Want to start a business that makes money and helps people? Opening a laundromat in California is the perfect choice! Laundromats are always in demand, and once they run smoothly, they bring in steady income with little daily effort.
But how do you actually start one? What licenses do you need? How much will it cost?
Don’t worry! This guide will explain everything in simple terms. From choosing the right location to getting the necessary licenses and buying the right equipment, we’ll walk you through everything to help you start a laundromat business in California in a good way.
Why Open a Laundromat Business in California?
Starting a laundromat business in California is a smart idea because people always need clean clothes! Many renters and students don’t have washers and dryers at home, so they rely on laundry. Plus, people are busier than ever with work, school, and family, so they don’t have time to wash at home, even if they have a machine. This means a steady flow of customers all year round. Once your laundry is set up, it doesn’t need much daily work, machines do most of the job for you!
How Much Cost Requires to Start a Laundromat in California?
Laundromats need a good amount of money to open. The total cost depends on location, size, and your chosen equipment. If you plan carefully and know what to expect, you can avoid surprises and set yourself up for success. Below is a table of the main costs.
Table: laundromat start-up cost
| Expense | Estimated Cost |
|---|---|
| Buying an existing laundromat | $200,000 – $500,000 |
| Starting from scratch (rent, renovations, etc.) | $300,000 – $600,000 |
| Washers & Dryers | $100,000 – $300,000 |
| Monthly Utilities (water, gas, electricity) | $5,000 – $10,000 |
| Permits & Licenses | $5,000 – $15,000 |
| Marketing & Branding | $5,000 – $10,000 |
| Total Estimated Cost | $300,000 to $900,000+ |
For financing, You can choose a bank loan, your personal savings, find business investors, or get equipment financing to help cover costs.
1. Do Your Market Research
Before you open your laundromat, it’s important to do your research. This will help you make good decisions and avoid mistakes.
Check the Demand
Make sure there are enough people in the area who need a laundromat. Search for places with many apartments, dorms, or rental houses. These areas usually have people who don’t have washers or dryers at home. Busy places like colleges or offices are also good because people need laundromats when they are out and about.
Know Your Customers
You need to know who wants to use your laundry. The main customers are renters, students, and busy workers. Renters and students usually do not have washers or dryers in their homes. Busy workers don’t have time to wash clothes at home. Knowing your customers will help you set up your laundromat to meet their needs.
Look at the Competition
Go to another laundromat in your area. Look at what they do right and where they can get better. Are the machines clean? Do they offer services like wash-and-fold? If you see things other laundromats lack, think about how you can improve. Offering better service will attract more clients.
Pick Your Business Model
Decide how you want to start your laundromat. Here are a few options:
- Buy an existing laundromat: This is quicker, but it’s more expensive.
- Build one from scratch: This takes more time and money, but you have full control.
- Invest in a franchise: This gives you the support of a known brand, but you may have to pay extra fees.
Doing your research will help you choose the best option for your business and get started on the right foot.
2. Create a Laundromat Business Plan
A business plan is important because it helps you make smart decisions and stay on track. Bellow’s what your plan should include:
Your Goals and Vision
Write down what you want to do with your laundromat. For example, do you want to offer additional services like washing and folding? Do you want to open more laundromats in the future? A clear goal helps guide your business.
Start-Up Costs and Funding
Figure out how much money you need to start, including rent, equipment, and permits. Decide how you will pay for everything, will you use your savings, get a loan, or find investors?
Best Locations
Think about where the best place is for your laundromat. Find places with lots of renters, students, or busy workers. Make sure the location has good parking and is easy for customers to reach.
Marketing Strategies
Plan how you will attract customers. Want to use social media, ads or flyers? You can also provide loyalty programs or advertising to get back to people. A good marketing plan is important for your success.
Expected Earnings
Guess how much money you can make. Think about how many customers you expect and how much they want to spend. Also, remember to calculate your monthly expenses like rent and bills. Your business plan should show that your laundromat will make a profit.
A strong business plan can help you get a loan or attract investors. It shows that you know what you’re doing and have a plan to succeed. If you’re unsure where to start, check out our guide on how to plan a small business for a step by step roadmap.
3. Pick the Best Location
Choosing the right location for your laundry is super important, it’s like choosing the best place for your lemonade stand! If you pick the wrong place, you could be stuck with a lot of empty washers and dryers. But if you get it right, your laundromat will be the go to spot for all the busy people in the neighborhood!
Look for Busy Areas with Lots of People
A laundromat requires plenty of customers to stay busy. Look for places with many people around, like near apartment complexes, colleges, or busy neighborhoods. There are many people in these places who may need to use your laundromat regularly.
Good Parking and Easy Access
Make sure there is enough parking for your customers. People don’t want to walk too far with heavy laundry! A place that’s easy to get to with good visibility is a plus. If people can drive up easily and park, they’re more likely to choose your laundromat.
Affordable Rent
Rent is a big cost, so try to find a location with affordable rent. You’ll want a place where you can pay the rent comfortably while also making a good profit. Check out different areas to find a balance between cost and foot traffic.
Not Too Much Competition
You don’t want to be too close to other laundromats. If there are many nearby, it might be harder to get customers. Look for an area where there are few laundromats or where people have to drive a little farther to get to one.
For Example, A laundromat in downtown San Diego does well because it’s close to a college and many apartment buildings. People living there need a place to wash their clothes, and students don’t always have laundry facilities.
4. What Equipment do you need to start a laundromat
Now that you’ve chosen the best location for your laundromat, it’s time to buy the right equipment. The machines you choose are very important because they are the main part of your business. You need strong and reliable equipment to keep customers happy and avoid expensive repairs.
Washers & Dryers
Buy good quality washers and dryers that last a long time. Make sure they are energy efficient so they save money on electricity. You can choose top-load washers or front-load washers based on your space and budget. Make sure your dryers dry clothes fast, especially for busy customers.
Change Machines
You’ll need a change machine so customers can get coins to use the washers and dryers. It’s more convenient for them and helps you avoid handling coins yourself. It’s a little thing, but it really helps!
Soap Dispensers
Having soap dispensers or vending machines is one of the best ideas. Customers might forget their detergent, so offering it for sale in your laundromat is very helpful. You can make some extra money by selling items like soap, fabric softener, and dryer sheets.
Folding Tables & Seating
Add folding tables so customers can fold their clothes easily. It’s also a very good idea to have seating so they can relax while waiting for their clothes. A clean, comfortable environment makes customers want to stay longer and come back again.
Security Systems
A security system is important to keep your laundromat safe. Install cameras and make sure the area is well-lit. This will keep your equipment safe and make customers feel secure.
Pro Tip: If you have no money to buy everything, you can rent machines instead of buying them. This way, you can still get good equipment without spending a lot of money upfront. Later, when your business grows, you can buy the machines.
5. What permits do I need to open a laundromat in California?
To run a laundromat in California legally, you need several licenses and permits.
Business License
This is required by your city or county. It allows you to operate your laundromat legally. To get it, visit your local business office or website, fill out an application, and pay a small fee.
Seller’s Permit
If you are planning to sell products like detergent or fabric softeners, you need a seller permit. You can get this permit from the California Department of Tax and Fee Administration (CDTFA). You can apply online on their website.
Water and Sewer Permits
These permits ensure you follow the rules about water usage and waste management. Contact your local water department for what you need. They will help you get the right permits to handle water and sewage.
Environmental Permits
Since laundromats Tackle wastewater, you will require an environmental permit. This is to make sure you are using water properly. Your city environmental health department will help you with this.
Employer Identification Number (EIN)
If you plan to hire workers, you need an EIN. This number is used by the IRS for tax purposes. You can get an EIN for free by applying online on the IRS website.
Pro Tip: Always check with your city’s business office to make sure you have all the permits you need. Each city or county may have extra rules or permits.
6. Market Your Laundromat Business
Now that your laundromat is ready, the time has come to bring it to the customers! If people do not know about your business, a great place and good equipment will not help. Here are some simple ways to attract more customers and keep them coming back.
Get Found Online
List your laundromat on Google My Business so people can easily find your address, hours, and contact details. This helps customers nearby search for laundromats and see yours first!
Use Social Media
Promote your business on Facebook, Instagram, and TikTok. Post pictures of your laundromat, share special deals, and connect with the community. A simple post like “Half-price wash on Wednesdays!” can bring in more people.
Offer Loyalty Programs
Encourage customers to repeat by offering a loyalty card. For example, “Get your 10th wash free!” Small rewards make customers want to come back instead of going to another laundromat.
Create a Referral Program
Word-of-mouth is powerful! Offer discounts or free washes to customers who bring a friend. This helps grow your customer base without spending too much on ads.
7. Get Involved in the Community
Support local events, sponsor school fundraisers, or offer free wash days for charities. The more your laundromat helps the community, the more people will trust and remember your business.
Marketing is not expensive, just be creative and active in your local area and online. You can also grow a small business on social media to expand your reach.
For Example, A laundromat in San Francisco doubled its customers by offering free Wi-Fi and running Facebook ads to locals.
8. Manage and Grow Your Business
Keeping your laundromat running smoothly is key to success.
- Hire Friendly Staff: good customer service is constantly returning to people.
- Keep It Clean: a well-maintained laundromat attracts more customers.
- Offer Extra Services: Try washing and folding, vending machines, or pickup and delivery.
- Upgrade Equipment: energy-efficient machines save money and work quickly.
- Run Promotions: offer discounts, loyalty programs, or referral bonuses.
- Track Finances: see expenses and adjust prices for better profits.
A well-managed laundromat grows faster and keeps customers happy! If you’re looking to expand, learning how to grow a small business can help you achieve long-term success.
Final Words
If you plan well, it is a great business to start laundry in California. Choosing the right location, good machines and smart marketing will help you succeed.
Remember: It takes time to succeed, but hard work and good service will make the laundry a favorite in society. Continue to correct, and be patient, and your business will grow!
FAQs: How to Start a Laundromat Business in California
How much does it cost to start a laundromat in California?
Laundromat cost depends on where you open it, how big it is, and what equipment you use. Starting from scratch can cost between $300,000 and $600,000. Buying an existing laundry might be cheaper, usually between $200,000 and $500,000.
Can a laundromat be a profitable business?
Yes! Laundromats can make good money because people always need clean clothes. They do not require a lot of daily work, and if you pick a good location, they can bring it to a stable income.
Should I buy an existing laundromat or start a new one?
Buying an existing laundromat is faster, but it might cost more upfront. Starting a new one takes more time and effort but gives you full control of the business.
What kind of washers and dryers should I get?
Choose commercial quality, energy-efficient machines. Frontload washers use less water and energy, and larger machines can serve more customers at once.
Can I run a laundromat without employees?
Yes, many laundries are self-service. But hiring workers for cleaning, maintenance, and customer service can help attract more customers.
What are the biggest challenges of running a laundromat?
Some common challenges are high utility costs, keeping machines running, and handling the competition. But with smart planning, you can handle these issues.
Related Articles
How to Start a Small Business in 2025
How to Grow a Business with No Money
7 Tips to grow a local business with no money
5 Personal Tips to Grow a One Person Business
7 Steps to Grow Your Business on Social Media
7 Steps to Start a Laundromat Business in Florida
Welcome to Mini Business Hub! I'm Zenith, the founder and passionate voice behind this blog. With years of experience in business planning, startup development, and digital marketing, I am dedicated to helping aspiring entrepreneurs and small business owners achieve their dreams. Through Mini Business Hub, I provide practical advice, actionable steps, and insightful tips to guide you in planning, starting, and growing your business. Join me on this journey to turn your business ideas into reality and create a successful future. Let's make your business dreams come true, one step at a time.