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
The importance of choosing the right location:
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. Understanding the local demographics will help you tailor your services to meet the specific needs and preferences of the surrounding community.
In addition to demographic considerations, proximity to your target customers and ease of access are crucial factors to weigh when choosing a location. A well-placed laundry facility near residential areas, apartment complexes, hotels, or hospitals can attract a steady stream of customers looking for convenient laundry solutions. Easy accessibility, ample parking, and visible signage contribute to drawing in potential clients.
By carefully analysing demographics and strategically locating your commercial laundry business, you position yourself for increased foot traffic and a greater chance of customer satisfaction. A prime location enhances your business’s visibility and reinforces your commitment to providing top-notch services tailored to the community’s needs.
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.
Setting Competitive Pricing
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.
Advertising and marketing are vital components for any successful laundry business. With the laundry industry catering to a wide range of demographics and industry sectors, it’s essential to craft a targeted marketing strategy. Gone are the days when attracting only one type of client sustained the business, businesses need to work hard to attract individuals from all walks of life to ensure long-lasting success.
Once you have a clear plan of how you want to operate your laundry business, you can identify your specific target audience. Whether you’re targeting busy professionals, families, or specific commercial clients, understanding your audience will allow you to tailor your advertising efforts to their preferences and needs.
From social media campaigns and local advertising to strategic partnerships with businesses in your area, there are various avenues to explore and effectively market your laundry services to reach your ideal customers.
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.
There are a few ways you can stay on top of the game with your laundry business, here’s our top tips:
Maintaining and upgrading equipment regularly
In the world of commercial laundry, ensuring the smooth operation of your equipment is paramount to running a successful and long-lasting business. Regular maintenance and timely upgrades are key to keeping your laundromat or laundry service thriving.
To begin with, implementing a strict and regular schedule for equipment maintenance is essential. Inspect your washers, dryers, and other laundry machines at consistent intervals to identify any signs of wear and tear. Cleaning lint traps, checking water hoses, and verifying electrical connections should be part of your routine to prevent potential breakdowns.
Address any malfunctioning equipment immediately. When a washer or dryer stops working efficiently, it can disrupt your laundry operations and frustrate your customers. Have a reliable repair service on standby, and ensure that technicians respond promptly to resolve any issues.
As technology advances, consider upgrading your laundry equipment to stay competitive in the market. Modern, high-efficiency machines not only deliver better results but also appeal to environmentally-conscious customers. Embrace contactless payment options and implement smart systems that allow customers to monitor their laundry remotely for added convenience.
Customer satisfaction is key to the success of your laundry business, so actively listen to their feedback. Encourage customers to share their suggestions and opinions on how you can enhance their laundry experience. By addressing customer concerns promptly, you demonstrate your commitment to meeting their needs and fostering loyalty.
Invest in training your staff to handle equipment with care and to conduct basic troubleshooting. Well-trained employees can identify early signs of malfunction, reducing the likelihood of major breakdowns and costly repairs.
By prioritising the regular maintenance and strategic upgrading of your commercial laundry equipment, you can ensure the seamless functioning of your business and retain a loyal customer base. Satisfied customers are more likely to recommend your laundry services, contributing to the long-term success and growth of your enterprise.
Get Started with Aqualogic
For support in putting this comprehensive guide into action, or for a comprehensive range of laundry equipment, contact us online today or call 1300 222 119. At Aqualogic we also offer a range of support services for individuals trying to start their own commercial laundry business, we know how expensive setting up a business can be which is why we offer a number of finance options as you get on your feet.
