How to Start a Laundromat Business – Steps for Business Success

Are you thinking about how to start a laundromat business but need help figuring out where to begin? You’re in the right place! Starting a laundromat can be lucrative, especially in busy urban areas or near college campuses where demand for laundry services is high. In this guide, we’ll walk you through starting your own laundromat business, from finding the perfect location to managing day-to-day operations.

how to start a laundromat business

Is a Laundromat Business Profitable?

Yes, a laundromat business can be profitable. Success hinges on location, operating costs, equipment efficiency, pricing, and demand. In areas with high population density and limited competition, laundromats thrive. Offering additional services like drop-off laundry and dry cleaning enhances profitability. Strategic financial planning, cost management, and excellent customer service are vital for maximizing profits in the laundromat business.

Types of Laundromat Services:

Laundromats offer various services to meet customers’ needs:

  • Self-Service: Customers use coin-operated washers and dryers to launder their clothes independently.
  • Drop-Off/Pick-Up: Customers can drop off their laundry for professional washing, drying, and folding, then pick it up later.
  • Wash-Dry-Fold: Laundromats provide full-service laundry where staff wash, dry, and fold customers’ clothes for a fee.
  • Dry Cleaning: Some laundromats offer dry cleaning services for garments requiring specialized cleaning.
  • Vending: Laundromats may sell laundry detergents, fabric softeners, snacks, and beverages through vending machines.
  • Repair Services: Some laundromats offer on-site repair services for malfunctioning washers and dryers.

By offering a range of services, laundromats cater to diverse customer preferences and needs.

Understand the Startup Costs of Opening a Laundromat:

Understanding the startup costs is crucial for opening a laundromat:

  • Equipment: The most significant expense is commercial-grade washers and dryers, costing anywhere from $50,000 to $150,000 depending on capacity and brand.
  • Lease or Real Estate: Renting or purchasing a suitable space can range from $1,500 to $10,000 monthly, depending on location and size.
  • Renovations: Renovating the space to accommodate plumbing, electrical, and ventilation needs can cost between $10,000 to $50,000.
  • Utilities: Initial deposits and ongoing monthly costs for water, gas, electricity, and trash removal can amount to several thousand dollars.
  • Licenses and Permits: Obtaining necessary business licenses and permits may cost $500 to $2,000, depending on location and regulations.
  • Marketing and Advertising: Budget for promoting your laundromat through signage, flyers, online ads, and promotions, typically ranging from $1,000 to $5,000.
  • Insurance: Liability, property, and worker’s compensation insurance can add up to $2,000 to $5,000 annually.
  • Miscellaneous Expenses: Include costs for furniture, signage, security systems, and initial inventory, totaling $5,000 to $10,000.

In total, startup costs for opening a laundromat can range from $100,000 to $500,000, depending on location, size, and equipment quality. Understanding and budgeting for these expenses is essential for a successful launch.

8 Steps to Start a Laundromat Business:

Starting a laundry business involves several key steps:

Research and Planning:

Starting a laundry business begins with thorough research and planning. Analyze the market to understand demand, competition, and target demographics. Develop a comprehensive business plan outlining your services, pricing, marketing strategy, and financial projections.

Legal Considerations:

Ensure compliance with legal requirements by choosing the proper legal structure for your business and registering it with the relevant authorities. Obtain the necessary permits, licenses, and insurance to operate your laundry business legally and protect yourself from potential liabilities.

Location Selection:

Choose a prime location for your laundry business that is easily accessible, visible, and has ample parking space. Consider areas with high foot traffic, such as residential neighborhoods, college campuses, or commercial districts, to attract a steady flow of customers.

Equipment Acquisition:

Invest in commercial-grade laundry equipment that is efficient, durable, and suited to your business needs. Purchase washers, dryers, folding tables, and carts from reputable suppliers to ensure reliable performance and customer satisfaction.

Facility Setup:

Design and set up your laundry facility to create a clean, comfortable, and welcoming customer environment.
Install adequate lighting, ventilation, and security systems to ensure safety and convenience.
Consider adding amenities such as seating areas, vending machines, or Wi-Fi access to enhance the customer experience.


Hire competent and reliable staff to manage day-to-day operations and provide excellent customer service. Train your employees on equipment usage, cleaning procedures, and customer interaction to ensure smooth operation and customer satisfaction.

Marketing and Promotion:

Develop a marketing plan to promote your laundry business and attract customers. Use a mix of online and offline marketing strategies such as social media, website, flyers, signage, and local advertising to reach your target audience effectively.

Grand Opening:

Plan an event to generate excitement and awareness for your new laundry business. Offer special promotions, discounts, or giveaways to entice customers and encourage them to try your services.

Engage with the community and build relationships to establish your brand and attract repeat business.
Following these steps, you can launch and grow your laundry business, providing valuable services to your community while achieving your entrepreneurial goals.

Pros and Cons of Laundromat Services:

Here are the pros and cons of laundromat services:


  • Convenience: Laundromats offer a convenient solution for individuals who need access to laundry facilities at home or prefer not to do their laundry. Customers can drop off their laundry and wash, dry, and fold it themselves without the hassle.
  • Time-saving: Using a laundromat can save customers valuable time that would otherwise be spent washing and drying clothes at home. This is especially beneficial for busy professionals, students, or individuals with large families who have limited time for household chores.
  • Accessibility: Laundromats are typically located in easily accessible areas, making it convenient for customers to find a nearby location to meet their laundry needs. This accessibility ensures that individuals without personal laundry facilities still have a convenient washing option.
  • Variety of Services: Many laundromats offer services beyond basic washing and drying, such as dry cleaning, alterations, and garment repairs. This allows customers to address various laundry needs in one convenient location.


  • Cost: Using a laundromat can be more expensive than washing clothes at home, especially for individuals with large loads of laundry or frequent washing needs. Customers may need to factor in the cost of commercial washers and dryers and additional fees for services such as folding or dry cleaning.
  • Dependency: Relying on a laundromat for laundry needs can create a sense of dependency for individuals who do not have access to personal laundry facilities. This dependency can be inconvenient if the laundromat is closed or machines wait long during peak hours.
  • Limited Control: Customers using a laundromat have limited control over the washing and drying process compared to doing laundry at home. They may need to adhere to the laundromat’s operating hours and equipment availability, which can be restrictive for some individuals.
  • Potential for Damage or Loss: There is a risk of damage or loss of clothing when using a laundromat, especially if customers are unfamiliar with operating commercial washers and dryers. While most laundromats take precautions to prevent damage or loss, accidents can still occur, leading to inconvenience and potential costs for customers.

Also Read: How to Start a Storage Business – Guide for Success


Is it easy to run a laundromat?

Running a laundromat requires attention to detail and management, but with proper planning, it can be manageable.

Is opening a laundromat a good investment?

Opening a laundromat can be a solid investment if factors like location and market demand are favorable.

How many employees do you need to run a laundromat?

The number of employees needed varies based on the size of the laundromat, but typically, a small to medium-sized operation may require 1 to 3 employees.

What makes a successful laundromat?

A successful laundromat often focuses on location, cleanliness, efficient equipment, excellent customer service, and competitive pricing.


Starting a laundromat business can be rewarding with the proper planning and execution. By following the steps outlined in this guide on how to start a laundromat business, you can lay the foundation for a successful and profitable venture. Remember to stay focused on providing excellent customer service and continuously adapting to meet the needs of your clientele. Dedication and determination can turn your dream of owning a laundromat into a reality.

Ray Austin

Ray Austin, seasoned entrepreneur and business blogger, shares valuable insights on startups, leadership, and navigating the business landscape. Join him on the journey to success through practical advice and a fresh perspective on modern commerce.
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