Here’s How to Start a Laundromat Business With No Money!
Wherever you go in the world, laundry will always be there for you because it’s simply unavoidable. But, laundromats have made our lives quite simple by making us clean our laundry easily. All of this makes you wonder, how lucrative will it be to start your own business.
Have no money, you say? Here are a few calculated steps you can take to set up your own laundromat business with no money:
- Attract potential investors looking to place their money in your business.
- Take a business loan.
- Apply for local grants.
- Market your business online.
- Once you’ve gained traction, offer a pick-and-drop service for extra money.
- Plan your charges.
Individuals require clean clothing, yet most people, particularly apartment residents, don’t possess a washing machine or a dryer. Therefore, a basic laundromat could turn out to be a very profitable enterprise.
Even if opening a laundromat requires hefty capital, there are ways that you can open one without touching your savings account.
In this article, I have discussed how you can start a laundromat business without money.
How To Start a Laundromat Business With No Money!
Opening a laundromat with no money can seem far-fetched because the estimated capital of starting a laundromat business is $200,000 to $500,000.
But do you know that there are several ways to get the funds for your laundry startup? I have discussed a few ways you can achieve that.
#1 Attract Potential Investors
You can strategically gather a huge amount of money by attracting investors. Investors have massive experience in running businesses themselves, so they can not only lend you money but also offer some advice.
Investors are vital resources as they can provide you with financial support, however, convincing them to come on board can be a challenge. But there are certain ways that you can attract them.
- First, you need to design your business plan as simple and understandable as possible. Present it professionally and prepare a convincing presentation so the investors can have a clear picture in their minds without any doubts.
- Show proof that your laundromat business has a potential market. Investors mostly care about how much profit you will be generating, so you need to be certain about your laundromat’s pricing strategies.
- Create a realistic plan that should consist of the best-case scenario and the worst scenario in terms of revenue. Do your research regarding the laundromat business. For example, do market data and competitors’ evaluations.
If the investors are convinced that you know what you are doing, they will be on board easily to invest on your laundromat business.
#2 Take a Business Loan
Imagine you’ve got a great laundromat business plan, but you still aren’t sure about how you will finance your business. Fret not, because business loans have got your back.
Business loans are getting pretty common around the world as everyone wants to build their startups with unique ideas.
A business loan can fulfill all the funding needs that you may require to start your laundromat business.
There are several types of business loans that you can go for
- The most appropriate loan for a laundromat business would be SBA 7(a) loan also known as the Small Business Administration loan. An SBA 7(a) loan is a small business loan that is issued by a private lender but partially backed by the U.S small business administration.
These loans are quite hard to qualify for but they are great for financing startups because of their long repayment period as well as low-interest rates.
- Another option is term loans. These are basic loans, and you’ll get a full payment which you can utilize for your laundromat and pay back with certain interest later on.
- Equipment loans are another suitable option for opening a laundromat. This loan finances the equipment purchases which also acts as collateral. You can also go for alternative lenders but comparing the interest rate with the SBA loans, it will be higher.
How To Acquire a Business Loan?
Acquiring these loans is a hassle so here are some tips that you can use to get business loans easily.
- First, you need to determine the funds you need for your laundromat business. You’ll need funds for the equipment, property, utility hookups, etc.
- Once you’ve determined your total funds, you need to see where you can get the business loan from. There are several places you can get a business loan from which includes banks, private lenders, online lenders, or venture capitalists.
- Check your eligibility for a business loan by determining your credit score. A credit score lets the lender evaluate the probability of getting the loan back— a high credit score increases your chances of getting a loan.
- Eligibility for a business loan covers another important point. That is the annual revenue of your business. You can also provide a collateral guarantee which links the loan to your business or other assets and assures the lender that you’ll pay the loan with your private assets.
#3 Local Grants
Local grants are another great option that can provide you with the necessary funds for your laundromat. Local grants are offered by the state government to promote small businesses.
The Bank of America Charitable Foundation awards over $1M in grants to enhance social initiatives such as small business startups.
You may contact the nearest bank to learn more about the grants that are being offered in your region and choose the one that is the most appropriate for your laundromat business.
#4 Grants For the Differently-Abled
Grants for individuals with disabilities are available from several government authorities and private groups.
Certain programs, like the VR&E Self-Employment Track sponsored by the United States Department of Veterans Affairs, are intended exclusively for disabled veterans.
#5 Grants For Women
Several of these programs give at least some of the funding required to operate a laundromat.
How to Start a Laundry Business from Home With No Money?
If you have a washer and a dryer at home, then you can attempt to start a laundry business at home with no money and without investing a lot of money. You just need to make sure that your home is easily accessible for customers to easily pick up and drop off their laundry.
In this way, you’ll be able to avoid the great costs of owning a laundry business.
Apart from that, let’s discuss some more tips that can help you start a laundry business from home with no money.
#1 Market Your Business
Once you have decided that you want to run a laundry service at home, you just need to let people know to start attracting customers.
Creating awareness about your home-based laundry services is easy if you use social media. You can use these free platforms to your benefit and advertise your home-based laundromat.
» Read my blog post about: How Much Work It Is Owning a Laundromat?
Another best way to generate customers is by word of mouth, you can let your neighbors know and ask them to recommend your laundromat to other neighborhood people that they know.
This will instantly attract a few customers from people who live nearby.
Remember that the more customers you find in the start, the earlier you can pay back your loans.
#2 Offer Pick and Drop Service
Once you have your laundry business up and running, you need to figure out how you can retain the existing customers. Of course, you need to do an exceptional job in the services you provide.
However, apart from the washing and drying services that a typical laundromat provides, you can offer other services like a pick-and-drop service to further create value for your customers.
This can help you create more customers, as well as generate more profit since you will be charging a small fee for the pick-and-drop service as well.
Additional pick and drop service will benefit people who are short on time and can pay more for convenience.
#3 Plan Your Charges
One important thing that you need to keep in mind before starting your laundromat at home is how much you will charge your customers.
The majority of two-person homes do three to five loads of laundry each week, resulting in an average of 15 to 20 loads of laundry per month.
An average top-load washer can handle 12 pounds of clothes, on average. The maximum amount of clothing that can fit in a front-load washer is 15 to 18 pounds. In one cycle, a front-loading washer that is extra-large can wash 20 to 22 pounds of clothing.
Typical laundromats cost $2 to $4 per load and the cost of drying is somewhere similar to those numbers.
If you are opening a self-service laundromat then you can easily charge the same as above.
However, if you are offering a laundry care service where the customers only have to drop off their clothes and pick them up later, then you can charge the customers per bag for your laundry care services.
» Maybe this also could be of interest to you: Why Do Laundromats Businesses Fail?
Open a Franchise Laundromat
If you don’t have big money in your hands, then you can also consider opening a laundromat through a franchise. Opening a laundromat through a franchise can save you from investing in laundromat equipment, resources, and training.
Therefore, opening a franchise is an easy and fast way to run a laundromat business.
However, running a laundromat through a franchise will require you to operate things by their rules and business ethics, so you won’t have a full rule over the business.
Moreover, you’ll have to give a percentage of the revenue to the franchisor. You can reach out to multiple laundromat franchisors, see what they offer, and choose the best offer among them
Here are some laundromat franchises that you can consider:
- Speed Queen
- Maytag Commercial Laundry
- The Eco Laundry Company
- WaveMAX Laundry
- Zoom Express Laundry
- Express Laundry Center
» Read my blog post: High Cash Flow Businesses YOU Can Start or Own
Whether you decide to start your laundromat from scratch, open through a franchise, or start a laundry service at home, one thing is for sure, this line of business offers some good profits.
Overall, you just need a bit of researching and a well-constructed business plan to start your own laundromat business with no money. I hope this article helps you in opening your very own laundromat one day.