Skip to Content

Pros and Cons of Owning a Laundromat

Laundromat Business

A Laundromat simply refers to a public business that makes it possible for consumers to wash and dry their clothing, sheets, as well as other items at their convenience using coon-operating equipment. In these businesses, clients have access to washers and dryers without much personalized professional help.

Truth be told, a good number of homeowners own laundry equipment; however, renters barely get the same luxury. People who live in apartments or rental homes barely get access to laundry services within the apartment complex and will most often have to utilize a Laundromat.

Even some homeowners tend to leverage Laundromats since they own large bedding items that their home equipment is unable to process.

Pros and Cons of Owning a Laundromat Business


  1. Very minimal inventory 

This is indeed one valid business that doesn’t require so much physical inventory. It simply entails that you won’t have to invest so much time and resources into ordering, rotating, or discarding items. In this line of business, as long as you get your washers and dryers, some laundry soap options, and in some cases a few snacks, then you’re prime to launch and manage this business.

  1. A controlled environment

The business is known to provide little or no variables that you will have to bother about. Aside from your utility and detergent costs, your budget is more or less predictable. The main capital investment will have to go to the necessary equipment you need as well as your property ownership or lease.

Howbeit, aside from those costs, this business opportunity is seen as being fairly easy to manage. The skills needed to carry out laundry are basic, particularly if you’re not offering dry-cleaning services. You won’t also have to bother with the weather and other climate-related variables.

  1. Little or no barrier to entry

In this line of business, once you offer the necessary equipment, the remaining and the most tasking aspect of the job is then left to your customers. It is also possible to charge more for your services if they prefer that you do the washing, drying, and arranging of laundry.

You don’t need any particular academic qualification or degree to own this type of business. You’re not mandated to obtain a precise certification to get into the business, and the repair work isn’t too technical.

  1. A reliable revenue stream

Humans don’t wear their clothes or use their bedding once and discard them immediately after just one use. In most situations, they are used, cleaned and reused. Even families that are extremely thrifty will have to do their laundry on a regular basis.

It simply entails that you get access to a dependable revenue stream as long as you can keep managing the business efficiently.

Coupled with the fact that you won’t have to worry or contend with getting payments sent through the mail or AR/AP issues, it is an endeavor that makes it possible to feel good about catering to the everyday needs of your community while making good money.

  1. Fewer licensing requirements

To start this business, you will only have to bother with obtaining a business license or permit and nothing more. In most places, you might be expected to obtain a laundry license for your facility. In some cities, the health department might want to conduct routine inspections of your facility to ensure you’re not ripping off customers. Nevertheless, just as it was noted above, the barriers to entry are minimal.

  1. Potential for multiple locations

This is indeed one business that has the potential for multiple locations as long as you have a comprehensive grasp of how your community uses your facilities. It simply makes it convenient to duplicate your efforts into a second location, then a third, and much more.

This is quite different from other businesses where you will have to make adjustments to different neighborhood conditions. A Laundromat is more or less a straightforward opportunity, and there won’t be any need to reinvent the wheel as long as there is demand for the service.

  1. Mind-blowing tax benefits

Owing to the fact that you will invest in a wide range of equipment required to run a Laundromat, you can leverage the benefits that come with depreciation to further bolster your growing business. Aside from that, note that other general business expenses, like water, power, and gas can in many places be deductible in this sort of establishment.


  1. Business risk

You have to understand that certain risks come with starting and managing this business. It is possible to establish a Laundromat in the perfect location, have access to favorable customer footfall, and still not attain success. Owing to that, it is recommended you take your time to understand what your community requires in a Laundromat and make sure that your establishment provides those services with your business.

  1. Massive capital

It cost a fortune to start this business especially owing to the number of equipment you need to purchase and their prices. According to industry reports, you will have to invest around $150,000 to $300,000. Reports have it that the annual gross income for a single location in this line of business is around $30,000 to $1 million.

It is believed that your expenses will be around 65% to 115% of the gross income you receive. It simply entails that the minimum net is $10,500, with the risk of incurring a $4,500 loss with your business.

  1. People barely treat a Laundromat with respect

For those looking for a business opportunity that is classy, venturing into the Laundromat business is not something to consider. Over the years, it has been proven that people tend to loiter on your property, particularly if it is open all night since it keeps them off the cold.

It is also possible to find trash lying around since people barely feel concerned about cleaning up after themselves. If you love to keep things clean and tidy, then you’ll be at the business all the time.

  1. Future upgrades

To ensure that you can achieve long-term success, it is imperative you continue upgrading your equipment to stay current with the ever-evolving needs of clients. A good number of businesses in this industry will have to upgrade all their equipment in 15 years or less to ensure that they keep offering value.

  1. Be responsible for clothing left unattended

Even though you might not have to bother about legal litigation when you own a Laundromat, keep in mind that it is still not entirely impossible. One prevalent case in this line of business has to do with customers who leave their clothing unattended for several hours if not several days.

If at any point those items go missing, they might decide to hold you responsible for them. Owing to that, it is recommended that you place signs inside the Laundromat that clearly instruct customers not to leave their items unattended and that you are not responsible for loss if that happens.

  1. You have to be mechanically sound to boost your profits

One thing you need to know in this line of business is how to fix a washing machine or a dryer, to ensure you don’t spend so much on maintenance. It is a lot cheaper for the owner to fix the equipment when it breaks down instead of hiring a contractor to do so.

In some places, you may be mandated to recruit repair professionals and this will most definitely cut into your bottom line.


Starting and managing a Laundromat is a viable option to consider particularly for entrepreneurs who are eager for a recession-resistant model that provides great flexibility, a high ROI, and the platform to genuinely cater to the needs of their community.