January 07, 2025

How to Start Up a Laundromat Business

Interior of a laundromat business

A laundromat business can be a lucrative venture because clean clothes are always a necessity, regardless of economic conditions. Still, like every business, a strong start and proper maintenance are critical to its success. This post explores 8 key steps for starting a laundromat including market and legal factors, startup costs for a laundromat, and more.

1. Conduct Thorough Market Research

When exploring how to start up a laundromat business, first determine whether there’s a good demand for laundry services or a new laundry in your area. This requires extensive research of your competitors and target customers.

For competitors, look into their pricing, services, equipment, operation hours, and any gaps you can address. For customers, study their demographic factors using surveys or state and federal resources. Additionally, identify their needs and frustrations with existing laundry services. This will help you tailor your services and set you apart from the competition.

2. Choose a Business Model and Structure

Depending on your market research, another key step in how to start up a laundromat business is to decide which services you’ll offer including self-service, wash-and-fold, dry cleaning, and pick-up and deliveries. Determine how you will price these services based on factors like market rates and your expected quality.

Additionally, decide whether you’ll operate as a sole proprietorship, general partnership, limited liability company (LLC), or a corporation. You can enlist the help of an attorney and accountant as this influences taxes and liability matters.

3. Find a Favorable Location

Good visibility and accessibility are major considerations in how to start up a laundromat business. You’ll want to prioritize locations with decent foot traffic and access to good infrastructure. Additionally, the presence of complementary businesses like grocery stores offers convenience to customers and nearby parking attracts customers with bulk laundry needs.

Areas with dense populations, college students, lower average income, and upcoming rental apartments are usually high-target areas for laundry services. And when it comes to purchasing or leasing a facility, remember to find one that fits your expected traffic, layout, and utility needs.

4. Estimate the Upfront Costs

The startup costs for a laundromat are generally high, ranging between $100,000 to $500,000, or even more depending on several factors such as location, real estate, equipment, staff, legal fees, marketing, and operational costs. A reasonable budget will inform the need for funding such as commercial bank loans, SBA loans, and manufacturers’ financing programs.

5. Draw Up a Business Plan

A well-rounded business plan is a critical consideration of how to start up a laundromat business. It determines feasibility, provides direction, and helps you anticipate risks. A comprehensive plan typically includes:

  • Executive summary
  • Company description and mission statement
  • Products and services
  • Target market analysis
  • Marketing and sales strategies and operation plan
  • Management and organization
  • Financial projections

6. Register Your Business

Legal processes are core aspects of how to start up a laundromat business. First, aim for a memorable, catchy business name, and then register your business depending on your chosen business structure. Acquire requisite permits and licenses through relevant state or local authorities. You may also need an Employer Identification Number (EIN) based on your chosen business structure or if you’re hiring staff.

Other important considerations include a business bank account and insurance.

7. Invest in Quality Equipment and Other Facilities

a green elevated vinyl laundry basket truck
Equipment is the heart of a laundromat business. When considering how to start up a laundromat business, aim for industry-grade washers & dryers, laundry carts and trucks, folding tables, laundry scales, ironing machines, garment racks, and other essentials. Although they may drive up the startup costs for a laundromat, they can reduce maintenance costs, keep your customers happy, and maximize profits. However, strike a balance between customer experiences, durability, and utility costs. Pay attention to important equipment specifications like energy efficiency and capacity.
You can also invest in other facilities that enhance customer loyalty such as TVs, Wi-Fi, security systems, vending machines, seating areas, kids’ play areas, and more.

8. Create a Targeted Marketing Strategy

Consider various online and offline ways to promote your laundromat business such as social media, website, Google Business Profile, and referrals. Communicate your value propositions, unique selling points, location, promotions, and more.

Get Off to a Solid Launch with Trusted Supplies

For over 75 years, R&B Wire Products has been an industry-leading provider of laundromat supplies trusted by hundreds of thousands of customers. Therefore, you can trust our experts to guide you on how to start up a laundromat business with reliable equipment. Reach out today and learn how our products can help your business grow.