Do you know how to start a laundromat business in 2025? If not, you are in the right place. Laundromats are an intelligent way to build a steady income with low overhead and minimal daily management. 

This guide’ll walk you through everything you need to know to start strong, even without experience.

We’ll also compare it briefly to other service businesses, such as opening a pressure washing business, so you can see how laundromats stack up in cost, risk, and reward.

Let’s get started.

✅ Why Start a Laundromat Business in 2025?

• This is how to start a laundromat business. It’s such a great idea in 2025, before we explain how:
• Recession-proof: Everybody needs clean clothes, regardless of the economy.
• Low labour costs: Largely self-service, so you don’t require a large staff.
• Passive income potential: Make money with minimal effort once it’s up and running.
• Scalable: Start with one location and grow from there.
• Consistent cash flow: Customers pay on the spot, and invoices are not waiting.

With newer technology, intelligent machines, and cashless systems, laundromats today are more efficient than ever.

🧠 Step 1: Research Your Local Market

Step one of how to start a laundromat business is conducting market research.

Questions to Ask:

• Is there demand for a laundromat in your area?
• Are there enough apartment complexes or student housing nearby?
• What services do other laundromats in your area offer?
• What can you improve on?

Use tools like Google Maps, Yelp, and Facebook to find locations and read what existing customers think about proximate competition.

📝 Step 2: Write a Business Plan

A good business plan keeps you on track and helps attract investors.

Your Laundromat Business Plan Should Contain:

• Business name and brand
• Target customers (e.g., students, renters, families)
• Location details
• Startup budget and equipment costs
• Services (self-service, wash-and-fold, pickup and delivery)
• Marketing and growth strategy
• Financial projections

A good plan makes the stage for long-term success.

📍 Step 3: Pick the Right Location

Location is everything for laundromats. Choose a place with heavy foot traffic and easy parking.

Ideal Spots:

• Near apartment buildings or condos
• Close to colleges and universities
• In busy neighbourhoods or shopping centres
• Close to low-income housing where in-home washers are less common

Tip: Verify that the building has the water, gas, and electrical infrastructure to support commercial-grade equipment.

💰 Step 4: Calculation for Your Startup

Thinking about how much it costs to start? Here’s a breakdown.

Typical Laundromat Startup Costs:

Total: Expect to spend $150,000–$500,000 depending on location and equipment.

If that’s too high, consider buying an existing laundromat or starting smaller, just like many do when learning to start a pressure washing business with less upfront cost.

💵 Step 5: Secure Funding

Unless you have cash saved up, you’ll need financing.

Funding Options for Your Laundromat:

• SBA (Small Business Administration) Loans
• Bank loans or business lines of credit
• Personal savings
• Equipment leasing
• Investor partnerships

When applying, a clear business plan, good credit, and collateral are ready.

🧺 Step 6: Purchase Your Equipment

Invest in high-quality, energy-efficient machines. They may be more expensive initially, but pay less in the long run and don’t break as easily.

Basic Equipment You’ll Need:

• Commercial washers (various sizes)
• Dryers (gas or electric)
• Change machines or card payment systems
• Soap and vending machines
• Laundry carts
• Folding tables
• Security cameras

Tip: Buy used machines in good condition to save money initially.

📑 Step 7: Register Your Business and Get Permits

Make your business legal by registering it with your state and local government.

Common Permits & Licenses:

• Business license
• Sales tax registration
• Water/wastewater permits
• Fire inspection approval
• Occupancy certificate

Every city is different, so check your local government’s website for requirements.

⚙️ Step 8: Set Up Utilities and Renovate

Laundromats use a lot of water, gas, and electricity, so make sure your building is ready.

Utilities to Set Up:

• Water supply and drainage
• Natural gas for dryers
• Electrical wiring (especially for heavy machines)
• Internet connection (for digital payment systems)

Engage licensed experts to do the installation and ensure that all passes inspection.

🎨 Step 9: Design a Clean, Welcoming Space

Customers will return more often to a clean, safe, easy-to-use laundromat.

Design Tips:

• Use bright lighting
• Add comfortable seating
• Offer free Wi-Fi and phone charging stations.
• Provide folding stations and laundry carts.
• Install visible security cameras.

Think of it as where people spend time, not just washing clothes. A good experience keeps them coming back.

📣 Step 10: Market Your Laundromat

Now it’s time to get the word out and attract customers.

Marketing Strategies That Work:

• Create a Google Business Profile — Show up on Maps and local searches
• Launch a website — Make it mobile-friendly and show hours, prices, and photos.
• Social media marketing — Share deals, customer photos, and behind-the-scenes content
• Offer opening-week discounts
• Partner with local apartment managers or colleges
• Referral programs — Give customers credit for bringing in friends

Marketing is the key to rapid growth, particularly in your first 6–12 months.

🧼 Step 11: Maintain and Grow Your Business

Once opened, concentrate on running your laundromat well and expanding.

Ongoing Maintenance:

• Regular machine checks and servicing

• Clean the store daily.

• Handle customer complaints quickly.

• Monitor utility usage

• Track which machines get the most use

As you grow, consider adding pickup and delivery services, selling laundry products, or opening another location.

🎯 Final Thoughts

You now know how to start a laundromat business in 2025—from preparation and site selection to machine purchase and recruiting customers. It is time-consuming, labour-intensive, and expensive, but the payoff is a reliable cash stream and expansion opportunities.

Laundromats are hard to beat if you want an up-front, demand-based business model that is good for your local community and runs on little or no employees.

Still debating your options? Read other business guides, like starting a pressure washing business, which is perfect for hands-on business people with limited capital for a startup.

FAQs

1. What is the cost to start a laundromat business?

It will cost you, depending on where you are, its size, and your equipment selection.

2. Do I need experience to open a laundromat?

Absolutely yes! Most successful laundromat owners began without any background. It can be done with research and a good team.

3. How much time does it take to open a laundromat?

Completing the location takes 3 to 9 months, depending on how quickly you acquire the area and the financing.

4. Do laundromats generate good profits?

Yes. A busy laundromat can gross $15,000–$30,000 monthly or more.

5. Is this a passive venture?

It can be a partially passive venture if machines are automatic, and you subcontract for cleaning or servicing.

6. How is that compared to starting a pressure washing business?

Starting a pressure washing business usually requires lower initial investments (around $5,000–$15,000) but more work. A laundromat is more costly but generates profits with less work daily.