How Much Does it Cost to Open a Laundromat?
If you want to know how to open a laundromat, you’ll probably have questions like:
- How much does it cost to start a laundromat from scratch?
- What is the cost to start a laundromat?
- How can I finance the start-up costs for a laundromat business?
Almost every household in America needs to wash their clothes regularly. However, not everyone can afford a washing machine and a dryer. Therefore, a laundromat can be a lucrative business. Additionally, laundromats can run autonomously and stay open 24 hours a day, potentially earning thousands of dollars each month.
But how much does a laundromat cost? As we address this, we’ll also offer some tips for your laundromat business plan:
How to Create a Laundromat Business Plan
As you learn how to start a laundromat, you’ll need to create a laundromat business plan.
As part of the planning process, you must consider the following:
How much will your laundromat cost?
When we consider how much it costs to open a laundromat, it could cost you anywhere between $100,000 and $200,000 to purchase an existing business, depending on the location.
If you want to purchase a laundromat in a large city, it will be more expensive than in a smaller location. Additionally, some states are significantly more costly than others. For instance, buying a laundromat in New York will be much more expensive than purchasing one in Alabama.
If you want to know how to open a laundromat for next to nothing, you can start one out of your home for little to no upfront cash. However, total start-up expenses for a small laundromat outside of your home will cost anywhere between $100,000 and $250,000.
What are your ongoing expenses?
When we look at how much a laundry business costs, we must consider ongoing expenses. You can expect to pay anywhere between $200 and $2,000 per commercial machine for water and heating (on an annual basis). Plus, you’ll have to set aside maintenance money—the average costs of repair to a commercial washing machine range from $50 to $150.
Who is your target market?
Ideally, you’ll want to cater to businesses with long-term service contracts. This includes hotels and companies with high laundry turnovers. However, the general public can also create a consistent stream of revenue for your laundromat business. Your ideal customers will live in apartments with no laundry services on-site. So, you may want to locate your laundromat near some apartment complexes without laundromats.
Understanding Budgeting Needs
When calculating how much to open a laundromat, it’s essential to understand your budgeting needs.
To do this successfully, you must work out:
- Business Entity Fees
Check how much it will cost to create your business entity. The state you file your business in and the business structure you choose will determine how much you have to pay in fees. Typically, start-up paperwork costs between $200 and $1,000.
- Build or Buy?
Determine whether you will build a new laundromat or purchase an existing business. If you decide to create your own laundromat, 2,000 square feet of space can cost anywhere between $200,000 and $500,000. Buying an existing business could work out to be cheaper, depending on the location and quality of equipment.
- Machine Costs
If you’re starting from scratch, you’ll need to budget for washing and drying machines. Top-load machines cost between $500-$700 each, while front-loaders can cost anywhere between $3,500 and $20,000 per piece. Stacked dryers cost between $5,000 and $6,000. Therefore, an average-sized laundromat can cost between $150,000 and $400,000 to stock with commercial machines.
- Municipal Fees
When people wonder, ‘how much is a laundromat business going to cost me?’ municipal fees are often overlooked. Cities charge laundromats fees to hook up sewage and water lines via wastewater fees, tap-on fees, and impact fees. These charges can range between $200 and $8,000 per machine. We recommend contacting your local water authority to find out which costs will apply to your laundromat business.
Finance Your Start-up Costs
Now you understand the basics of how to open a laundromat. We provide several finance options to help you get started, including:
SBA Loans
We’re an official Small Business Association partner. As such, we simplify securing an SBA loan and can implement flexible and affordable payment options.
Merchant Cash Advance
Here at L3 Funding, we make it quick and easy to apply for a business cash advance without lengthy processing times and stressful paperwork.
Unsecured Loans
Having access to quick capital could change the outlook for your laundromat venture. With an unsecured loan, collateral is not required. Additionally, you could be approved in under 24 hours!
Secure Financial Funding Today
We can help make your dream of opening a laundromat a reality. Contact us today to find out which of our merchant funding solutions are right for you.