Your Guide to Setting Up Your Own Laundromat
Setting up a laundromat business can be an incredibly lucrative move in the Australian market. According to IBISWorld, the Laundry and Dry Cleaning industry produces $2 billion of revenue annually.
If you’re looking to get a slice of these profits, the assistance you need is just a phone call away. Aqualogic can design your laundromat, as well as supply, install, and service your required laundry equipment.
Here’s our guide to establishing a laundromat.
Develop a Sound Business Plan
A business plan helps you understand your own goals and makes obtaining finance much easier. Without finance for your equipment, you may not have the strength to negotiate a lower price for your lease or other essentials.
For a coin laundry business, consider whether you plan to include manned laundry services. This includes washing, drying, ironing, folding and dry-cleaning. This may require more hands-on work, equipment and overheads, but these services should multiply your revenue.
Determine Your Business Model
As discussed, this comes down to your business type – manned or unmanned:
- Manned – someone is there to take the clothes; this may involve offering other laundry services
- Unmanned – there is an afterhours locking mechanism on the door and customers come and go as they please. People come onsite to check the safety features but there are no actual staff members
Location and Shop Lease
Commercial laundry businesses thrive in certain demographics. As part of our service, Aqualogic will provide demographic information so your business is prepared for success. Locations should also prioritise distance to customers and access.
Once you’ve found a property, try to negotiate a 3×3 year lease or a 5×5 year lease. This means you receive a 3-year lease with two additional 3-year leases as an option or a 5-year lease with four additional 5-year leases as an option.
New business owners should try to secure 3 months free rent with the deal in order to set up the laundry.
Layout and Design
Laundromats should be built to maximise efficiency, minimise equipment wear and tear and to comply with local regulations. A professional design is also part of how you present yourself to customers. Aqualogic’s laundry design service provides comprehensive project management to guide you through the process.
Start with local competitor research and then determine how you can set your services apart. Coin laundry businesses can often charge extra for services when they offer:
- Automatic chemical dosing
- Free Wi-Fi
- Children’s play areas
- Machines to wash pet blankets
- Tea and coffee facilities
Many of these services act as their own form of revenue while also allowing you to charge a premium for standard services.
Council Approvals, Hydraulic Drawings, Tradespeople & Insurance
To achieve council approval, you will need professional drawings and plans. Similarly, it’s essential to get insurance for all your equipment and the best tradespeople for fit-outs and installations.
We have established a team of professionals to assist with all aspects of opening a laundry. Our comprehensive knowledge and extensive network will provide excellent insurance options, trusted tradies, and detailed plans and drawings.
Advertising and Marketing
The laundry business is big, covering a range of demographics, industry sectors and more. The days of simply attracting lower income clients to sustain your business are long gone. Once we know how you plan to operate your business, we can pinpoint your exact target audience and suggest where and how to market your services to them.
Beyond the Grand Opening – How to Stay on Top
The first days are crucial, however, Ongoing support and care is an essential part of maintaining a laundromat. By putting service and maintenance plans in place, you can continue operating to the highest standards and keep climbing the profit tree.