The unemployment rate is dropping and the economy is growing. How are you taking advantage?
According to the National Association of Realtors’ Business Creation Index for June of 2017, 53 percent of the NAR’s commercial members saw an increase in businesses opening in their communities. Commercial laundromats are an ideal business venture for entrepreneurs looking for a new career or a profitable secondary business.
Here are 5 reasons why laundromats are the perfect venture to take advantage of a growing economy and the opportunities to start a new business.
Laundromats Are in Demand
The shift toward renting, rather than owning a home, continues. Take New Hampshire, for example. The state’s rental market has experienced a 15% increase, while the vacancy rate fell to 1.5%. Some rentals, whether they are apartments or single- and multiple-family homes, do not provide laundry equipment for their residents, leaving the residents to look elsewhere. A properly placed laundromat meets a consistent demand for the service.
People work – approximately 62.7% of the population over age 16 in this country are employed – which means they are busy earning money and have less time for chores… such as washing clothes! Adding a wash, dry and fold service fulfills their needs even better.
Laundromats Are Recession Resistant
Clean clothes are a necessity in life, not a luxury. People will make room in their budget to clean their clothes and they pay for service before it is rendered. Business will be stable and provides a steady cash flow
Laundromats are Profitable
Once your breakeven is reached, about 75 cents of every dollar is profit. Buying and maintaining equipment, paying rent or a mortgage, and utilities account for the bulk out of your expenses, but these can be controlled a few ways:
- Secure a favorable long-term lease with the help of your attorney.
- Use energy efficient machines to reduce utility costs.
- Buy out an existing laundromat that has closed and has the plumbing, electrical and duct work still in place and functioning.
Laundromats can be a Community Hub
A laundromat can do more than just provide a place for people to wash and dry their clothes. You have the power to create a comfortable environment where people want to go. Some customers, for example, feature iPad tables in their laundromats for customer to use, occupying children and allowing adults to complete other errands online. Other potential extra services include:
- Vending machines
- Food and beverage service
- Sales of laundry bags and accessories
- Free Wi-Fi
- Adding extras services also means adding extra revenue streams.
Laundromats Require No Prior Experience
A laundromat, like any business, requires research by any prospective owner. However, laundromats are less complicated to run than many commercial ventures, such as a restaurant, making it a great first business to own.
And, don’t worry, you don’t need to take this journey alone. Here at Yankee Equipment Systems, Inc., we not only provide the best laundry equipment, we provide expert advice.
Contact us to find out how we can help you start your laundromat.