The Laundromat business or coin laundry as some people prefer to
refer to it, has been around for decades and is a proven
business model that has worked successfully in the United States
and abroad. The business depends coin operated or magnetic card
operated washers and dryers at a commercial location. Many
people buy or start Laundromat businesses for it's cash flow and
relatively low maintenance. In addition, Laundromats offers
great tax benefits because of how depreciation is used in this
business.
Before starting a Laundromat, one has to decide to start a new
Laundromat from scratch or buy an existing one. There are
advantages and disadvantages for either one of these approaches
and careful consideration to all the pros and cons before making
a decision. New Laundromats have the advantage of higher return
on equity in the long run but it requires a considerable capital
investment. Existing Laundromats have less ROI than new
successful Laundromats, but have an established clientele and a
more predictable cash flow. On the downside, buying an existing
Laundromat requires a substantial amount of expertise and
experience in the industry to make sure one buys the "right"
Laundromat. That is what it is important to always have a
reliable and reputable Laundromat broker when starting or buying
a Laundromat.
