March 1, 2021 at 10:22 am #4503Caroline SchaeferParticipant
Hello! Excited to be here and connect with this group!
I am BRAND NEW to the idea of investing and running a laundromat and I have a question that I want to run by all of you.
For a “reasonable” first laundromat investment, how much would you approximate to have in reserve in the case of unexpected expenses? I want to be prepared and have enough on hand but am not sure how much to reserve for unexpected maintenance or problems related.
Any help would be much appreciated!
March 6, 2021 at 8:34 am #4550Jason DodgeParticipant
This depends on the size of the location. If I had 3 months worth of all expenses in an account I would feel good about that. If I had 6 months I would feel great. This also depends on whether you are building a new location or buying an existing with a customer base. The new location I would want a hefty reserve incase I can’t break even from a cash flow perspective for months.
March 8, 2021 at 6:36 pm #4578EmersonParticipant
Good topic and responses.
New store was mentioned have any of you heard what is the expected time or industry average after opening a new store to break even ? (meaning meet the bills)
I have heard that lenders if financing usually want to see 3 months of expense reserves. And they will often defer first loan payment for 90 days after opening.
I did receive a response to this question but curious what others have heard and or experienced.
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