Investing in a laundromat can be a wise business choice. There is always a need for commercial laundromats, especially in apartment communities, on college campuses, and in other settings where residents or customers are without easy access to personal laundry facilities.
However, any smart business professional will want to make sure they are getting what their money is worth through one of these investments. Read on to learn more about why a laundromat can be a good investment for you as a business owner.
Laundromats Offer a Good ROI
Laundromats are among some of the most profitable businesses in the U.S., often seeing an ROI as high as 25%-35%. Most other types of business investments offer much lower returns if any at all. Most other types of business carry high risks that are unattractive for budget-conscious business owners.
Another statistic that probably looks good for business owners is a 94% success rate. The odds of a laundromat failing to produce any type of return are very low indeed. If you’re looking for something sure to give you a good income without risking anything, you won’t go wrong by picking a laundromat.
Investing in a Laundromat Allows Maximum Flexibility
If you’ve thought about investing in a laundromat, you can set one of these facilities up in a way that suits your lifestyle. New laundry equipment has been designed in a way that makes self-service as easy as possible. You might opt to have your equipment coin or card-operated, according to which option works best for your business type.
For example, a staffed laundromat might feature machines that use coins, while laundromat facilities mostly used by employees at a hotel or healthcare facility might use employer-issued cards. Because the machines use the latest “smart” technology, fewer employees are required to keep everything managed, with as few as one person necessary in many cases.
When your laundry facilities are 100% self-service, you won’t have to worry about the various hassles involved with having employees run your facilities. If coin-operated, you will need only think about collecting the coins on a regular basis, possibly daily or weekly. Otherwise, you will likely only need to think about having additional people on hand when something goes wrong, and the machines require servicing. In these situations, help will come from your laundry equipment service provider.
Laundromats Are Easy to Run from a Management Perspective
Depending on your circumstances and how your business is structured, you may be able to write off your purchases of laundry equipment as business expenses. As a type of equipment, the washers and dryers will depreciate over time, which means that you may be able to write the depreciation off as an expense. Regardless, you will do well to consult with a tax professional to discover your options available for writing off expenses related to your laundromat.
One thing that many find helpful about operating a laundromat is the simpler accounting methods that are available. Because users pay upfront, you won’t have to incorporate some of the methods more typical of business models that rely on subscriptions or regular billing. Running a laundromat isn’t a 1005 “fix it and forget it” business model, but the experience of easy management comes pretty close.
Investing In a Laundromat: Where Do You Find the Best Equipment for Commercial Laundromats?
If you’ve decided to step into the world of commercial laundromats, one of your first, most important steps is to find the equipment that you need. Choosing a provider with the equipment using the latest technology and the service you need when something goes wrong will help you get everything started right.
RJ Kool offers the laundry equipment you need to run a successful laundromat. Contact us today with all your questions about investing in a laundromat.