Why you should invest in a laundromat
Have you seen the recent flurry in laundromats as a side hustle? You should have seen it if you’ve been on social media lately – it’s a new thing. It’s a simple way to bring in a second income and cash flow to your business, and it’s going to be a worthwhile hustle that you might not have considered before. Laundromats could bring in more money than you think, so while there is an investment initially, the return is something to look forward to. The best bit is that this income is a passive one, and it runs in the background!
You might not have considered this before but buying commercial washing machines and dryers and making sure that you have a space for your laundromat is important. You might even be on the fence over the idea given that you would be looking at setting up a new business, but here are some of the best reasons that it’s the best investment that you could make!
- The return. If you decide to start a laundromat that is self-service, you will only need to be there to oversee it rather than actually do much. Some laundromats are no longer staffed, with owners just popping by each week to collect the income and make sure that the machines are in good working condition.
- The market isn’t crowded. There aren’t very many towns that have laundromats anymore, and so the chances are you’re not going to be overcrowded with competition in your town. This means that you get the monopoly on the locals and they will always come to you when they need you!
- You can build equity. Did you know that laundromats are generally valued around 4x their net income? You can calculate this by working out how much you make per month, then multiplying it for the year and multiplying that figure by 4. This is one of the best reasons to invest in a laundromat!
- For the taxes. Did you know that a laundromat is a tax advantage business? You can save taxes on employees and as your machines depreciate each year, you can write off the value and you won’t have to pay tax on how much the assets depreciate by.
- It’s a cash business. You can bet that this is a simple one to run and manage, and you won’t have to chase people for money or worry about being left in a bad situation. There is none of those stresses with laundromats; people will come and go as they please, and they will pay for their laundry to be done there and then!
- It’s self-service. If you want a low maintenance business option, this is it. You don’t have to do too much, which means that you can continue on around your day and not worry about being in the laundromat all of the time. You can invest in something that keeps going without constant supervision – though of course, you can have that!