Forums: Discussions for entrepreneurs and small business.

Hello folks! Let me first say that I am very happy to have found this site(yes another newbie)! I am currently in the process of making a decision on purchasing a Laundromat in a growing town of now 20,000. There are currently 3 running here, but only one running well. My ultimate goal is to start/add a laundry pickup and delivery service to an existing laundromat. I think the possibilities are great in my area, and less risk involved with additional coins coming in from self serve. My situation is slightly complicated--I will try to explain the best I can.

 Laundromat "A" is in the south part of town. It is slightlyoff the main drag, but apartments and a motel nearly surround it. There is also a brand new elementary campus in construction that will bring tremendous exposure to the business and boost property values. One problem is that the real estate would not be involved in the purchase of this business. The asking price for this business is 200,000,( grossing nearly that), easily the most profitable laundry in town(currently the only one providing drop-off service) The only problem is the banks unease of loaning "goodwill". Granted it would be easier to combo my pickup/delivery service walking into a cash flowing laundromat, but here is scenario "B"

Laundromat "B" is located in the north part of town. This area has grown greatly in the last few years(ie. new hospital, wal-mart,etc.) This location has great visibility and includes the real estate. The asking price 350,000 includes great parking over 6000 sq ft and a leased carryout. The laundry is reportedly grossing approx. 50,000( I havent seen #`s)This laundromat is also surrounded by apartments, but the business has been dying for about 3 years. The gentleman who owned it recently passed away, and his health had kept him from maintaining the equipment, business, and building properly. I think adding the drop-off/fold service and gradually upgrading facility and keeping it clean could be quite promising. The current lease from the carryout and the laundry business would pay the bills, but I`m worried about rebuilding a dying business--I`ve been told that it is difficult to do.

I guess I am looking for some solid advice. I know that ultimately my  goal of starting a laundry delivery service will be considerably profitable in my area, but I hesitate on my decision only because I also know that it will take time to build a strong client base. In one aspect I would like to walk into situation "A", where I know if I continue to run the laundromat like it has been run for years, there would be very little risk. However, I will never own the real estate/ and my initial investment in a pre-built business is considerable. In another aspect, situation "B", even though it would cost more initially, I think the future long term investment is far better-I would get to build and tweak the business into exactly what I want and in the end, not only sell a profitable business, but also an appreciated piece of commercial real estate. 

I obviously have a direction that I am leaning but I would love to hear some feedback from any!

Also I believe it was Cartess that offered his laundry delivery start-up manual to Villareal, if anyone has it or knows where I could get it I would love to hear from ya!

Thanks for your time--Ed

Over the course of my life, when I`ve thought about what I`d invest in if I had money, I`ve had three basic ideas: Laundromats, Car-washes, and a well-established neighborhood bar. The bar I`ve kind of soured on, having learned more about what "well run" means.

But laundromats and carwashes are, I think, a really superb opportunity.

We live near a somewhat overcrowed and run-down town. There are all the seedy shops, laundromats, and signs of struggling economics. However, there`s one particular laundromat that really stands out. It`s called The Purple Kangaroo.

Despite what people on the tagline thread recommend, myself included, here`s a fantastic use of graphics, logo, and "oddness." You see the sign from a mile away, it catches your eye, but it makes no sense. So you keep looking at it. Then, as you pass by, you see it`s a laundromat.

It`s clean, well-lit, in good order. It`s remarkable, and without even having a need for a laundromat, I made a note and remembered that it`s there. THAT`s genius!

If you hold the laundromat, include a "folding" service, where people can drop off their laundry and for a fee, have someone on-site change it to the dryers, I think you`ll get business. Then if you eventually decide to pick up and drop off laundry, that would likely do well too. It`s just going to be employee-sensitive.

I`m not sure you`ll easily find someone to man the machines and drive the trucks. Look at diaper services, for a model. Not so easy to keep the logistics up on those, and I`d think a similar problem with a delivery service.

But simply having someone in the laundromat to keep the place running well, fold laundry, or change it between dryers and washers---that would make sense.

Apropos which one, I`d go with "B." Apartment complexes usually have laundry rooms, and the rundown neighborhood doesn`t bode well for safety issues.

Thanks Craig for your thoughts and suggestions. That is a great name --not making much sense seems a brilliant marketing niche, I`ll keep that in mind!-------------E

After reading your post I think I have the solution for laundry pickup. If you want to start your own pickup business you might want to look at http://www.mylaundryonline.com

You need to have the economy of scale in order to pull this off. Try finding a retail outlet with a low rental and is near to offices or up market residential area.

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Seo Consultant | Rattan | Microsoft Dynamics Nav | Autism Singapore | Industrial For Rent | Business Park | Gallbladder Surgery Singapore

Check out how we do business at coinmach. You might find it helpful in your laundry delivery service. Send us an email if you have questions.

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Steve [url=http://www.coinmach.com/]laundry room equipment[/url] [url=http://www.ioausa.com]Independent Insurance Agents[/url]

Be careful.  If you don't know how to build a laundry - might want to find one that is already profitable.  Make sure to get Gross Revenues proven.

Likewise, anyone that gives you a choice doesn't have enough information.  Doesn't it matter:

• What cost is to get machinery up and running.  (you have to measure THE WHOLE investment required against returns to see which will return more)
• Population & income within radius (not too many upscale use laundry).
• Local competition (within laundry radius (3-? miles)?)   How many companies will you be dividing the business up with?
• Operating costs? One might have more efficient equip or lower tax/utility costs?

Much to consider - be careful - if you aren't sure, find someone who is and can advise you!!!

 

Good luck

 

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Ed
Business Optimization - www.businessoptimization.biz