How to Open Your Own Laundromat

Are you considering launching a laundromat? Kicking off a business can be thrilling but comes with its fair share of challenges. Whether you are planning to purchase an established location or build one from the ground up, laundromats can be a robust investment. Unlike trendy food trucks or subscription boxes, laundromats meet an ongoing, essential need.

How to Start a Laundromat Business in 8 Steps

Laundromats offer an appealing business model for entrepreneurs who want steady income and relatively low overhead. The market can generate a cash flow of up to $300,000 annually. With the right location and equipment, laundromats can generate passive income with minimal staff and inventory. This sector has a success rate of about 94.8% across five years, proving its stability. These eight steps will guide you in starting a laundromat business and set you up for success.

1. Research Your Market

The first step in starting a laundromat business is research. Look for underserved areas where renters or students may not have in-unit laundry. Multifamily residential zones, urban centers and college campuses often need more laundromats.

With this insight, analyze local demographic data to pinpoint regions with significant foot traffic, minimal competition and a high proportion of renters. Additionally, take the time to visit existing laundromats and inquire about their operating hours, pricing, the age of their equipment, and the cleanliness and safety of their facilities. Gathering this information will help you understand successful methods in the market and where you can address unmet needs.

2. Decide Whether to Buy or Build

Each option has pros and cons when considering how to buy a laundromat or build one from scratch. Purchasing an existing laundromat is faster, and you’ll have a built-in customer base. However, the laundromat may include outdated equipment or hidden issues.

Building your own laundromat business will give you full control over design, layout and technology. You can install energy-efficient machines from the start, creating long-term cost savings. However, it requires more upfront capital, and the process will take longer.

No matter your path, understanding how to open a laundromat begins with setting clear goals and picking the best option to achieve them.

3. Understand How Much It Costs

So, how much does it cost to open a laundromat? You will need about $200,000 to $500,000 to get started. This amount includes renting or buying a location, purchasing or leasing equipment, and making renovations. It also includes obtaining necessary permits and funds for utilities, supplies and marketing efforts. The good news is that many manufacturers and suppliers offer equipment financing programs to ease upfront costs.

4. Register Your Business

Before opening the doors, ensure your business is properly registered and compliant with local, state and federal regulations.

Choose your business structure — LLC, sole proprietorship or partnership.

Register your business name with local authorities.

Apply for an Employer Identification Number through the IRS.

Obtain all necessary permits and licenses, including water and sewer impact approvals.

Set up business insurance to cover liability, property and employees.

Check zoning regulations to ensure your location can operate as a laundromat.

5. Choose the Right Equipment

Equipment is another element of the cost of opening a laundromat. Consider these options to elevate your business:

Card and app-based payment methods: These payment methods make cashless transactions easier.

Energy-efficient devices: While they may be more expensive initially, energy-efficient devices can reduce utility bills and qualify for rebates.

Types of machines: Consider whether you want top-loaders, front-loaders, large-capacity machines or a combination of all three.

Integrated software dashboards: These systems allow you to monitor machine usage and performance remotely.

Other services: Wash-and-fold services or dry cleaning can boost your income. You can also set up vending machines or sell fabric cleaning supplies.

6. Design a Clean, Safe and Inviting Space

Put yourself in the customer's shoes. What kind of atmosphere would make you want to return to a laundromat every week? Here are some ideas to enhance your space:

Ensure there’s plenty of lighting.

Install security cameras for safety.

Offer free Wi-Fi and comfortable seating areas.

Set up folding tables and vending machines for convenience.

Maintain a spotless environment.

7. Go All-In on Local Marketing

Use social media, local directories and community boards to spread the word. Consider offering grand opening discounts or loyalty programs to get people to know and stay loyal to your business. AI tools can increase your leads and revenue by up to 15% — helping you maximize the benefits of social media or targeted ads.

Additionally, partner with nearby housing complexes or universities to provide discounts for their residents. Building relationships with others can significantly enhance your business visibility and growth.

8. Treat It Like a Business, Not a Side Hustle

Laundromats can operate independently to some extent. However, to achieve significant growth and expansion, it's important to monitor several factors. This includes managing maintenance schedules, tracking utilities and analyzing usage reports. Providing responsive customer service is also crucial.

Whether you're buying a laundromat or building one, think about possible ways to expand your project and elevate it from a side hustle to a full-time enterprise. The global Laundry Care market generates $110.02 billion in revenue, making it an appealing opportunity for entrepreneurs aiming to build successful businesses.

Launch Your Laundromat

Starting a laundromat is about fostering community, implementing efficient systems and planning for the future. With solid research, the right location and a touch of entrepreneurial energy, you could build something that keeps generating income.