Due Diligence Buying a Coin Laundry Laundromat

A self service ‘coin’ operated laundry sounds like a glamorous and easy profit business.  It isn’t, but it can be.  If you polled a lot of laundry owners, as we have, you will find that most of them will tell you from experience that there are a lot of ways to lose your shirt when investing in a laundry business.  While a coin laundry sounds like a simple business that you buy and then collect money once a month, there is a lot more to it.  There is a lot more work, lot more headaches, and a high risk of losing your money.

Row of Top Loader Washing Machines

Among the issues that bleed money and profits are out of check utility costs, equipment maintenance expense, competition and labor cost.  There are other factors to consider as well, including rent.  If you want to get into the business, there are many things to investigate in a short amount of time such as, cash flows of the business, laundry equipment viability, lease situation, competition, marketplace conditions, customer loyalty etc.  Do not be fooled as there are many hidden issues to buying a laundromat that first time buyers tend to underestimate.  Once they take possession, buyers belatedly realize they have bought a money pit that is a dream killer.

So, if you are serious, you need to do your homework BEFORE you even look at an actual laundromat for sale.  Read sites like www.laundryanalytics.com and check out ‘Secrets of Buying and Owning Laundromats’ by Brian Brunckhorst.  Brunckhorst is a laundry owner based out of Northern California.  As he has grown his laundromat holdings over the last decade, he has branched out into sharing his wisdom and insight into successfully entering the business and surviving the challenges.  Mr. Brunckhorst has worked with a past client of ours, and did a good job in educating the client.

For More information on how Just Elementary, Inc, Commercial brokers can help you with Due Diligence when purchasing a business email cs@justelementary.com or call (323) 213-9193