I am looking into taking over a vacant laundromat in a popular neighborhood in my city. The business has been closed for 4 years and the machines need to be fully replaced. They are about 30 years old and out of order/parts.
My questions for the professionals here are:
– How do I get a replacement quote from suppliers without getting overcharged and overfitted?
– How do I determine the Profit / Loss without previous financials?
– What utilities should I inspect to see if they’re in working condition?
– How do I save money through this process?
I believe I can (with negotiations) enter this laundromat without purchasing the actual business. I would propose a 10 year lease at $1,200 a month with the first 3 months rent-free to gain momentum.
I own a laundromat already in a neighboring city that performs well, however I purchased that laundromat with 3 year old equipment & everything basically brand new, but was overfitted by previous owner. The equipment loan is very high and I would like to avoid that mistake on the location as it eats into my cash flow. This would be my first time “rehabbing” an old laundromat.
The competitors in the city are dark, old, dirty, unattractive laundromats. This would be a perfect location to steal the business of those laundromats.
I genuinely appreciate any advice and guidance on this subject! Thank you in advance!!