There are many advantages to choosing to buy a laundromat. One of the main advantages is most laundromats do not require heavy staffing. When you buy a new business, you often need to work full time hours in the business, to make the venture profitable. Providing labor yourself eases some payroll expenses. When you purchase a laundromat, however, which requires only one attendant on duty, this does not have to be the case.
Location is critical when buying a laundromat. A densely populated area with a large amount of apartment buildings is a great location for a coin operated laundromat. In addition to location, consider the following before you buy a laundromat:
1. Condition of the building and equipment.
2. Amount of competition in the area.
3. Reputation of the laundromat in the neighborhood.
Arm yourself with knowledge for your laundromat purchaseBefore purchasing a laundromat, learn about the business. Find out what questions to ask the seller, and how to protect yourself during the buying process.
Buy a laundromat through a brokerA business broker not only provides you with a database of laundromats but is also available to help you through the process of deciding which laundromat to purchase and to coach you through the buying process. A business broker functions much like a real estate agent.
Purchase a laundromat for sale by ownerJust as in real estate some people choose to use an agent and others choose to sell their house on their own, business owners have the same choice. Many business owners choose to use brokers to sell their business, but others decide to sell their laundromat on their own. In addition to checking your local classifieds, there are several sites on the Internet where business owners list their business for sale.
- If you are assuming debts from the previous owner as part of your purchase terms, be sure to find out if the terms of the debts remain the same when the debt transfers hands.
- Before finalizing the conditions of the sale, it is important to examine the property, equipment, operations, employees, records, taxes, leases, contracts, cash flow, reputation, debts, financing and history to determine the actual value of the laundromat.