How to Start a Laundromat: Complete Guide for Aspiring Business Owners

Opening a laundromat is a good opportunity for entrepreneurs who want steady cash flow, repeat customers, and a business model that stays strong even during recessions. To some entrepreneurs, it can be more profitable and simpler to operate than other small businesses.

So, if you’re ready to learn how to start a coin laundry,  this guide breaks everything down step-by-step, including:

• How much it costs to start a laundromat.
• How to start a laundromat with no money.
• What you need to open a laundromat (besides capital).

TL;DR: How to start a laundromat

Below are the key takeaways on how to become a laundromat owner. It’s a quick read and a good place to start if you’re considering a laundromat as a business opportunity.

A laundromat is ideal for entrepreneurs seeking semi-passive income with steady demand, and are willing to have some hands-on involvement, especially in the first year.

Laundromats earn predictable, recurring revenue with typical margins of 20–35%, and you can choose from three laundromat business models: self-service, attended, or hybrid.

• Self-service: Lowest labor costs but requires reliable equipment and strong security.
• Attended: Higher staffing costs but enables profitable add-ons like wash-and-fold.
• Hybrid: Balances payroll and customer service.

How much is it to start a laundromat? Expect $200,000–$1M to buy an existing shop or $250,000–$750,000+ to build new, plus ongoing monthly costs like rent, utilities, maintenance, and payroll.

How to start a laundromat business with no money: Use seller financing, SBA loans, partnerships, but you'll still need some capital and 3–6 months of reserves.

What do you need to open a laundromat: A strong location, the right equipment, proper permits, and enough working capital to operate for the first few months.

Steps to opening a laundromat and how to run a laundromat:

1. Research your market and competition
2. Create a laundromat business plan
3. Secure financing
4. Find the right location
5. Choose your business structure and register
6. Obtain licenses, permits, and insurance
7. Purchase and install equipment
8. Hire and train staff (if running an attended model)
9. Market your laundromat
10. Open your doors and optimize

Watch out for these mistakes when starting a laundromat: Underestimating startup costs, skipping due diligence, choosing poor locations, buying old equipment, expecting to be hands-off, not keeping cash reserves, weak staff management, and ignoring your online presence.

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Is starting a laundromat business right for you?

Who it’s for

• Entrepreneurs looking for semi-passive income.
• Investors searching for a cash-flow business with predictable demand.
• People willing to learn basic equipment maintenance and customer service.

Who it’s NOT for

• Anyone expecting a 100% passive business.
• People with no capital or access to financing.
• Owners who don’t want to be hands-on during the first 6–12 months.

Laundromats aren’t completely hands-off, but with the right setup, they can operate smoothly with minimal day-to-day oversight—making them ideal for investors, semi-hands-on founders, or people looking to diversify income.

What does it mean to own a laundromat?

A laundromat business is simple at its core:

• Customers pay per load.
• You collect revenue from machines. Modern systems deposit funds directly into your bank.
• Revenue is recurring because people usually wash clothes weekly.
• Well-run laundromats typically achieve profit margins of 20–35%.

If you’re considering starting a laundromat, here are three business models for how to own a laundromat:

1. Self-service unattended laundromat

• No staff required.
• Lower payroll costs.
• Requires strong security and reliable equipment.

2. Attended laundromat

• Staff on-site to help customers and maintain cleanliness. Schedule employees as needed, depending on demand. 
• Allows add-ons like wash-and-fold or pickup and delivery.
• Higher labor costs but higher revenue potential.

3. Hybrid model

• Part-time staff combined with self-service hours.
• Good for controlling payroll while offering extra services.

How much does it cost to start a laundromat business?

How much it costs to start a laundromat depends on whether you buy an existing shop or build a new one. Below, we’ve listed the different costs and some pros and cons for both options.

Buying an existing laundromat

What’s included:

• Purchase price
• Equipment
• Customer base
• Lease transfer or property purchase

Typical costs:

• Purchase cost: $200,00–$1,000,000
• Down payment: 10% to 20% of the purchase price
• Working capital (first 3–6 months): $10,000–$30,000
• Equipment upgrades: $10,000–$100,000
• Closing costs, inspections, legal fees: $10,000–$30,000

Pros: Immediate cash flow, proven location, and easier underwriting for loans

Cons: Older equipment may need replacement, and harder to verify the seller’s financials.

Building a new laundromat

Costs include:

• Lease deposit: $1,500–$6,000
• Build-out and renovations: $50,000–$200,000
• New commercial washers/dryers: $1,000–$6,000 per unit
• Plumbing, electrical, HVAC: $45,000–$150,000
• Permits, licenses, insurance: $3,000–$11,000
• Supplies, soap, vending: $2,000–$6,000
• Working capital: $40,000–$150,000
• Marketing: $1,000–$10,000

Pros: Everything is modern and efficient, lower maintenance, and higher revenue potential.

Cons: Higher upfront costs and takes many months to open

Ongoing monthly costs

• Rent/mortgage: $1,500–$6,000
• Utilities (water, electricity, gas): $3,000–$6,000
• Maintenance and repairs: $500–$1,500
• Insurance: $150–$500
• Supplies (soap, cleaning products): $500–$1,000
• Employee wages (if attended): $2,000–$8,000
• Marketing: $1,000–$3,000

How to start a laundromat with no money (or very little)

You can’t start a laundromat with literally zero dollars. You’ll need some money for deposits, legal fees, and initial expenses. But you can reduce upfront costs through financing, loans, partnerships, and other creative strategies.

If you’re trying to figure out how to open a laundromat without a large upfront investment, the options below can help you get started.

Seller financing (the best "low money down" option)

• The seller becomes the lender and holds a promissory note, while the buyer makes payments directly to the seller.
• Typical terms: Loan length is shorter than conventional mortgages (5–7 years), down payment can be as high as 50%, payment structure can be flexible (e.g., fixed payments, balloon payments, deferred payments, etc.), and the business is used as collateral.
• Interest rates: 6% to 10% and can be higher than the market average because the seller is compensating for the increased risk.
• Why sellers choose this option: Attract more buyers (especially first-time business owners), higher selling price, ongoing income stream, tax advantages, faster sale.
• How to find this financing option: 
  
  • Search for laundromats on sale that mention owner financing is available.
  • Look for older operators or owners looking to retire.
  • Ask local brokers—they may know which sellers are open to financing even if it’s not listed publicly.
  • During negotiations, you can ask if the seller will carry part of the loan.

SBA loans (Small Business Administration)

The SBA 7(a) loan program offers:

• 0%-10% down payment
• Lower interest rates than seller financing
• Requires good credit and a strong business plan
• Apply through SBA-approved lenders
• Timeline: 30-90 days for approval

Partnership structures

• Find a partner with capital who’s willing to invest in your laundromat business while you operate the business.

• Typical splits: 50/50 or 60/40, depending on what each person brings to the table (not just in assets, but skills and experiences, too).
• Formalize your partnership with a written operating agreement.
• Caution: Choose partners carefully—money disputes can ruin businesses and relationships.

Creative options for stretching your budget:

• Buy distressed laundromats at a discount and renovate later.
• Purchase used equipment instead of new (save 30-50%).
• Lease equipment instead of buying new (higher long-term costs but lower upfront costs).
• Start with a hybrid model (minimal staffing) to reduce costs.
• Start small and reinvest your profits to grow your business.

Whatever financing route you choose, have at least 3-6 months of operating expenses saved. It’s a good idea to be prepared for unexpected repairs and slow months when they happen.

How do you open a laundromat: A step-by-step guide

Step 1: Research your market and competition

Good locations are the number one predictor of laundromat success.

What to analyze

• Demographics: Target areas where there are more renters than homeowners
• Competition: Number, size, and quality of other laundromats nearby
• Population density: Higher density = more laundry demand
• Median income: Low-to-middle-income neighborhoods perform best

How to research

• Drive around your target neighborhoods at multiple times of day.
• Use Census data to understand demographics (e.g.,  population and income).
• Search “laundromats near me” and map the competition.
• Speak with potential customers, like apartment managers and college students, to learn about their needs.
• Visit laundromats and observe machine usage during peak hours as well as other supplies and amenities offered.

Red flags (what to avoid)

• Areas with new, modern laundromats already in place
• High-income neighborhoods where most residents have in-home washers/dryers
• Locations with declining population or high commercial vacancy rates

Step 2: Create a laundromat business plan

Your business plan for a laundromat should include:

• Executive summary: Concept, model, and goals
• Market analysis: Competition, neighborhood demographics
• Financial projections: 3–5 year revenue, expenses, and breakeven
• Operations plan: Staffing, hours, vendors, maintenance plan
• Marketing plan: Promotions, loyalty programs, partnerships
• Funding request: If applying for loans or investors

A strong laundromat business plan is essential if you want financing—especially SBA loans.

Step 3: Secure financing

Financing options

• Seller financing: Low-down-payment option.
• SBA 7(a) loans: 10–30% down, best for first-time owners.
• Conventional bank loans.
• Equipment financing: Spread the equipment cost over years.
• Partnerships/investors.

What lenders look for

• Good personal credit score.
• Funds for a down payment.
• A solid business plan with realistic projections.
• Industry knowledge or relevant experience (any management experience helps).
• Personal financial stability (like cash reserves).

Timeline: Expect 30–90 days for approval and closing.

Pro tip: Apply to multiple lenders (at least 2–3) and compare interest rates and terms.

Lease negotiation tips

• Create an amicable relationship with your landlord.
• Communicate your business plan clearly and how it’ll benefit the landlord. 
• Ask for tenant improvement (TI) allowances.
• Request free rent for the build-out period.
• Negotiate caps on annual rent increases.
• Ensure the lease allows for commercial laundry equipment and drainage.
• Include dedicated parking for your customers.
• Negotiate as many details as possible up front.

Step 4: Find the right location

Look for:

• High visibility: Street-facing locations outperform tucked-away shops.
• Foot traffic: Strip malls, near grocery stores, near bus lines.
• Parking: Customers often bring heavy loads, so ample parking will draw in more customers
• Demographics: Renters, students, urban neighborhoods.
• Size: 1,000–5,000 sq. ft.
• Utility access: Gas, 3-phase electrical, strong water supply.
• Zoning: Must allow commercial laundry use.
• Rent: Affordable rent that fits your budget (20% of revenue at most).

Step 5: Choose your business structure and register

Common structures for laundromats:

• LLC (Limited Liability Company): Most popular—protects personal assets, uses pass-through taxation, and is simple to manage.
• S-Corporation: Good for minimizing self-employment taxes once profitable.
• Sole proprietorship: Easiest but offers no liability protection (not recommended).
• Partnership: If you have co-owners, formalize with an operating agreement

Registration steps

• Register your business with your state.
• Get an EIN.
• Open a business bank account.
• Register for local taxes.

Step 6: Obtain licenses, permits, and insurance

Common requirements:

• General business license from your city or county.
• Seller's permit or sales tax license.
• Fire department permit (for commercial building).
• Environmental permits (water/wastewater discharge).
• Sign permit (for exterior signage).
• Building permits (if you will be renovating).
• Health department approval (especially if you’re offering wash-and-fold services).

Insurance requirements

• General liability insurance (covers customer injuries, property damage).
• Property insurance (covers building and equipment).
• Workers' compensation (required if you have employees).
• Business interruption insurance (optional but recommended).

Pro tip: Check with your city's business licensing office and a commercial insurance broker to understand all your requirements for opening a laundromat.

Step 7: Purchase and install equipment

Core equipment

• Commercial washers
• Commercial dryers

New vs. used equipment

• New equipment: They tend to be expensive upfront, but energy efficient and will last longer
• Used equipment: They could save you money, but older equipment may need to be repaired or replaced sooner than new equipment.

Other essentials

• Folding tables
• Laundry carts
• Seating
• Payment systems (coin, card, app-based)
• Security cameras
• Soap/snack vending machines (these offer extra revenue)
• Change machine
• WiFi (keeps customers happy while they wait)

Step 8: Hire and train staff (if you’re running an attended model)

Typical staffing needs

• Unattended: No on-site staff. You’ll stop by daily to open and close the laundromat, clean, collect money, and check machines.
• Hybrid: You’ll need one attendant during peak hours to maintain cleanliness, assist customers, any add-on services you offer.
• Attended: 1–3 employees per shift (depending on your store size and demand) to ensure all laundromat operations are running smoothly.

Staff responsibilities

• Assisting customers
• Keeping the facility clean
• Handling wash-and-fold
• Monitoring machines and reporting maintenance issues
• Restocking soap vending machines

Tools for managing your staff

• Onboarding and training
• Scheduling and time tracking
• Payroll
• Machine-status monitoring

Homebase is an all-in-one tool with onboarding, scheduling, time tracking, and payroll.

Step 9: Market your laundromat

Before opening

• Claim your Google Business Profile (free and critical for “laundromats near me” searches).
• Put up “Coming Soon” signs with the opening date.
• Distribute flyers to nearby apartments, complexes, and colleges.
• Offer grand opening promotions (e.g., free wash day, discounted first visit)

Ongoing marketing

• Loyalty programs (e.g., buy 10 washes, get one free).
• Partner with apartment managers (they refer tenants to you).
• Referral incentives (e.g., customers get a discount when they bring a friend).
• Offer student/senior discounts.
• Ask customers to leave reviews.
• Post updates on social media (e.g., a Facebook page with hours, promotions, and updates).
• Keep the facility clean and well-lit (your storefront IS your marketing).

Low-cost tactics

• Print flyers on your own printer and distribute them locally.
• Create simple Facebook posts showing your clean machines and amenities.
• Encourage reviews on Google (e.g., offer a small incentive for the first 20 reviewers).

Step 10: Open your doors and optimize

Start with:

• Soft opening (test equipment and train staff).
• Grand opening (offer promotions).

First 90 days checklist

• Track washer and dryer machine usage.
• Monitor utilities.
• Adjust pricing if needed.
• Improve signage and layout.
• Collect customer feedback.
• Use marketing strategies to attract customers.

Ongoing optimization

• Upgrade equipment over time.
• Add wash-and-fold services.
• Reduce utility costs with efficient machines.

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How profitable is a laundromat?

A laundromat typically nets profit margins of 20–35% but earnings can range widely from $30,000 to $1 million, depending on location, size, and efficiency. 

The biggest cost drivers are utilities and equipment maintenance—that’s where more efficient equipment can help you save. High-efficiency washers can use up to 50% less water.

Watch out for these mistakes when starting a laundromat

• Underestimating startup costs.
• Skipping due diligence when buying an existing laundromat.
• Choosing poor locations (don’t choose only based on rent price).
• Buying old equipment to save money.
• Expecting it to be a completely passive business.
• Not keeping cash reserves.
• Weak staff management (for attended laundromats).
• Ignoring your online presence, making your laundromat harder to find.

Conclusion: Ready to start your laundromat business?

Starting a laundromat is one of the more reliable cash-flow small businesses if you plan wisely, choose the right location, and manage operations carefully.

The most successful laundromat owners treat the business as semi-passive—not hands-off—and reinvest in modern equipment, cleanliness, and customer experience. With the right strategy, your laundromat can generate stable income for years to come.

FAQs about starting a laundromat

How many machines do you need for a laundromat?

How many machines you need for a laundromat depends on your store’s square footage and demand. Small laundromats might start with 5-6 machines and scale later. Larger stores may have 40+ machines, which reduces wait times and increases revenue. 

It’s recommended to have a ratio of 1 washer to 1.5 dryers. Choosing the right mix is part of your business plan and market analysis.

What's the difference between attended and unattended laundromats?

The difference between attended and unattended laundromats is staffing and service level.

• Unattended laundromats run without employees and rely on security cameras and automatic payment systems. 
• Attended laundromats offer customer service and greater cleanliness and may offer add-ons like wash-and-fold service, but have higher payroll costs.

Some owners choose a hybrid model for flexibility.

How long does it take to open a laundromat?

How long it takes to open a laundromat depends on whether you buy or build. Buying an existing laundromat can take 30–90 days, while building a new one can take 6–12 months due to permitting and construction. Financing approval, inspections, and equipment installation are the major timeline drivers.

Should I buy an existing laundromat or build a new one?

Whether you should buy an existing laundromat or build a new one depends on your budget and goals. Buying is faster and provides immediate cash flow, but the equipment may be outdated. Building new gives you modern machines and higher revenue potential, but requires a larger upfront investment and longer timeline.

Do I need employees to run a laundromat?

Whether you need employees to run a laundromat depends on your laundromat model. 

• Unattended stores require little to no staff—just someone to open and close every day, maintain the machines, and clean periodically, which you can do yourself if you don’t want to hire workers.
• Attended stores need 1–3 employees for customer support and wash-and-fold. 
• Hybrid models have part-time attendants during peak hours to reduce payroll costs.

What licenses do I need to open a laundromat? 

The licenses you need to open a laundromat vary by city, but typically include a business license, sales tax permit, environmental approvals for wastewater, fire department clearance, and building permits. If you offer wash-and-fold services, you may also need health department approval. Always verify with your city’s business licensing office.

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