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The unemployment rate is dropping and the economy is growing. How are you taking advantage?
According to the National Association of Realtors’ Business Creation Index for June of 2017, 53 percent of the NAR’s commercial members saw an increase in businesses opening in their communities. Commercial laundromats are an ideal business venture for entrepreneurs looking for a new career or a profitable secondary business.
Here are 5 reasons why laundromats are the perfect venture to take advantage of a growing economy and the opportunities to start a new business.
- Laundromats Are in Demand
The shift toward renting, rather than owning a home, continues. Take New Hampshire, for example. The state’s rental market has experienced a 15% increase, while the vacancy rate fell to 1.5%. Some rentals, whether they are apartments or single- and multiple-family homes, do not provide laundry equipment for their residents, leaving the residents to look elsewhere. A properly placed laundromat meets a consistent demand for the service.
People work – approximately 62.7% of the population over age 16 in this country are employed – which means they are busy earning money and have less time for chores… such as washing clothes! Adding a wash, dry and fold service fulfills their needs even better.
- Laundromats Are Recession Resistant
Clean clothes are a necessity in life, not a luxury. People will make room in their budget to clean their clothes and they pay for service before it is rendered. Business will be stable and provides a steady cash flow
- Laundromats are Profitable
Once your breakeven is reached, about 75 cents of every dollar is profit. Buying and maintaining equipment, paying rent or a mortgage, and utilities account for the bulk out of your expenses, but these can be controlled a few ways:
- Secure a favorable long-term lease with the help of your attorney.
- Use energy efficient machines to reduce utility costs.
- Buy out an existing laundromat that has closed and has the plumbing, electrical and duct work still in place and functioning.
- Laundromats can be a Community Hub
A laundromat can do more than just provide a place for people to wash and dry their clothes. You have the power to create a comfortable environment where people want to go. Some customers, for example, feature iPad tables in their laundromats for customer to use, occupying children and allowing adults to complete other errands online. Other potential extra services include:
- Vending machines
- Food and beverage service
- Sales of laundry bags and accessories
- Free Wi-Fi
- Adding extras services also means adding extra revenue streams.
- Laundromats Require No Prior Experience
A laundromat, like any business, requires research by any prospective owner. However, laundromats are less complicated to run than many commercial ventures, such as a restaurant, making it a great first business to own.
And, don’t worry, you don’t need to take this journey alone. Here at Yankee Equipment Systems, Inc., we not only provide the best laundry equipment, we provide expert advice.
Contact us to find out how we can help you start your laundromat.
Join us for Yankee’s 38th Annual Vended Laundry Trade Show. When: Saturday March 12 and Sunday March 13, 2016 Where: Westin Hotel 70 Third Ave. Waltham, MA This March Yankee will host our annual Coin Laundry Trade Show. This will mark our 38th year of bringing Laundromat Owners and Industry Leading Manufacturer Representatives together under …
How would you like to pay anywhere from 4% to 8% of your gross laundry receipts to your state government by way of a sales tax? Can’t happen? Guess again!! Iowa, Hawaii, New Mexico and West Virginia currently collect sales taxes from laundromats. Several other states have considered or proposed imposing such a tax. Among …
You have owned a laundromat for a certain period of time and now you want to sell it. Maybe you are near retirement. Maybe you no longer have a passion for the business. Maybe you have attained the goal you had when you first bought. There are many reasons people sell. Assuming you are not selling due …
A high efficiency water heater does not have a lot of moving parts. Nonetheless, it does require periodic maintenance to operate properly and avoid a costly, catastrophic failure. Depending on the brand purchased different items may need to be checked. However, it is a safe bet that basic steps like inspecting intake and exhaust screens …
Every so often a customer wants to upgrade their equipment but can’t because of a clause in their lease or financing documents or other contracts. Some common clauses that catch people by surprise are automatic renewals in multi-housing contracts, renewal options on real estate leases, or blanket liens on new equipment by lending institutions. Automatic renewals …
Years ago it was common for all laundry and dry cleaning operators to stock a good amount of repair parts at their location. Laundromats, hotels, skilled nursing care centers, commercial laundries, all had parts on their shelves. It was relatively cheap insurance. Since UPS took 2 to 4 days depending on the distance travelled and …
Speed Queen and Huebsch 10 Year Warranty All 20lb. through 80lb. vended cabinet hardmount washer extractors produced after May 14, 2007 come with a 10-Year Warranty on the following components: Frame Outer Tub Cylinder Shaft Bearings and Seals Bearing Housing The 25,000 cycle-count condition has been eliminated. The date of May 14, 2007 referenced above …
If you manage any type of laundry lint is an everyday fact of life. Washers create lint. Dryers create lint. Most washer lint is discharged during the rinse cycles. If a lint interceptor has been installed in your laundry most lint washer lint will collect there. The lint interceptor will require periodic cleaning. Some washer …
Counting and keeping track of key elements of your business are key elements in a well run business. Sports teams and large corporations count and track numerous components of their respective industries. Batting averages, earned run averages, goals against averages, unforced errors are key statistics in various sports. Pounds of waste per unit produced, accidents …