$1M Invested to Start a Laundromat (Was It Worth It?)

What does it take to start a successful laundromat business? Brian Riseland made a 7-figure investment when he opened Laundry Genius in 2018. In this interview we’ll find out how he used that investment to found a scalable laundromat with huge revenue growth potential.

Brian worked with a major tech company for 25 years before he went into the laundry business. When he was laid off, he seized the opportunity to become an entrepreneur. He’d heard owning a laundromat was a good business model for a first-time business owner and decided to take the leap, scouting out locations and opening his first Laundry Genius location in Everett, Washington.

Before he opened Laundry Genius, Brian was offered the opportunity to buy a coin laundry franchise. In this interview, we’ll find out why he decided to start his own brand instead of buying a laundromat, and how he built his systems and brand identity to create a business that would last. That decision has paid off, and just a few years after opening, Brian is already looking for places he can open additional locations.

A big part of Laundry Genius’ success is the exceptional experience they provide for customers. We’ll find out how Brian created this kind of first-class customer service and atmosphere from the ground up, including how he built his team and what systems he has in place to keep his customers coming back.

Resources:

Timestamps:
00:00 - Intro
00:48 - How Brian Became an Entrepreneur
01:32 - Initial Budget
02:28 - Factors To Consider For Locations
04:01 - Key To Picking the Right Machine
06:10 - How the Drop-Off Room Operates
07:53 - Most Profitable Services
08:53 - Best Way To Scale a Laundromat
10:02 - Tips on Building Brand Awareness
10:36 - Finding Great Employees
11:21 - Why You Should Start a Brand
12:51 - Key to Overcoming Challenges
14:27 - Delivering Above Competitors
15:57 - Best Advertising Strategies
17:21 - Finding the Right Partner and Distributor
18:21 - Tour of the Equipment Room
19:41 - When You Get Your Investment Back
20:23 - Blitz Time with Brian
21:19 - You Know THIS Before Starting
22:43 - Tips on Getting Supplies
23:42 - Drop-Off and Delivery Details
24:49 - Importance of Reviews
26:05 - Advice for Funding the Business
26:51 - Self-server Customer Experience
28:15 - Typical Day for Brian
29:30 - The Future of Laundry Genius
30:50 - How You Know When It’s Time to Scale
32:00 - Systems and Process
33:16 - What Brian Would Change If He Could
34:17 - How To Avoid Failure
34:52 - Consistent Customer Experience
35:52 - Repeat Customers vs. Single Time
36:37 - Advice for all Entrepreneurs

#laundromatbusiness #owningalaundromat #laundromat

[onlineo]

Great video. The USA must be the only country in the world where people with cars do not have washing machines!

[andriartayudianto]

I'm blown away by the amount of value this channel offers! Very legit, asks questions I'd want to ask, super informative. I'm a business owner. Some of these ideas might come in handy one day. I'm too hands on right now to do anything else tho. Subscribed! Thank you for doing this both UpFlip and generous business owners!

[joelowens]

Most businesses are owner operators. You are buying yourself a job that might pay better than where you are working. When leasing if owner will not sell ask for a ROFR (right of first refusal). This is where if the owner ever decides to sell they have to present the offer to the tenant and give them the chance to buy on the same terms as the offer. The lease will typically stipulate the tenant has so many days 10 to 21 to decide to match the offer or decline the ROFR. Also when leasing make sure the owner owns the building and land (fee simple) and not leasehold (building only). Owning the building only can create issues as 2 monthly payment one to building landlord and one to land owner. If you do rent from a leasehold make sure you can get option also with ROFR to buy the land as the tenant.

[John-xeyvfkwieba]

This guy seems like a great owner. Wish him the best of luck

[russellrobert]

One of the most informative interviews ever, pleasant, easy going and enjoyable to watch!

[wayne]

So basically being savvy about sourcing and validating information. Great for him, I hope he does well and his business keeps expanding.

[lesliethomson]

I'll never open a laundromat BUT I'm delighted to hear this and if I learned anything is "customer experience" and "do not contest". All the best.

[runron]

What a great interview. You can tell this man is grateful for all the helps and knowledge he received and he is sharing it all to those who dare. Most businesses are like " thats company secret" while this guy is like " this is what keeps it all going my pipes and water tanks and heaters" lolol

[andrewvillanueva]

He made a great laundry mat. I hate getting quarters to wash my clothes. All laundry should have debit card readers. I see him expanding his business.

[eminencewriters]

I own a small laundry business in Nairobi, Kenya. This is my inspiration. Wow.

[robfrost]

As a former equipment manager for a hockey team, it might be worth contacting local teams to see if there is any service they can provide. Most have their own machines, but could look into providing a towel service or pick up and delivery for visiting teams.

[tesladetails]

I love this channel! Tech enabled “boring businesses” are the future 😎

[josephchan]

He can also track customer data with the cards. Even if he doesn't have any demographic data from the payment, he can see what people are buying, what machine they use, frequency, how many loads they need on average, etc etc.

[donelldavis]

Hands down the best interview questions related to this business, and the editing of this video was spot on. Thanks for the content.

[Emanuel-jrii]

Missed opportunity to make the title: "... (Wash it worth it?)"

[jortz]

I've only been to one laundromat in my life, this one looks a lot nicer. The one I've been to didn't have any attendants at all(when a machine failed I had to call service over the phone, and they told me how to open the door of the machine manually) and homeless people would be in there half the time.

[marcuspvxea]

This CEO is definition on how to be successful, by offering quality he knows he doesnt have to compete and therefore is able ot be succesful and not having to put resources on competing, he also doesnt have to focus on marketing because he stands out so much in comparison and both offers completely new machines that are far better but a little more expensive.

Modern washing machines are both easier on the cloths, faster, better at washing and drying. The price range giving the service you get along with it (help with folding) is great fo older people making them regular customers. By also paying the employees a good salary they are far more interested in doing their duty.

The idea is great and will defiently turn into a multimilionaire company in no time, however the quality with the staff and maintenance will be the biggest competion as he heads on forth from here.

Wish him all the best luck, this motivates me to be a entreprenour myself and follow ideas i have been doubtful about. Keep being a role model. And massive credit to Upflip for being able to bring this all into perspective and actually give it the meaning it has given off. None of this would have been even close to as powerful as it was if it wasnt for the Interviewer, script and camera team.

[TaoDeChing-lsgz]

Successful laundromats are not stand alone buildings, it’s a high volume business they need to be connected in a plaza to anchor tenants.

[durazellpcgaming]

Such a great video. Have used many many laundromats in my years in the Oilfield in Canada. The ones we always looked for was the drop off and pick up. In Northern Canada it is not easy to find. When you are working 12-16 hours a day. Doing laundry is kinda the thing you do not have time for. Always had a great experience with the drop off and pick up. We were willing to pay almost anything for that full service. His way of doing this is fantastic. Amazing owner and facility. Great content and video as I said. Was always interested in how this all worked. Thank you for the great content.

[patricksears]

Good video, but we need to hear more on the hard numbers: ROI, CAP rate (he dodged that question) loan terms, etc...