How to Start a Profitable Laundromat Business in 10 Steps

Starting a laundry business is a smart way to build steady, semi-passive income, especially in high-renter areas with consistent laundry demand. To get started, you’ll need to choose a business model, write a business plan, secure funding, find the right location, and invest in commercial equipment. From there, it’s all about setting competitive prices, building out your store, and marketing your services locally.

In this guide, I break down each step on how to start a laundromat business to help you launch one with confidence.

1. Choose your laundromat business model
2. Write a laundromat business plan
3. Estimate startup & operating costs
4. Secure funding
5. Find the right location
6. Register your business & get permits
7. Set up your business finances
8. Purchase equipment & build your store
9. Set your pricing & service packages
10. Market your laundromat

Step 1: Choose your laundromat business model

Before you dive into planning, it’s helpful to understand what makes laundromats appealing and what type of setup best fits your goals.

Why start a laundromat business?

Laundromats come with a mix of operational advantages that make them a popular choice for first-time and seasoned entrepreneurs alike. Here are the key benefits you can expect:

• Consistent cash flow: Laundry is a weekly habit for most people.
• Low labor costs: Many laundromats run with minimal staffing.
• Recession-resistant: Laundry is an essential service even during economic downturns.
• Scalable: Owners can expand by adding services or locations.

Types of laundromats

After the key benefits of a laundromat business, the next step is to decide which type of laundromat to run. Your choice will affect your startup laundromat business costs, daily involvement, and potential profit.

Choosing the right setup is one of the most crucial early decisions in learning how to own a laundromat that aligns with your lifestyle and income goals.

Step 2: Write a laundromat business plan

Once you’ve chosen the type of laundromat you want to run, it’s time to map out your business plan. This document will help you estimate laundromat business costs, clarify your strategy, and secure funding if needed.

You don’t need to write a 50-page report, but your plan should clearly explain how your laundromat will operate and become profitable. If you’re just getting started, a one-page business plan is a great way to outline your strategy quickly. You can also explore different types of business plans to find the format that fits your needs and learn how to write a business plan.

Here are the essential sections to cover:

A clear business plan not only keeps you focused, but it also shows lenders or partners that you’re serious and prepared. You’ll refer back to it often as you move forward, so take the time to make it solid.

Free download: Business plan for laundromats

Download our free template to start mapping out how to start a laundromat business the right way. Use this printable template to outline your vision, estimate costs, and plan for growth.

Step 3: Estimate startup & operating costs

Starting a laundromat isn’t cheap, but knowing what to expect upfront will help you budget smart and avoid surprises. Your total laundromat business cost depends on your location, business model, and whether you’re building from scratch or buying an existing setup.

Typical laundromat startup costs

Here’s a rough breakdown of what you might spend:

Expect to invest anywhere from $200,000 to $500,000+ for a new build. Buying an existing laundromat can be cheaper upfront, but may require equipment upgrades or repairs.

Ongoing operating costs

Once you’re open, here are the monthly costs to plan for:

• Rent or mortgage
• Utilities (water, gas, electricity): These can be high, especially with older equipment
• Maintenance and repairs
• Insurance
• Loan repayments (if applicable)
• Staff wages (if running a full-service or attended laundromat)
• Marketing and loyalty programs

To stay profitable, monitor your utility usage and plan for regular machine upkeep. Many owners invest in energy-efficient equipment to lower monthly bills and boost margins over time.

Step 4: Secure funding

Financing is a major part of learning how to own a laundromat successfully, especially with high upfront equipment costs and renovation expenses. Once you’ve mapped out your startup costs, it’s time to figure out how you’ll pay for them. Most new owners use a mix of personal savings, loans, or equipment financing to cover their laundromat business costs.

Here are the common funding options for laundromats:

• Personal savings or family investment: This is a great option if you want to avoid debt. Just make sure to document contributions if you’re partnering with family or friends.
• Small business loans: Traditional bank loans and SBA (Small Business Administration) loans offer competitive interest rates, but they usually require strong credit, a detailed business plan, and collateral. SBA 7(a) loans are a popular choice for laundromats.
• Equipment financing: Lenders may let you finance washers and dryers separately. This lowers upfront costs and is often easier to qualify for than a general business loan.
• Investors or business partners: You may be able to raise funds from private investors or bring on a partner. Just be clear on profit-sharing and roles from the start.
• Crowdfunding or grants: Local grant programs or platforms, such as Kiva and Honeycomb Credit, can help fund small business startups, especially those with a community focus.

Related:

• How to Get a Small Business Loan
• 9 Best Small Business Grants

Step 5: Find the right location

Your location is one of the biggest factors in your laundromat’s success. Even with great machines and pricing, a poor location can mean slow foot traffic, limited customers, and low profitability.

Whether you’re building from scratch, leasing a space, or buying an existing laundromat, it’s important to choose a location that aligns with your target market and business goals.

What to look for in a laundromat location

Here are some things that make a good laundromat location:

• High renter density: Look for neighborhoods with lots of apartment buildings, student housing, or older homes without washers and dryers. Renters are your primary customers because they do laundry weekly and rely on public facilities.
• Strong foot or vehicle traffic: Corner lots, strip malls, and shopping plazas are ideal. Visibility matters. A laundromat that’s easy to see is more likely to attract impulse visits and new customers.
• Ample parking and easy access: Your customers will often arrive with large bags of laundry. Make sure there’s convenient parking, wide doors, and good street access. If the area is walkable, that’s even better.
• Nearby complementary businesses: Locations next to convenience stores, gyms, cafes, or dollar stores can drive extra traffic. People love being able to multitask while doing laundry.
• Low nearby competition: Research how many laundromats already serve the area. If another is nearby, you’ll need to offer something better, such as newer machines, more services, or a cleaner space, to compete.

Physical and utility considerations

It’s not just about location — it’s about infrastructure. Make sure the space can support your utility needs:

• Water lines and drainage: Commercial washers need high water volume and reliable drainage.
• Electrical and gas connections: Dryers require strong electrical or gas hookups.
• HVAC and ventilation: Proper airflow is essential to avoid overheating or mold issues.
• Structural capacity: The building should support the weight and vibration of heavy equipment.

Leasing tips

If you’re leasing a space, keep these in mind:

• Negotiate tenant improvements (TI): Some landlords will cover part of the renovation costs.
• Avoid long-term lock-ins: Start with a shorter lease or one that includes renewal options.
• Understand zoning and compliance: Ensure the property is zoned for commercial laundry and that your business complies with city noise and wastewater regulations.

Quick tips for buying an existing laundromat

Buying an existing business can give you a head start with machines, infrastructure, and sometimes loyal customers already in place. But be sure to:

• Inspect the age and condition of the equipment.
• Review the utility bills and maintenance history.
• Check for deferred repairs or code violations.
• Understand the reason the current owner is selling.

Your laundromat’s location has a direct impact on your customer volume, operating costs, and long-term growth potential. Take your time, do your research, and visit multiple spots before making a decision. Once you’ve found the right space, it’s time to make things official, starting with business registration and licensing.

Step 6: Register your business and get permits

Before you open your doors, you’ll need to take care of the legal and administrative side of things. Registering your business, getting licensed, and setting up financial systems will keep you compliant and make running your laundromat smoother from day one.

Choose a business structure

Your business structure determines how you pay taxes, handle liability, and organize your finances. Most laundromat owners choose:

• Sole proprietorship: Easiest and cheapest to set up, but no liability protection.
• Limited liability company (LLC): Popular option that protects personal assets and offers flexible taxes.
• Corporation (C-Corp or S-Corp): Better for large operations or if you plan to seek investors.

Register your business

Before you can operate your laundromat legally, you’ll need to register with the appropriate state and federal agencies. This process makes your business official and sets you up for tax and banking purposes.

• Choose a business name and check availability in your state.
• Register your business entity through your state’s Secretary of State website.
• Apply for an EIN (Employer Identification Number) from the IRS. It’s free and required for hiring employees or opening a business bank account.

For more detailed instructions, check our full guide on how to register a business.

Get the required licenses and permits

The specific permits you need will vary by state, city, and the services you offer, but skipping this step could result in fines or delays. Here are the most common licenses required to run a laundromat:

• General business license: Required by most cities or counties to operate legally. You’ll usually apply through your local city hall or county office.
• Sales tax permit: If you sell any retail items, like detergent, fabric softener, or laundry bags, you’ll need to collect sales tax and file returns. This permit is typically issued by your state’s Department of Revenue.
• Assumed name or DBA (“Doing Business As”): If you’re operating under a name different from your own or your LLC, you may need to file a DBA.
• Wastewater discharge permit: Because laundromats release large volumes of water into the sewer system, some cities require special environmental or wastewater permits. Check with your local water authority.
• Fire department approval or occupancy permit: You may need an inspection to ensure your dryers and gas lines meet local fire safety standards.
• Health department approval (if offering wash-and-fold): If you’re handling customer laundry or offering folding services, some cities may require a basic health permit or inspection.
• Signage permits: If you’re installing exterior signs or window displays, your city may require a signage permit, especially in shopping centers or historic districts.

Step 7: Set up your business finances

Keeping your laundromat’s finances organized from the start is key to running a smooth, profitable operation. It also helps you track performance, manage expenses, file taxes correctly, and secure funding if you ever expand.

Open a business bank account

Separate your personal and business finances to protect your assets, simplify accounting, and maintain LLC or corporate liability protection. Most banks offer small business checking accounts with features like online banking, expense tracking, and mobile deposits.

When opening your account, bring your:

• Business registration documents
• EIN (Employer Identification Number)
• Valid ID
• Initial deposit

Choose accounting software

Even if you’re starting small, accounting software can save hours of manual work. It helps track income, categorize expenses, send invoices, and prepare for tax season.

Here are a few tips when choosing a system:

• Start simple: Choose a user-friendly platform that doesn’t require an accounting background to navigate.
• Look for automation: Features like bank syncing, expense categorization, and recurring transactions can save hours of manual work.
• Prioritize reporting: Choose software that gives you clear, customizable reports on cash flow, profit/loss, and expenses.
• Check integration options: Make sure it works with your POS system, payment processors, or payroll provider (if you have staff).
• Don’t overpay: Pick a plan that matches your current needs. You can always upgrade as you grow.

Set up payment systems

How customers pay can affect both their experience and your day-to-day operations. The right payment method depends on your laundromat model and customer base.

Here are the most common options:

• Coin-operated machines: Still widely used and familiar to customers, but require regular cash handling, change machines, and more frequent maintenance.
• Card-based systems: Allow customers to pay using debit or credit cards. These reduce the need for on-site cash and can integrate with loyalty programs.
• Mobile app payments: Offer contactless convenience and remote machine monitoring. Some systems let customers load credits, track usage, and even get promotions from their phone.
• Hybrid setup: Many modern laundromats combine coin, card, and app-based payments to give customers flexibility.

Budget and track expenses

Solid financial systems keep your laundromat on track — and make scaling or securing funding much easier down the line. Monitor fixed and variable costs, such as utilities, maintenance, rent, and marketing. Create a monthly budget and review it regularly to make sure you’re on track to reach break-even and profitability.

Step 8: Purchase equipment and build your store

With your location secured and finances in place, it’s time to set up your laundromat. This step involves selecting the right machines, designing your layout, and creating a clean and functional space that keeps customers coming back.

Buy the right commercial equipment

Your washers and dryers will be your biggest investment and the backbone of your business. Look for machines that are durable, energy-efficient, and user-friendly for customers.

Here’s what you’ll need:

• Commercial washers (front- or top-loading, depending on your layout)
• Commercial dryers (gas or electric)
• Payment system (coin, card, app-based, or hybrid)
• Change machines (if using coins)
• Laundry carts and folding tables
• Security cameras and Wi-Fi
• Detergent vending machines (optional for added revenue)

Plan a functional store layout

A well-designed layout makes your laundromat easier to navigate, more pleasant to use, and more efficient to operate. It can also boost customer satisfaction and help you stand out from nearby competitors.

Here’s what to keep in mind:

• Group machines by type and size: Place similar machines together (e.g., small washers in one row, large-capacity washers in another) to make it easier for customers to make choices.
• Leave space for movement: Make sure there’s plenty of room for carts, strollers, and people to move between aisles without feeling cramped.
• Position folding tables strategically: Place tables near machines but not in the way—ideally along walls or in open central areas.
• Add seating and amenities: Benches, free Wi-Fi, charging outlets, TVs, or vending machines make wait time more comfortable and encourage return visits.
• Keep customer and staff areas separate: If you offer wash-and-fold services, use partitions or a designated back room to keep laundry processing out of view.

Complete your renovation and buildout

Transforming your space into a fully functional laundromat requires careful planning and the right contractors. Whether you’re doing a light refresh or a full buildout, here are key things to focus on:

• Hire experienced pros: Work with a contractor familiar with laundromat or commercial utility setups.
• Check infrastructure early: Confirm your space has adequate plumbing, gas lines, ventilation, and electrical capacity before installing machines.
• Use durable materials: Choose flooring and surfaces that are easy to clean and can handle heavy foot traffic and moisture.
• Ensure accessibility: Follow local building codes and ADA requirements so your space is accessible to everyone.
• Design for long-term ease: Install bright lighting, clear signage, and smart layouts to minimize customer confusion and maintenance needs.

Step 9: Set your pricing and service packages

Your pricing strategy plays a big role in attracting customers and hitting your laundromat business’s profit goals. Price too high, and you may scare off regulars. Too low, and you risk not covering operating costs, especially utilities and maintenance.

Know your costs first

Before setting prices, calculate your actual cost per wash and dry. Consider:

• Water, gas, and electricity usage per cycle
• Equipment wear and tear
• Labor (if offering wash-and-fold or attended service)
• Detergent or supplies (for full-service only)

Once you know your cost per cycle, build in a markup that allows for profit while staying competitive in your area.

Benchmark local competitors

To make sure your prices are competitive, it’s important to understand what other laundromats in your area are charging. This gives you a pricing baseline and helps you position your business, whether you want to match, undercut, or justify charging a premium based on service or experience.

Visit nearby laundromats and note:

• Price per load for small, medium, and large machines
• Cost for drying (flat rate vs time-based)
• Prices for extras like soap, wash-and-fold, or pickup and delivery

Aim to stay in range but differentiate with better service, cleaner facilities, or more flexible payment options.

Offer service packages and upsells

Creating bundled services can increase your average ticket and make your business more appealing. Consider offering:

• Standard self-service pricing (priced by machine size or cycle)
• Wash-and-fold per pound (commonly $1–$2 per pound)
• Pickup and delivery laundry packages (weekly or monthly subscriptions)
• Loyalty programs (e.g., every 10th wash is free or app-based rewards)
• Add-ons (detergent, softener, scent boosters, express service)

Your pricing isn’t set in stone. Adjust it over time based on customer feedback, rising costs, or local demand.

Step 10: Market your laundromat

Once your store is ready, it’s time to spread the word. A solid marketing plan helps you attract new customers, build loyalty, and keep your machines running. You don’t need a huge budget, just a smart mix of local outreach and digital visibility.

Start with local marketing

Since laundromats serve nearby residents, hyperlocal marketing is key. Focus on reaching people who live or work near your store.

Try these strategies:

• Distribute flyers and coupons at apartment buildings, gyms, student housing, and local events.
• Partner with nearby businesses for referral deals or co-promotions (e.g., “Get 10% off laundry with your coffee receipt”).
• Join neighborhood Facebook groups or local business directories.
• Run a grand opening promotion like a free dry cycle with every wash or a week of discounted rates.

Build an online presence

Most customers will search online before visiting a new laundromat. Make sure they can find you and like what they see.

• Set up your Google Business Profile with your location, hours, services, and photos. This helps you appear in Maps and local search results.
• Create a basic website with your pricing, amenities, and contact info. Include FAQs and updates.
• Encourage online reviews on Google and Yelp. Respond to all feedback to build trust.
• Use social media to share promos, behind-the-scenes updates, or even laundry tips.

Consider paid ads

If you have room in your budget, paid ads can help boost visibility, especially when you’re just starting out. While not required, they can be a useful way to attract more local customers and promote specific services or offers. You can test small ad campaigns:

• Facebook or Instagram ads to promote local deals or new services
• Google Ads targeting keywords like “laundromat near me” or “wash and fold pickup service”

Even $5 to $10/day can go a long way if your targeting is tight.

Marketing doesn’t stop once you open. It should be an ongoing activity. Keep testing what works, talk to your customers, and stay visible in your community.

Frequently asked questions (FAQs)

Click through the sections below to read answers to common questions on how to start a laundromat business:

Is owning a laundromat profitable?

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How much does it cost to start a laundromat?

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What is needed to open a laundromat?

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What permits do I need to open a laundromat?

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Is a laundromat a high risk business?

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Bottom line

Starting a laundromat takes serious planning, upfront investment, and smart execution, but it can pay off with steady, long-term income and low daily involvement. From choosing your business model and location to pricing, equipment, and marketing, each step builds toward a profitable operation. If you’re ready to commit, a well-run laundromat can become a reliable source of income for years to come.