Who needs to wash clothes? The answer is everyone! Washing clothes is as necessary as food and shelter. So everybody ought to be busting down the door of your Laundromat to wash their clothes, right? Incorrect! Every person found a place to do their laundry last week. To get that market, you need to provide a better place to do their laundry. Better can be any of the following:
- more convenient location,
- cleaner store,
- safe surroundings,
- superior equipment (cleaner wash),
- lovely mix of laundry equipment,
- nicer atmosphere & decor,
- climate controlled (AC),
- Additional services (attendant, WDF etc…)
Why ought to anyone get in to the Laundromat business? In the event you put your money in to a savings account you would get three 1/2% Return on your Investment (ROI). Terrific Money Market Money is currently paying around 10%. In the event you have a nice year in the Stock Market or invest in nice Mutual Fund you might get 15% ROI.
With Laundromats it is very feasible to recognize a 35-100% return on investment. Laundromats are also a Funds business. The advantages of a funds business are there’s ‘no checks in the mail’, no stock, no debts, and no account receivables because the customer pays in advance and supplies their own labor.
A coin operated laundry in Miami is a recession proof business. Economic circumstances have little effect on the general volume of business. A number of the best times for Laundromats have been in times of economic down turn. Presented monies are limited and citizens will defer purchasing and repairing household laundry tools.
There are several major tax advantages that are obtainable to the Laundromat owner including equipment depreciation & the deduction of any financing interest. These situations may direct to a very constructive tax position.
The basic formula in purchasing a Laundromat is to put down at least 30% (about $60-100,000) and finance the balance over a five to 7 year note. This together with at least a ten year lease will assure you a good-looking return on your investment even in the event you cannot renew your lease.
After the notes are paid off, the store is all yours and then the actual money starts coming in to the business. One time above the break-even point, a slight increase in volume creates a substantial profit.
About the Author: MySunnyLaundry , want to change the way they perceive cleaning , they want to change the way people do laundry , and they want to change the whole experience , bringing more services to you , make our shops cleaner and safer , more comfortable and making sure you had a better experience. Their best asset is Customers, and they know that!!!!