beginner need help

[paty]

hello everyone

my husband and i are exploring this opportunity .where should we start looking?

thank you

[petefritz]

look at your bank account and what you are willing to risk. Once you get past that, then look at the real asspects of being a floor sweeper for a living.

[millenniumplus]

Mr PeterFritz at times can have a way w/words but he is right. A good start is to read these posts -
it's a good insight into the reality of the laundry biz. Things to consider are what type of mat you
want - self service VS attendants, super sized VS small mat, one mat VS multiple mats, owning
the entire business (including property/building) VS leasing via a landlord, WDF service VS no WDF
service, newer mat VS very old mat. Be prepared to flop down around 20+% toward "financing
only" and then look forward to more out of pocket expenses like month advance of estimated
utility bills as well as a sizeable insurance premium. Expect other out of pocket expenses. It gets
bantered around a lot here but be prepared to get down and dirty. Whether you have a staff or
not be prepared to make cleaning and general maintenance work a big part of what you will be
responsible for. Many machine problems you can repair VS hiring someone which can bite into
your bottom line. We started out by visiting as many laundromats as we could find. We met
with some owners to get an idea of what the biz was like. In hindsight it didn't give us a realistic
picture of what to expect but it didn't hurt either. We did not interface with websites like this which
see now would have helped. This is a great website and even with now 3 years under our belts
learn something new all the time. If you were looking for more detailed information you should
ask a more detailed question. This business makes very few wealthy people but it can make
you able to work for yourself which is rewarding. Good luck..

[rzele]

I have just started looking as well. This board has been a wonderful source of information. I would recommend looking for business brokers in your area and start looking at the financials of laundromats that are for sale. The more you can look at the better feel you get for what's a good deal and what's not. It's a good place to start your education.

[Duane]

Brokers....

This is my opinion.

Before entering the coin-op business, you should have done your research and know as much, hopefully more, than any mat broker. At this point you can do anything he can do.

A broker is not working for your best interest. Fees for brokers vary, but when they work on commission they have no interest in getting the lowest price available.

A broker just wants to make a sale, they may not take your future success into consideration.

It is always better to work directly with the seller.

If you are ready to put several tens of thousands of dollars into a business, why would you pay someone you don't know to do what you should be able to do yourself for free?

A good mat will not be for sale for any long length of time, if it has been on the market and then handed to a broker to be sold, then there is probably something wrong with the mat or they want way to much money.


This is my opinion.

Duane.

[petefritz]

I would NEVER rule out a broker becuse he is making money on the sale. Yes, a broker works for his principle, the seller, who IS paying the commssion, to get the best price and terms. But many sellers use a broker for many reasons. They are a source for mats for sale. Approach them with your own numbers. I have bought 2 mats from brokers, one turned into a great mat, the other location is not ready yet, but interest in it seems to be high, so it should work out well. I have bought directly from owners and got dogs also, though 1 was a good one.. Beware, but do not shut down any source.

[spiderman]

I also am looking at a mat to buy. Should you ask for tax returns or water bills to verify his numbers? Does anyone have a formula (water bill equals this much $) thanks

Pete

[azkid]

You should look at the utility information for sure. You'll have to calculate what the water bill should be based upon the washer sizes and what you estimate as the turns-per-day for each machine type. Compare your calculated figure to what the bill is saying...by the way, the utility information is public record and you should be able to get that even if the owner doesn't give it to you.

You can also search for previous valuation discussions...many posts on this topic