Before entering any new venture, smart
investors consider its potential profitability. The easiest way for you to
analyze if a company can generate a healthy return is to review its average
return on investment (ROI). ROI percentages indicate whether a business
generates a profit for its investors, and smart companies that thrive in the
long run monitor their ROI closely. So, as a potential investor, the most
important question is, how much money can I make owning a laundromat?
Typically, experts advise investors in
small companies to look for an ROI between 15 and 30 percent. According to the
Coin Laundry Association, laundries generate $5 billion annually, but just like
any business, the profitability of each laundromat can depend on a range of
variables.
Investors
in successful laundromats have the potential to experience large returns. How
much profit they realize depends on the choices each makes, such as the
laundromat's location, size, efficiency, operating expenses, and the services
they offer. Additionally, laundromats are scalable and future expansion or
multiple-store ownership can also be achieved. However, on average you can
expect to gain from 30% to 40% return on your investment.
Laundromats also offer opportunities for
investors to utilize certain business tax advantages including Section 179 and
bonus depreciation. Simply put, these methods allow certain businesses to take
immediate deductions for business expenses related to depreciable assets such
as laundry equipment, helping them to lower their current-year tax liability
with a larger initial expense deduction, rather than depreciating it over time
in future tax years.
In addition to the immediate advantages
of a healthy, stable income along with great tax opportunities, there can be a significant long-term value from investing in a laundromat. Laundromats with proven track
records are sold with relative ease and at top dollar. If you've run a
profitable laundry and five years later decide to sell, you may expect to find
a buyer quickly and, in most cases, your laundry will command a much higher
price than you paid.
Furthermore, investing in a laundromat
and saving for your retirement can be highly compatible. Even if you've been
saving your whole life, it may not be enough to last you through retirement. In
many cases, laundromats not only pay for themselves in just a few years but can
leave you with a 'nest egg' that may be far better than a conventional savings
account, IRA, 401k, money market, or mutual fund.
A laundromat from SLE can be a very
rewarding experience. We have worked with many entrepreneurs like you and are
your full-service laundromat source. We can guide you with such things as
securing a location, lease, permits, and installation of the equipment, with you
the customer making all the final decisions.
SLE
reequips, develops, and constructs new and existing laundromats including
brokerage of existing laundromats. Through this process, we have, leased, owned, and developed millions of square feet of retail properties.
Discover
how we can provide you with the latest in premium, energy-efficient, laundry
equipment, strategic sales support, flexible financing, and fast reliable
service at www.statewidelaundry.com.
