How to Start a Laundromat Business in 6 Steps

Believe it or not, there's more than one type of laundromat to choose from. The three biggest categories are:

With a self-service laundromat, you can expect to hire minimal employees (or no employees at all, if you don't mind doing the cleaning yourself). With a full-service laundromat, though, you'll need to hire staff to wash, dry and fold customers' clothes.

But remember, it's your business, and you can have some fun with it if you want to. Take for instance the World's Largest Laundromat in Berwyn, Illinois. With a children's play area, free donuts and coffee, plenty of TVs and even a bird aviary, this laundromat is anything but basic.

Another prime example is Spin Laundry Lounge of Portland, Oregon. With a focus on sustainability, an eco-friendly soap shop, artisan laundry accessories for sale and on-site arcade games, this laundromat turns a chore into an experience.

So don't be afraid to get creative while deciding which type of laundromat you want to open, whether you want to keep it simple or start your city's first laundromat/cafe/comedy club combo.

Before you start your journey toward becoming a laundromat owner, it's important to get familiar with the laundromat industry as a whole.

Laundromat History and Current Trends

The first modern laundromat was opened in Fort Worth, Texas, in the 1930s, and coin-operated machines were invented in New York in the 1950s. Both have been widely used ever since, and today the U.S. laundromat industry brings in about $5 billion per year.

There are approximately 30,000 laundromats across the country today, and the majority are individually owned and operated.

Laundromats tend to be the most successful when located in close proximity to people who rent apartments, though homeowners who need to use large-capacity machines patronize laundromats, too.

So you've decided that you want to open up a laundromat business, and you're ready to get started. Now, it's time to plan your business. To do so…

All types of businesses can benefit from a business plan, and laundromats are no exception. So before you start shopping for washing machines, create a business plan first.

To get your laundromat business up and running, you'll need to officially form your business. And to do that, you'll need to decide on a business structure.

Possible business structures include:

For most laundromat owners (and most entrepreneurs in general), an LLC is the best choice. That's because you'll have fewer regulatory requirements than S Corps or C Corps, but you'll be able to keep your personal assets separate from your business assets — something you couldn't do with a sole proprietorship.

Once you've decided which business structure is right for you, you can make the business registration process a breeze by filing your laundromat with Bizee.

Your work's not done yet, though — obtaining retail space and commercial washers and dryers will also require an initial investment. According to some sources, that investment will cost you somewhere between $200,000 and $500,000.

However, you could end up spending much less (or much more) depending on the cost of rent in your chosen area and the number of machines you plan to buy. For instance, if you buy a laundromat with machines already in it, you won't have to worry about the cost of machines, but you'll likely pay more for the space.

Whatever the case, make sure you know what kind of initial investment you'll need to pay beforehand.

You don't need to hire employees to have a laundromat, but doing so will ensure that your facilities are always clean and your customers are always taken care of.

Just don't forget that if you have employees, you'll also need to have an Employer Identification Number (EIN).

Over the course of your entrepreneurial journey, you may find yourself wishing you could get advice from other laundromat owners, investors and industry experts. With the help of the internet, that's not just a possibility — it's something you can do right now.

If you're ready to become a laundromat owner and join the thriving laundromat industry, start your business with Bizee today. We'll make the paperwork a breeze so you can get back to designing and running your area's best new laundromat.