Playbook #066: Laundromats

🖼️ The Big Picture

If you want a highly profitable business that’s relatively passive and recession-resistant, with a non-seasonal model that’s been proven for decades… look no further than laundromats.

And if you want to see just how much cash flow laundromats can generate, here's an informative video on laundromat profitability by Codie Sanchez. Codie is a former private equity partner who left Wall Street to start her own investing business. She's amassed an 8-figure portfolio in a relatively short amount of time buying ‘boring businesses’ like laundromats.

“Boring” businesses like laundromats spin off cash flow every month with a strong ROI and minimal inventory requirements… and it would be hard to work 40 hours a week into them because you just wouldn’t have enough things to do. So while they aren't completely hands-off, they can be quite low-maintenance.

Most of the laundromats you can purchase aren’t franchises, which saves you fees and gives you more control of your profit margins. As long as you choose a strong location and have a nice facility, the odds are in your favor to do well.

Probably the biggest benefit of starting or buying a laundromat is that it’s simple! The customers do the majority of the work (by washing their own clothes), there’s little labor required, and accounting is easy because all of your revenue comes in as the service is delivered.

There’s not much to say here folks, because this is not a sexy business. If you want sexy, go back through our startup investing issue and invest in high-risk / high-reward businesses like a shark. If you want long-term passive cash flow that can replace or build your income, then this kind of boring business might be your ticket to the exciting lifestyle of freedom you’ve always wanted.

🔢 By The Numbers

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