If you’re thinking about opening a commercial laundry business, you’re likely aware that they can offer a high return on investment. But before you start purchasing washing machines, dryers and equipment, there are several things you need to work out. Here’s how to increase the likelihood that your laundry business will be successful.
Make a Business Plan
Start with a clear business plan outlining the services you’ll provide and your designated target market. It’s also a good idea to research similar businesses in the area. Perhaps you can offer services they don’t. Make sure to compile a full list of expenses, including sewer connection fees and utility costs.
Secure Funding
Financial institutions consider factors such as credit score, net worth and business experience before approving a loan. A detailed business plan will make you stand out and allow potential lenders to provide more targeted advice, especially if they have experience in the industry.
Note that lenders are likely to expect you to put down around 30 to 35 per cent of the funds required for the project.
Choose the Right Location
Here are some important things to consider when choosing a location:
The proportion of renters in the area
The amount of single-family housing in the area
How close to supermarkets, pharmacies and other basic stores your location is
Visibility of your location
Ease of access and parking space
Neighbourhoods with many students and seniors are also good locations to target, as these two groups often don’t have access to in-home laundry appliances.
Obtain Licenses and Permits
You’ll need to make sure that you complete all the necessary paperwork to lawfully operate your business. For instance, coin operated laundry establishments in Toronto need to be licensed.
Purchase Your Equipment
Selecting the right type of machine is a crucial step in the process of opening a laundry business. It’s also one that requires a lot of research and expertise. Once you’ve determined your target market and identified their needs, it’ll be easier to select the right equipment. It’s also a good idea to work with professionals. Their expertise may prove invaluable when trying to select a commercial washing machine and other type of equipment.
Laundry Systems Experts in Toronto
Whether you’ve just starting out or are looking to make an upgrade, you can trust the experts at Harco. We can help you with everything from design to installation and we offer a range of commercial and industrial appliances to meet a variety of needs. Contact us today to request a quote.