Are the profits of your laundromat going down the drain? Let’s examine the key metrics that will grow and sustain your laundromat business. Key metrics matter; however, this solid laundromat business plan will support your laundromat on all levels; complete your plan and refer to it frequently.
1. Net Sales Revenue
This easy metric is simply the total of all sales income, less any returns or discounts offered. The metric will indicate the performance of your laundromat in the marketplace. Check it every 6 months to track growth.
2. Net Profit Margin
Knowing how much profit your laundromat is generating is crucial to growth and long-term success. Subtract the cost of sales from the net sales revenue to determine profit. If your profit is low, either increase prices or reduce the costs of your laundromat. Check profit margins every 6 months.
3. Working Capital
Every business needs cash on hand for short-term needs. However, keeping too much working capital suggests investment of that cash could be made for a larger return. Consider investing in laundromat upgrades or in a safe form of investing for future needs.
4. Monthly Recurring Revenue
Use this metric as a forecast of future performance by totaling all revenue expected during any 6-month period. The forecast will assist in getting short-term loans to make improvements or adding another location to grow profit and scale the laundromat further.
5. Employee Satisfaction Rate
This metric measures in-house satisfaction levels by anonymously surveying employees. Keeping satisfied employees ensures excellent customer service and client retention. After surveying, make improvements as requested.
You can grow the profit of your laundromat by keeping track of key metrics and completing your business plan. Use the findings of each to further inform your next steps toward long-term growth and success.