Starting A Coin Operated Laundry Business
You might be interested in a coin operated laundry business because of a few very enticing reasons. For one, it is recession proof and has a high rate of success. Laundry businesses require no employees in many cases or a very small amount if you think you would need a janitor or something of that sort.
The laundry business is often a low risk business to invest in because there is always a demand for laundry services.
Laundry businesses are usually on long term leases of about 10 to 25 years and are capable of generating some steady income during the span of the lease. What makes coin operated laundry businesses so appealing is because they require no inventory.
The market value of laundry businesses ranges from 50k to 1 million. They typically generate about 15k to 200k annually. The hours of operation for a coin laundry is usually from 6am to 10pm. Existing coin laundry businesses are priced according to their revenues. New coin laundries are valued on the cost of construction and the costs of the coin operated washer and dryers. Laundry businesses are great investments for building passive income stream.
The laundry service industry has been around for sixty years and most businesses are owned by individuals and not large companies. Out of the approximate 35k coin laundry facilities in the US, they generate about 5 billion dollars each year. Coin operated laundries are considered recession proof because clean clothes are something everyone needs in life just like food and a roof over head. Laundry facilities seem to succeed the most in areas where the population rents apartments. Every year there are more and more people renting as a result of population growth and the economy. This means that there is a growing number of customers in need of coin laundry facilities.
Laundry businesses succeed in times of economic growth as well as declining economies. People will always need to wash clothes so the coin laundry business will grow when more people are unable to afford their own washer and dryers or the costs of repairs. In addition, many apartment complexes don’t have a laundry facility or they have unreliable machines.
Operating a Coin Operated Laundry Facility
Coin operated washer and dryer facilities has the basic areas of operation: Money management, maintenance, and cleaning. The only on-site operations are cleaning and maintenance.
The level of performance for a coin operated laundry business depends on several factors. The most significant factors include demographics, services offered, condition of facility, design, quality and quantity of washer and dryers, hours of operation, inviting building, and competitors in the area.
Conclusion
Now as always, is a great time to get into the coin laundry industry. In current times, coin laundry is a service provided to the public that is thriving more than ever and continues to grow. As demographics shift even more towards the growth of apartment occupants the business is predicted to prosper.
If you are interested in joining the industry you should talk to a professional or other experts in the industry before making a big decision.