Help with business.

[Macmy04]

Hello,
There are two types of businesses that I am interested in. The main business that I am interested in
is dry cleaning. The second business is laundry mat. I prefer to take over an already established business
rather than opening a brand new one. I currently do not have any experience in this line of business; however, most established businesses that are up for sale are willing to train for one month. If I move forward with this decision, I would be getting a loan from the bank in order to purchase a business. In your opinions, do you think that I will be successful in either of these businesses with my limited training? As far as the laundry mat business is concerned, I heard that the laundry mat business can be profitable but if I don't know how to repair the machines myself will I still make decent income? If not, do you guys know of any profitable businesses that I can invest in and are recession proof? My goal is $5000 cash flow per month to help support my family. FYI: I live in California
Thanks

[DeniseTaylor]

I don't know the ins and outs of the laundry business, but from a layperson's point of view, it seems that laundry mat would be more desirable than dry cleaning. I believe that dry cleaning has a environmental consequences. Since anybody without a washer/dryer needs a laundry mat, I would think that would be better. Wouldn't you be able to look at the books and determine current income/profit levels? I wouldn't think they would change much since most laundry mats are impacted mostly by location since it's all automated.

Other than, you could check out our company for home-business ideas since that's what we do. We offer people the training and support to start and run their own home-based Internet business. We've been in business for over a decade, which is a long time on the Net. You can check us out at sitesell dot com

Keep in mind, though, that would not be a turn-key venture. It would be something you're building from scratch and would require the time and energy to build it up into a profit-making vehicle.

Another idea is the vending machine business. That's also an automated business that you might be able to do in your spare time.

At any rate, good luck to you! I hope you find the exact fit for you and your family!

[Fulcrum]

I don't know a lot about about laundromats, but I do know that laundromats are highly dependent on location. You will need to look at not only the business itself, but also who the major retail outlets are around it and how long they will be around. One of the last things you want to do is buy a laundromat on terms and have the major retail draw leave - taking away a large portion of the current traffic.

With regards to the 5K you want to clear each month (60,000 per year), is that before taking a wage or before taxes? This will play a big role in what you will be offering to buy the laundromat.

[Freelancier]

Laundromats: primarily in poorer neighborhoods or neighborhoods with tiny or lower-rent apartments (transient population). Great place for transients to hang out, but you can get added income from vending machines if they're not broken.

Dry cleaners: can be found in any neighborhood, but do better in higher-rent neighborhoods, just because the locals are more likely to wear a suit to a job. Can also offer additional (outsourced) services, like alterations. Lots of competition, so you'll need to come up with a differentiator (like environmentally safe chemicals).

Seems like it's easier to own a dry cleaner than a laundromat, just because you're catering to people who have already shown they have enough money to buy something that requires dry cleaning. But you'll meet more interesting people at the laundromat.

[Macmy04]

5 thousand a month after taxes if possible. So which route would You guys take with the amount I would like to make a month if possible.. Also any other business that are booming that I can invest in? I'm open to suggestions. How about a franchise like little ceasers?

[Fulcrum]

5 thousand a month after taxes if possible. So which route would You guys take with the amount I would like to make a month if possible.. Also any other business that are booming that I can invest in? I'm open to suggestions. How about a franchise like little ceasers?

I'm concerned that you may be looking for a quick return rather than owning a business. If I'm wrong please correct me.

First, I think you need to take a step back and figure out exactly what you want. Are you looking to buy a business or make an investment? Yes, buying a business is an investment, but buying stocks/bonds for your portfolio is not buying a business (though you should take a business approach with this as well). Asking questions and trying to learn is always the best place to start.

Second, figure out exactly where you are financially. Unless you are coming up with 40-50% or more of the purchase price for a down payment (not to mention expertise in the area as well as solid credit history), odds are the banks and other traditional lenders will not be making a loan. How much of your hard earned dollars are you willing to put at risk? Are you willing to take on 6 figure debt? Will a business that you are looking at pay you a salary (let's assume 50K) as well as leaving 60K per year, after taxes, as free cash at the end of the year?

Third, determine what your strengths are. What kind of jobs have you held in the past that you were both good at as well as enjoyed doing? Is there an under served market in these areas that you may be able to capitalize on?

Before jumping in and throwing money at, or worse taking on debt for, a business, make sure that you are completely satisfied with your answers to the three points I made above. Learn how to read and recast financial statements - two people can read these statements and come away with opposite "feelings" about a company.

I hope some of this helps you come up with a decision (or at the least gives you something to think about).

[Macmy04]

Any other suggestions?

[David Hunter]

You can be successful in anything if you put enough work into it and have the drive to succeed.

Have you ever worked in a Laundromat or dry cleaners?? If not, maybe you could shadow the owners to see if it's the right fit for you.

It looks like you're only doing this for the money. True? It'll only be harder to be successful if you don't enjoy what you're doing, but it's possible.

[Wozcreative]

You should be asking yourself:

• Which one of the two interests you the most?
• Which one do you have the most experience with?
• Which one has the typical clientelle that you know/like to work with (your target audience)
• Which one of these do you know how to market?
• Which one do you think will allow you to build partnerships with to help each other's business grow
• Which one are you experienced in when it comes to dealing with complaints, damages and refunds?
• Which one costs more to run on a monthly basis?


If you are going to buy into a franchise, the benefit of that is you will have a general estimate of what a franchise can bring in every month. The business plan is setup and it's a lot easier because you'll be following a proven plan.

As a side note, something about people who just pick careers out of a hat because they're known to be recession proof, or "profitable" is a strange concept to me. I can't fathom picking something I know absolutely nothing about and expect to do well at it. I deal with many startups and the ones that are the most successful are ones that actually have years of experience in the industry they were getting into for themselves.