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