Have you ever dreamed of owning a business and making cold hard cash without being actively involved in its operations? That’s the general idea of smart, passive income. Savvy entrepreneurs today look for opportunities that require them to spend a minimum of their time while generating them a liquid income. One key opportunity in this regard is the business of Laundromat.
What is Laundromat?
Laundromats are a type of business that can deliver a steady flow of cash with a minimum to zero attention from founders. Laundromat entrepreneurs often end up earning beyond the revenue from dryers and washers. People living across multi-family properties are the ideal demographic. Laundromats are usually set up in densely populated areas to attract a large customer base.
If you’re thinking of giving this business a shot, it’s best to discover what to expect in terms of set up fee, management efforts, costs, bills, and more. Here are some quick tips on how to handle the moving parts of Laundromats, and how to use them to create a passive income stream.
1. Buy in bulk
A great way to cut your initial investment in half is to purchase in bulk. Credit-functioning dryers and washers cost $800-$1000, while the conventional machines fall in the $500-$600 price range. Buy both varieties since debit and credit cards aren’t accessible to everyone.
2. Hire staff for maintenance
Maintaining a Laundromat is essential to attracting and retaining customers. To create a passive income stream and avoid doing this chore yourself, hire a few people to maintain your Laundromat. Task them with the responsibility of visiting the shop daily, undertaking basic duties, collecting funds, managing customer complaints, and even contacting various vendors for repairs.
3. Automate the change process
Another good idea is to stock your Laundromat with a plethora of quarters. Invest in a few change machines and put them in a convenient area within the place of your business. Fill them regularly to ensure they never stop spitting out change. You can also use the staff you hire for Laundromat maintenance to look after these machines, as well as get long-term warranties.
4. Offer amenities
People are busy, and they hate taking out time to wash their clothes, but do you know what they love? Games, WiFi, and other similar essentials. Laundromats that offer these extras thrive while those that don’t fail to make a sustainable income. Therefore, owners should work to put some humanity into this experience to ensure they capture the minds, hearts and coins of prospective buyers.
5. Analyze the competition
Another crucial aspect of running a Laundromat is to analyze the competition. In other words, see what other Laundromats are up to. What is the quality of their dryers? Is their machine machine eco friendly? Do they have WiFi? What number of customers do they receive on a daily basis? Many of these things play an essential role in not only analyzing competing businesses but also the state of the laundry business in the local market.
According to the data from coinlaundry.org or Coin Laundry Association, washers are run 3-8 times on a daily basis. On each operation, they bring around $2.50 +/- in revenue. Dryers, on the other hand, bring 40 – 60 percent of that amount. This should give you an idea of the timeline in terms of ROI and passive income.
Ready to take the leap?
Operating a Laundromat can be thriving venture in the evolving business landscape. Identify the right location, get the right essentials, and find someone to take care of maintenance. Also, improve upon your existing competition. If you do all these things well, you’ll be able to make good money without a lot of involvement in the business.
And once you start earning a passive profit, reinvest in the same business. Get more machines and dryers, or simply launch additional perks for your customers. It’s like a puzzle that comes together to create a thriving income source that doesn’t need your active involvement.