Is this Mat worth buying?

[Anonymous]

Hello Coinwash!

I am conducting research on the business plans of laundromats and will be writting my own but I have hit a writers block. Does anyone have a business plan for a laundromat that they would be willing to email to me so that I can use it as a guide and to formulate ideas? It would greatly help me and I would appreciate it! I will keep all material confidential. Thankyou for your time.

Please email me at JohnKudlack@aol.com

Sincerely,
John Kudlack
JohnKudlack@aol.com

[Coinwash]

Take the words Business Plan and put it in search.

If you haven't already.

Good luck

[quartercounter]

i used this format with the sba

Executive Summary

bjectives

Mission


Keys to Success


•
•
•


Company Summary

Company Ownership



Startup Summary


Location



Equipment


Permits

Local Competition


Marketing/Advertising/Operations

Store Layout


Lease

Demographics


Demographic Analysis

Monthly Projected Income Performa


Income QTY $/vend 3tpd 4tpd 5tpd 5tpd__
18lb washers 5
40lb washer 15
60lb washer 4
Daily Income Washers
Dryer Income @ 40%
Soap
Coke
Cracker
Wash, Dry & Fold
Total Daily Income
Monthly Income (30 days)
Cost of supplies sold _______
supplies purchased for resale

Total
NET MONTHLY INCOME


Expenses

Water/Sewer @per 1000
NC gas @ therm
Electricity (yr average)
Advertising
Cable
Cell phone
Garbage
Telephone/Alarm
Lease
Parts and Repairs
Property taxes & Insurance
Supplies
Labor inclusive@

Total Expense
Profit (loss) per month


pproximate Projected Costs and Potential Expenses

#High efficiency front load washers
# High efficiency front load washers
# High efficiency front load washers
double stack 30lb dryers
Freight, Installation and tax
Laundry carts
folding tables
seats
Vend rite laundry soap dispenser
hot water heater
Standard bill/coin combo change machine
Standard coin changer
Plumbing
Electrical
Carpentry
Illuminated sign
Window and door signs
Electrical deposit
Natural gas deposit
Water deposit
Cash on hand
Supplies vending and janitorial
Advertising and marketing
Investment
Approximate amount needed to finance

[Coinwash]

Information for prospective Laundromat buyers.


You never pay more than 3 to 3.5 X the net.
Always be ready to walk away.
How far are the closest Laundromats?
You must look at the Tax returns for the past 3 yrs.
No one would lie to the taxman and say they are making more.
Everyone tells everyone they take from the top.
This is wrong and should not even be taken into consideration. To me that’s a RED flag!
Don’t go into this unless you are ready to work hard. This is not an easy job. You don’t just collect Quarters!
I tell people to go to the Laundromat they are looking to buy, with a bunch of towels to be washed and dried.
Don’t open your mouth. Sit and watch.
Plan on staying there a while. Be a FLY on the wall.
Watch, look, and listen. Remember, no matter how hard it is don’t talk to anyone there.
It’s not fair to the seller or to their employees.
Now I don’t mean to go just one time. I am telling you to do this for at least a week or two. (Maybe every third day).
If you do buy this Laundromat, believe me you will be spending more time there then a week or two.
You are spending your hard earned MONEY.
Try not to be an obvious neophyte
Good luck.

This is only my opinion. You do what you think is right; Follow your business instincts.

Coinwash.com
Jonathan


The Financials
Seller’s stated Profit and Loss Statement
Water Bills (last 12 months)
Electric Bills (last 12 months)
Gas Bills (last 12 months)
Parts? Receipts on repairs? Service Contracts?
Tax Filings?
The Assets
Washers and Dryers / Make,Model/Yr/PriceVend
Water Heater(s)
Condition of Floors
Condition of Counters/Tables for Folding.
Vending Machines
Soda Machine
Soap Machine
Candy (Gum/Bulk) Machines
Pay Phone
Video Games
Changer Machines
# of Carts/ Baskets
Alarm System
Which Alarm Company is being used?
What type of service is in place?
Can I see the contracts?
Vending
Which machines are owned?
Which machines are leased?
Vending Lease Contracts/Agreements?
Service
Who has been providing equipment upkeep and service?
Receipts?
Any Contracts/Agreements?
Who has been supplying vending goods? Soda?
Who supplies the video games?
contracts? Agreements? What’s the cut?
Insurance
Liability Insurance
Hazard Insurance
Current Insurance Carrier?
Any problems with insuring the place?
Get the current insurance contract, check for clauses.
The Employees
# Of Employees
Hours and Pay
Contract Personnel? Salaried? Hourly?
Duties
Are they willing to stay on after purchase?
How long have they been contracted/employed?
The Legal and Corporate Issues
Accounting Fees
CPA Costs Annual / Quarterly Reports
Legal Fees?
Business License Cost
The Company's Contracts and Leases
Vending Contracts/Agreements?
Supplier Contracts/Agreements?
Video Game Contracts/Agreements?
Alarm/Security Company Contract/Agreements?
Any Insurance Contracts/Agreements?
Property Lease Contract/Agreements?
Equipment Service Contracts/Agreements?
Property Lease
CAM Fees – cost / what is included in the CAM Fees
how are CAM fees divided among tenants?
Who determines CAM fees and items?
What percentage of fluctuations in CAM fees in
the past or foreseeable in the future?
Can I get a breakdown of the CAM/ RE Insurance / RE Tax?
What is personal property tax? Of $33?
Current Lease
Lease Increase Rate
Lease Expiration/Options
Lease Deposit
The Suppliers
Vending Suppliers? Any Contracts?
----------------------------------------
This is only one mans opinion. Believe me you will hear plenty more. ;)

[kmdigital]

Question. When calculating net (to multiply times a factor such as 3 or 3.5) do you include depreciation expenses as part of net or do you add those back? Since this is a non-cash expense, and since it can vary an awful lot based on age of the equipment and the time he has owned the store, this is a signifcant variable.

What about interest and principal payments? Since the seller may owe the mat free can clear, or he may owe a lot of money, this would also make a very significant difference in the net.

I would like to hear what your opinion is on these expenses, because without a way of taking these into account it seems to me that using net is almost useless as a method for determining the value of a store.

[Coinwash]

You are correct in adding the seller's depreciation back.
But you still should take in to account the cost of any machinery or other fixed assets being purchased, at the lower of market or book value net of depreciation

In any negotiation bear in mind that it all comes done to what a willing buyer will pay and a willing seller will accept.

[MrsNewMat]

I apologize for the length of this post but I wanted to provide all the details. Here are the financials that I have. What do you think of this deal?

Asking Price: $37,000

Lease: $1300 Rent including CAM till January, 2007 with a five-year option at $1500

Gross Sales 2003: $45,000 and declining in 2004 (The Mat's been in place for 10 yrs. My observation says that it's not getting any customers now.)

Number of Machines:
No WDF
14 front-load (5 yrs. old) Maytag 14 Pound ($1.25 per wash)
16 Dryers (age unknown) (.25 for 10 Minutes)
1 Extractor

Financial Details (Yr. Ending 2003)

Total Sales $55,055.32

Major Expenses
Renovation $ 885.73
Shipping $ 127.12
Advertisement $ 288.82
Telephone $ 424.31
State Sales Tax $ 123.00
FED QTRLY $ 1,817.40
Insurance $ 782.00
Repaire/Mntnance $ 2,824.26
Office Supply $ 321.21
Professional Fees $ 320.00
Property Tax $ 504.02
Rent/Lease $ 15,600.00
Soap/Vending $ 2,049.29
Unemployment Tax $ 219.24
Utilities GAS/ELEC $ 13,394.39
Late Fees $ 50.00
State Entity Tax $ 250.00
Total Expenses $ 43,911.13

Profit $16,087.38

Is this a potential buy?

Thank you in advance!!

[mike]

I see you have an expense for unemployment tax,

but no expense for employees ?

After expense for employees there is no net,

even if unattended, you still need cleaners and closers.

[MSKLAUNDRY.]

Where is the water charge?

[pete f]

Hello Coinwash!

I am conducting research on the business plans of laundromats and will be writting my own but I have hit a writers block. Does anyone have a business plan for a laundromat that they would be willing to email to me so that I can use it as a guide and to formulate ideas? It would greatly help me and I would appreciate it! I will keep all material confidential. Thankyou for your time.

Please email me at JohnKudlack@aol.com

Sincerely,
John Kudlack
JohnKudlack@aol.com


Your business plan should look something like this: ( this is just an example)

assets 750,000
liabilities 210,000

net worth 540,000

liquid assets 150,000

monthly income 15,0000
montly debt payment 5,500

etc..
The banks only care about what you HAVE NOW, not what you might make in the future. They particuarly like real estate that you own free and clear to latch on to for any business loan. I just got an equipment loan for my new mat I am building, I submitted business plans, they could care less. Simply offer a piece of real estate. No problem. They never even bothered with the equipment. If you do not have much assets than find a used mat.

[pete f]

I apologize for the length of this post but I wanted to provide all the details. Here are the financials that I have. What do you think of this deal?

Asking Price: $37,000

Lease: $1300 Rent including CAM till January, 2007 with a five-year option at $1500

Gross Sales 2003: $45,000 and declining in 2004 (The Mat's been in place for 10 yrs. My observation says that it's not getting any customers now.)

Number of Machines:
No WDF
14 front-load (5 yrs. old) Maytag 14 Pound ($1.25 per wash)
16 Dryers (age unknown) (.25 for 10 Minutes)
1 Extractor

Financial Details (Yr. Ending 2003)

Total Sales $55,055.32

Major Expenses
Renovation $ 885.73
Shipping $ 127.12
Advertisement $ 288.82
Telephone $ 424.31
State Sales Tax $ 123.00
FED QTRLY $ 1,817.40
Insurance $ 782.00
Repair/Maintenance $ 2,824.26
Office Supply $ 321.21
Professional Fees $ 320.00
Property Tax $ 504.02
Rent/Lease $ 15,600.00
Soap/Vending $ 2,049.29
Unemployment Tax $ 219.24
Utilities GAS/ELEC $ 13,394.39
Late Fees $ 50.00
State Entity Tax $ 250.00
Total Expenses $ 43,911.13

Profit $16,087.38

Is this a potential buy?

Thank you in advance!!
gross sales 55k, but you state 45k earlier..no w/d/f good vend business?
what is FED Quarterly? Rent is way to high to ever make much money, but the price is right, reflecting that issue. The washers appear to be all the same size, so in order to get more customers you would have to upgrade to some bigger machines, and maybe dryers, depending on what size dry you have,.The big question is in what type area and what might be the potential for redoing the store into a more modern mat?? Add 20k for a mini-remodel.
Some other questions, why advertise, and why a phone? There are expenses that could be cut to enhance profits.