How to Use a Business Loan to Grow Your Laundromat
In this post, we’re sharing some of the specific ways you can use a small business loan to build your laundromat business.
5 Ways to Use a Small Business Loan for Your Laundromat
1. Buy Additional Machines
As a laundromat owner, you should consider how frequently you’ll need to repair or replace your machines. A high end commercial washing machine will typically last for around 8,000 cycles or 10 to 14 years. Commercial laundry machines can vary greatly in price, but you should expect to pay around $1000 for a new machine when it’s time for a replacement. Depending on how much space you have, you may want to purchase additional machines so that you can serve more customers. Even though investing in machines can be expensive, you’ll be able to afford them with your loan, and in turn you’ll be able to earn more sales.
2. Improving Your Space
Replacing or purchasing new washers and dryers is only one part of improving your laundromat space. There are other developments you can make to create a welcoming and useful space for your customers. Ask yourself, does the space itself need to be updated? A coat of paint on the walls or replacing the flooring can make a room look brand new. Other small changes that can make a big difference include a seating area, plugs so that customers can charge their phones, vending machines, or a play area for children. Adding these conveniences could make your laundromat a more desirable place in comparison to your competitors’ businesses.
3. Open Another Location
Depending on where your business is located and the size of the space you’re looking for, opening a new location for your laundromat can cost hundreds of thousands of dollars. When calculating the cost of expanding your business, you’ll need to consider costs such as your additional lease, renovation expenses, business insurance, and necessary equipment.
4. Offer New Services
With so many laundromats nationwide, it’s crucial that you set your business apart from the competition by making laundry more convenient for your customers. For example, in 2016, about 61 percent of laundromat owners reported an increase in delivery services. If you aren’t already offering services like this, you’re missing out on potential profit. However, you’ll need to spend money to make money. Consider the equipment, supplies, and staff that you’ll need to implement these new services.
5. Hire Additional Staff
As your business grows, you’ll need to hire more employees to assist customers and provide additional services. A small business loan will give you the funds to hire workers to oversee each location and complete any new services you’re providing. When hiring additional staff, you’ll also need to consider costs associated with that, including insurance, training, benefits, and any other standard employee-cost.
6. Increase Marketing
After you’ve spent time and money to make your laundromat a clean, well equipped, and customer friendly location, you’ll need to let people in your area know about your services. With your small business loan, you can create a marketing plan, which could include social media marketing, radio advertisements, flyers, and other typical marketing efforts.
How Will You Use a Loan to Build Your Business?
Owning a laundromat can be a lucrative venture, as it’s a service that customers will likely always need. A survey from rent.com shows that nearly 80 percent of millennials have no intention of buying a home. Continuing to rent means that this age group will likely rely laundromats to do their laundry. To take advantage of this market, apply for a small business loan and make exciting advancements!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.