Questions To Ask Before Investing in An Existing Laundromat Laundry Business.
Are you planning on investing in an existing laundromat business? You’re making a smart choice because, laundry continues to be a service that everyone needs, and laundromats continue to produce passive income while other businesses fail.
Before investing in an existing laundromat, make sure you ask these questions first.
Question #1 – What Are Your Average Monthly Operating Costs?
The first and most important question to ask before investing in an existing laundromat is what are the average monthly operating costs at the location?
Don’t take the owner’s word for it, go over the receipts including all expenses like utilities, rent, salaries, and insurance because with inflation on the rise, you should have a clear understanding of the business’s expenses before you choose to purchase it.
While reviewing expenses, you should also verify if all the laundry equipment has been paid for and request proof of purchase just to back up what the owner has said.
Question #2 – How Old Is Your Equipment?
Let’s face it, the equipment in a laundromat is the foundation of a self-service laundromat business.
It’s also important to verify how old the equipment is including if it has any signs of wear and tear because you will then need to verify if the equipment has been excessively used, or abused, or if it needs to be replaced.
Question #3 – Who Services the Laundry Equipment?
Once you verify the age of the equipment the next thing to verify is who has been servicing the equipment.
Has the equipment been maintained professionally? If so, the owner should be able to provide you with records of the professional maintenance that’s followed the manufacturer’s recommendations.
Question #4 – What Is the Location and Demographics Like?
Last of all, but most important, you should also review the laundromat location and demographics closely and ask these questions:
- Is the laundromat near other shops or stores in the area?
- Are there apartments nearby?
- Is there public transportation within walking distance?
- Can the location be seen easily from the street?
Once you’ve taken the time to research the location, you should also verify crime statistics for the area as well because crime is on the rise nationwide and it’s important to know area crime statistics before investing in a new location just so you’re fully aware of what to expect from your investment.
Thankfully, you can use tools like Google Maps to research a location virtually but for laundromats that are within driving distance, you should visit those locations personally and talk with locals who use it frequently.