Are you looking into investing in a new business? Then you may have considered your options and found the laundry industry to be a viable option.
But should you really get into the laundry business? Read on to find out!
Should You Get Into the Laundry Business?
Getting into the laundry business is a great idea because you have a wide target audience who require laundry services. Here are some of the benefits it offers:
- Great Success Rate
Many potential entrepreneurs are afraid of failure. Fortunately, laundromats have higher chances of success compared to other businesses. One study showed that laundromats have about a 95% of success rate throughout five years.
As long as you work hard and plan strategically, you can set your future laundry business up for profit and overall success in the long run
- High Return of Investmen
Surprisingly, laundromats have a high return on investment, with successful businesses averaging about 20-35% during their first year! As long as the location and equipment are ready, along with necessary business permits, laundromats can begin operations and turn a profit soon enough.
- Recession Resistant
Even during poor economic times, or even amid the pandemic, laundromats still found profit. People would rather go to self-service laundromats than choose outsourced laundry services to save. Furthermore, people wouldn’t be willing to purchase or repair laundry machines at home when money’s tight, so they head to their local laundromats.
- No Lead Times
Laundry equipment can accept cards, cash, and even through mobile payment, so it’s a relatively quick cycle. Compared to 30-60 day cycles in other businesses, laundromats have no lead times so there are fewer worries in the cash flow
But just like any other business venture, there are a few things to watch out for:
- Substantial Investment
From the rent down to expensive laundry equipment, you have to think of how much the initial and long-term investment is! You will also need to think about purchasing commercial laundry parts from reputable places like Laundry Replacement Parts in the long run! There’s a lot of things to invest in, so expect to require a big capital.
- The Competition
All businesses come with competition, that’s a no-brainer. And with the rising number of competitors in the laundry industry, you need to bring you’re A-game to be successful.
You’ll be competing with numerous laundromats in your local community, along with multi-housing facilities that might already have their laundry equipment. Not to mention, homeowners may have invested in necessary laundry machines, too.
- Costs Continually Rise
Investors have mentioned that rent and utilities, along with other accessories and expenses like dexter laundry parts for maintenance, are pricey. These are the biggest expenses and negatively impact your investment and cash flow if you don’t handle it right!
Wrapping It Up
Thinking of owning a laundry business? Before that, consider whether it’s a good option based on the location and target audience. Good luck!