When starting any business, there are certain things you need to take care of to make sure that your launch goes as smooth as possible. However, certain businesses require you to invest a significantly larger sum up front than others. If you’ve decided to open up a coin-operated laundry business, here are some considerations you need to keep in mind.
Do your research
It’s highly likely that you’ve decided to open a laundry business without any prior experience in this field. A lot of entrepreneurs check the numbers and determine that this business venture equals a good business opportunity. However, that’s the case with practically any business – in theory. So, to make sure that you don’t dive head-on into a completely mysterious territory, you need to conduct thorough research.
Check the market and see if there’s a need for such services in your area, find out how much you’ll need to invest to be able to open up shop and see how much money you will need to set aside for your monthly expenses. Also, apart from these, see if there are some areas where you’ll be able to save. For example, if you have basic repair skills, that’s something you can save up on by doing them yourself.
Invest more to spend less
Once you’ve done your research regarding the market, the next thing you should do is try to identify smart investments. For example, investing in high-quality energy efficient washing machines is always the best way to go, even though it is a big investment, but it will save you quite a lot of money in the long run. Not only does quality equipment last longer, but the energy efficient appliances waste far less energy, which will automatically reduce your repair costs, as well as the utility bill.
Furthermore, always use a quality commercial water softener (hard water conditioner) because sediment and scale deposit can really damage your equipment and that’s something you should try to avoid at any cost. Finally, invest in a good security system, because keeping the business safe should be the priority of any business owner.
Know what you’re getting yourself into
It’s important to know that a laundry business makes the majority of its revenue on weekends. This is because people are usually busy on weekdays. Aside from this, laundry shops are usually open from 6 am to 7 pm every day. Therefore, you can hire employees that will work on weekdays, but you should take the weekend upon yourself to avoid having to pay your employees extra because working over 40 hours a week costs at least one and a half times regular rates.
You can choose to keep your shop open 24-7 which can be your USP (unique selling proposition), but you need to understand that, even though you probably will be earning more money, your expenses will also increase. Besides, working over night puts your business, as well as your employees, at a much greater security risk. Therefore, consider all of these aspects before you actually start working.
The highs and lows
Your main customers are the people living in rented apartments, who either can’t afford or don’t have the permit to buy their own appliances and this number is constantly on the rise. Also, the sheer convenience of the services you are offering makes using those services particularly popular, as our lives are getting busier with each passing day. Therefore, you can be sure that you’ll always have work. However, since this type of business is already a part of the “mature market”, you can’t expect your business to suddenly start booming.
This doesn’t mean that there’s nothing in it for you and that you should give up on your business endeavour before you even start; this just means that you can’t hope to become extremely rich overnight. Instead, you can expect a steady monthly income that won’t be significantly affected by upcoming market trends. So, the smartest way to go would be to set up your shop in the area that’s currently experiencing population growth instead of choosing the area that’s already filled up to its capacities.
When thinking about starting a laundry business, you’ll need to think every step through to avoid any possible hiccups along the way. Also, you need to be aware of the fact that your initial investments will be significantly large. Yet, as with any other business, there are places where you’ll need to pay a bit extra but there are also places where you’ll be able to save up. So, be careful, play it smart, and enjoy your new business – you’ve deserved it!