Pros and Cons Of Opening A Laundromat

in this video I'll be talking about the pros and cons of opening a laundromat laundromats can be a great way of creating additional passive income for yourself but just like with any business there comes headaches if you ever thought about getting into the business this video might give you a broad overview of what to expect hey everybody my name is Mike I've owned the laundromat for a couple years this on this channel I post a lot of videos three videos a week about laundromats so if you're interested in ever getting to the business so you already have a laundromat I'd appreciate it that you just hit the subscribe button and you can check out all my new content updated weekly I also post other videos about real estate investing and other businesses that I own and general stuff that I talk about okay let's get into it the pros and cons of opening a laundromat Pro number one to cash business you know waiting for checks the waiting for payments all customers have to pay before they use the machines so you never have to worry about not getting paid or you know waiting on a check in the mail customers are basically renting the machines from you Pro number two its recession resistant meaning when the markets go down business usually stays the same historically no matter what you know it's essential people always need to wash clothes so they're always going to be coming to the laundromat no matter if the market is really good or the market is really bad so you can always depend on that revenue no matter how the markets doing Pro number three it's a simple business accounting is really simple there's no advanced County needed no cost of goods sold people come in they use the washers they use the dryers really simple accounting nothing too complicated if you have an unattended mat you have no employee paychecks you know no payroll keeps it really simple especially for your tax time and you know if your accountant Perot number four would be market growth once you get the basics down of your laundromat it's really easy to get another location multiply your basically multiply your success once you know the basics you can just duplicate it you know if you got something that works it's really easy to duplicate you don't have to worry about you know everything is really simple and laundry business so you can always multiply pretty quickly as long as you have the cash all right on to some cons of owning a laundromat the first con would be it's in a really expensive business to get into it's probably cheaper your best bet is to buy a zombie mat which is basically a laundromat that has been a little bit rundown over the years it's dirty there's garbage everywhere it doesn't go out of busy doesn't get a lot of business because it just kind of been you know not taking care of so I mean go in there buy it renovate it fix it up get some new machines clean it and that's probably cheapest option creating a store from scratch is gonna cost you hundreds of thousands of dollars and if not for somebody that doesn't really know what they're doing but that's definitely a con is it's not rid of bootstrap business you can't get in for really cheap you're gonna have to put up some capital to capital to get into the business itself cotton number two its competitive there's a lot of laundry myths in my town of approximately thirty thousand people there's three laundromats there was a fourth one but it started on fire so there's three laundromats so one for every ten thousand people there is a you know a good need for laundry services and every town if your town doesn't have one and that's probably your a good time to build one from scratch but you know it's a competitive business so make sure you do your research before I open mine I walk through all the ones in my town checked out the prices kind of checked out their features just to see what they're all about before you know that way it can get a picture of how I wanted to build my laundromat you know your average customer is bringing in $600 a years so you want to make sure that you can get the new customers in and retain them to you know grow your laundromat count number three you kind of have to be the jack-of-all-trades there's a lot going on in the laundromat business so many things can go wrong at any possible day so if you're able to fix them it's gonna save you a lot of time effort and money you know if the dryer goes down if it's a simple fix you can just change it out really quick if you can read schematics watch youtube videos you know just kind of know how things work it's gonna be a lot easier for you to save money and time and get the equipment up and running you know I've hired a lot of professionals outs who fix on my equipment and they're not cheap they're not always available right away and sometimes they don't even warranty their work so something else can go wrong that's a simple fix and if you don't know any hit take enough technical knowledge about it it's gonna be hard fix or almost impossible for you to do it so always when you have those guys come out make sure you watch what they're doing you know ask questions and then you know you kind of you know save some money next time if you can fix it yourself another con is basically the cost keeps rising you know water's going up gas is going up electrics going up no matter what utilities keep on rising and rising rising so you got to be careful with this business because everything keeps going up nothing ever gets cheaper another con is the customer I would press a that's pretty much a kind of any business customers are always crazy I I have an unattended mat so basically my customers will call me if there's a problem or if they just want to put their two cents in and how to make the laundromat better I've got some crazy stories just like anybody that owns a laundromat I got 24-hour cameras on there so I can always tell if you know what's going on and I've seen some crazy stuff I always just shake my head at some of these customers but that's the kind of business you're in so you gotta you got to take it with a grain of salt but that's gonna wrap up this video thanks for watching if you have any comments about anything put them in the comments below and I'll get back to you and reply to all comments so thanks

Channel: Michael Gersitz

Views: 63,642

Keywords: laundromats, pros and cons of laundromats, opening a laundromat, positives of laundromats, should i open a laundromat

Id: SAuCM6x10FE

Length: 7min 27sec (447 seconds)

Published: Wed Nov 13 2019