How do I check a laundromat’s busy and slow seasons before buying?
Ask the seller for machine cycle counts and takings month by month for at least a full year, then match the swings to local causes such as students, visitors, bulky-item washing and holidays. A short visit shows one day, so use the records to see the quiet months you will have to carry.
A laundromat can look busy on the day you visit and be quiet for months around it. Because the business runs on routine, its year has a shape, and you should know that shape before you plan your cash. Reading one store’s seasons is different from comparing it to another store, and it starts with the seller’s records.
Ask for the months, not the average
Ask for monthly machine cycle counts and monthly takings, split by washers and dryers if the system allows. Look at a full year at least, and ask for earlier years if the seller has them. A single average hides the slow months, and those are the months that test your ability to pay rent and loan instalments.
Match the swings to a cause
Ask the seller to explain each rise and dip. If the town has a student population, check the seller’s records for a summer dip. A tourist area fills and empties. Spring and fall often bring bulky items such as duvets and blankets. Holidays and local events can pull traffic either way. If the seller cannot explain a dip, ask a neighbouring business owner what they see.
See the quiet months for yourself
A short visit will not show a slow season, so ask to spend time there on different days and, if you can, in different months before closing. Count customers at set hours and write them down. Ask whether any weather, construction or nearby closure changed traffic in the records you were given.
- Monthly cycle counts and takings for a full year or more
- The reason for each peak and dip, in the seller’s words
- Any changes nearby that moved traffic
- Your own counts at quiet hours and in a quiet month
How one store compares with another is on the busier laundromat page. The first month page helps you plan around what you find.
Related reading
10 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat makes one laundromat busier than another?
- Expert answerHow do I check the machines before buying a laundromat?
- Expert answerWhat should I do in the first month after buying a laundromat?
- Expert answerShould I buy a laundromat franchise or an independent laundromat?
- GuideBuying a laundromat in Canada
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
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