Laundromat Valuation
Laundromats are often valued based on a multiple of their net operating income. The exact multiple depends on factors like the age of the equipment, length of lease, and lease terms.
Start-Up Costs and ROI
Start-up costs for a laundromat range from $200,000 to over $1 million. The budget should account for expenses like loan payments, rent, maintenance, and more.
Laundromats can make between 20-35% cash-on-cash ROI, much higher than most investments. On average, laundromats net $15,000-$300,000 per year.
Estimating Potential Revenue
A laundromat’s gross monthly income depends on the number and type of washers, as well as vend prices. To estimate potential monthly revenue, multiply machines by industry benchmark usage figures.
Determining the Sale Price
The first step to finding out how much your laundromat is worth is with a business valuation. This analysis compares you to your competitors and determines the fair market value.
Coin laundries can range in market value from $50,000 to more than $1 million. They generate cash flow between $15,000 and $300,000 per year.
Business Factors and Earnings
Location, services offered, and the condition of the facility impact a laundromat’s earning potential.
For those considering starting a laundromat, most of the labor work is done by customers, reducing the need for a large staff and their associated costs.
Business Establishment and Profitability
Launching your own laundromat includes understanding the legal, economic, and business development aspects. With proper planning, a laundromat can be a profitable venture.
Valuation is based on a multiple of the annual net income. Figuring out ballpark figures requires time to calculate them, ensuring a price that is market-oriented.
When choosing a selling price for your operation, it’s important to consider the length left on the lease, condition of laundry equipment, and future store expenses.
Take note of the number and type of washers and the vend prices to estimate the gross monthly income without directly contacting the owner.
Staffing and Services
For certain types of laundromats, you will need to hire staff. These businesses may offer a range of services, including dry cleaning.
The funds needed to open a laundromat depend on whether you are launching a new business or purchasing an existing one.