Are You Mentally Suited to Buying a Laundromat?

After so many years of selling, buying, building and promoting Laundromats, I discovered that some people are just not up to owning a Laundromat. They may have the money, even the interest, but do they have the mental makeup to be successful operators? I’m going to exclude those that are not buying a Laundromat for the purposes of making money; all those other reasons for owning a Laundromat that seldom get mentioned by influencers.

I found in my observations of the a major U.S. market market that approximately 25% of the people who enthusiastically purchase a Laundromat end up a year later wishing they’d never bought one. I’m also going to exclude from consideration all of those people who overpaid or were deceived about the money that their Laundromat was supposed to make. I believe that well over a quarter of new buyers are unhappy or deeply disappointed in owning a Laundromat and would gladly take back their money and return their Laundromat to the seller. Doubt my percentage? Look at the number of stores that are put on the market that have been owned for two years or less.

Without pinpointing a specific order of importance, I have identified six areas that are frequently expressed as the reason for Laundromat purchase disappointment. Here are the six:

  1. **The demand on time. **For many first-time buyers who have enjoyed the freedom from unexpected demands of their time, the buck stopping at their door for twenty-four hours a day for three hundred sixty-five days a year can be stressing to their comfort level and their lifestyle. Weekend adventures, any lengthy travel, coin jams, unhappy customer needs, repairs, staff supervision and more can be significantly higher than considered prior to purchase. Some owners have actually been unable to have any travel or vacation absences from their business, even after years of operation.
  2. The class distinction of the customers. This may surprise some people, but the reality is that if you can afford to purchase a Laundromat, you may not have much in common with your customer base. Clearly, this is not found in certain locations and parts of the country, but in a major U.S. market it can be an issue. For example, if you live in Irvine, an upper income area of Orange County, you likely have a different life style with a high Hispanic population base. A Laundromat in parts of Santa Ana have over 70% population of lower income Hispanics and located in a city that has more undocumented dwellers than citizens. You may find this distressing to grasp, as liberal as you are, the class differentials can cause impact to the interest in this business to some owners. How are you going to react when an overweight customer wearing Daisy Duke shorts and a halter top, that should have been retired after high school, demands you give a refund of $1.00 or they’re going to break out all the glass in your dryers? As a related addition to this issue is racial prejudice or an inability to deal with people of a different culture or race. You should look carefully into your own personalities to determine if you can happily provide service of a health related necessity to all the people, various races and cultures that are located in your marketing area.
  3. Cash Money Addiction. There are many forms of addiction in our society, smoking, drugs, alcohol and cash money are just a few. When new owners buy a Laundromat and have no experience handling cash money in a previous business a certain percentage are unable to understand the basics of this business. Their entire life they’ve received payment by check or direct bank deposit. In the Laundromat business, you get cash money, just a pile of money dropped into a paper bag with no one knowing how much you have and nobody able to trace your actions in a bank statement. Here’s the rule that you must follow: collect the money, pay the bills and spend what is left over. If you slip into collecting the money, spending the money and hoping there is enough to pay the bills this business can be distressing. You must have someone who can control the cash. In what was a cute case for me, my five children knew when I had collected and used these times to request money for dresses, new sneakers, prom money and other things, while I used the cash instead for gas, dinners, and so many items that my wife was concerned that too much was being spend without first being counted and deposited into the account. I was becoming a cash money addict; I didn’t look at the menu price of a dinner, never questioned the purpose or need of the requests of my children and I’d overspend on unnecessary items. Cash in your pocket can whisper “spend me” to a cash addict. Fortunately, I had a wife who whispered even louder “give me the money.” For some people, their stores don’t make enough money to allow having a cash addict operate it, or don’t have the fortune of a money controlling spouse. This can cause problems.
  4. Employee Supervision. It is very hard for some people who have never been in a management position to supervise, train or fire employees. It is a skill that can be learned but when you own a Laundromat you will likely be dealing with minimum wage workers who will need supervision and training. In time, you may discover that kindly treatment, training and a big heart cannot overcome some behaviors of workers that may be detrimental to your business. You may have to let them go. It’s tough and some people just can’t do it and therefore you may maintain crude, rude and lazy workers who just aren’t helping make your business a success. You have to consider; can I be a good manager of people? How much will it bother you to have to prepare duties and regulations for the people who work in your Laundromat? If you’re not cut out to be a good boss, this can cause you regrets.
  5. Failure to Have All Parties On-Board. Although the contribution of women has been historically significant for decades, the majority of sales of Laundromats continues to be primarily driven by men. If the dream of Laundromat ownership is vested in one spouse or partner and not the other, conflicts can happen. Many owners have expected, without requesting, that their spouse or partner should take care of certain aspects of Laundromat ownership. “Honey, I’ll do the repairs and collections, you don’t mind doing a few little items do you?” Those “little” things might include counting the money, taking it to the bank, paying the bills and supervising the staff. “Little items” can have different meaning to the person expected to do things without asking. If this is your dream, expect to do all the work, unless your spouse or partner agrees, or even better volunteers, to help.
  6. No Status Business. Some people before buying a Laundromat expect “pride of ownership” benefits from their purchase. They want to impress their family, friends and neighbors with the fact they own a business. Unfortunately, many people don’t find the owning of a Laundromat to carry as much prestige as anticipated. Exclude the jumbo sized, million dollar, brand new operations and you’ve left with a money generating business, in a lower-class neighborhood. If you want prestige benefits you should buy a nightclub or a fancy restaurant, in a Laundromat the only prestige most people receive is the items they can purchase from the profits of a well-run business. Money alone is not enough for some folks. This usually impacts the younger people more who venture into the Laundromat fold.

So, there you have it. Are you suited to own and operate a Laundromat? Take the time to review your own style and personality. Probe into whether Laundromat life is something you really want and not just a desire for business ownership.