What a Concept, what do you mean What a Concept. I have owned, sold and operated many Dry Cleaning Plants in Arizona and California. I am far from being an expert, but I have to tell you as far as small Business, and this is my opinion, I think they are a winning Business Opportunity. Bringing up a family of five, I had very little room for error, and when I decided to leave my corporate job as a Sound Engineer, who would have thought I would have ended up with Laundromats and Dry Cleaners. I didn’t, until I thought it out.

For me personally, I wanted to start off with limited risk, and buy a Business to supplement that corporate income, that wouldn’t take much time. I was so unhappy with people telling me what to do, long drives, and most of all the limitation of growing and being in control of my own destiny.

I bought my first Laundromat closed down because that’s all I could afford, and the Seller was divorcing and could no longer keep the Business. Not knowing anything about the Laundromat Business, I did a small amount of research (no internet back then) and pulled the trigger. I was surprised to find, in that Laundromat that was closed down for over a year, and nobody would buy it, that all the Washers and Dryers were packed full of money. Bingo! I got a surprise kick in the bottom to help get started. The moral here is, as a Business Broker working with a lot of conservative Buyers, is that sometimes you can’t over evaluate. I have always been an impulse Business Buyer and it has worked very well for me. Trust in yourself. No pain no gain. Early to Bed, Early to Rise, Advertise, Aim High, Shoot Low, and so on.

Anyway I cleaned that Store up sparkled, repaired the machines and the front signage and away we went.

The boys and I put flyers on cars and in the surrounding apartment buildings to announce our grand opening. I didn’t know what was going to happen. I was scared to death. I pulled up to the store for the Saturday Grand Opening, once again scared to death. And there it was packed full of new Laundry Customers!! What I learned was basic; give the customers what they want. It’s not complicated, value, cleanliness, and be attentive to their needs. It’s called caring.

Then of course there’s always a step 2, with that Entrepuneurial Driving Spirit, just the Laundromat alone wasn’t good enough, and I decided to expand the Laundromat into Drop Off Dry Cleaning using an outside Dry Cleaner to process the garments. Well you guessed it, somehow that took off too.

If you’re not bored yet, I’ll go on, yes to the Dry Cleaning. So, as the Dry Cleaning took off, so did the expense I was paying the outside Dry Cleaner to process my customers Garments. I will never forget sitting at my desk that morning writing the weekly check to that guy who owned the Dry Cleaner for $3,000.00. Somehow in my little mind the light bulb went off, Terry Tretta, PLLC, why are you paying this guy when you can buy your own Dry Cleaning Plant and do it yourself. I am just not a start up Business guy, and even though I didn’t know anything about Dry Cleaning, I knew a Seller would train me if I purchased his business, especially if I gave him a down payment and he was carrying a note. He want his note paid, I want to learn a new Business. We had a contract for 2 weeks training, and I told him I was fine after a week, and he left. You see Dry Cleaning is not hard to learn, and I am not saying you can learn all of it in a week by no means, I was still learning after 8 years. What I’m saying is, you can learn enough to run a Plant on your own, in a very short period of time, and start making money. I am not a grossly educated individual. Many of you are. Why would you be working for somebody else if you are smarter that I am? Is it because of medical benefits or IRA Accounts that return 2%? I know it’s not because of job security. Learn a new Business. Big Deal.

I bought my first Plant in Phoenix Arizona in the last economic downturn of the early 1990’s. I was able identify, that along with the retail Business of a Dry Cleaner, there was a huge market for processing Men’s Laundered Shirts and Ladies Cotton blouses for other Plants without the type of pressing equipment that my Plant had. Bingo! I bought an old Chevrolet Van with A/C. Installed clothes storage racks, and sent that Van out packed with clean pressed Garments 4 times daily. It worked!

The Dry Cleaning Business to me as a whole can be separated from other Businesses with certain positive characteristics. I sell many different types of Business, but I feel very comfortable selling these Business to first time buyers, as long as it is a good well maintained, well located Plant, because it worked so well for me, and it seems to be working very well for the Buyers. Most of my Business now is referral, which speaks loudly for buyer satisfaction. The key once again is in the Seller training. My goal here is to share information that I know from experience, and to help. If I can Sell you one of the stores I have listed for sale, all the better, but along with the satisfaction of owning your own Dry Cleaning Plant, I have developed admiration for the Industry, and a lot of the hard working people in the Dry Cleaning Industry.

A Dry Cleaning Business to be understood a little better, is actually a type of manufacturing facility within a retail strip center. The garments are brought in by the customer. The garments are marked with a customer identification tag, and then cleaned, pressed, and returned to the proper order for the proper customer. Customarily the store is operated by the Owner who will take care of most of the counter customers, and perform miscellaneous tasks throughout the day, and often will run the Dry Cleaning Machine. The Term “Dry Cleaning can be falsely elaborated. The Dry Cleaning process actually performs like a Washer and Dryer, but chemical is used instead of Water in this process. In short, the Garments must be inspected for stains, and removed as much as possible before the process begins. A determined load weight will be measured depending on the size of the Dry Cleaning Machine. A push button on the machine will open the door on the machine and a fan will come on to help eliminate any solvent odor to the operator or to the atmosphere. Please note, the standard Solvent used in Dry Cleaning can be volatile and you must be familiar with the proper handling, and always follow state and local guidelines pertaining to use of these chemicals. Anyway, once the load is in and the door is closed, all you have to do is press Start. The rest is automatic from there. The Drum of the Machine will fill with cleaning solvent and bathe the garments for several minutes, and then go into Extract mode to spin out most of the excess solvent. Then in my opinion the magic begins. Hot Steam will be injected into the drum to evaporate the remaining solvent. Hot Air and Vapor then rises within the Machine from the Garments and is then actually hit with rapid cooling to turn this Vapor back into liquid to re use for subsequent cleaning loads. There are other processes within the Machine that can be explained in later optioned blogs like this one, or just give me a call or E-mail. I have many good Stores currently on the market, and most include Seller financing.

As for the positive characteristics, Dry Cleaners are less vulnerable to franchising and corporate conglomerates. They are typically Mom and Pop type Businesses rendering more control and profitability to the Owner. They provide a good lifestyle for a small business owner. Many owners have weekends off. Just like any other Business though, you get what you put into it. Give the Customers what they want, Value and Customer Service!

We have seen that Business prices are less too. You can buy more for your money, and Sellers are willing to sacrifice more for good Cash flowing Business because America needs to keep moving, and Sellers do too.

The handful of Businesses distressed or otherwise, where Sellers need to get out still exist, but do your homework before you buy. Most Buyers do! Use your CPA and an Attorney as needed, along with an experienced Arizona Business Broker to help lead you away from inheriting someone else’s problems. We sell profitable Businesses to Buyers regularly, and there are plenty of profitable Arizona Businesses for sale out there and they are Selling in good numbers. It is all in identifying what is the cause of lacking sales on a particular Business, is it overhead, the expenses. Is the Sellers debt service too high, or are his personal expenses too high. Is he a poor Businessman, are you a better one? Keep in mind, and as an opinion only, the only thing you can’t change is the location for most business. If it is a bad location don’t bother.

At Arizona Business Brokers Incorporated we have sold over 300 Business and owned and operated many of our own. We are not experts, and nobody is, but we have the experience to put you in the right Business,  make a good living and lifestyle as a Business Buyer.

It seems the Logic is, Buy Low, Sell high, and make profit in the meantime. In addition, Sellers are more willing to carry business financing now with a low down payment, and carry the balance at a low interest rate, making it more affordable than ever to purchase your next Business. Loan Qualifying with a Seller is much easier. Institutional financing costs more money anyway. They will pose fees to make your loan, and most banks are very conservative in their Lending practices. Some are not lending at all, and when they do, they will ask for cross collateralization on your personal assets like your Home.

Another highlight of Buying now is that most Property Owners for property Leasing are willing to negotiate a lower Lease Rent per square foot, for long term, which saves you money as a Buyer. In addition, Sellers know that Buyers are now more critical of Books and Records, and we have seen an improved pattern of documentation of Income and Expense records for Buyer presentation.

You can actually be in your next Business very quickly when you find the right one. A proper Due Diligence period by the Buyer must be performed, but the average Business Transaction can be closed in as little as three weeks to thirty days.

It is important to know that a Business purchased through Arizona Business Brokers, contractually contains certain clauses to protect the Buyer as well as the Seller.  For example, a Training period is outlined for the Seller to train the Buyer. This is crucial, because 99% of the Business sold are to first time Business Buyers, and getting familiar with the Business operation is crucial. All Equipment shall be in good working condition, there is no pending litigation on the Business, the Buyer shall be held harmless and indemnified against any actions past, present or future from the Sellers ownership, just to name a few of some of the built in references in your Business Purchase.

The typical Business buyer in today’s market has indentified the fact that if they are working, they are nervous about the continuation of their employment. If they have investments or retirement accounts, the yields are low. If you have what it takes to own your own Business, and most of us do, grab your low yielding money and put it to work with an income producing Business, and add another  profitable asset to your portfolio as well.

Stop worrying about the economy and your job, and make money.

Although I sell all types of Arizona Businesses, Restaurants, Auto Repair, Dry Cleaners, Transportation, Hair and Beauty Salons, etc, I believe Laundromats have their place for those certain Business Buyers.

The concept is simple.

In areas where there is a lack of in home Laundry facilities, the customer will seek outside but convenient services to Wash and Dry their dirty clothes. Demographic makeup and location is key to to the successful store. Like any other Business, keep your customers happy and pay attention to value. A successful Laundromat has to be kept clean, bright, well lit, and serviced.
The Laundromat Buyers looking at Laundromats for sale could have different goals to buy a Business. Some are looking for an additional income to their present job, instead of parking retirement funds or idle cash into a low producing investment. Many Laundromats for sale can produce a great supplemental income, with semi absentee to absentee ownership of these Businesses, and automatically add another asset, an income producing asset to ones portfolio. Because of the large Equipment or Tangible asset base, they usually provide a tremendous Tax depreciation incentive as your CPA could clarify. There are very few other Business Opportunities that offer this type of return without full time owner operation. Other serious Buyers looking for Laundromats for sale will purchase more than one; make a good living as their full time job, with the possibility of the expansion of services.
 I see three separate types of categories that Laundromats may fall into.
The first is the accustomed store that most people are familiar with, the Coin Operated Laundromats.. They are primarily composed of the Top Load Washing Machines, Dryers, and the standard Coin Changer used to change bills into coin, to start the vending cycle. Although they still have their place, the hassle to the owner making the collections, and the coin deposits at the Bank are somewhat cumbersome. In addition, the Top Load Washing Machines usually consume more water, with more moving parts, with an economic life, generally speaking of 6 to 10 years.
The second level in my opinion is the Coin Operated Laundromats with more of a mixture of “Front Load” Washing Machines. These types of stores still require the Coin Changer, the Coin Collections, and the Coin Bank Deposits. The main upgrade is the Front Loader Washing Machine. This Equipment usually has approx twice the economic life of the Top Load Washer, and requires much less water to Operate, therefore saving water, and adding to the Coin Laundromat Owners bottom line.
The inherent drawback again, in my opinion, is that the Coin Operated Laundromat requires the operator to not only deal with the hassle of the coins, but the mechanical coin acceptor on each individual machine. Since these acceptors are mechanical in nature, and coins inheritly jamb from slugs etc, there is additional risk of the machine not starting, therefore producing the angry customer. Please do not misunderstand. These are great stores and have a great place according to budjet.
The last category is of course the Coin Less or Card Operated Laundromat. The investment required with these types of stores are usually much higher, but they are designed for higher customer volume, higher sales, lower water usage, more longevity with Equipment and easier operation for the Laundromat Owner Operator. Customarily they are larger stores with more square footage, and more Equipment to handle larger volumes of customers. The ratios of Washer to Dryers must be researched to accommodate the fact that customers do not want to be standing around with wet clothes waiting for Dryers. They will go somewhere else. These stores usually have wider Vending areas and entertainment… And by the way don’t discount the importance of Vending Machines in a Laundromat. Customers like to eat and drink and stay occupied while you’re making money. Every additional profit center ads to the success of your business, and the importance of vending should never be discounted.
Anyway, this should scratch the surface for you on Coin Operated and Card Operated Laundromats. If you want to talk further, I usually try to keep a good variety of Laundromats for sale on the market, and as an Arizona Business Broker I will do what I can to help.

The process of Confidentiality is a key role in maintaining your Business operation while marketing your Business for sale. As an Arizona Business Broker it’s cumbersome enough without having to deal with comments and issues, for example, from outside vendors, employees of the Business and otherwise.

There is no deception here whatsoever, it is just a mindset that an Arizona Business for Sale is a negative, and with some this might be the case.  As another example, the facts are that most Buyers know that the Employees are the key to running that Business and wants them to stay on at the transition, but it is sometimes difficult to convince employees of this, before a sale.  The Buyers know that there are plenty of profitable local Arizona businesses for sale.

Sellers sell for all different types of reasons. Retirement, tired of this type of Business, too much personal debt, relocation, death of a spouse, just need time off, and so on.

As an Arizona Business Broker, I work full time at this for a living.  I take my clients veryserious, and go to great lengths to protect my Seller’s Confidentiality while their AZ Business is listed and on the market.  Prospective Buyers are required to sign and date a Confidentiality Agreement protecting any information provided to that Buyer concerning that Business. A buyer could be liable for any discussion or appearance with employees, vendors, and/or competition of that Business.

Before the actual location of that Business is discussed, including but not limited to, Web Sites, etc, the Broker or representative, as a starting point, must pre qualify the Buyer and identify that the Buyer is financially qualified to purchase the Business.

In most cases a meeting will be scheduled with a Buyer before meeting the Seller, and further discussion will take place with the Buyer, to ascertain more information about the Buyers qualifications to purchase this Business.

The initial meeting between the Buyer and the Seller will usually take place after Business hours or discretely scheduled during normal Business Operation.

The Qualified Broker will do everything possible to protect Confidentiality of all Businesses during the marketing process; however, it is important to understand that it is the Brokers responsibility to expose the Business, as a duty to the Seller.

The initial purpose of Confidentiality is to maintain market presence of the Business for sale, but to make every effort to deflect any confidential information on the Business (which is most of it) to be used only by the Buyer, only for the purposes of Purchasing the Business.

In general, the use of a strong Confidentiality Agreement or Non–Disclosure Agreement, a thorough interview with the Buyer showing effective communication, is essential, before the Buyer is physically introduced to the Seller and the Business. This will usually provide a Sellers peace of mind for Confidentiality.

In general, and simply, and as an opinion only, there are certain actions a Seller must perform to insure the successful sale of his/her Business and maximize the amount of the sale price a Buyer will pay for his/her Business.

Keeping in mind in this market or any, “It’s all About the Buyers”, think like a Buyer.

1.  Walk outside of your Business. Ask yourself, “What can I do as the Seller to make this Business more attractive. What would I pay for this Business?  What can I do to get more for this Business?”   Take action.

2.  Like any other item for sale aesthetic presentation is key, presentation is everything.

• Clean up the Business.
• Get rid of any old unwanted items.
• With retail business first presentation is key.
• Keep your windows clean, make sure your Open Sign is straight and well lit.
• Replace any burned out bulbs, and make sure that all outside building signage is properly illuminated.

3.  If you are advertising or have Marketing plans in place, keep it up!  Do not cut it back in anticipation for your sale.

4.  Repair any broken Equipment. Contractually you are bound, that all Equipment must be in working order, and a Buyer will look for any reason not to pay full price.

5.  Organize and prepare to share your Books and Records. First and foremost and cannot be emphasized enough is your books and records.  Buyers and institutional Lenders want to see proof of your income and expenses, and they want it justified!  Tax returns, CPA prepared Profit and Loss Statements and a Balance Sheet, Bank Statements, Point of Sale System printouts (if you have one) and actual receipts are the customary proof that a Buyer and his CPA will accept. Generally, if you don’t claim all of your sales, you will not be paid for it in your sale, and it is against the Law.

6.  Prepare a detailed List of Furniture, Fixtures and Equipment and use Serial numbers of Equipment. The Buyer needs to know exactly what he is buying, and it will protect you as the Seller.

7.  Have an updated copy of your Premises Lease available, Options to renew and any Addendums to that Lease, accompanied by a current monthly Rental Statement, along with the possibility of your year end settlement statement of Common Area Maintenance Charges from your Landlord.

8.  Choose your Arizona Business Broker carefully. They need to be experienced, actual hands on previous Business Operation by your Broker I see as essential, because he can locate himself more thoroughly in the position of the Buyer and the Seller. In addition, it enables him to know what information a Buyer will need to make your sale, and help you to price your Business more effectively, not waste time, and get your Business Sold. Being in that position himself, he has a clearer understanding of your Sellers emotion and what you’re trying to get accomplished.

The Devil of any Business Sale is in the Details.

If you are seeking to be an Arizona Business owner or selling your Arizona Business be sure to contact Terry Tretta, the AZ Business Broker at  (602) 550-3645 direct.

If you are interested in seeing what Terry has available, be sure to contact or email Terry Tretta today!  Terry has personally owned several businesses and is familiar with the details of owning and selling an Arizona business.