How Make your Coin Laundry Sell Faster

If you are selling your Coin Laundry Operation or Laundromat you want to get the most out of your operation and the best way to do it is by making sure potential buyers get a favorable impression of you Laundromat. Here are a few tips on how to make your Laundromat stand out:

- CLEAN! Make sure your Laundromat is spotless clean. People go to Laundromat to clean clothes and buyers want to see a store that gives a congruent impression. Make sure the machines are clean of soap and sud, floors clean as well as windows and ceilings.

- The restroom should be as clean as the store. This is an area that can be a problem because sometimes it gets neglected or people trash the restrooms. Make sure whenever you are showing the store the restroom is as clean as the store in general.

- Make sure the outside of the store is clean as well. All windows should be spotless. The sidewalk leading to your store, especially traffic areas should be pressured cleaned prior to showcasing your store.

- If your store has rugs, make sure they are clean as well. Sometimes owners clean everything else but leave a dirty doormat.

- Make sure all your machines are in working condition. Nothing worst than seeing "out of order" signs on machines. Buyers don't want to be fixers.

- All lighting should be in perfect condition. Make sure there are no burnt light bulbs on your ceiling. Also, remove any gum or items glued to the ceiling. Better yet, clean the ceiling!

- Make sure your store sign is in proper working condition. All signs inside the store should be legible and in clean condition.

- Let your employees know that the store is for sale and buyers will be potentially asking them for their opinion.

- Try giving your store the best look possible. Just like used cars get detailed before they go sale, a Laundromat needs cosmetic touches to give the right impression.

Sources: Laundromat123.com

What do Laundromat Buyers Usually Need?

The following are documents you should have ready when planning to sell your Laundromat.

Two years of income. If listed on your tax return even better.
Two years of expense records, includes utilities, labor, general expenses.
Your lease and any addendum
Your Triple Net records
List of all equipment in the store and the years when they were put into service.
Why you are Selling

Things to Consider when Selling a Laundromat

There are dozens of factors that figure into the selling price of a Laundromat. Among the items that one should keep in mind are:

Where is the Location - This will be a very important factor. Laundromats are popular in low income areas and colleges. Other factors to consider are the local utilities and their rates, zoning, etc.

Net income - This one is obvious. Every buyer will want to know what to expect when buying your Coin Laundry as an investment.

Current Economic Environment - You will be able to get a premium in times of general economic growth as opposed to economic slowdowns and recessions. People tend to reduce the loads they wash in times of economic stress.

Lease Terms - Time remaining on the lease, rent increases, options to renew, etc. will affect the price in the end. The less time remaining on the lease, the lower the price you will be able to get.

Revenue and General Records - The better your books, expenses and tax receipts have been kept to prove the health of your operation, the better.

Competition - Generally speaking, there is an optimal population per Laundromat. You have to assess how many competitors you have within a mile radius and compare that to the population of the area.

Condition of Laundry Equipment and Store - Age of the washers and dryers will tell if they need to be replaced or repaired. Buyers will also be looking at plumbing, water heater, water tank, general store conditions.

Terms of the sale - Financing or Cash? obviously, a higher asking price will take place when financing is an option.

Growth potential - Is there room for improvement in your operations that would lead to higher revenues and income? if so, that should factor into the asking price.

Sources: Laundromat123.com

Issues with current Laundromat operation

Issues such as the lease, partnership dissolution, taxes, worn-out equipment, zoning, health or other Laundromat regulations can generally be resolved with help from consultants from the industry. Personally, I would recommend looking into site dedicated to Laundromats or local trade associations.

As a seller you must be sure your Coin Laundry Business is in good condition physically and legally in order to get a better price and avoid future lawsuits, etc.

Sources: Laundromat123.com

Is there a certain "best" time of the year or in the operational cycle to sell a Laundromat?

When it comes to seasonality, the best times are usually after winter season as that is traditionally the busiest season of the year and one can show the business at it's peak. It usually takes 2-3 months to close a Laundromat sale and assuming the sale will take in the summertime, it will also be best since summertime tend to be slower in terms of business because of warm weather.

As far as in the operational cycle, the best time to sell is when the business is doing well and looks in it's best condition. Appearance is 50% of sale, if it looks in top condition, buyers will pay special attention. Another important factor is to make sure you have enough time in the lease and the equipment is in good condition. Nothing worse than walking into a Laundromat that has half a dozen "out of order" tags on them.

Selling Your Laundromat Operation

Are you in the Coin Laundry Business and are thinking of selling your business? Here are some of the questions and answers to most common questions when it comes to selling a Coin Laundry Operation.

Should I sell myself or choose a broker?

The benefit of selling a Coin Laundry Operation yourself is that you get to pocket more of the sales price by not paying a commission to a broker. However, one has to consider the expenses for advertising, issues such as financing, etc. By choosing a broker an Laundromat owner pays usually about a 10% commission on the sale but in turn one doesn't have to deal with the issues mentioned. The best is to try sell the business yourself first and then choose a broker as an alternative.

Sources: Laundromat123.com