Stop Working IN Your Laundromat Business
One of the most common questions I receive when helping other laundromat owners is how to build a great team.
Typically underpinned within this question is a bigger question, and it usually follows shortly thereafter – that real question being: how do I stop working so hard?
My almost immediate response is: do you think you can be replaced in the business? Most owners will say no. Sometimes this response comes from arrogance and ego, but often it’s based on a lack of understanding.
So, now let me ask you: do you think you can be replaced in your laundry business? If I may, let me answer this question for you – yes, you are completely and totally replaceable. And, more so, you should want to be replaceable in every way.
Almost everyone reading this article is a small-business owner… or aspires to be one someday soon.
With most small-business owners, their greatest strength is their grit and the fact that they care. They simply find ways to get the job done (whatever it may be), and this makes successful small-business operators very special. We all know many people who just aren’t capable of this and who should never own a business.
We’ve all heard it a hundred times in the small-business realm: “No one will care about your business like you do.”
For the most part, this laundromat business is yours. Even if you aren’t all that passionate about the business, you most likely are passionate about some very important things – such as repaying your loans, not going bankrupt and making enough of a living to support your family. What tears me up inside is when that marks the end of your development as a business owner, because you’re capable of so much more.
We’ve all been new to this game at some point, so don’t compare yourself to anyone. When new to business ownership, we’ve all probably had that moment where we finally realize no one is coming to save us. That’s right, it’s all on you. Yikes!
That’s when that grit comes out and you hunker down. If you’re lucky, a spouse is in it with you, so you can at least tag team this thing. Then again, you also realize that, if you’re both the ones in charge, you can never leave the business together – certainly not for very long. Double yikes!
Often, after much reflection, conversations and soul-searching, the laundromat owner facing this scenario will experience some type of epiphany (and sometimes not). This soul-searching typically involves humbling ourselves for the following realization:
Yes, you are the business owner, but you really aren’t that special. Neither am I. We are both replaceable.
If that’s hurts your feelings, just let those words simmer for a while, because you needed to hear it. Trust me, as my parents used to say, “It’s for your own good.”
If you subscribe to that tired, worn-out laundromat owner’s philosophy – “I’m the only one who can do such-and-such job the way it really needs to be done” – then I’m here to disrupt that erroneous line of thinking.
I own a multi-million-dollar chain of laundromats in Cincinnati. I have four attended locations with drop-off laundry and drycleaning, as well as a rather robust pickup-and-delivery business.
But I don’t work in my businesses. I’m not bragging. My message is simple – I’m not special, and if I can do it, so can you.
The people saying you can’t do it are the same ones who still tell me that I can’t do it… even though I’ve already done it.
For every single person reading this article, the starting point was and is different. Yes, the path forward is different as well, but it’s possible. So, let me lay out the evolution in your thinking.
To get to “the other side of the rainbow” – which is defined here as business ownership without being the operator – you must build a team.
Yes, a small-business team almost always starts with the owner being everything. I get that. I was there for four or five years. Yes, I hired a few attendants, but we had no structure and no processes – and many times we stumbled. If you’re there right now, there’s no shame because you’re likely a gladiator. It’s a rough and thankless time, but there’s hope.
If you’re in a place where you can’t even see tomorrow, I want you to focus on today. I want you to focus on getting through today and then figure out how to make tomorrow easier.
In my new book, “Laundromat Millionaire: The Grit to Elevate an Industry,” I talk about a few of the keys to my success. Again, I didn’t write the book to brag, but to share my journey. It’s also why I write this column.
One of the keys to success is keeping your hand out of the cookie jar – in other words, practice delayed gratification.
And delayed gratification is just a fancy term for self-discipline. No matter where you’re starting, I want you to focus on doing everything in your power to avoid taking money out of the business.
Need to keep that job longer than you want to? Do it.
Need to work overtime to make ends meet? Do it.
Need to temporarily downsize your lifestyle? Do it.
And, once you’re living below your means financially, I want you to invest in your future. Now that you have some extra revenue and/or income, I want you to look for opportunities to improve your laundry business.
Developing Your Processes and Systems
Start upgrading your business by building winning systems and processes that will enable you to slowly delegate responsibilities and step away from the day-to-day grind of your laundromat.
After all, without great business systems in place, great employees likely won’t be much help to you.
No doubt, investing in systems, people and processes is crucially important. But it’s also easier said than done.
Have you ever heard the term “deferred maintenance?” I’m sure you’ve heard the phrase, “If it ain’t broke, don’t fix it.” To me, these are both ways to describe the operational philosophy of business owners who put off doing and investing in things that are important to the health of their operations.
Personally, I did just the opposite, and I’m suggesting you do the same.
I want you to look at your laundromat business through a three- to five-year lens and invest in the future. Yes, take care of today first, then invest in the future. The opposite of deferred maintenance is “advanced maintenance” and, trust me, it’ll pay off.
A great example of this are my stores’ drains. We all know that our drains are everything to our laundromats. If we can’t drain the dirty water, we’ll have a flood right there in the laundromat, and that can get ugly. Believe me, I’ve been there!
Years ago, I invested in advanced maintenance by scheduling annual, high-pressure water jetting of all of my stores. We schedule them with our commercial plumbing company for “a full-store jet.” They jet the bulkhead lines, floor drains, drain pits, drain troughs and even the service line all the way to the street – and then we camera them all.
No, this isn’t cheap. It typically costs about $1,000 per store, and we do it annually at each store.
Overkill? Maybe. Or perhaps it’s just a good investment in advanced maintenance.
Although nothing is guaranteed, our annual water jetting virtually assures that we won’t have any major issues with our drains within the next 12 months. To me, this is how to “play offense” in business, rather than always “playing defense.” It’s about being proactive, as opposed to being reactive – and, yes, advanced maintenance is an ideal example of a business system.
Use this mindset to gradually improve your laundry business at every opportunity you get. Build systems and processes around your systems and processes – but always be certain that they’re scalable. Don’t build them around you!
For instance, I know several laundry owners who routinely water jet their own stores every year by themselves. Of course, if you can’t yet afford to hire a plumber to take care of this procedure, that’s the best solution. However, please don’t allow that DIY mentality to become a crutch, because no type of system or process that relies on you will ever be scalable.
Now, I’ve had owners actually tell me, “Dave, I love to jet my own lines.” My response to them is the same. I recommend we all build our businesses up so that they don’t need us at all. I simply can’t see any harm in this type of mentality.
Clearly, if you truly enjoy jetting your drains and clearing out nasty clogs, then go for it and do what you love, my friend; absolutely do what brings you satisfaction and fulfillment in life. I’m merely recommending that you invest in your future in such a way that it’s not vitally necessary for you to do anything for your laundry business to thrive. In my opinion, that is the epitome of financial freedom.
Building Your Team
Now that you have processes and systems in place, it makes it much easier to manage your business. The only problem is that you’re still managing your business.
To me, here is where it gets to be fun, and that’s probably because I’m a people person. I love people, and I love helping them become the best versions of themselves. I’m beyond appreciative of those who have done so for me – and I’ve become passionate about paying it forward.
Let’s assume that your laundry business is humming along with you as the owner, operator, manager, trainer everything else. OK, now is definitely the time to build a team.
Building a team actually isn’t as hard as many owners think it is. Outside of yourself, I recommend starting with an entry-level team of store attendants.
Learn the art of posting job openings, phone screenings, interviewing, hiring, training and, yes, sometimes terminating. All of these are vitally important, and you can’t coach others to do something you aren’t well-versed in yourself.
Once you’ve built an entry-level staff, you must learn to manage them, while also investing in the future through repeatable and scalable systems and processes that eventually will manage them for you.
Next, you’ll need to hire your first trainer/manager. In most cases, you will develop this person into what you want him or her to be. Yes, you could get lucky and hire someone will all of the necessary training and managerial skills, but the chances are greater that you’ll probably have some work in front of you. You also may get unlucky and have to start over with new hires a number of times until you find the right fit for the position.
If you want your laundry business to be attended, you’ll need to invest in the future before it’s actually needed. In my business, we call it “over-hiring.” Our philosophy is simple: in 12 years of building our businesses, we’ve gone from zero to nearly 40 employees.
And guess what? We’ve never had too many amazing employees – so we always over-hire.
Another example is from a few years ago, when we knew we’d be building a new store and expanding our services. Our business had outgrown our general manager. She’s amazing and truly one in a million, but we knew we were outgrowing her, so we invested in an assistant GM to support her and the entire team. Since this person likely would come from outside of the company and require a solid 12 to 18 months in order to get up to speed with our operations, we hired her 18 months before we truly needed her.
If you’ve reached the pinnacle of your growth, your team is amazingly strong, and your processes, people and advanced maintenance are in place, congratulations! That’s not easy to do, and you most definitely deserve the great life that you’ve built. For most of us who are still advancing and growing, hopefully this article will lay out a slightly clearer path toward how to go about this process.
Whether just taking the beginning steps and still working on facilities and operations, or in the advanced stages of building a winning team, I look at business through the same lens – and I strongly recommend you do the same.
Find the vision and focus on it – only then can you get to where you want to go. Be intentional every day, and you’ll eventually get there.
I’m not here to tell anyone how to run his or her laundry business. What I had hoped to do for you with this article is what so many have done for me. I wanted to share with you a few lessons of how I’ve accomplished what I have, and I wanted to squash that all-too-common small-business mentality that we own a job, not a business.
Just imagine being in a place in your laundromat business where you could go out of town for months or even years, and your operation would just keep humming right along. Imagine that business being such a well-oiled machine that you are replaced in almost every way.
Now maybe you want to own and operate your laundry businesses forever. You certainly can. But perhaps someday you’ll want an exit strategy, where you can sell your laundry operation as a true “turnkey” business. You can do that, too – and its value will be immense. Whatever direction you choose to take, building a business that doesn’t rely on you just makes solid, long-term sense.
So, now let me ask you this: what if you are replaceable after all?
Wouldn’t that be great?
