A self-service laundry business is commonly called a laundromat, coin laundry or coin-operated laundry. However, these terms might be a misnomer when considering the fact that modern laundromats have evolved beyond coin-only operations to offer various payment options including card systems, mobile apps, prepaid laundry cards and contactless payments. Full-service operations may be called laundry services, commercial laundries or wash-and-fold businesses, depending on their specific offerings.

Laundromat machines operate faster because they feature industrial motors, larger water inlets, more powerful pumps and higher-capacity drain systems than residential units. Their robust construction allows for higher spin speeds and more efficient water extraction, significantly reducing cycle times.

Laundromats source their equipment from commercial laundry equipment distributors like H-M Company for leading manufacturers like Speed Queen, Dexter and Huebsch. Many distributors, including H-M Company, offer installation, maintenance services and financing options specifically for laundromat owners and multi-unit dwelling owners and operators.

An average laundromat features 20-35 washing machines, though this varies based on facility size and market needs. Successful operations typically maintain a balanced washer-to-dryer ratio of approximately 1:1.2 to accommodate efficient customer flow.

Commercial laundry equipment encompasses industrial-grade washers (20-100plus lb. capacity), dryers, folding tables and payment systems designed for continuous operation. These machines feature programmable controls, high-efficiency motors, reinforced components and specialized cycle options for various applications. Other facility features should include seating, security cameras, vending machines for supplies, utility-efficient fixtures and potentially business management software for operations monitoring.

Starting a commercial laundromat business typically requires $200,000-$2 million investment, depending on the size of the space and how much work is needed. That would cover equipment ($300,000-$1 million depending on size of facility and size/type of machines), lease improvements ($50,000-$100,000), utilities connection fees, and working capital. Costs vary significantly based on location, size, and whether purchasing or leasing equipment.

Laundromats generally require business licenses, certificates of occupancy, water/sewer permits, building permits (for renovations), signage permits and potentially special environmental permits depending on local regulations. Some municipalities may require additional industry-specific approvals.

There are several steps to take to start a commercial laundry service. First conduct market research or consult with a commercial laundry equipment provider to find a suitable location. Next, develop a business plan, secure funding, obtain permits, purchase equipment, establish utilities, implement management systems and hire staff if needed. Promote your new commercial laundry service by creating and executing a marketing strategy and also by developing relationships with commercial clients.

Minimum investment for a small laundromat starts around $100,000-$150,000 for a modest operation with used equipment. Full-service commercial laundries have higher minimums ($250,000+) due to additional equipment and staffing requirements. Renovation costs significantly impact initial investment.

While not strictly required, forming an LLC is highly recommended for laundromat ownership to separate personal and business assets, provide liability protection, establish business credibility and potentially offer tax advantages. Alternative business structures include corporations or partnerships.

Key challenges of owning a commercial laundromat can include: upfront capital investment, utility costs management, equipment maintenance, security concerns, competition, staffing if attended, lease negotiations/renewals, technology upgrades, seasonal revenue fluctuations and adapting to changing consumer expectations and payment technologies. Laundromats are typically very profitable businesses, with profits per location ranging from $30,000 to as much as $300,000 for a high-volume operation. It can be less for smaller stores.

Laundromats can function as semi-passive investments with proper systems in place. However, they require initial capital, ongoing maintenance oversight, and periodic on-site presence to address issues. Remote monitoring technology and part-time staff can reduce daily involvement requirements.

The laundromat industry boasts a remarkably high success rate, making laundromats significantly more stable than many other small business investments. This high success rate is attributed to the essential nature of laundry services, consistent customer demand, and the relatively straightforward business model with limited staffing requirements. Factors determining success would include the need for a good location, owning the real estate or negotiating a good lease, having good visibility and good parking, maintaining the store and providing good customer service, all of which are necessary to increase the chances of success.

Commercial washing machines typically last 20-25 years with proper maintenance. Hard-mount models generally offer 20-25 years of reliable service, while more expensive soft-mount machines can operate efficiently for ~15 years due to the higher extract speed reducing the life of the bearings and shocks. Premium models designed for commercial applications can handle between 5,000-8,000 load cycles over their lifespan. Regular preventative maintenance, appropriate load sizing, and prompt repairs significantly extend equipment longevity and performance in laundromat settings.