How to Start a Laundromat Business in Colorado: Business Plan, Setup Cost, Requirements, and License/Permit

Starting a laundromat business in Colorado can be an exciting and lucrative venture. With the rising demand for laundry services in the state, there is plenty of opportunity to make a good return on your investment.

How to Start a Laundromat Business in Colorado

How to Start a Laundromat Business in Colorado

Laundromat Business Benefits in Colorado

  • The state is home to a large population living in apartments, one of the primary target markets for laundromats. Additionally, the state’s economy is booming, and there is a growing demand for laundry services from residents and businesses.
  • Another key benefit of starting a laundromat business in Colorado is that the state has very favorable laws and regulations regarding businesses of this nature. For example, there are no zoning restrictions that would limit where you can locate your laundromat. Additionally, obtaining the necessary licenses and permits is relatively straightforward.
  • Finally, Colorado has a large number of potential customers for your business. The state’s population is expected to grow significantly over the next decade, meaning there will be an increasing demand for laundry services. With all of these factors considered, it’s clear that starting a laundromat business in Colorado can be an extremely lucrative endeavor.

Find a Location to Start a Laundromat Business in Colorado

  1. Look for a high-foot-traffic area with good visibility from the street. You want your laundromat to be easily seen and accessible by potential customers.
  2. Look for an area with residential and commercial properties. Laundromats do best when they are conveniently located for both types of customers.
  3. Avoid locations that are already saturated with other laundry businesses. You want to choose a location that will give you the best chance for success.

Think About Becoming a Laundry Franchisee

  • Research the market for laundry services in your area. This will help you determine whether there’s a demand for your services and how much competition you’ll be up against.
  • Develop a business plan that outlines your costs, pricing strategy, and marketing plan. This will help you secure financing and get your business off the ground.
  • Find a good location for your laundromat close to potential customers with adequate parking and security.

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Laundromat Equipment

Laundromat Business Set-Up Cost in Colorado

The average cost to set up a laundromat business in Colorado is between $200,000 and $250,000. This set-up cost includes purchasing or leasing commercial space, outfitting the space with laundry equipment, and obtaining the necessary permits and licenses.

Operating a laundromat business can be fairly expensive. In addition to the initial set-up costs, you will need the cost of utilities, labor, and supplies. There are some ways to reduce these costs. For example, you can negotiate lower rates for utilities, purchase used laundry equipment, or find creative ways to market your business.

What Equipment do you need for a Laundromat Business?

  • You’ll need at least a few washing machines, depending on the size of your laundromat. Front-loading washers are generally more energy-efficient and can handle larger loads than top-loading washers, so they’re a good choice for a busy laundromat.
  • You’ll also need a matching set of dryers. Again, front-loading dryers are more energy-efficient and can handle larger loads than their top-loading counterparts.
  • Laundry carts make it easy for customers to transport their laundry from the washing machines to the dryers. Look for carts that are durable and easy to maneuver.
  • Sorting tables give customers a place to sort their laundry before putting it in the washing machine. This can help reduce lint buildup in the machines and make doing laundry faster and easier for your customers.
  • You’ll also need to stock your space with laundry detergent, fabric softener, and other laundry supplies. For security, you may want to install cameras and an alarm system. To attract customers, you may wish to offer complimentary Wi-Fi.

Laundromat Business Types in Colorado

  1. Coin-operated laundromats typically use small currency denominations, such as quarters or dimes. Customers insert the coins into the machines, and the machines dispense the clothes-washing instructions.
  2. Card-operated laundromats use credit or Coin-operated laundromats, the most common business type. They require customers to insert coins into machines to use them.  These are similar to coin-operated laundromats but require customers to use a card instead of coins.
  3. Full-service laundromats provide customers with an attendant to help them with their laundry needs.

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Conditions to Start Laundromat Business in Colorado

  • Colorado has specific regulations for laundromats, so research these thoroughly before starting your business.
  • You’ll need to determine what type of laundromat business you want to start.
  • You’ll need to obtain the necessary Equipment and supplies for your business. Equipment is another crucial aspect of starting a laundromat business, so invest in high-quality machines that can withstand constant use.
  • Next, obtain a business license from the state of Colorado to operate a laundromat.
  • The location of your laundromat is important, as you will need to find a spot that is convenient for customers and has enough foot traffic to generate business. You will want to find a good location for your business.
  • Promotions and marketing may be necessary to get your laundromat off the ground, so consider strategies like discounts and loyalty programs to attract customers.
  • You’ll need to get the word out about your business and promote it to potential customers.

Steps To Create Laundromat Business Plan in Colorado

1. Write a business plan – This is important because it will give you a roadmap and help you secure funding if needed. Your business plan should include your start-up costs, operating expenses, marketing strategy, and what sets your laundromat apart from the competition.

2. Choose a location – Once you know where your laundromat will be, research the area’s demographics to ensure service demand. You will also want to consider the cost of rent, utilities, and other associated costs with your chosen location.

3. Purchase or lease commercial laundry equipment – Your laundromat will need washers, dryers, laundry carts, an ironing board, and other miscellaneous items. You can either purchase this Equipment outright or lease it from a supplier.

4. Investment – Laundromats require a significant capital investment, so choosing durable, energy-efficient machines that meet your customers’ needs is important. Research before making decisions and get quotes from multiple vendors before making purchases.

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Heavy Duty Washing Machines

5. Hire staff – Depending on the size of your laundromat, you may need one or more employees to help run things smoothly. Be sure to screen applicants carefully and conduct background checks before hiring anyone.

6. Market your business – Get the word out about your new laundromat by passing out flyers in the neighborhood, advertising in local publications, or setting up an online presence with a website. Once you have secured funding and found a suitable location, you must create a marketing plan to attract customers to your laundromat business. This will involve creating advertising materials and promoting your business through various channels, such as social media, local newspapers, and flyers.

How Profitable is a Laundromat Business?

  • A laundromat business can be a very profitable venture. Some factors considered for determining the profitability of a laundromat business, like the location, the type of Equipment used, the number of employees, and the marketing strategy.
  • With the right location and planning, you can create a successful business that meets the needs of local customers. You can increase your chances of business success by researching, understanding all the regulations imposed by state government agencies, obtaining licenses and permits, and working hard to keep up with trends in the laundry industry.
  • The location of the business is an important factor in its profitability. A laundromat in a high-traffic area with plenty of parking will be more profitable than one in a less desirable location. The type of Equipment used in the laundromat also affects its profitability. Energy-efficient washers and dryers will save on operating costs, while higher-quality machines will attract more customers.
  • The number of employees needed to run a successful laundromat business depends on the size of the operation. A small to medium-sized laundromat can usually be run by one or two employees, while a larger operation may require three or four employees.
  • The marketing strategy employed by the laundry business also plays a role in its profitability. A well-designed marketing campaign can attract new customers and keep existing customers coming back.

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Commercial Washing Machines

Key Rules for Starting Laundromat Business in Colorado

  • Obtain a business license from Colorado State. Then, you’ll need to find a suitable location for your business.
  • You will need to purchase or lease laundry equipment and supplies.
  • The location should be accessible to potential customers and have enough space to accommodate your laundry equipment.
  • Finally, you’ll need to purchase insurance for your business.

How to Run a Successful Laundromat Business in Colorado

Firstly, you’ll need to determine what type of laundromat you want to open. Full-service laundromats offer dry cleaning and other services, and self-service laundromats allow customers to wash and dry their clothes. Next, you’ll need to find the right location. Look for a high-traffic area with plenty of parking and good visibility from the street.

Once you’ve decided on the type of laundromat you want to open and found the perfect location, it’s time to start planning your business. You must obtain the licenses and permits, purchase insurance, and set up your financials. If opening a full-service laundromat, you must hire and train staff to use your Equipment.

You’ll need to choose the right location. A laundromat business can be successful in almost any type of neighborhood, but it’s important to pick a spot with a high density of potential customers. You’ll also need to ensure you have the necessary permits and licenses before you open for business. Look for a place near residential areas or businesses with high foot traffic and easily accessible. Once found a good location, you must outfit your laundromat with high-quality washers and dryers.

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Washing Machine Service

Ensure potential customers know that your laundromat is open for business by hanging flyers around town and advertising in local newspapers and online. With some planning and marketing, your Colorado laundromat can be a success. You must also ensure your laundromat is clean, well-lit, and inviting. Finally, you must promote your business and build a loyal customer base.

License/Permits to Start a Laundromat Business in Colorado

  • A business license from your local authority
  • A license from the Department of Revenue in Colorado for collecting sales tax
  • A permit from the Colorado Department of Health for operating a commercial laundry facility
  • A permit from the fire department for installing and using commercial laundry equipment

The Challenges of Starting a Laundromat Business in Colorado

  • Finding the right location: One of the most important aspects of starting a successful laundromat business is finding the right location. The location needs to be easily accessible for potential customers and should have enough space to accommodate your laundry machines and other Equipment.
  • Securing funding: Another challenge you may face when starting a laundromat business is securing funding. This cannot be easy because banks and other financial institutions may not be willing to lend money to start-up businesses. You may need to look into alternative funding sources, such as private investors or small business loans.

Marketing Your Laundromat Business in Colorado

One way to market your laundromat business is to distribute flyers and posters in local businesses and public places. You can also place ads in local newspapers and online classifieds websites. You can also promote your business through social media platforms like Facebook, Twitter, and Instagram.

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Laundry Self Service


Colorado’s laundry industry is booming, and there are plenty of opportunities for entrepreneurs to get in on the action. Starting a laundromat business in Colorado can be lucrative, but it’s important to research and plan carefully before diving in. With the right planning, you can start a successful business with minimal risk and a high growth potential.


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