Who’s Really Running That Laundromat?

I often read blogs, social posts, and email newsletters about our industry. One thing that I’ve always found troubling is that we don’t use consistent terminology across the board with our clients or within the industry. For example, wash-and-fold is called drop-off in some places and fluff-and-fold in others.

“Owner” is another one of those terms that means different things to different people. Gurus are constantly talking about how they make loads of money from owning laundromats without putting in much work, but what kind of owners are they really?

Let’s break down the four types of ownership we have seen in the industry once and for all.

Investor

An investor gives money to one of the other types of owners and then provides info or support based on their investment agreement. In exchange for their money, they own a piece of the laundromat and expect a return on their investment. They typically aren’t involved in the day-to-day operations and have limited knowledge of how to run the business. Ironically, most of the gurus fall into this category.

Owner

An owner puts in the time and energy to hire and train the right people, set up systems, and document everything so the business can run smoothly without them. They know the ins and outs and can step in to work any position if needed. Think E-Myth by Michael E. Gerber.

Thinking about the thinking of laundry:
When you see that there can be a separation between ownership and management, you begin to see this industry very differently.

Operator

The operator purchases the business and works there full-time or more with family or friends. This is the most active type of owner because they’re involved in the daily operations.

Owner/Operator

The owner/operator knows the business, has systems in place, and chooses to be hands-on from time to time. This is the category we fall into at The Soap Box and VIP Bubbles. We love seeing, feeling, doing, and learning what's happening in the business.

Hopefully, this adds some clarification for new people entering the industry or those of us who have been around for a while. Keep in mind that these models can be done in any combination. Next time you see someone selling an easy approach to owning a laundromat, pause and think about which category they fall in. There’s a good chance it’s “easy” because they aren’t the ones actually running it 😉.

That's all I got for you today.

Waleed

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Echoing the thoughts of Jeff Bezos.

If you have a business model that relies on customers being misinformed, you better start working on changing your business model.