subject: Considering Buying a Laundromat [print this page] The Laundromat business is an attractive operation because of it's relatively low level of maintenance and potential cash flow. Many people consider this business as a retirement business because of it's "passive income" flow or as primary business, whatever attracts you to this industry, these are the key factors to be considered:
Return On Investment
Relative to the time spent on this business, a Laundromat operation offers very attractive rates of return. Some Laundromats are able to return up to 25% on Investment with minimal time spent on actually running it. In fact, many operators are absentee owners.
Absentee or Part Time Business
You can run a Laundromat with as little as 3 hours per week. Therefore, this can be the perfect part time business or absentee business. Many retired people go into this business because of it's appeal as a business that can be easily operated as a retired person and the income it brings in.
Tax Benefits
Because of the equipment included in a Laundromat, one is able to use depreciation of equipment against income which leads to great tax benefits.
Recession Proof
While Laundromats are not fully recession proof, people still need to do their laundry. Recessions usually force people, especially in lower income areas to cut back on the frequency of going to the Laundromat. But washing laundry is a must and regardless of economic environment, there always be a supply of customers.
Cash Business
Laundromats are an all cash business. What you make it's yours to keep.
Low Labor Requirements
Labor for Laundromats usually requires minimum skills, therefor labor costs are minimal. One can opt for part time workers or full time and equipment repair can be done at reasonable prices.
Minimum Inventory
Technically speaking, all the inventory you will ever need are for your vending machines. Laundromats function on water, electricity and gas. All variable expenses tied directly to how much the machines are used.
Easy to Sell
Laundromats are highly in demand because of the relative ease of operation and cash flow and there will always be a demand for them. Therefore, this is not a business that would require especial training or much advertising as most people know what a Laundromat does and how it operates.
Considering Buying a Laundromat
By: Ricardo Li
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