Starting a laundromat can be a rewarding investment with steady cash flow, relatively low labor needs, and long-term growth potential. However, launching a successful laundry business requires careful planning, capital, location analysis, and the right equipment. This guide walks you through the key steps to start your own laundromat—from planning and permits to equipment and marketing.
1. Research the Market and Understand Demand
Before making any investment, study your target area to ensure there’s sufficient demand for laundry services. Laundromats do best in densely populated neighborhoods with limited in-unit laundry access, such as apartment-heavy areas, college towns, or urban corridors.
- Analyze the number of renters and multi-family units in the area
- Check for existing laundromats and evaluate their strengths and weaknesses
- Identify underserved locations or gaps in service (e.g., no wash-and-fold nearby)
- Talk to residents and local business owners to assess potential demand
2. Choose a Business Model
Decide what type of laundromat you want to operate. Some owners prefer unattended self-service models, while others add value with full-service options like wash-and-fold, pickup and delivery, or commercial contracts. Your business model affects your startup costs, staffing, and ongoing involvement.
- Self-service only: Low labor cost, open 24/7, consistent cash flow
- Attended laundromat: Improved customer experience and cleanliness
- Full-service model: Higher profit potential with more operational complexity
- Hybrid model: Combines self-service with drop-off or delivery for scalability
3. Write a Business Plan
A solid laundromat business plan helps secure funding, stay organized, and map out your strategy. It should cover your vision, market analysis, services, pricing, equipment needs, marketing, and financial projections.
- Define your startup and operational costs
- Estimate break-even point and monthly cash flow
- Outline staffing needs, customer service policies, and service pricing
- Include an overview of your marketing strategy and target customer base
4. Secure Financing
Starting a laundromat requires a significant upfront investment—often between $150,000 and $500,000, depending on size, location, and equipment. Fortunately, there are multiple ways to fund your project, including SBA loans, equipment financing, or partnerships.
- Apply for SBA 7(a) loans for small business startups
- Explore laundromat-specific financing from equipment manufacturers or dealers
- Consider using personal capital or bringing in an investment partner
- Prepare detailed financials and collateral documentation
5. Find the Right Location
Your laundromat’s success depends heavily on location. You need a site with high visibility, easy access, and consistent foot or vehicle traffic. Proximity to apartment buildings, colleges, or densely populated neighborhoods is ideal.
- Look for 1,500–5,000 sq ft retail spaces with parking
- Prioritize high-traffic roads or busy intersections
- Ensure the site is zoned for commercial laundry use
- Negotiate lease terms carefully, including build-out time and rent escalation clauses
6. Obtain Licenses and Permits
Operating a laundromat legally requires business licenses, permits, and inspections. These may vary by city and state, so check with local government agencies early in the process.
- General business license from your city or county
- Sales tax permit if you sell soap, bags, or wash-and-fold services
- Certificate of Occupancy and building code compliance
- Health permits if handling customer laundry
- Environmental permits if using water heaters, boilers, or commercial wastewater systems
7. Purchase Commercial Laundry Equipment
Invest in durable, efficient machines built for heavy use. Your mix of equipment should include a range of washer and dryer sizes to serve different customer needs. Energy efficiency, payment systems, and brand reliability all factor into your decision.
- Choose trusted brands like Speed Queen, Dexter, Huebsch, or Continental
- Include small, medium, and large-capacity washers (20–100 lbs)
- Use stackable dryers or high-capacity single units
- Add payment kiosks or mobile-enabled POS systems
- Consider backup machines or redundancy for uptime
8. Design and Build Out the Facility
Create a layout that’s clean, efficient, and customer-friendly. Prioritize ease of movement, safety, and modern conveniences like Wi-Fi and phone charging stations. The physical environment influences whether people return to your laundromat.
- Install durable flooring, good lighting, and clear signage
- Set up folding tables, laundry carts, vending machines, and seating
- Ensure plumbing, HVAC, and electrical systems are sized for heavy usage
- Add security cameras and access controls, especially for 24/7 stores
9. Hire and Train Staff (If Applicable)
Depending on your model, you may need attendants to handle wash-and-fold orders, clean the facility, or assist customers. Well-trained staff can improve retention, reduce downtime, and encourage upselling.
- Hire reliable staff with good customer service skills
- Provide training on safety, machine maintenance, and store policies
- Schedule regular shifts for cleaning and equipment inspections
- Set up employee handbooks and POS login access
10. Launch a Marketing Plan
Once your laundromat is ready, you need to drive awareness and build a loyal customer base. Marketing is ongoing, and consistency is key—especially in the early months. Combine physical outreach with digital strategies to reach customers in your area.
- Claim and optimize your Google Business Profile
- Launch a simple, mobile-friendly website with services, hours, and location
- Run Google and Facebook ads targeting nearby zip codes
- Offer grand opening discounts, free dry days, or loyalty punch cards
- Distribute flyers in apartment buildings, campuses, and local businesses
Conclusion
Starting a laundromat requires careful planning, but the rewards can be substantial. With steady demand, predictable revenue, and strong cash flow, laundromats remain one of the most recession-resistant small businesses. By choosing the right location, investing in quality equipment, and providing reliable service, you can build a profitable operation that serves your community for years to come.
