The American Dream: buy your own laundromat
Filed under: Home, Career, Recession
It turns out that the bad economy is great for coin-op laundromats. Because, though houses with laundry rooms will be foreclosed upon, washing machines and dryers will break and be too expensive to fix, and sometimes, we lose our homes entirely, we still need clean clothes.Long the refuge for college students, the young creative class, jobless, homeless and others not in possession of a few Whirlpools, laundromats are now flourishing. And the middle class is showing up, too, pride and laundry baskets in hand.
By all appearances, this would be a great time to get into the business of laundry; the Wall Street Journal recently profiled one such man, Brian McChristian, laid off in early 2008 and now running the Austin, Texas Community Coin Laundry; and he's one of the lucky ones. His business is doing well, thanks in part to his efforts to keep his parking lot and facility free of anyone not doing laundry.
And the coin-op business, on its face, seems a great one. With little skill required to manage the business, no inventory, and no credit or receivables -- as the WSJ says, "A quarter at a time -- prewash," (it's probably more like five quarters at a time, but that's not so elegant, I suppose) -- and only the ongoing cost of power and water, it's amazing more out-of-work would-be entrepreneurs aren't buying up the available laundries.
And why aren't they? Same reason McChristian probably lost his job as a loan officer: the credit crunch.
Coin-op laundries have almost no collateral; they're nearly always in leased retail space and used washing machines aren't exactly easy to liquidate. So with the tight lending standards these days, buyers are having a really hard time obtaining financing, leaving those laid-off would-be entrepreneurs stuck at home, and washing only their own family's dirty laundry.
Reader Comments (Page 1 of 1)
11-19-2009 @ 2:35PM
Frank Fitton said...
I applaud Mr. McChristian for his efforts in finding a good niche to profit during these troubling times. Its all about doing due diligence before making the decision to buy a business. Do your homework the right way and you too can benefit from any economic situation.
Now is a tremendous time to buy a business. The thing that you have to remember though is to do it the right way. Find a nice industry that you believe in like McChristian did. Don't think your going to buy a loser business and turn it into a winner. That's a quick way to turn your dream into a living nightmare. Fortunately, there are plenty of mature, profitable businesses for sale out there on the hidden market.
Anyone interested in the buying of a business should check out http://www.businessbuyeradvocate.com/. It is a great blog full of must have knowledge for anyone thinking about taking the plunge. It’s frequented by quite a few experts in various aspects of the field that can help you with any questions you might have or perspective you might need.
Buying a business very well could be the most important decision you ever make in your life. You have to make sure you buy the right business the right way.
Reply
11-18-2009 @ 1:04PM
Frank Fitton said...
I applaud Mr. McChristian for his efforts in finding a good niche to profit during these troubling times. Its all about doing due diligence before making the decision to buy a business. Do your homework the right way and you too can benefit from any economic situation.
Now is a tremendous time to buy a business. The thing that you have to remember though is to do it the right way. Find a nice industry that you believe in like McChristian did. Don't think your going to buy a loser business and turn it into a winner. That's a quick way to turn your dream into a living nightmare. Fortunately, there are plenty of mature, profitable businesses for sale out there on the hidden market.
Anyone interested in the buying of a business should check out http://www.businessbuyeradvocate.com/. It is a great blog full of must have knowledge for anyone thinking about taking the plunge. It’s frequented by quite a few experts in various aspects of the field that can help you with any questions you might have or perspective you might need.
Buying a business very well could be the most important decision you ever make in your life. You have to make sure you buy the right business the right way.
Reply
11-20-2009 @ 8:00AM
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11-24-2009 @ 9:48AM
Rit said...
No inventory? WHO DO YOU THINK KEEPS TRACK OF when shipments are needed for the little boxes of soap, fabric softener, color-safe bleach, plastic laundry bags, etc.?? Change machines need to be filled! Also, the store needs to be cleaned AT LEAST twice daily -- people spill drinks, food, etc. all over the place and only a few clean up after themselves. Machines break down, and maintenance companies have to be called quickly to fix them, to keep the flow of customers happy. Leaks must be mopped up IMMEDIATELY to avoid injuries to patrons. Yes, it is a LOW maintenance business, but IT DOES REQUIRE TIME, GOOD PLANNING, AND STAYING ON YOUR TOES, (as well as keeping store employees on their toes!) TO OPERATE A LAUNDROMAT!!
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