Entrepreneurship is appealing but challenging
Selecting the right small profitable business idea can improve your chances for success.
Becoming a small business owner holds a significant appeal for many people: the ability to control your own destiny and reap the rewards of your hard work directly; an improved work-life balance; the freedom and creativity of building something yourself; the opportunity to create a business that can be handed down to future generations.
However, entrepreneurship can be risky – approximately 1/3 of startups fail in the first two years, and 50% fail within five years.¹ Some types of startups, however, are more prone to fail than others. Construction has the highest rate of failure, with 64% out of business within five years; followed by tech and transportation, each with a failure rate hovering at approximately 61%.² Deciding on the right business is key to creating a lasting, profitable small business.
A small profitable business idea you may not have considered yet is opening a laundromat, and there are many reasons why the laundry industry is a good choice for a new entrepreneur.
Benefits of laundromat ownership
Even in difficult economic times, laundromats are still necessary. Depending on the customer base, a laundromat may even see a spike in usage during an economic downturn, as people delay purchasing laundry equipment for their homes.
2. Return on investment.
ROI for laundromat owners can reach 25-35% within the first year. In comparison, a restaurant generally reaches a 3-5% return on investment, maxing out at about 10% for the exceptional.³
3. Low barrier to entry.
Unlike other businesses, laundromats have very few barriers to entry – little is required in the way of certification/education, regulatory/compliance, inventory/warehousing, etc. With a solid business plan or a knowledgeable industry partner, your new business can be up and running in a matter of weeks.
4. Potential side hustle.
With advancements in technology, a self-service laundromat is a good candidate for a side gig – a business that you can manage in your spare time, while still maintaining your regular job (and paycheck). LaundryPulse is a remote monitoring tool created specifically for entrepreneurs to manage their laundromat – or laundromats – from their laptop. With LaundryPulse, an owner can remotely manage machine status and usage, prices and promotions, and receive alerts by text or email.
5. Easy, fast financing.
According to a recent study, less than half (48%) of small businesses have their financing needs met, and 36% are denied some or all funding due to their credit score.⁴ Moreover, it takes an average of 60-90 days to get a decision on a small business loan application.⁵ However, an entrepreneur opening a laundromat has the option of applying for a startup loan through their financial institution, or through an alternate lender. Laundrylux Financing Services (LFS) offers a quick application process with 24-hour turnaround, so you can have your decision right away.
Enlist a partner to help you reach success
Someone considering starting a small business has many factors to consider: from writing a business plan to securing financing, to designing, marketing and launching your business.
If you are interested in opening a laundromat, but lack experience either with entrepreneurship or with the laundry industry, you may want to consider enlisting a trusted partner like Laundrylux whose experience can help to fill those gaps, and give your new small business the best chance for success.
Laundrylux is a family-owned laundry services and commercial laundry equipment provider, with over sixty years of deep experience in the laundry industry. As a full-service partner, Laundrylux can support you at every stage of small business ownership: from decision and design, layout and financing, equipment and management solutions. Leverage our expertise and proven track record, and let our decades of success contribute to yours.
Contact Laundrylux today to learn more about how to achieve success as a commercial laundromat owner.
Laundrylux is closely monitoring all updates provided by the CDC and other public health agencies following the recent coronavirus outbreak. The safety and well-being of our employees, customers, and the community at large is our top priority in these critical times. Many major cities, counties, and states across the country have declared laundromats an “essential service” to ensure that communities have access to laundry facilities.Discover the current situation in your area.