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BUYING
AN EXISTING LAUNDROMAT
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- The first
question one should ask is the reason for the sale of the
Laundromat. Always question the desire to sell a successful
business, especially at what seems like a discounter price.
- Research Laundromats
in the area. Ask yourself what are the advantages and disadvantages
of the Laundromat in consideration. How is it run relative
to the competition. Is there a potential to increase sales?
- Contact the
city or county department to check on the necessary licenses
and permits.
- Find out what
kind of insurance do you need to run your business.
- You will need
to apply for a vendors license from the Franchise Tax Board
to buy and sell products or snacks in your Laundromat.
- Make sure
you set your expectations at the right level.You'll need to
have all of the aspects of running the business worked out
for the short and long term.
- Research your
options for financing. Usually, one can finance about 50%-60%
of the cost of an existing Laundromat.
- Consider all
costs of running the business. From maintenance to wages for
employees.
- Talk to as
many owner operators of existing Laundromats to get an idea
and set an expectation for yourself. Ask about the problems
they've had, what they would do differently, and whether they
are satisfied with their business. Buying an existing business
is a lot easier, but usually will be more expensive than starting
your own.
- Seek help
from experts in the industry. Preferably a broker or a consultant
hired by YOU. Because of the cash nature of the business,
it is sometimes hard to accurately gauge revenues. It is of
utmost importance to have someone experienced to walk you
thru utility bills, coin counts, revenue projections, costs,
etc. A relatively small fee can save you a LOT of money, NEVER
go at it alone. Especially if you are new to this industry.
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