up to $5 million, can fund buying an existing business, equipment and real estate. Lenders usually want the seller's tax returns, the lease and a plan for how you'll run the store.