RIPON, Wis. — When considering new business ventures, savvy entrepreneurs look to the profitability of Laundromats and find that vended laundry stores in the United States see an average return on investment of 25-30%. But how does a store owner jump-start that success and then ensure it continues for years to come?
Prior to opening a store, there are several factors that a new investor should consider to better equip themselves for long-term success. This process starts with the initial building and furnishing of the store and transitions through to ongoing marketing efforts and, most importantly, customer service and appreciation.
THE INITIAL INVESTMENT
The hardest part of owning a Laundromat is getting started, which is why choosing the correct partner is crucial. Working with a manufacturer that provides in-house financing, runs demographic analysis to choose an appropriate location, and offers smart advice regarding equipment mix and store design can help to remove the initial stress of store start-up. These early decisions also play an important role in the long-term success of the Laundromat.
Perhaps the most important thing to consider when making the initial investment is selecting reliable equipment. Start by investing in commercial-quality equipment that is known for its superior product design and is built by a manufacturer with extensive experience in commercial laundry. The equipment mix should be discussed and determined with the help of a knowledgeable distributor based on store size and customer demographics.
Investing in an industry-leading control system can help store owners. These systems allow an owner to adjust pricing by time of day and to identify equipment inefficiencies, helping to reduce utility costs, increase revenue and maximize profitability.
Many store owners choose to invest in Laundromats because the business does not demand constant on-site presence. Installing an advanced control system with wireless networking enhances this freedom. These control systems allow owners to program, monitor, audit and diagnose equipment from an Internet-connected computer anywhere in the world. Additionally, the audit data may offer in-depth store and revenue reports to optimize financial performance, helping to ensure continued store profitability.
Check back Thursday for the conclusion!
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].