When it is time to fly.....

[Kitty]

It seems everyone is in agreement that there is more and more competition entering into this industry. This is at the time, when I am left to wonder if I too can make it happen, take the plunge and be my own boss. I was meant to be an entrepreneur and I know if given the chance to succeed...... I will. However, when I make this comment, I am confident about future success only if certain criteria is met, and this is what slows down my enthusiasm. A great location and the demos that surround that location will be the key to my success, as the day to day operations is, at this point in my life second nature. Acquiring the funds for a start up company does not dismay me quite as much as finding the right location. If I cannot find a good location, the thoughts of my own store must be wiped from my dreams. How did you guys find the right location, how did you truly know it would be a great spot, and how long did the process to ownership take you?

[JBTcajun]

Get a map, go to the chamber, drive around. Several will shout at you. Then you will have locations to do the dmo on. Vacant lots, strip mall (with or with out vacancy), whatever looks right. I am in this thing hard 10/months and sending my plans to be drawn this week. Give me 2 years and I well tell you if I did it right lol. OH yea when you 1st contact distributors dont let them know of your experance and grade their bs factor. You can do it Chare.
JBTcajun.

[ajay]

Hi Kitty,

As I'm also searching to acquire more or build new, I first started with existing mats and approached owner with a question if they wanted to sell. Almost all of them wanted to sell me their store - ofcourse, in order for me to buy I needed to get some sorta idea on what their cash flow was like. So needless to say, I know where I don't want to go(i.e. not enough cash flow). After that I started driving around to some of the worse(great for mats) places in the city. I realized there were no mats in the area that I would consider doing my laundry at - they were filthy. Hence, a great location for new state of the art mat in the area to wipe the competition clean. But, I do have to realize my potential($$) and decide accordingly. So, I am now in the process of purchasing/evaluating one of the filithiest stores to purchase. I will have to rehab the whole thing but if the price is right and cash flow is there, I will be purchasing that location. But, also keeping in mind that others with money will see the same thing I did, and will try to put a new building in this location. It's risky I know, but if I don't try I won't know If I will succeed.

Ajay

[Gary C]

Kitty, You know the area where you worked for dave if it was good why not build there ? I am serious about that. From the way you have spoke in the past it sounds like some of his machines are older. Build new and that should bring people to you . Customers like new. The benifit you have is that you know the customer base.

Gary

[BWJR]

When I was ready to buy my second mat, I went to each one that I new did excellent volume based on living in the area for quite a while. At each location I left a letter to the owner, letting him or her know that I was intereste in their Laundry. In about two weeks one of the owners called me, he had only owned the Laundry for a year, but was willing to listen. We negoiated for about 4 months and finally i bought the laundry. I probably over paid a little, but the laundry was a big time money maker and i was willing to go the extra amount. As it turned out for 8 years I did very well. I sold it two months ago for about $30,000.00 more that i bought it for. When i bought the Laundry, the seller said to me at settlement, that he didn't even know why he was selling it to me. The point is, sometimes when you plant the seed very often it grows.

Good Luck,

BWJR

[pete f]

It is hard to comment much, not knowing the population base of your town/city. You know all the comp, and have inside info on the finances of 3 mats. Look for a mat near your home, if none for sale then just ask.

[Ken]

I always buy existing stores.Building a new one just too much money and risk for me to deal with.
I spoke to a few distributors and a location seeker,his job is looking for new location for a large laundry chain .
They always buy a zoning map from the city before they enen arrive the town so they can find the right location with right zoning.

[pete f]

Kitty, I have a few ideas that I might persue if I was in your shoes. I do not know your financial capacity, and you have not disclosed what the size of the town you live in, so trying to judge the type of mat used, new, none is even harder. Your questions are newbie type though you have 8+ years running mats. Let's get serious. Dave got his mats from his parents, and pays below market rents. As I have read, has not really been on an update program. And low prices. But it may have looked like he was making a ton of money. He might have with those factors. The people here that have said they are happy with thier new stores are ones who owned the building, and did quite a bit of buildout by themselves, saving a ton of money. You go to your distrib and say build me a store.. well, it will cost you. That is not to say it is not worth it in certain situations. Again. we have no idea of your market or situation. You have a lot of friends here who are willing to give free advice, but in order to give better answers you need to give better information. Camdon NJ is a different market than NC as a state.. Ok, here are a few back door ideas..
Go to work for a distrib. Sales rep, office help, parts counter, whatever. You have many years in the biz, that will help much. Now, you don't want work for someone else? When I was in the real estate biz, all the best deals where done before the listing appeared. Everyone I know who works for a distrib owns a mat or two. You would have cherry picking priveys. Perks count.
The distribs know who is selling, buying, remodeling, etc. That info can get you your mat, and still have a job..

Ok, venture on your own. Here is a way to be in the l'mat biz for about $100. Do w/d/f , dry clean pick up and delivery. Make up flyers, canvas the neighborhood, offering pick up and deliver of dry clean, sewing, w/d/f. comforters,etc. Get a route established.
I know a person who has done this. Your cost is about 15 cents a pound, so it is big profit. Set up a deal with a dry cleaner, You go to a mat near your house, unatended is best, make them an offer, say you will do all your route biz, and maybe they give you a rake off and a place to store stuff. As your route and biz grows, then you can go to a bank. You can set up OPL and the coin op will be gravey. Beacuse you did this all near your home at a ceratin mat, the chance of buying THAT mat gets better.

Ok, not for you? If you don't want to do w/d/f try a route
Start asking around apt buildings about the laundry rooms. Try and place washers, dryers. soda machines etc thru out your area.
This will take capital, a truck and a big dolly...

there are even more avenues to explore, this is just the tip of the 'berg.

[Kitty]

I apologize for the "newbie" questions....I know my own answers to my own questions....I am merely seeking what others have done, or would do.

Each market is different and this area I live in is rural, thus, there are not many viable locations. The census here, is to buy exsisting and this is what confuses me, as I value all opinions here. I find the exsisting ones for sale around here are not in the best locations and not as profitable. Since location is the key, wouldn't this be the answer, whether it is a brand new location or one that is already in business?

[Anonymous]

Its a hard call, that is why there is risk in business. Why do you think the existing ones are where they are and not where you think they should be. If you have a convincing answer for that, then maybe a new store could be viable. But if you are not 100% certain (well maybe 98%) then it is probably safer to make a lowball offer for the existing one and upgrade it and make it profitable. Much less risk, and maybe not that much less reward.

[JBTcajun]

Kitty in my town there are 3 mats. These mats draw from a 30 mi radius. NO other area could have a mat due to the enviromental service people would not allow water 2 run off and they would not approve a sewage treatment plant. You would have a huge battle to make them allow ok a plant as they are not trained to do so. Of the 3, 2 are owned by the same co. Both are run down all top load stores and for sale. Only 1 of them is real estate owned. The other is month 2 month. Month 2 month out! The one with real estate is small and have noumerous machines out of order. Not large enough to support new equipment and purchase real estate. It is out. The 3rd is 2 months old but all old tops. The attendent drinks while running things and will sit there with a beer and tell u his life history (being a drunk). NOt much compatition. The demographics support these stores capacities and more. My bigest fear is that the realestate owned store retool before I am able to open. That is why I am trying to keep it hush hush but in a small community there is no chance of that. I am building new because it is my choice and have faith it will capture the needed business due to the fact that it is new, clean, ac, front load, and well managed. A risk yes but isnt everything?
Good luck Chere!
JBTcajun

[Andy]

I completely agree with the comments of Pete and Kirby. I like the laundry service angle Pete. I would like to add that you should not hurry the process. As in real estate a deal will present itself over time if your eyes are open. I think sometimes people are so eager to jump into any circumstance that they become blinded. Be patient. Pete's idea does not require much cash to get started, I think it's a great way to get this going.