The best way to open a laundromat business with little to no money down is to get a business grant or to start your own business from home and grow your profits for expansion and investment. Our article below explains how to find business grants, as well as how to start an at-home laundry business or join an existing one.
How to Open a Laundromat With No Money Down
The majority of functions of a laundromat are self-service, making it a relatively simple business to run. The startup costs associated with a laundromat are typically high. The good news is that there are a few ways to start a laundromat business for little or no money down. Start a laundromat business from home or apply for business grants.
Getting a business grant to start a laundromat
The difference between grants and loan from money lender is that grants are free funds that you are not required to repay. If you apply for grants, you may be able to start a laundromat for free, though you will likely need more than one grant. The following are a few types of business grants you might be able to get to start your laundromat:
Small Business Grants
The Small Business Administration (SBA) provides grants to businesses, but sometimes applicants must contribute part of the funds. If your business does not fall into one of these categories, you can still apply for a grant from the SBA. If the SBA cannot approve the grant, it can provide other small business resources that may be helpful. At grants.gov, you can also search for other possible government grants.
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There are some city, county, and state programs that offer grants to small businesses, as well as some banks and credit unions. Each year, the Bank of America Charitable Foundation grants several hundred million dollars to support local development activities, including small business startups. Contact your local bank to learn about any grants it offers, or contact your local Chamber of Commerce for information on grants from your local government.
Grants for Disabled Persons
There are some government offices and private organizations that offer grants to people with disabilities. There are some programs, such as the VR&E Self-Employment Track, that are specifically designed for disabled veterans.
The startup costs of a business such as a laundromat can be funded with grants exclusively for women entrepreneurs. Amber Grants and Women’s Business Centers (WBC) are examples of SBA programs.
The process of finding and applying for grants can be time-consuming, but some of these programs can provide some of the funds needed to open a laundromat.
Starting a Laundromat At Home
Laundromat franchises can also be opened without initial investment by starting a home-based laundry service and using the profits for a down payment on a small business loan or franchise loan. Start a laundry business from home if you already have a washer and dryer and save your earnings to build or buy a laundromat.
You can start a laundry business from home in a few different ways. Establishing your business and attracting clients can be achieved by setting everything up yourself. Make sure your home has an easy-to-access place for customers to drop off and pick up laundry, such as a garage. You might also consider starting a laundry delivery service from home, in which you pick up and drop off clothes for customers as well as wash them. Facebook and Craigslist are both popular websites for posting ads, as are websites like your friends’ and family’s Facebook pages.
Using a laundry service at home
It is also possible to offer laundry services from your home by working with an existing company that offers home laundry services. The Laundry Care network provides home laundry services across the country. You’ll also need a vehicle, washer, and dryer if you use Laundry Care. This network also charges $39.99 for a startup kit. Using Laundry Care, however, eliminates the need to find clients yourself, as the company finds them for you. A quick Google search can help you find local companies that offer home laundry services. Keep reading for How to Open a Laundromat With No Money.
Building or buying a laundromat
Rent or buy a space near you to start a commercial laundromat if you have sufficient savings from your home laundry service. Aside from buying the commercial washers and dryers – the majority of which work via coins or cards – and paying for maintenance, you will also have to buy the commercial equipment. There are several appliance and warehouse stores that sell coin-operated commercial washers and dryers, and you can even find them on Amazon. Due to the self-service machines at most laundromats, you won’t need a lot of employees – you may even be able to run the facility yourself or with your family.
Consider your facility’s location; customers who need laundry services are more likely to find them in more urban, populous areas with a lot of renters. There are fewer in-unit laundry facilities for these people, so they frequently use laundromats.