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Tuesday, 13 November 2018

Loans For Laundromats For Your New Business Venture

By James Stewart


Setting up a business on your own is an exciting time. Having the freedom to not have a boss watching over you can be exhilarating. But, before you get carried away with your dream it is important to choose a business model that will work. People need to wash clothes and large items and that won't change, so loans for laundromats can set you on your way to owning your very own business.

Taking out a loan to open a laundromat is really the same as for any new business idea. But, be careful as to where you go to take out your loan. Only borrow money from reputable lenders, and if your credit score is not great, look for a bank or money lender that will cater for you.

So, step by step. In order to know how much money you will need to borrow to open your laundromat, you will need a business plan. You will need to work out what the initial setup costs will be. These will include the purchase or rental of machinery, bills, fees, and other overheads that any new business would incur.

So. Let's say you have a figure in your mind of how much you need to borrow. This is just the first part of your borrowing plan however. When you borrow money you will need to meet the monthly repayments. This can only be done when you work out your profit and loss. These are estimations of how much your monthly expenditure will be against how much you hope to make. Only with these figures can you really present your business model to the bank.

So, why should you choose a laundry as a business idea instead of a store or a small food outlet, or indeed any other business type. Well, there are many reasons. First and foremost, everyone washes clothes and this will never change. People do have machines in their own homes, but not for large items. Also, many busy people like a service wash.

But, before you go ahead with your project, study the local area where you plan to open up your laundry. Look who your competitors are and if you have any nearby, make sure that your business will offer something that they don't. Simply offering a lower price will not make customers visit you instead of another local business that they have been using for many years.

The area you choose for your new business is very important. Although low rental is attractive, there are many other factors to consider. If you rent in a street that is not prominent, then you will have to consider how to advertise your services such as through social media.

Lastly, choose an area where there are tourists and passing visitors. These are the types of people who won't have access to their own machines. Also, ensure you offer a service for the washing and drying of large items that don't fit in standard machines such as duvets. Of course, you could also offer your services to local businesses and not just to passing trade. It all depends on how adventurous you are.




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