I plan on doing videos of the entire process and post them on youtube.
In July I offered to buy two very run down laundromats with two attached apartments where I live. Total purchase price was a princely sum of $50,000 for everything. I obtained private financing for aquisition + $30k for rehab capital in order to get them up and running. Both locations were/are full of old machines, some work, some do not.
Location #1 - Very small town of 1,500 with approximately 12,000. No laundromats within 10+ miles of town.
Location #2 - Town of 23,000, approximately 13 miles from location #1, there are 4 laundromats in town , only one of them is nice, the rest look like drug houses. This location also has two apartments.
At one time, location #1 made ~$1,500 net income after everyone got paid, location #2 was around $3,500 or so. Gross sales were approximately 2x of net. The owner essentially closed both down and walked away when a family member died a little over a year ago. Both had 20+ year old equipment in them, approximately half of the equipment was broken.
My intention is to fully renovate both places (At least make them look nice, the mechanicals right now are in good shape). Combine all working equipment to location #1, have all units refurbished and professionally repainted so even though they're old units, they will 'look' much newer. Additionally my goal is to supplement both locations with ancillary revenue - Since both are in very busy locations I will install indoor/outdoor vending, laundry products and potentially off-site washing laundry services for businesses.
I also run one of the largest social media pages in my area on Facebook, of which will be constantly promoting both businesses for laundry services.
One of the shocking things I encountered was a outside vendor who services/supplies laundromats telling me that the demographics said Location #1 should be bringing in gross revenues of $6,000-$7,000 per month while location #1 should be $12,000-$15,000 per month. This would improve my net numbers severely.
Anyways I thought I'd share the story on this as I start, in case there's things that you guys would be interested in seeing dealing with offline, brick & mortar businesses.
[link] [comments]
from Entrepreneur https://ift.tt/2P2H6uL
Business News Live devoted itself to sharing articles about Business, Entrepreneurs and Business Matters. It is fond of sharing knowledge and experience on the blog, our main goal is to deliver interesting articles that is worth a reader's time.