How do I invest in a laundromat?

Aug 24, 2023

We often discuss the advantages of investing in a Laundromat in New Zealand. These benefits span from the potential for impressive profits to the convenient setup and operation that can be managed from various locations. A laundromat presents an opportunity for an ideal source of passive income. However, we haven’t delved into the process of how one can invest in a laundromat and what this endeavour might entail.

You have two primary avenues:

  1. Purchase an existing laundromat/laundrette.
  2. Scout for a suitable site and establish your own.

Acquiring an Existing Laundromat:

When considering the acquisition of an existing business, it’s important to recognize that you might be paying a premium for the work that’s been invested in setting up the establishment. Nonetheless, this approach can help mitigate risk, as you can gauge the business’s revenue and profitability by examining its cost structure.

The most attractive existing laundromat to purchase is one that may appear run-down. Opting for a well-established business, rather than a recently opened one, can offer substantial rewards. Upgrading the equipment often leads to substantial revenue increases. For instance, we’ve witnessed an astonishing 400% increase in turnover after updating equipment in a laundromat. Innovations such as cashless payment integration during a refresh can contribute to these significant gains.

A word of caution: be careful when determining the purchase price. Older equipment may require replacement, so it’s essential not to overpay.

Buying a recently launched laundromat might come with a higher cost, primarily to circumvent some initial effort and decision-making. However, considering the circumstances, you might find it more advantageous to establish your own. Feel free to reach out to us to explore how we can facilitate this process.

Setting Up a New Laundromat:

Embarking on the journey of creating a new laundromat is not an overly complex endeavour, and we are here to guide you through every step. While many individuals immediately focus on finding the ideal location, we recommend you consider another aspect first.

Securing the Necessary Capital:

While a laundromat can yield remarkable profits, it requires an upfront investment. We suggest securing up to $100,000 to kickstart your laundromat venture. Additional financing can be arranged through our dedicated finance partner specialising in funding laundromats.

You might be wondering why some companies advertise lower capital requirements. The answer is straightforward: we possess a wealth of experience in building successful laundromat businesses. We have a long track record of success and with many repeat customers, it’s a testament to our commitment to honesty. Building your business properly is crucial; shortcuts can jeopardise your enterprise’s success.

So, once you’ve secured the necessary funds, what’s the next step?

Identifying the Perfect Location:

While we’ve detailed this process in previous articles, let’s provide a succinct overview. Consider factors such as the location’s proximity to residential areas with the appropriate customer demographic, the required site size to handle potential demand, convenient parking options, and an appealing physical environment. A pleasant experience is preferable, all else being equal.

While this might appear complex, rest assured, the next step simplifies matters considerably.

Engaging with a Reputable Supplier:

A dependable supplier not only equips you with the best equipment for your laundromat but also has extensive industry knowledge and can provide guidance. At Speed Queen, we are dedicated to supporting you through every stage of establishing your laundromat. From site selection to floor plan design, machine selection, and ongoing assistance, we’re with you every step of the way.

Are you ready to embark on your laundromat journey? Reach out to us!

Selecting the Appropriate Machines:

Choosing the right machines for your specific site can indeed be overwhelming due to the plenty of options available. Determining factors such as hard mount or soft mount, gas or electric, stacking configurations, and size all hinge on your location’s requirements. To find the best-suited solution, we recommend connecting with our team for personalised guidance.

SpeedQueen Machines

Promoting Your Laundromat:

Finally, don’t overlook the importance of promoting your new venture. Attracting and retaining customer interest is pivotal to your laundromat’s success. Here are some general strategies you can employ:

  • Distribute local flyers or brochures.
  • Utilise prominent signage.
  • Establish a compelling online presence through a website and social media.
  • Leverage Google AdWords for increased visibility.
  • Tap into the local business ecosystem.
  • Design specific promotional materials.
  • Enhance the customer experience with in-store amenities.

For a more detailed explanation on promoting your laundromat check out this article.

Investing in a laundromat in New Zealand offers an avenue for passive income, but meticulous planning, thorough research, and effective execution are crucial. Whether you choose to acquire an existing business or embark on a new endeavour, each path requires careful consideration of elements such as location, equipment, financing, and strategic marketing. Collaborating with industry experts and utilising available resources will enhance your prospects of building a successful business.

Want to find out how we can help you create a successful business?