In today’s harsh business climate, many would-be entrepreneurs may be afraid to launch a new company. However, even in tough times, certain tried and true business models still work. One of these is the laundromat business. Everyone needs to clean their clothes, and you can make a lot of money helping people do so.
Here are some tips for growing a wildly profitable laundry business.
1. Choose the Right Location
One of the keys to maximizing your profit in the laundry business is choosing the right location. In most cases, this should be a short distance from apartments, dorms, or other living quarters that are likely to lack their own laundry services.
Finding the right piece of real estate can be difficult, so give this part of the process some time. If you can find a prime location without any competitors, you may be able to make a lot of money.
2. Design Your Business Plan Around Passive Income
Next, you should design the business plan for your new company. This will be useful in regards to borrowing money to start the business. Even if you don’t need to borrow, you should make a business plan anyways. Think of the business plan as your blueprint for making a profit.
In regards to running a laundromat, you want to create passive income. Passive income is revenue generated from activities that you do not have to be present for or active in. This can be true for a laundromat. While some upkeep will be needed, laundromats are self-service businesses.
People insert money into the machines and wait while their clothing is washed and then dried. You don’t actually have to be there for this to happen. The money simply has to be collected from the machines after closing time. When drafting your business plan, you can estimate your laundromat profit margin by using an online revenue calculator.
3. Localize Your SEO
There is no better example of a local small business than a laundromat. However, today, consumers tend to find the businesses they want to patronize through their phones and the internet. In fact, 97 percent of consumers use their phones as the primary tool for finding local businesses.
If someone searches the name of your town plus the word laundromat, your business should come up near the top of search results. If it does not, you have made a serious error somewhere in your SEO. In that case, make sure both your location and your business type, laundromat, are optimized together on your landing pages.
Also make sure your company and its physical address are listed on Google My Business, other online business directories, and online map services. Doing so can drive consumers directly to your business and greatly increase your revenue stream.
4. Team-Up with Other Local Businesses
Due to the very local nature of the laundry business, another way you can gain a foothold in a community is by collaborating with other local businesses regarding your marketing efforts. One classic example is the use of fliers.
Many local businesses, such as restaurants, would be fine including fliers for your business near their entryway as long as you promise to return the favor. You can even make some of those businesses your clients. Many local businesses have laundry that must be cleaned. Giving them a discount for a high volume of business can be one way to produce goodwill between both companies.
Another option is including coupons on printed receipts at other local businesses that can drive-in customers. There are almost limitless possibilities.
5. Offer Added Amenities
Drawing customers to a laundromat these days should involve providing a little bit more than just washing machines and driers. Go the extra mile and add some amenities that will help please your customer base. At the bare minimum, this should include a Wi-Fi hot-spot and television.
Added amenities can be laundry-related as well like fold and fluff services. A few old-school arcade cabinets like Frogger and Donkey Kong can add some retro flair. You should even include some vending machines. Not only will your customers be able to get a snack, but this can increase your passive revenues as well.
Overall, there’s the possibility of making a lot of money in the laundromat business. However, it requires a lot of work to get a profitable laundromat up and running. It takes even more work to market it properly and keep customers satisfied. However, with the right amount of effort, you can make the kind of passive income you have only dreamed of.
Amy Sloane is an alum of Oregon State University where she studied marketing and business. She spends her free time writing and is a knitting enthusiast. Amy loves reading, cooking, and spending time with her dog, Molly. Follow her on Twitter to read her latest blogs! @AmySloane2