Like most retail stores if you're renting you probably hate your landlord. Most of these issues stem from them not keeping up with their end of the bargain whether it be for billing mistakes, maintenance or a myriad of other screw ups. This expense isn't painful until you start having redundant issues with your landlord, than it costs you money because of the time wasted tending to those issues.
If you have a commercial laundry business in a prime location you'll still have a nice cash flow even with your rent or mortgage and monthly machine costs. When the machines are paid off you have a nice $50,000 kick-in a year assuming you've bought about 235k worth of machinery for a mid size store. That's a nice new stream of cash. If you own your building, that will eventually be paid off as well, giving you a nice double whammy of free cash flow. If you rent, that second variable stays an expense that usually continues to rise as with most leases.
The best case scenario is obviously owning the building - if you can swing it. I know a gentleman that owns a strip mall and the laundromat within - nice gig if you can get it! Here's another snap shot reiteration...
Buy the Building
2 comments:
I made the mistake of not getting help to negotiate my lease. Now pretty screwed!
Owning a laundromat and be profitable. The hardest part of the expenses is the constant maintenance. Ordering huebsch parts online can help you save money.
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