How To Start A Laundromat Business (17 Simple Steps)

How To Start A Laundromat Business

People need clean clothes, blankets, and various other items but all of them do not have a washer and dryer at home. Therefore, they look for laundromats where they can clean their items.

In this article, we will discuss how to start a laundromat business from scratch. What permits will you need to open a laundromat? And many more important things related to the laundromat business. 

The good thing about laundromat is that it’s an evergreen business because we can stop wearing clothes, having a sheet on the bed, etc. 

Every successful business has plans and strategies that you will need for your profitable laundry business, too. You’ve to be calm and make a good plan and strategies to open a laundromat business.

How To Start A Laundromat Business


Make $300 to $500 Extra Monthly


Why starting a laundromat could be right for you

No matter where we are living or what season is going on, we always need clean clothes, bedsheets, blankets, etc. On the other hand, if you enjoy managing a business, want to get a stable Income, and especially build friendly connections with local members. The laundromat business is perfect for you.


Pros and cons of owning a laundromat

There are many pros and cons of every business, just like that laundromats have. Some pros and cons include:


  • Every business has some pros and cons, so laundromats includes:
  • Pros of owning a laundromat
  • You don’t have any working hours, you can work whenever you want.
  • It can provide you with a revenue stream.
  • You can grow this business by adding more machines.
  • Laundromat businesses don’t have too much competition like online businesses.
  • You do not need a fancy degree to start a laundromat business because it is simple.
  • The management cost is not too high.
  • You can open a laundromat business at multiple locations.
  • The business doesn’t have much seasonal impact.


Cons of owning a laundromat

  • Initially, you will need too much money to start the business.
  • Although laundromats don’t have too much competition, it also depends on your location.
  • Using too many machines will cost a high utility bill.
  • If any of your machines break down, it might be costlier.


How to start a laundromat business

Now we’ll learn the most important steps about how to open a laundromat business.

1. Learn about the industry

Probably, you would not even know how much money a laundromat makes because you do not have enough information about the industry. However, that’s what we are discussing in this article.

If you want to start a business but do not have any idea how to start a business and how to maintain it, then it is useless for you to start a business. 

That is why I encourage you to spend the first few months researching your laundry business and gaining as much information as possible about your industry so that it becomes easier for you to take your business to a bigger level and compete with other businesses. 


2. Write your business plan

If you want to be successful in a laundromat business, you have to write down all strategies, business risks, and how you are going to expand your business, etc. 


3. Choose a business model

There are mainly three types of business models for laundry business such as partially attended, unattended and attended. The most famous business model is the Attended laundromat, where you will offer some famous types of services: washing, dry folding, dry cleaning, tailoring, working commercially with hotels, and pickup and delivery. 

Depending on the place where you are living, you can set business hours. Many laundromats are open 24 hours. 

If there is too much competition in your area, then you can also buy a franchise where you will have to share monthly revenue with the franchise owner. 

The benefit of buying a franchise is that it will be easier for you to scale up your business and get customers. And the downside of the business is that you will have to share your earnings with the franchise owner. 


4. Decide what kind of laundry business you want to start

There are mainly five types of laundry services that you can provide to your customers. 

Commercial laundry: In this, you will work with Hotels, restaurants, and other industries, where you will have to wash uniforms or bed sheets and blankets in bulk. 

Private laundry: This is not a really scalable business because your laundry will be private and available only for one building residence. 

Coin laundry: It’s the topic that we are discussing in this article where anyone can give money and use the service, but they will have to do laundry by themselves

Pickup and Delivery: In this, you will go to people’s homes, pick up their clothes, wash them, dry them, fold them, and return to their homes. For pick up and delivery, you can charge extra money.

Wash and fold service: In this type of laundry business, people will be there with dirty clothes and bed sheets, which you will have to wash. And for that, you can charge extra money; it is similar to coin laundry, but here, people are not washing their clothes. It is you who will do that for them.


5. Determine how you will charge laundromat customers

This is the most important factor according to the area you have to choose how much money you are going to charge your customers. To determine the price, you have to calculate how much you’ve to pay for water, heat, electricity consumption, etc. Generally, business owners pay $3 to $4 for one load.


6. How much does a laundromat cost? 

Okay, now here comes the most important question that people are asking: “How much does it cost to open a laundromat?” It depends on many factors, such as your location, the equipment that you are going to use, and the brand of equipment, utilities, installation, furniture, and other services that you are going to provide. Some laundry even provides free Wi-Fi. 

If you want to reduce the cost, you can start a laundry business with $200,000. In this, you can buy used appliances. If you want to buy the new appliances, you may have to invest around a million dollars. 

However, the thing that makes sense is how many machines you want to have and what location you are targeting. And most importantly your business moral with the you want to start a coin laundry or a commercial one. 

Most of the amount of your investment will go into appliances insurance, employees, detergents cleaning products, etc. You may have to reinvest 67% of your monthly earnings. 


7. Calculate how much your laundromat will make in profits

According to a report published by the Coin Laundry Association, you can make between $50,000 to $1 million. But it depends on many factors, such as your location, how, many customers you are getting, and how you are promoting your business, etc. 


8. Obtain business insurance

You must obtain business insurance in case something wrong happens so insurance can save you against that damage. And there are various types of business insurance to protect your business, you can choose any of them. 

On the other hand, if you have employees working with you, then you should also get compensation insurance and unemployment insurance.


9. Find a location

This is the most important factor that will determine the success of your laundry business. If you choose a highly dense area, then undoubtedly, your business will grow. However, In dense areas, there might be other laundromat businesses, so you may have to face competition. 

Depending on your location, you can also increase your price. In special dense areas, there might be too many hotels that can work with you. You will have to wash their Napkins, Towels, bedsheets, etc. In simple words, you will get a lot of commercial work.


10. Register your business

First of all, it depends on location and your business structure, but consider that you have to register your business with your local or state government, especially if your business structure is LLC, Partnerships, or Corporations.

Besides this, you have to choose the name of your business because you will have to write it alongside your personal name.


11. Obtain financing

When you are starting a laundromat business you must obtain financing. This is a business bank loan for small businesses, which can be used to protect your equipment and other capital expenses.

Besides this, you may sometimes have to face problems when you need some cash you can use that amount.


12. Pick your business structure

There are different types of business structures. You have to choose any of them, such as a Corporation, Limited liability company, or partnership. Your business structure will play an important role in taxation and daily operations. 

General partnership: It means you have started the industry when two or more people joined your business. Now you will share the profit with them.

Sole proprietorship: In a sole proprietorship, the business is run by only one person, which can be you or someone else. 

Limited liability company (LLC): This is the most popular type of business that most people are doing right now. LLC provides you with protection and helps you with taxation. 

Corporation: The corporation is owned by shareholders, and it will protect all from personal liability for corporation debt and obligation.


13. Get federal and state tax IDs

No matter what business you start, you always have to pay tax. Therefore, you should register your business with the IRS and get an EIN. However, if you’re the owner of that business and you do not have any partners and employees, you can use your social security number to pay tax. You do not have to register your business with the IRS.

An EIN is also needed to open a business bank account and ensure the separation of your business and personal finances.

When you have an EIN, you also need to open a business account so that you can separate your business and personal finances. In some cases, you may also require a state tax ID.


14. Hire employees, if necessary

If you are a full-service or self-service laundry business, you will need to hire employees (full-service will require at least 1 or 2 full-time employees). Here are the various people you will need on staff:

If you have started a commercial type of laundry service, you may hire at least one or two employees, such as a manager, delivery person, Laundry attendant, etc.

Always hire those people who are interested in the laundry business.


15. Open a business bank account and credit card

No matter what business you start, you should always have a business account so that you can keep your personal and business income separate. 


16. Get licenses and permits

Businesses need some licenses and permits to operate. Depending on your business type and location, you have to choose a license. You can acquire a sign permit, general business license, or environmental permit. Besides this, you may have to pay an extra fee for wastewater, public improvement, and sewer connections. 


17. Stand out with targeted marketing

You should promote your business on Google, Bing, and Yelp and keep an eye on your competitors and how they are performing. You can also advertise your business on Facebook, Instagram, etc. You only have to learn how to target an audience and engage with them.



I hope in this article you have found valuable information that will help you to open a laundromat business. Keep in mind that no matter what business you start initially, you will not get too many clients, so you have to be patient. Besides this, you can also buy used appliances if you do not have a huge budget, and gradually, you can grow your business. 


What permits do I need to open a laundromat? 

To open a laundromat business, you will need a business license from the local government, a health permit to ensure that the laundromat is healthy for public hygiene, a water pollution permit from the state of the federal environmental agency, and a sale tax permit. 


Are laundromats profitable?

Most of the time, laundromats are profitable if they’re providing good service; on average, they’re making $5,000 to $25,000. On the other hand, some people are even making $15,000 and $300,000 per year, and on average $142,000. However, how much money laundromats make depends on multiple factors such as location, population, size, etc.


How much do laundromats make?

As I said earlier, laundromats make $5,000 to $25,000 or some even make $142,000 a year. But it depends on the location, population, and the size of the laundry service.


How to buy a laundromat?

Before buying a laundromat, you can talk to other business owners and take their advice.

Depending on your budget, you can buy new or used appliances.

Find a good location to open a laundromat business; the more dense the area you choose, the more money you will make. 


Do a calculation of how much you’re going to spend on your business

Wherever you go, negotiate and don’t be stuck in one place; visit multiple places to buy used or new appliances and buy wherever you find cheap and of good quality.


How to buy a laundromat with no money?

Many people have that question: can they buy a laundromat with no money? Well, yes, you can buy a laundromat with no money, but it’s a little challenging but not next to impossible.

First, you can find somebody interested in your business and can give you money for that, besides this, you can find a motivated seller willing to finance. You can have financing arrangements, and I recommend you seek professional advice before taking such steps.


Is a laundromat a good investment?

Yes, starting a Laundromat business is a great investment. Once your business starts growing, you can expect anywhere between %15 to 30%, which is far better than real estate investment. On the other hand, you’ll get around 4.7% return in the financial sector. However, if you could choose a better stock in this stock market, you may get the same return or even more than the Laundromat business.


How much does a laundromat make a month?

On average, laundromats make $5,000 to $25,000 a month, but it depends on location, population, customers, etc. 


Are laundromats a dying business?

No, laundromats aren’t a dying business as long as we humans are wearing clothes and using blankets, bedsheets, towels, etc. We will always need a washer and dryer to clean our items. But all people cannot afford washers and dryers so they prefer to visit laundromats and clean their items. So It’s not a dead business.


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