Is the coin laundry business right for you?
What are some of the advantages of owning a coin laundry?
Do you like to be your own boss? Are you willing to work hard at developing a new business? Most of all, are you looking for a healthy return-on-investment (ROI)?
If you’ve answered “yes” to these questions, the coin laundry industry may be an exciting industry for you to get into! Laundries can be solid investments generating a ROI of 20% to 35%.
- Absentee ownership.
- It is not labor intensive.
- There is no personal selling involved and no perishable inventory to stock.
- A coin laundry provides a service that is recession resistant because clean clothes are a daily necessity.
- Customers pay in advance with cash (no accounts receivable or bills to collect).
- Coin laundry is an established industry – it has been around for many years and is not a fad.
- Consistent income. There are only slight fluctuations in business of about 10% depending on the weather.
- Few or no employees are needed to run the business.
- No special skills, training, higher education degrees, or experience necessary.
How to recognize a good coin laundry location?
- Demographics large families, high amount of rental households, and high amount of poverty households.
- Long term lease.
- Good parking- easy to access parking lot with plenty of parking.
- Well lit- the store needs to be bright inside and out.
- Contact us for a free consultation.
What does it Cost to buy a Coin Laundry?
Typically, a coin laundry is valued at 3-5 times the net profit depending on many factors. Some factors include the length of the lease, condition of the equipment, and location. Financing is available to buyers.
- Seller Financing — it is common for the seller to carry back a note. Often you can negotiate attractive terms with the seller when you buy the coin laundry. Sellers usually require a down payment of 30-50% of the purchase price. An interest rate of 5-8% and a loan term of 5-8 year fully amortized are typical.
- HELOC — your Home Equity Line of Credit.
- SBA Loans — Small Business Administration loans can fund a coin laundry business purchase.
- Private Investors — often friends and family will lend money to finance your business because they can receive a higher interest rate vs. bank CDs. It is also possible to find “equity partners” to invest in your business in return for a percentage of the business cash flow.