How to Open a Laundromat & Other FAQs

If you’re starting your own laundry business, you're sure to have questions. Start here: Our specialists' expert tips on laundromat ownership are based on real-world experience. Find out how to open a laundromat, including the steps and essential information on permits, employees, estimated startup costs, and profits, in our FAQs.

If you still have questions, the Western State Design team is here to help with everything from idea to execution — contact us anytime.

Laundry Startup & Business Planning FAQs

Thinking of starting a laundry business of your own? This section answers common questions on what it takes to open a successful laundromat from the ground up.

What Is the First Step To Opening a Laundromat?

The most important first step to opening a laundromat is research — so if you’re here, you’re already on the right track. Understanding your target market, competitors, and location can help shape your laundromat business model and guide your startup.

Your research should answer several key questions, including:

What location(s) are available?
Who are the primary competitors?
What is the target audience?
What is the local demographic?
What are the startup costs and fees?
How will you finance your laundromat?

Look to social media and industry message boards to find laundry industry insiders who can offer advice and guidance. Or, connect with a commercial laundry specialist who works for a local distributor and can walk you through the initial research phase — or through the entire process of starting a laundromat.

Should I Buy an Existing Laundromat or Start From Scratch?

Buying an existing laundromat can be an easier path for new owners because it reduces some of the startup risks and costs. Building from the ground up increases your risk but allows you full control to tailor the equipment, setup, and property to your desired specifications.

How Long Does It Take To Open a Laundromat?

Opening a laundromat can take a few months to a year or longer, depending on whether you’re buying an established business, expanding to another location, or starting from scratch. While building a new space takes the longest, owners who retool, renovate, or upgrade existing machines or properties can also expect a significant time investment, depending on the scale of work.

What Do I Need To Open a Laundromat?

To start a laundromat, you’ll need financing for startup costs, a storefront or location to lease or purchase, laundromat equipment, and associated supplies, such as carts and furnishings.

What Commercial Laundry Equipment Do I Need to Open a Laundromat?

Most laundromats include vended washers and dryers, change machines or payment kiosks, folding tables, and seating areas. Add-ons, such as ozone laundry systems or specialty finishing equipment, can help differentiate your store’s service offerings.

The coin-operated washers and dryers you select will depend on your customer base and the size and layout of your space, all of which should be defined in your laundromat business model. Your machines should serve your target customer and offer efficient features that help minimize costs and maximize profit. If you need help choosing the right mix, our vended laundry specialists have plenty of real-life case studies to help you home in on the best equipment for your business.

How Do I Choose a Commercial Laundry Equipment Distributor?

Look for a distributor with industry experience, strong service and maintenance support, and a solid reputation.

FAQs on Licensing, Permits & Location

Knowing how to open a laundromat with all the necessary legal approvals is essential to your success. To start, you’ll need a business license and various permits demonstrating your compliance with public safety regulations for health and sanitation, among others. This section covers licensing requirements, plus tips for choosing a profitable location.

Do I Need a License To Open a Laundromat?

Yes, a business license is required to open a laundromat. Depending on where your laundromat will operate, more than one license may be necessary. Some municipalities require a local business license as well as one at the county or state level.

What Permits Do I Need To Open a Laundromat?

As with any other business, you’ll need to procure a variety of permits to start a laundromat. The exact requirements vary by location. At a minimum, you will most likely need the following:

Fire safety permit
Wastewater permit
Health permit
Business sign permit

Check with your local Small Business Association or your Secretary of State for guidance on permits and other requirements to start a laundry business in your specific municipality.

What Is a Good Location for a Laundry Business?

Laundromats are most successful when opened near apartment complexes, rental neighborhoods, shopping centers, strip malls, or dorms — places where residents are limited on the space or income required to own washers and dryers. In suburban areas, adequate parking is a prerequisite for a successful laundromat; in urban areas, the space should be easily accessible for those traveling by foot or public transport.

Cost & Financing FAQs

Understanding your financial investment is key to laundromat success. Here, we break down the cost to open and operate a laundromat, plus provide practical financing options and strategies to maximize profitability.

How Much Does It Cost To Open a Laundromat?

The cost of starting your own laundry business can vary greatly, but the estimated investment required to open an average-sized laundromat is between $200,000 and $500,000. In high-competition urban areas, the cost may be substantially more. One of the biggest mistakes you can make when starting a laundry business is not understanding the investment required.

Consider these questions as you calculate your financial needs:

Are you starting from scratch or purchasing an already outfitted laundromat?
Will you need to remodel your location?
Do you need to upgrade existing washers and dryers, or purchase new commercial machines?
Will you offer services that require specialty equipment or delivery vehicles?

How Do I Estimate the Costs of Opening & Owning a Laundromat?

To estimate the cost of a laundry business, you’ll need to create a detailed financial plan that considers all potential investments, from the initial capital to ongoing operational expenses. Some one-time and recurring costs for laundromats may include:

Capital costs: These include overhead, rent or mortgage, renovation costs, and new commercial laundry equipment or maintenance for existing equipment.
Labor costs: Factor in any costs associated with training for managers and employees, as well as ongoing payroll.
Licensing and registration costs: Be prepared to cover all expenses associated with starting any business, from licenses to wastewater permits.
Utilities: Consider the initial tapping or hook-up fees plus all ongoing utilities required to run a laundromat (such as WiFi, electricity, sewer, and water). Utilities can represent a high percentage of the business’s monthly expenses.
Marketing and advertising: A marketing plan (and budget) is a crucial component of a successful laundromat, so consider all social media, website, and local advertising expenses. You will also want to factor in marketing dollars for promotions, your grand opening, and other events.

How Do Laundromats Make Money?

The primary way laundromats make money is by charging customers per wash and dry through traditional coin-operated machines or modern equipment with card or mobile payment options. Laundromats can also find creative ways to increase profits through value-added services (fluff-and-fold or laundry pickup and delivery) or amenities (vending machines, a café or lunch counter, or arcade equipment).

What Financing Options Are Available for Opening a Laundromat?

Anyone considering laundromat ownership should explore and compare all financing options, which include small business loans and traditional lending, plus flexible financing programs through equipment manufacturers.

Answers to Operational Questions

Once your laundromat is up and running, you might have questions on how to keep the momentum going. This section covers real-world operational tips, covering profitability, staffing needs, and common mistakes to avoid as a new laundry business owner.

Can a Laundry Business Be Profitable?

Yes. With the right approach, a laundry business can be extremely profitable and even serve as a reliable source of passive income. Running a successful laundromat requires significant planning and a willingness to invest your time and resources into all aspects of the business, from customer service to equipment and marketing.

How Many Employees Does a Laundromat Need?

Some laundromats can run without any full-time employees, while a business with wash-and-fold, delivery, or other services may require as many as eight or more employees to run successfully. Your staffing needs depend on your laundromat’s business model — self-service versus full- or part-time attended — and estimated capacity. Other offerings and amenities, such as a full coffee bar, may require additional employees beyond those responsible for standard laundry operations.

What Are Common Mistakes New Laundromat Owners Make?

Common mistakes that laundromat owners make include underestimating startup costs, choosing a poor location, selecting an equipment mix without research, and failing to invest in marketing.

Unfortunately, many of these decisions aren’t easy to undo once you’ve committed. Knowing how to open a laundromat correctly from day one often requires input from an experienced industry professional, such as Western State Design.

Whether you’re starting a new commercial laundry business or expanding an established laundromat brand into a new area, proper planning is an essential component of success. If you still have questions about owning a coin laundry business, contact a Western State Design Vended Laundry Specialist to learn more.