You’re thinking of getting into the laundry industry? Then you’re making the right choice! With its many benefits and venture capital funds like Clean Venture ready to consider investing in the industry, you will be able to start your own laundry business and start earning.
However, why exactly is the laundry industry a good investment? Here are the reasons why:
- High Success Rate and ROI
Of course, as new and potential entrepreneurs, business failure is scary and MUST be avoided. When you invest in a laundromat, there is a high success rate, with up to 95% of laundromats succeeding over a period of 5 years.
Furthermore, laundromats have a great return on investment. The ROI can average around 25-30% in its first year. And since there is no lead time (which will be explained below), laundromats are easy to begin without any extended lead time compared to other businesses in the retail or restaurant industry. You get to create a profit without having to wait to receive any accounts receivables and owed invoices.
- It’s Recession Resistant
Even during economic turndowns and the COVID-19 pandemic, laundromats survive and can even make a profit. During recessions, people would turn to laundromats instead of outsourcing laundry or dry cleaning services.
Besides this, people would turn to laundromats as they cannot invest in new laundry machines or repair damaged ones they may have since money is tight. Having clothes laundered is essential, and laundromats provide that necessary service at affordable prices for customers. While customers won’t have to break the bank when in laundromats, you still earn an adequate profit!
- You Have Your Own Time
When you invest in the laundry industry and have your own laundromat, it would require minimal in-person supervision. Owners can now have remote monitoring tools installed and software to use for communication. There are even programs laundromat owners can use to receive real-time information on their current revenue, equipment usage, and notifications on any issues.
With the added convenience, you will be able to handle your own time better and have a good work-life balance. There’s no need to visit the store every day, but perform quick checks throughout the day as you focus on other things, such as relationships or hobbies.
- No Lead Time
Laundromats have quick payment cycles, much shorter compared to the 30-60 day cycle in other industries. This is thanks to the fact that laundry machines can accept cash, cards, as well as mobile payments through apps.
Remember, payment cycles can make or break small businesses, with up to 82% of small businesses failing from cash flow problems. Since laundromats operate on a pay-as-you-go basis, it eliminates uncertainties of extended payment cycles. Besides this, you won’t have to invest in other resources such as billing, invoicing, and your accounts receivables.
As you can see, the benefits of investing in the laundry industry are vast, which is why you should take advantage of that now! If you want to start your own laundry business, take the appropriate steps by forming a detailed business plan now. Good luck!