Looking to start a parts washing business? here is a complete guide to starting a parts washing business with no money or experience .
Ok, so we’ve provided you with an example of a detailed business plan for parts washing. We also took it a step further by analyzing and writing a sample coin laundering marketing plan, supported by actionable guerrilla marketing ideas for coin laundering companies. In this article, we will go over all the requirements for starting a parts washing business. So put on your entrepreneur hat and let’s move on.
Why start a laundry business?
The laundromat business attracts a variety of entrepreneurs, especially as the business seems to operate on its own as customers take care of their needs, making it an easy and profitable business to start. However, as simple as it may sound, in areas with large tenant numbers there are usually several coin launderers within a short distance of each other making the business very competitive. However, that doesn’t mean you can’t open yours. and become quite successful, especially if you take the time to understand the market.
In order to stand out from the other laundries you are about to meet, it is very important that you offer additional services to attract and retain a large number of your customers. Additional services you can add include dry cleaning services, laundry and folding services, video games, free coffee, TVs for guests to watch while waiting to wash up, free Wi-Fi , children’s play areas and a coffee shop.
One thing you need to take into account when starting your coin washing business is where you intend to locate the business, as location is one of the critical factors that will allow your business to be successful, your parts washing business must be located. in a high traffic area with a large number of low- and middle-income families or renters.
It is important that your parts washing business is well lit, especially at night, and that your floors, walls and cars are very clean. Also, since some clients only have time at night to wash their clothes, it is important to make sure your clients have always felt safe.
As with any business, having a business plan in place is very important as it allows you to conduct in-depth business research to see if the business will be worth your time and resources.
Start a coin washing business
- Industry overview
The piece linen market is called self-service commercial equipment. Most coin operated laundries typically lease retail space for long periods of time, the lowest being 10 years and the highest being 25 years. The market is considered unique because it generally does not have accounts receivable or inventory. The market value of coin operated laundries ranges from $ 50,000 to $ 1 million.
There are approximately 29,500 laundries in the United States and generate almost $ 5 billion in revenue per year. Even though the industry is almost 70 years old, there are no major operators or franchises.
Renters are the primary users of laundry services, according to the study, and the 2010 U.S. Census found that about 35 percent of the country’s 116 million households were occupied by tenants. This has led to an increase in the number of coin laundering companies in operation over the past 70 years. The growth of the industry has led to its stabilization and maturity as industry analysts predict the turnover rate as well as the value of existing laundries.
Growing competition in the industry is catastrophic, according to IBISWorld, especially as the rental market contracts, which will slow or slow the growth of the laundromat industry, especially as the primary targets are the rented houses.
In addition, rising utility costs, coupled with a competitive environment, will reduce operator profits. IBISWorld predicts that laundries will increase by 1.1% between 2012 and 2021. Although there are over 22,700 coin laundering companies, it employs around 52,000 people.
Parts washing companies and laundromats that operate in apartments, dormitories and other similar places are under the laundromat. Industry: The increased competition from the household washing machine and laundry pick-up service industry can be attributed to increased disposable income of consumers.
Industry revenues are expected to continue declining between 2021 and 2022 as more consumers purchase their own personal washing machines, abandoning coin-operated laundry and other commercial laundry services.
According to the analysis, the laundry room operators are distributed according to the population level, which means that the region with the highest population level generated more income than the weaker countries. In addition, coin-operated laundry services are generally located in areas where there are large urban centers than in areas where the population is predominantly rural or suburban.
This is because urban cities are likely to have more people living in rented apartments or houses. The Central Atlantic is said to have over 32 percent of coin-operated laundries, with New York having the highest number of laundries.
The laundromat industry is expected to be in a mature phase of its life cycle. and this is due to the fact that laundries are no longer experiencing high revenue growth. This is not to say that coin operated laundries located in high population and densely populated areas do not generate significant income, and although the industry is experiencing a decline in income, it continues to perform well compared to The recent downturn has resulted in an increase in demand for laundry services.
Launch of a market and feasibility study on laundry
- Demography and psychography
The demographic and psychographic makeup of those who need coin-operated laundry services are those who tend to rent in apartment buildings. Others are the ones who can’t afford a new washer and dryer or renovate the ones they have.
Therefore, this means that when trying to understand the demographics of your coin laundering business, you should try to reach as many young, middle-aged and elderly people as possible who can afford these services. .
List of niche ideas in the parts washing business that you can specialize in
Providing niche services is one way to set your coin laundering business apart from others. However, before you decide which niche you are going to go into, be sure to do your research thoroughly so that you don’t waste time and money on a niche that is not profitable.
Some of the niche ideas that you might need to specialize in are:
- Self-service dry cleaning
- Professional or commercial laundry service
- Washing machine service
- Drying services
The level of competition in the parts washing industry
Level of Competition Competition in this industry is a bit intense as coin-operated laundries have to compete with owners of washing machines in their homes, as well as commercial grade machines that have been installed in apartment buildings and dormitories.
Distance can be seen as a barrier when it comes to running a successful coin laundering business, so in order for you to compete successfully with your competition, you need to be in a location that is not only visible but easily accessible. for your target market.
If you are looking to start a parts business in the United States, be aware that there are multiple laundries, especially if there are a large number of tenants in the area you are about to enter. However, facing tougher competition doesn’t mean you still can’t stand out and be noticed by your target market.
List of famous brands in the parts washing industry
Popularity in an industry that not only depends on location, but is filled with small independent operators can be a bit tricky, however, some brands stand out in their different areas with their services, customer relationships and a host of other factors.
Here are some of the industry’s renowned coin laundries;
- MAC-Gray Corp.
- Maytag Commercial Laundry
- Tide tower
- Pert cleaners
- Cleaners at a price
This self-service laundry industry consists of two segments; the parts washing business and the road washing business are also coin operated machines that are located in apartment buildings. The coin operated laundry business has been around for more than 7 decades and there are no major players other than individual owners or operators.
Coin operated laundries are found in almost all parts of the country and are more popular in areas where it is densely populated. According to the economic analysis, densely populated areas are growing year by year, leading to an increase in the customer base of coin launderers.
The coin washing business is evidence of a recession because in a recession itself – the laundry market grows because people don’t have the money to buy new washers and dryers or to repair the ones they have and therefore resort to laundry services. In addition, during the economic downturn, people move to apartment buildings that do not have enough laundry facilities, and therefore few self-service laundries get more customers, not least because people will still have to wash their clothes. .
The growth of the industry depends largely on population density, population composition and average earned income. If the population is more concentrated, there will be a greater need for existing equipment for better quality parts. Additionally, it is important to note that those who are the primary users of laundromats are tenants considered to be the fastest growing segment in the United States.
Starting your laundry business from scratch vs buying a franchise
When you start your parts washing business in the United States, one of the decisions you will need to make is to start a business from scratch or buy a franchise. Whatever decision you make may or may ruin your business, so it is important that you do your research thoroughly so that you can make an informed decision on which option is best for your business. has been around for almost 70 years and is considered to be in its mature phase of its life cycle. However, no matter how long it has been in existence, there are no large operators to enable the growth of the franchise industry.
Therefore, if you are looking to buy a franchise for your parts washing business, you are unlikely to find one, leaving you with the option of starting from scratch. While starting from scratch can be overwhelming for an entrepreneur, especially those facing existing and successful competitors, having a recommended business plan will help you overcome most obstacles.
Threats and potential challenges you will face when starting a coin washing business
When starting a business as an entrepreneur, it is best to understand that there are several threats and challenges that you are likely to face, and therefore strategies to manage whenever they arise. Lack of preparation for threats and challenges means you don’t take your business seriously. While some threats can be easily controlled, not all of them will be, so you must learn to overcome difficulties that are not easily controlled, hoping for the best.
Some of the threats and challenges you are likely to face when starting your coin laundering business; economic growth and stability, leading to more people buying their own washing machines and not using coin-operated washing machines, which will increase competition, reduce tenants and introduce new operators into the industry.
Establishment of a legal file for the laundry room
- The best legal entity to use in this type of business
There are five types of legal entities in the United States of America for entrepreneurs namely Sole Proprietorship, Partnership, S Corporation, C Corporation, and Limited Liability Company (LLC). However, the choice of one of these legal entities largely depends on the type of business in which the entrepreneur is located.
The coin laundering business may seem so simple, but the point is that it is a unique business, and although the operators are unique and independent, choosing, for example, the sole proprietorship will not benefit In business as in the case of sole proprietorship, you cannot take out loans.
Even though the legal entities are different in nature, what you can use to easily determine what will work for you are factors such as the flexibility of the legal entity, the liability options that exist for you, especially if you can get a client or client complaint, the ease with which you can create and control a legal entity, and the flexibility of the legal structure. Alternatively, you can hire a lawyer who is familiar with your business to help you choose the best legal entity for your business.
S Corporation, C Corporation and LLC are similar in that the business is treated as an entity separate from the owners. The owners cannot be held personally responsible for anything that goes wrong in the course of their activities. The business form of the legal structure includes more documents than an LLC. An LLC has an advantage in tax structure over a corporation, as the income tax is paid on the owners’ personal income compared to a corporation, which faces double taxation.
Eye-catching business name ideas suitable for laundry
It is very important to have a memorable name for your business in order to ensure that your business not only has a personality but also stands out from others in the same industry. When choosing a name for your business, it is best to choose something that is not only easy to pronounce, but also memorable.
Here are some catchy names you should consider for your coin laundering business;
- Linen Coiners
- Self-service laundry with coins and cards
- Sweet spinners
- Self-service laundry
- Quick laundry service
Insurance for your parts washing business is very important. If anything happens to your cars, insurance will prevent you from spending your own money on repairing or replacing cars. In addition to breaking down or having to replace machinery, customers or employees may face an incident on your property that requires you to use your insurance to pay.
Buying basic insurance policies is very important, and if you are unsure which insurance policies will work best for your coin laundering business, it is best to hire an agent or agent. an insurance broker to help you. Here are some of the basic insurance policies that you should purchase when starting a coin laundering business in the United States;
- General insurance
- Liability insurance
- Equipment / machinery insurance
- Home Insurance
- Workers’ compensation insurance
- Health insurance
- General disability insurance
- Payment protection insurance
Protection of intellectual property / registered trademark
The parts washing business, although it relies heavily on machinery and equipment, is considered a self-service business and as such an entrepreneur starting this business does not need to be worry about acquiring intellectual property protection before starting a business because the machinery and equipment used is basic and meets the commercial standard. p87>
Do i need professional certification to run a parts washing business?
If you are looking to start a coin washing business in the United States and are concerned about needing professional certification before starting a business or as part of your business activities, the answer is no.
As long as your machines are up and running and people can get to your location fairly easily, that’s all you need to run your business. and achieve the success you are looking for.
List of legal documents required to run a parts washing business
When opening a business in the United States, some part is required to run a successful business with legal documents. Authorities don’t like this with businesses that don’t have complete documentation, so it’s best to consult a lawyer to find out what you need for your business.
Some of the legal documents you will need to run your parts washing business,
- Registration certificate
- Operating agreements
- Business license
- Business plan
- Insurance policy
- Employer Identification Number (EIN)
- Federal Tax Identification Number (TIN)
Finance your parts washing business
Funding is a very important element when it comes to starting and running a successful business. If you want to start your own business but do not have the funds to start a successful business, it is best to postpone the business idea until you have received all the necessary funds.
Sourcing for Finance is not an easy task for an entrepreneur, especially one that may require you to pay back 10 to 25 years, but it is something that you cannot avoid, so have a business plan. facilitates the search for funding sources. Here are some of the financing options available to you when starting a coin washing business.
- Use your personal savings and the proceeds from the sale of stocks and property as part of your start-up capital.
- Apply for a loan to finance equipment
- Apply for a loan from a commercial bank
- Seek financing from private investors or business partners
Choosing the right location for your parts washing business
One thing that can affect the growth and success of your coin washing business is where you are. The coin laundering business relies on a large number of tenants, so the closer you are to these people, the more likely your business is to grow.
However, you should consider that you will be competing with laundries located in apartment buildings and dormitories and professional dry cleaning services as these types of laundry will exist in areas with high population.
A parts business, no matter what scale you plan to open, cannot be operated from home because it is a self-service business where customers have to use coins to help them obtain services. They want.
The location of your business is important for the growth and success of your business, so you should locate your business in a highly visible area and where your target market is. However, if your coin laundering business is in an area that is not too visible, you should be prepared to have few or no customers.
However, to keep your coin laundering business in a good location, you need sufficient funds, because good locations don’t come cheap. Make sure you set aside sufficient funds to allow you to rent a property in a good neighborhood, as the lease term will be long.
While choosing the right location may be difficult for you, it is best that you use the services of a real estate agent who fully owns the area in which you intend to start your business.
Starting a parts washing business. Technical and personal data
The parts washing service consists of four parts; cleaning, fees, service and personnel management. The coin laundering business generally thrives during good times and bad – up and down – and that’s because people always have to wear clean clothes. During times of growth more and more people are renting apartments, and during times of downturn the market is still flourishing as those whose cars have broken down will instead use the laundry service. for laundromats, it’s still a lot, 10 to 25 years, because it allows owners to generate income that will allow them to recoup their investment. The market value of coin operated lingerie is $ 50,000 to $ 1 million, and the store typically covers 1,000 to 5,000 square feet. Coin laundries, which, however, are of a new nature,
The coin laundering business is a hardware-based business and therefore it is imperative that you purchase your new or fairly used hardware from a trusted dealer. If you are purchasing items that have been misused due to a limited upfront budget then it is important that the machines are in top condition so that you do not waste time and resources fixing them, thus losing your customers. for the benefit of your competitors. Some of the amenities that you must have include; Top-loading washing machines, front-loading washing machines, dryers, heating systems, computers, telephones, printers, software and basic office supplies.
If you are planning to own a large enough coin laundering business, you need to create a strong business structure that allows you to hire experienced people who understand the business and your business values.
Some of the people you should look for when hiring include: General Manager (Owner), Administrator and Human Resources Manager, Marketing and Business Development Manager, Account Manager, Maintenance Department, Front Desk Manager, Safety and Cleaner Based on the breakdown above, you will need to hire at least 9 people to run an efficient and successful coin laundering business.
Service process in the parts washing industry
To ensure successful use of coin operated laundry, you must not only keep the laundry clean, but also ensure that the machines are properly maintained.
When maintaining your washers and dryers, it is important that you are aware of the maintenance requirements depending on the type of machine being used. At the end of the working day, washing machines should be opened so that moisture can evaporate, and for top and front load washing machines, the lids should be opened after each use to avoid the smells.
Slot machines need to be emptied daily, while card machines must also empty smart card machines daily.
Starting a parts washing business marketing plan
- Marketing ideas and strategies
Marketing is a very important aspect of a business. Hence, if you are starting a business and have not planned it carefully. Based on your marketing strategies, it is safe to say that you are bankrupting your business. Marketing has a dual purpose for every business as it not only ensures that your business achieves the income intended to help the business grow and sustain the business, but it also creates awareness of the business through the through various marketing campaigns, so it is important to get the right results. only correct and effective marketing strategies are used.
With marketing, you not only know your target market, but you can also reach your target market and get your fair share. You can also compete with your competition so that you can stand out and be noticed by them. However, before all of this is accomplished, it is important to conduct a thorough market research as this is the only way to understand and achieve your marketing and revenue goals.
A coin selling business depends on local dependence for a large part of its success and so while you must have excellent marketing strategies, a large part of the effectiveness of your strategy will depend on location. of your business, because such businesses thrive in areas that have large numbers of people.
Here are some of the marketing ideas and strategies you will need for your coin laundering business;
- Make sure not only to create attractive themes but also to offer attractive add-ons. like video games and televisions to market your business
- Advertise in local newspapers and magazines, as well as on radio and television stations
- Make sure your laundromat is listed not only on the yellow pages but also in online catalogs.
- Distribute flyers and brochures at a variety of strategic locations to promote your coin laundering business.
- Let your marketers physically sell your coin laundering business to attract customers
- Use your social media platforms like Facebook, Twitter, Instagram and Snapchat to promote your coin laundering business
Strategies to increase your laundry brand awareness and grow your business identity business
One of the ways that businesses can set themselves apart from their competition is to build awareness of their brand and create a corporate identity that will allow them to generate income. Any entrepreneur who starts a business knows that creating the right ads for their business is a sure-fire way to promote a business.
However, since creating strategies that will not only create awareness but also generate income should be carefully considered, it is important that in-depth market research is done so that not only the market you understand, too. what is your target market and what outreach strategies are most effective for them.
As with any business decision you are about to make when starting your business, you will need to decide on the amount that is sufficient to promote your business’s ads, because while some advertising strategies can cost that much, others can cost you dearly. . almost for nothing and always effective. For example, the internet has opened up many cheaper but effective ways for entrepreneurs to market their business.
However, if you have just started your own business and come across an already established and successful coin laundering. business, you may need to engage the services of an experienced advertising consultant who understands the industry you are in to develop advertising strategies that will raise awareness of your business, as well as create a positive corporate identity and empower the company. business to develop and maintain itself.
Below are some strategies you can use to market your coin laundering business and create a corporate identity for the business;
- Use secret advertising forums and websites like craigslist to promote your coin laundering business
- Be sure to advertise your coin laundering business in local newspapers and magazines as well as on radio and TV stations
- Distribute flyers, business cards, and flyers in strategic locations where your target market is likely to congregate.
- Install flexi banners and billboards in strategic locations in the area where you plan to operate
- Use your social networks like Facebook, Twitter, Instagram and Snapchat to promote your coin laundering business
- Ask your loyal and satisfied customers to help you transfer your coin laundering business to others