Opening a laundromat is a project that fascinates you and you want to learn more about the creative process, obligations to be respected, steps to follow? Here’s our complete guide to understanding how to open a laundromat.
Why Open a Laundromat?
Laundromats are local businesses that provide washing machines, dryers, ringers, etc. to their customers. They typically operate on a self-service basis, meaning that customers have free access without the presence of staff or a manager required. Laundromats therefore offer their managers a lot of flexibility.
However, the work of management and maintenance which rests on the shoulders of the manager is undeniable. Someone should be present during the business opening and closing hours and available to intervene immediately in the event of a malfunction. But the advantage of a laundromat is that in most cases, there is no need to hire employees. This makes it possible to achieve relatively strong levels of profitability fairly quickly.
good to know
No training is required to open a laundromat.
It is therefore a project accessible to anyone with knowledge or experience in business management. Depending on the nature of the project, this could be additional income for the manager. But it is often necessary to open multiple laundromats to make a living from it.
What are the legal steps to open a laundromat?
choice of legal status
Choosing the legal form of your business is an essential step.
Whether it is a franchise or an independent business, you should choose the legal position that best suits your project and your individual situation. There are many options and each one has an impact on your taxation, your social status, the security of your assets, your accounting obligations, or even manufacturing processes. While auto-entrepreneur status is often discouraged due to turnover caps, SAS or SASU is often chosen by laundry managers. You can also find out about sole proprietorship if you are single or LLC if you have multiple partners.
To make the right choice, don’t hesitate to come along with a lawyer, accountant or legal advisor.
legal obligation
Opening a laundromat also requires compliance with a number of legal obligations:
- You must respect accessibility standards for people with reduced mobility;
- You must display the list of services and prices in a place visible to your customers;
- You must have a certificate of conformity of the machines produced by the manufacturer;
- You must display a telephone number so that your customers can contact you or the person in charge in the event of a malfunction in one of the equipment;
- You must clearly affix one or more logos relating to parental supervision obligations;
- You should check the safety equipment of the equipment every week and record each check in a register.
Information
If your establishment is equipped with video surveillance, a mandatory demonstration should notify your customers.
Opening a Laundromat: 4 Tips for Success!
Tip 1 – Do Market Research
In order to understand the issues related to the launch of the sector and your project, an in-depth market study is essential.
It allows you to understand the overall functioning of the market, the position of the competitors, the expectations and needs of the customers. You should then focus your research on your area/location:
- How many competitors and where?
- What rates / turnover?
- What concept, opening hours, services offered…?
- What type of customers?
These data allow you to develop and refine your project as closely as possible to the needs of the market thus ensuring the viability of your project.
Tip 2 – Find Funding
Opening a laundromat requires a relatively large initial investment as you will need to equip yourself before starting your business. The investment to open a laundromat is in the range between €20,000 and €150,000. It varies on the basis of equipment, rent, any work done etc. To finance the opening of your laundromat, you will likely need to find sources of funding.
In order to grant a loan, banks usually ask for an individual contribution of at least 10,000 or 15,000 € minimum. But other means of funding exist, such as state-funded aid, crowdfunding campaigns…
Tip 3 – Choose the Right Location
This is a critical element to the success of your project. There are many possibilities available to you in terms of structure (gateway, bungalow, kiosk, etc.) and location (city centre, supermarket parking lot, gas station, car wash, student residence, shopping mall,…).
The location of your laundromat has a direct impact on the success of your project. You should be careful in selecting a location with a frequency, easily accessible, with parking lots, sufficiently far from competitors.
good to know
To ensure long-lasting activity, a laundromat must be located in an area with between 5,000 and 10,000 residents.
If you decide to open a laundromat with an unusual concept, you must think about setting up one near your target customers. For example we especially think about students or holidays. Finally, the area of ​​the room is an important criterion and should be between 30 and 50 m2.
Of course, it is also your budget that will determine the location of your laundromat. Finding the right balance between the ideal location and the available budget is your first challenge!
Tip 4 – Equip yourself with the right machines
After premises, investment in equipment represents a significant cost when opening a laundromat. You should offer modern machines of varying capacities in perfect working order, but also additional equipment such as ironing equipment for example.
Quality, clean and tidy equipment reflects the image of your laundromat and is important to your customers. Appliances can also be a way to define your laundry concept by opting for eco-friendly machines and organic laundry for example!
What are the other requirements to open a laundromat?
Subscribe to the right insurance
Among the obligations to open a laundromat is professional insurance. In fact, as the manager of a laundromat, you must have professional insurance to protect you and your business from the risks associated with your activity. At a minimum, it pertains to business civil liability and your local insurance.
For a laundromat, the best thing to do is to subscribe to a professional multi-risk insurance that is more comprehensive.
choose the right software
To facilitate your day-to-day management, there are many tools that save you time. So you can consider using:
You can manage your accounting yourself or it can be done online by an accountant.
open a pro account
To manage your business transactions, you will also need to open a business bank account. Traditional bank or professional bank online, it is up to you to assess your needs and see which bank best meets them.
general question
What Budget to Open a Laundromat?
The budget for opening a laundromat varies between 20,000 and 150,000€ depending on the type and location of the room, investment in machinery and equipment, and generally the concept of your laundromat.
What is the legal status of opening a laundromat?
There are several legal conditions suitable for a laundromat: EI, EURL, SARL, SAS, SASU,… Don’t hesitate to take a look at our comparative table of legal forms to learn more and make the right choice.
Where Can I Find the Right Machines for a Laundromat?
The machines for the laundromat are procured from professional dealers. Special attention should be paid to after-sales service, maintenance services and of course the quality of machines.