Starting a business can be a risky endeavor depending on the industry in which it resides. The factors that appeal to many when becoming a business owner include being their own boss, establishing financial independence, and providing a service to the community in which they live. Autonomy and control alone are enough to convince entrepreneurs to start a small business. Comparably, owning a laundromat includes the same factors and a few others that may not be as commonly known.
Five Reasons Why Buying a Laundromat is a Good Idea
- Low investment costs - Saving money is always top of mind for any entrepreneur, as those funds can be reinvested in a business venture to sustain it and help it grow. For a laundromat, investment costs, for instance, are low with equipment, property, and other inventory because there is not much to maintain other than occasional replacement parts and vending machine supplies, snacks or drinks.
- Lower failure rates - Unlike other small businesses, laundromats have a 95% success rate over 5 years. This means there is a low chance of failure for a laundromat. The reasons for this can include high customer retention, low labor costs, and recession resistance. Because the failure rate is so low, there is an increased ability to generate residual family wealth and pass down a lucrative asset to the next generation.
- Excellent return on investment - Studies have shown, on average, a laundromat has a 20-35% return on investment (ROI) in the first year. Moreover, once the logistics like location and commercial laundry equipment are selected and established, opening and operating a laundromat is relatively easy. Laundromats do not require extended lead time like retail and hospitality industries before turning a profit.
- Unaffected by seasonality - Businesses such as landscaping, travel agencies, and others can see a significant decline in sales due to the changing seasons because they rely heavily on the weather to attract and retain customers. On the other hand, Laundromats do not rely on the season or weather conditions to dictate the number of sales experienced throughout the year. Therefore, while other businesses may struggle financially during specific points in the year, a laundromat owner does not have to worry about potential losses.
- Work-Life Balance - According to the U.S. Small Business Administration, 47% of potential entrepreneurs hesitate to take the next step in owning a business because they worry it will negatively affect their work-life balance. Many responsibilities follow opening a business, including supervising employees, managing finances, and developing growth strategies. However, a laundromat requires minimal in-person supervision, as direct customer contact is low and the need for staff reduces. Thus, owners don’t have to be onsite during business hours, giving you more time to pursue other ventures while running a successful business.
Dexter Commercial Laundry Equipment from AAdvantage Laundry Systems
At this point, there is no reason why you should wait to begin your dream of owning your own laundromat. However, as a new business owner, you will have to make smart business decisions to achieve growth. This means investing in the right coin-operated laundry equipment. AAdvantage Laundry Systems has been a leader in providing laundromats with brands such as Dexter C-Series machines to help meet their bottom line.
For almost a century, Dexter coin laundry equipment has been leading in the commercial laundry industry with coin laundry machines that provide high-tech features, cost savings, and extended operational life. AAdvantage Laundry offers investors Dexter’s C-Series coin-operated machines designed to help laundromat owners succeed in today’s competitive business climate. Dexter C-series washers and dryers are the perfect addition to a newly minted laundromat because they provide the following benefits:
- Durability for long-lasting operation, as every model has passed our 1,000-hour out-of-balance test.
- Guaranteed 10-year warranty coverage on the frame, tub, cylinder, shaft, seals, bearings, and bearing housing. And a 3-year parts warranty that covers everything else.
- Reliable lifetime technical support from our professionals ensures your Dexter C-series machine is always working at optimal condition.
The Tax “AAdvantage” of Investing in Commercial Laundromat Equipment
Not only does AAdvantage Laundry have the best in commercial laundromat equipment, but we also provide equipment financing tax benefits for new investors. AAdvantage Laundry’s Section 179 tax deduction benefits businesses by allowing you to write off up to $1 million in deductions on new or used equipment. Moreover, Section 179 tax deduction incorporates a bonus depreciation plan that includes:
- Additional write-offs of 100% of undepreciated new equipment only.
- Equipment must fall under the Modified Accelerated Cost Recovery System (MACRS) with a recovery period of 20 years or less.
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