What To Do If Your Laundromat Is Failing
Laundromats can be a great investment. In fact, they may just be the best investment that you can make. They have the potential to spin off high cash flow returns relative to the financial investment needed to acquire them. But what do you do when your laundromat is failing?
When Your Laundromat is Losing Money
Although laundromats have a high success rate, businesses do still fail. I’ve been through that personally. It feels awful. The inflated success rate numbers (some studies suggest 95% of laundromat businesses succeed!) might make you feel even worse. It did for me. If 95% of businesses succeed, why is my laundromat failing?? If you’re feeling this, just know that I’ve been there and empathize with you.
However, those success rate numbers can be deceiving, especially if you’re in a highly competitive market. In some of the larger metro areas, the trend has been moving towards large, nice, new laundromats that often put smaller laundromats around them out of business. Even some of those large laundromats don’t make it due to high expenses and not enough customers.
In smaller markets, sometimes a new laundromat is built and steals customers. Expenses can go up unexpectedly. A large, unexpected expense that the business can’t cover might sink the laundromat. The population around the laundromat could even drop. In any market, there are a number of things that could cause a laundromat business to fail.
So, if your laundromat is losing money, don’t feel like a personal failure. Business is tough. Even the laundromat business. But before you throw in the towel and sell your flailing laundromat, let me encourage you to do a couple of things before you throw in the towel.
Steps to Take When Your Laundromat is Failing
- First, explore our whole website at LaundromatResource.com. Read through the blog posts, watch the videos, and listen to the podcasts. There may be something in there that is the key to turning your business around. And don’t forget about the free resources we have on LaundromatResource.com/resources.
- Second, if you haven’t yet, schedule a FREE coaching call to speak with me or one of our professional coaches. Let’s talk through your issues and frustrations and see if we can brainstorm some action steps to get you on the right track. We don’t try to sell you anything or spam you after. We genuinely just want to help you succeed with your laundromat.
At Laundromat Resource, we will walk you through an overview of the systematic approach to helping you improve your laundromat business that we use in our coaching program. I want to emphasize again, we will not try to sell you our coaching program, it is there only for people who will genuinely benefit from it. By giving you an overview of our coaching program, we hope to provide a spark of inspiration in you that gets your business performing at a higher level quickly.
- Third, we’re scheduled to release our third book, Run Your Laundromat Like a Pro, in January 2021. In this practical book, we will talk about the systems and strategies you will need in place to run your laundromat like a professional. We’ll have step-by-steps on how to ensure your business is profitable, running smoothly, and is enjoyable to own. We will also include practical, supplemental resources to help you get organized.
If this book is something that might help you, sign up at LaundromatResource.com/books to receive updates on our progress, exclusive information on launch sales and bonuses, and exclusive previews before the book release!
When You Decide to Sell
One final note is that at Laundromat Resource we’re committed to helping you succeed in the laundromat industry, even when you’ve decided to exit it. As one of the free services we offer to you, we would love to help you find a knowledgeable and trustworthy broker to help you sell your laundromat.
It can be difficult to find a broker who knows what they are doing and who will truly fulfill their fiduciary duty to you as they represent you. I personally have had two experiences where brokers sold me laundromats and did not disclose critical information to me in order to make the sale. It has cost me literally thousands of dollars (probably in the tens of thousands, but it’s too depressing to count). It happens to sellers, too. Don’t let that happen to you.
We have a vast network of laundromat and small business brokers that we can refer you to. If we don’t yet know a reputable broker in your area, we can help you search for one and verify that they truly are knowledgeable and trustworthy. We have done this many times for our community here at Laundromat Resource and would love to do that for you, too, if you need it. We do this free of charge as part of our mission to help you find financial freedom in laundromat ownership.
Book your free call with us today and let us help you maximize the cashflow in your business or the profit in your sale!