Laundromats are a great business with many attractive qualities for savvy investors and business owners. However, there are also some negatives to the business to be aware of. Following are 3 pros and 3 cons to owning a laundromat business.
Let's dive into the pros to owning a laundromat business:
1. High Cash Flow
Laundromats can help you reach your cash flow goals quicker than most other investment vehicles, including stocks and real estate investments. This freedom that laundromats can provide you is reason enough for many investors to take a second look at laundromats.
2. Flex Time
While we're on the subject of personal freedom, another huge perk of owning laundromats is the flex time that owning this type of business affords the owner. Laundromats don't require their owners to be present 24/7. In fact, when set up correctly, owners can expect to spend about 5 hours per week on average managing their laundromat.
This flex time can be enhanced even further when utilizing a management tool such as Cents. Cents is a business-in-a-box solution for laundromat owners to minimize their time spent on their business while maximizing the impact of that time on the growth of the business. Cents gives you the tools you need to ensure your business is running optimally while giving your customers the best experience in town.
3. Wealth-Building Potential
Beyond the cash flow we already mentioned, laundromats have the ability to accelerate wealth building by building equity in your business, offering tax advantages, and are scalable. Software solutions like Cents make it easier than ever to scale your business. And Cents grows with your business. Wherever you start and wherever you grow to, Cents can meet you where you're at and take you where you're going!
While there are many pros to owning a laundromat business, there are some cons to be aware of, as well. Let's talk about a few of them.
1. Laundromats Have a Physical Location
Laundromats have a physical location, they utilize machines that can break, and you're dealing with people live and in-person. Machines break and whenever you deal with people and their stuff, you'll have some problems.
2. Cash Businesses Are Difficult to Leave
Because laundromats are cash businesses, it can be difficult to leave the cash collection responsibilities to someone else, even a trusted family member or friend. However, utilizing a card or app payment system with a business management software like Cents can help free you up.
3. Laundromat Customer Demographics Can Be Tougher
Finally, laundromats tend to attract vandalism, homeless people, and transients. It can be a tricky balance between empathy for those with needs and keeping your store clean, safe, and reliable for your customers. But if you can manage to do that, you're on your way to a profitable and fulfilling business!
Book a free demo to see how Cents can help you grow laundry business and better streamline your overall processes.