How to Start a Laundromat Business: A Step-by-Step Guide

More on coin laundry and laundromats: Coin laundry and laundromats — Guides for laundromat customers and owners, from what to bring to starting, buying, and running a store.

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To start a laundromat, you decide what kind of store you want, choose between building a new one and buying an existing one, line up financing, find a location with the right customers and utilities, get your permits, then equip, build out, and open the store. It is a capital-heavy business. CLA, The Laundry Association, says liquid capital of 15 to 30 percent of the project cost is typical, and a full build-out can take months. The steps below follow that order.

Last updated: November 14, 2026.

This guide covers the whole path from idea to opening day. For the money side in more detail, see how much it costs to open a laundromat, laundromat equipment costs, and how much a laundromat makes. All of our owner and customer guides are collected on the coin laundry and laundromats page.

What you are actually starting

CLA defines a coin laundry as commercial-grade, self-service laundry equipment placed into service in a retail space. In its industry overview, the association describes stores that usually occupy 1,000 to 5,000 square feet on long-term leases of 10 to 25 years, typically open from about 6 a.m. to 10 p.m., and run by individual owner-operators. It also points out two features that make the business unusual: there is no inventory to stock and no customer receivables to collect.

The flip side is that a laundromat is hard to move and expensive to build. CLA’s white paper on demographic analysis and site selection notes that once utility lines are run, venting is installed, and machines are bolted to the floor, the store is next to impossible to relocate, and most of the startup investment cannot be recovered. That is why the early decisions, especially location and lease, matter so much.

Step 1: Decide what kind of laundromat you want

CLA’s step-by-step guide to buying or building a laundromat starts with your goals: what you want the store to do for you in one, three, and ten years, how much risk you can take, and how involved you plan to be. It then asks you to define the business model. The main choices are:

Attended or unattended. An attendant can keep the store clean, help customers, and handle problems, but adds payroll. An unattended store saves wages but puts more weight on cameras, lighting, and fast repairs.
Self-service only or full service. Many stores add wash-dry-fold and pickup-and-delivery, which bring in revenue beyond the machines but require labor and space for processing orders.
Coin, card, or hybrid payment. Coin-only stores need changers and regular collections. Card and app systems change the equipment, the cash handling, and the customer experience. Our guide to converting coin laundry to card covers the trade-offs.
Urban, suburban, or rural, and rent or buy the property. These choices affect your customers, your utility options, and your biggest fixed cost.

Step 2: Choose between building and buying

You can build a new store or buy one that is already running. CLA’s guide sums up the trade-off this way. Buying an existing store may bring faster cash flow, infrastructure already in place, and easier financing, but you risk overpaying, inheriting a bad lease, old equipment, a poor layout, or hidden problems. Building a new store gives you a custom layout and a fresh start, but comes with a longer timeline, permitting delays, and higher upfront costs.

Existing and new stores are also valued differently. CLA says new laundries are valued on actual construction and equipment costs, while existing laundries are valued mainly on net revenue, usually at a multiple of three to five times net cash flow. If you lean toward buying, read our guide to buying a laundromat before you make an offer.

Step 3: Work out your budget and financing

Estimate the total project cost first, then the cash you need to bring. CLA’s step-by-step guide says 15 to 30 percent of the project cost in liquid capital is typical, and suggests getting pre-qualified with SBA lenders, equipment lenders, or commercial banks early. Gold Coin Laundry Equipment, a distributor, says in its FAQ that it generally recommends having about 30 percent of the purchase price available to invest in a new laundromat, plus money for insurance, escrow charges, utility deposits, and a cash reserve equal to two to three months of operating costs while the store builds a customer base.

Lenders will want documents. CLA lists a personal financial statement, credit scores, tax returns, a draft lease, and utility bills as the kinds of paperwork to prepare. The U.S. Small Business Administration’s 7(a) loan program can be used for real estate, working capital, the purchase and installation of machinery and equipment, furniture and fixtures, and changes of ownership, with a maximum loan amount of $5 million. You apply through a participating lender, not through the SBA itself.

For a line-by-line view of what goes into the budget, see how much it costs to open a laundromat. The SBA also has a free worksheet-style guide to calculating startup costs.

Step 4: Research the market

Laundromat customers are a specific group. CLA’s site-selection white paper notes that people in households with their own washer and dryer are not prime prospects, and that high-income households and homeowners are generally less likely to use a coin laundry. In its industry overview, CLA says stores tend to perform best in densely populated areas with a high share of renters.

That makes demographic data a useful first filter. The white paper describes pulling reports for rings around a proposed address, such as a one-mile radius, then comparing age, income, household size, renter share, and household growth. U.S. Census data, including the American Community Survey, is the usual starting point. The SBA’s guide to market research and competitive analysis adds the questions every new business should answer: is there demand, how big is the market, how saturated is it, and what do customers already pay for alternatives?

Numbers are only half of it. CLA’s white paper and step-by-step guide both tell you to visit competing stores and look at their pricing, layout, amenities, and equipment age, and to ask whether existing stores have already captured the market or whether new stores are planned nearby. Note the vend prices at competing laundries, because they will shape what you can charge.

Step 5: Find the location and negotiate the lease

CLA’s white paper lists the physical basics a site needs. Parking matters, because customers carry bulky loads in and out. Visibility matters, because a laundromat cannot be tucked into an out-of-the-way spot and still advertise itself. Security matters, because customers feel safest in a store that is brightly lit and busy. CLA’s step-by-step guide suggests about one parking space per 250 square feet as a rule of thumb.

Check utilities before you fall in love with a space. A laundromat needs enough water, sewer, gas, and electrical capacity for commercial machines. The white paper gives a blunt example: a rural site may have the right demographics, but if it relies on a septic system, it will not accommodate a coin laundry. CLA also recommends checking with the local building department, and confirming the property is zoned or can be zoned for laundromat use, before you sign a lease or buy land.

On the lease itself, CLA’s step-by-step guide suggests negotiating rent to a target of roughly 10 to 25 percent of gross sales or less, and asking for exclusivity from the landlord so a competing laundry cannot open in the same center. Because laundromats are valued partly on the terms of the lease, a long lease with predictable increases is worth more than a short one.

Step 6: Write a business plan

A business plan forces you to put the market research, the budget, and the revenue assumptions in one place, and lenders will usually ask to see one. The SBA’s guide to writing a business plan describes both traditional and lean formats. For a laundromat, the most important sections are usually the location analysis, the equipment plan, the startup budget, and a realistic revenue estimate built from machine counts, vend prices, and expected use. Our guide to laundromat revenue and income per machine shows how those pieces fit together.

Step 7: Form the business and get licenses and permits

Choose a legal structure, such as a sole proprietorship, partnership, corporation, or S corporation. The IRS explains how each is taxed on its business structures page, and many owners talk to an accountant or attorney before choosing.

Licensing and permits depend on your state, county, and city. The SBA’s guide to applying for licenses and permits explains that most businesses need a mix of federal, state, and local registrations. For a laundromat, local building, plumbing, mechanical, and fire approvals are often the slowest part. Gold Coin also warns that some cities charge impact fees for new construction that connects to city water, sewer, or irrigation systems, and that those fees can range from a few dollars per machine to several thousand depending on the city. Our guide to permits needed to open a laundromat covers the common categories.

Laundromats are also places of public accommodation under Title III of the Americans with Disabilities Act, which lists a laundromat by name. Your architect and contractor should design the entrance, aisles, restroom, and counters with that in mind.

Step 8: Choose equipment and design the store

Equipment is the core of the investment. CLA recommends researching several brands and distributors, comparing energy efficiency, capacity, warranty terms, and support, and choosing high-efficiency, large-capacity washers. The right mix depends on your customers. CLA’s white paper notes that an area with many seniors may need more small machines and top-loaders, while denser areas with larger working households may need more large machines.

Most new owners work with an equipment distributor, who often helps with layout and service as well as the machines. Plan the payment system at the same time, because it affects which machine controls you order. Our guide to laundromat equipment and what it costs lists current published prices for washers, dryers, and changers, and the expected service life of each.

Step 9: Build out the space

Expect construction to take longer than you hope. CLA’s step-by-step guide gives these general ranges:

Project type	Typical construction time (CLA)
Small remodel	2 to 4 weeks
Large remodel or retool	4 to 8 weeks
Full build-out of an existing space	14 to 24 weeks
New construction	24 to 52 weeks or more

CLA lays out the whole process, from setting goals to opening, over roughly 18 to 38 or more weeks, and warns that permitting, extra financing, and construction delays can stretch it further. Gold Coin describes the usual sequence for a new store: find the location, design the equipment mix and layout, have an architect prepare plans for the building department, then build. A contractor with laundromat experience can save time on plumbing, venting, and gas work.

Step 10: Insure, staff, and open

Before opening, line up insurance. The SBA’s guide to business insurance covers general liability, property, and workers’ compensation if you have employees. Set your vend prices, train any attendants, and write down simple opening and closing routines.

CLA’s guide lists marketing as part of opening, including local search listings, social media, community outreach, and a grand opening with promotions. Once the doors are open, the work shifts to day-to-day operations, which we cover in how to run a laundromat.

Frequently asked questions

Can you start a laundromat with no money?

Not in the usual sense. Lenders expect you to put in your own capital. CLA says 15 to 30 percent of the project cost in liquid capital is typical, and Gold Coin suggests about 30 percent for a new store plus a reserve. Ways to need less cash include buying a smaller existing store, asking a seller to carry part of the financing, which Gold Coin mentions as an option on existing stores, bringing in a partner, or financing equipment.

How long does it take to open a laundromat?

CLA’s step-by-step guide puts the full process at roughly 18 to 38 weeks or more, with new construction alone taking 24 to 52 weeks or longer. Buying an existing store can be faster because the equipment and utilities are already in place.

Do you need experience to run a laundromat?

Not necessarily. Gold Coin says no special skills are required to own and operate a self-service laundry, but that new owners spend many hours learning the business and the equipment at first. CLA advises prospective owners to consult professionals before making major decisions and suggests finding a laundromat-specific mentor, which can be your distributor.

Should I buy a laundromat franchise?

CLA’s industry overview describes the business as made up mainly of individual owner-operators and says no significant franchises are in operation. Some branded laundromat concepts do sell franchises, so if you consider one, compare its fees and rules against the support you would get from an independent distributor. The SBA’s guide to buying a business or franchise explains the difference in control.

Is a laundromat a good business?

It can be, but results vary widely. CLA says coin laundries can generate cash flow anywhere from $15,000 to $300,000 a year. Location, equipment, competition, and costs decide where a store lands. See is coin laundry a good business for the pros and cons, and how much a laundromat makes for the math.