As with any business, there are set-up costs to factor in when organising finance for your new laundromat
These amounts will vary depending on whether you choose to run a self-service or fully serviced facility. Negotiating a shop lease (typically 8-15 years) with favourable terms is crucially important because of the high costs associated with connecting utility infrastructure, which includes electricity, gas, plumbing, dryer flues and a cooling pit.
How much start-up capital do I need and what are my financing options?
Expect to invest between $90,000 and $400,000 in setting up a laundromat from scratch. Costs will vary depending on size, rent, equipment capacity, number of machines, services offered and fit-out.
Subject to approvals, Richard Jay can finance your entire laundromat set-up through Capital Plus if you have a good credit rating, enough money to service the lease and access to funds for store furnishings and advertising. This includes fit-out, equipment, installation and accessories – everything you need to establish your laundromat.
Fit-out & utilities
Before you sign your lease, you’ll need to understand the design and layout that’s achievable in that space. This is your opportunity to get creative and work with experts as you think about aesthetics, theming and what interesting things you might like to do with the space.
Your laundromat’s internal fit-out will require design assistance from a laundry professional to ensure correct workflow and space for utilities. If you’re establishing a fully serviced laundromat, you’ll need to factor in a lockable space where staff will serve customers, and provide folding and ironing services.
The next step is organising business insurance for your laundromat and applying for relevant council approvals.
Furniture and lighting will need to be considered in the design phase before moving on to carpentry, floor coverings and other fixtures and finishes. Once your fit-out is complete, signage and furniture will also need to be commissioned.
Then of course there are machinery purchase or leasing decisions to make. You’ll need to hire qualified tradespeople to help establish your laundromat infrastructure, including its gas supply, cooling pit, lint trip, dryer ducting and make-up air.
Checklist: laundromat start-up costs
- Council applications
- Floor coverings
- Electrical requirements
- Signage and advertising
- Security and insurance
- Trade waste application
- Utility charges
- Machinery purchase and finance options
- Plumbing and gas supply (including cooling pit, lint trap, dryer ducting and make-up air)
What you can expect to earn
If your laundromat is well-established from the outset in terms of your store location, fit-out and services, you can look forward to an ROI of approximately 20-35%.
What you get back from your laundromat investment depends on what you put in in terms of innovative thinking, customer service, capitalising on opportunities, creativity and quality.