Start a Mat business

[newmember]

I am very interested in doing the mat business but somehow I don't know how much money should I have in order to run this type of business. Does that require lots of cash or I can do the financing from the bank? What if I have 75K in cash then can I start this business? I would love to have all the ideas/advices from all of you who seem expert to me here /ubbthreads/images/graemlins/smile.gif Thanks

[JamesWash]

Mat business requires a lot of cash to start. With 75k cash, you can do a small size mat or buy from other sellers like Mr. Sean326 on the board lately.

[petefritz]

You probably can not start a new mat for 75k, and thank me, because I just saved you from losing that money if you could.
A new mat will cost $150-200 a square foot, so even a smaller one would run a qtr mill, so your 75k is not really quite enough, unless you have something to back it up. You can buy an existing mat and have cash flow using 75k if you go about it wisley. Leave the new mats to the millionaires who have the money to loose.

[Burley]

Pete is right about the costs. It will run you at least $100,000 for utility work and other space improvements even if you find a space to lease. But, I should point out, it looks like you have plenty of cash to qualify for a SBA loan if you find a place to buy or build one of your own. Good luck.......I think Pete has said this before......."It is only money!"

[petefritz]

I don't think I said that.. ""It is only money!" close enough though..

I realized the poster has no town listed, so it becmes hard to really respond. If in a small town maybe would work.
Who knows. The better the info, the better the reply. That you can take to the bank.

[newmember]

Thank you for all your comments and suggestions about starting a mat business. Yes, I know 75 k is not enough to build a new one and I like the idea of buying an existing one which the 75K might work. I just wonder if the way to purchase a laundromat store is the same as the way to buy a house, which I can make a down payment of 20% or 30 % of the total cost only? Again thanks for all the feedbacks /ubbthreads/images/graemlins/smile.gif

[petefritz]

why not give more info about where you are wanting to open a mat. Locations can vary widley, as can the banking. Where I live most used mats would be best with 50% down. A house gets 30 years, a mat might get 5 years to pay it off, if no real estate involved. This is why 20% down will not work, or at very least, will not cash flow.

[Burley]

Check with a bank about and SBA loan. They will require 20% down and payments over 7 years......it is also possible to stretch the payments to 10 years. You will be required to show your homework.......that is, market (demographic)analysis, competitive factors, payback, break even point, etc.

Oh, and also sign a personal guarantee for the loan. Closing costs seem typical of other loans.