Are you one of the many people interested in starting a laundry business? While we do not mean to discourage you, the harsh reality is that it is a capital-intensive business. High-quality equipment, such as a commercial washing machine from companies like Continental Girbau, can be expensive. Having a prime location will also incur a high cost. To add, your marketing materials can eat a chunk of your expenses. With this, you need to find the best way to finance your business. Keep on reading and we’ll share some of the things you can consider.
One of the best things to do is to bootstrap your business. For those who are unfamiliar, bootstrapping refers to the act of starting a business without the assistance or input of others. This means that you will use the money that you have instead of relying on others. This is good if you want to avoid sky-high interest rates from some lenders.
2. Apply for a Business Loan
Getting a business loan is one of the easiest ways to finance your laundry. Most people would go to a bank as their first option. A lot of banks have special loans for businesses. Some loans will require collateral, which will give financial institutions a safety net if in case you fail to settle your dues as initially agreed upon.
There are also non-banking institutions that can lend loans. A good example of this is Continental Girbau. The company is known for providing reliable laundry equipment, but it also offers complete financing solutions. They have flexible financing programs with customized rates depending on what suits your needs.
3. Ask Your Family and Friends
Do not hesitate to ask for financial help from people you know, including your family and friends. They might find it hard to resist lending money to someone they trust. Some might charge an interest rate for the money you will borrow, but this is not going to be as high as what you can expect from banks and other lending institutions.
4. Build a Business Partnership
To make it easier to raise the financial capital that you will need when starting a laundry business, consider looking for partners. Find people who have the money that you will need. Pitch your business idea. Be as convincing as possible and show how the potential yield of the investment. Conduct a feasibility study to make a convincing case.
5. Look for Angel Investors
Speaking of business partnerships, another good idea is to find an angel investor. The latter is someone who finances a business in exchange for an ownership equity or convertible debt depending on the terms agreed upon. Especially if you have a unique and innovative laundry business idea, angel investors can help meet your financial requirements.
From bootstrapping your business to applying for loans, there are many ways to finance your laundry business. Consider our recommendations above to get your finances in order. Unless you have the money, you cannot bring your business idea into reality.