How Jono Increased His Laundromat's Revenue Threefold in One Year

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      This week’s guest didn’t create his side hustle from the ground up; he acquired an already profitable business and managed to triple its revenue in his first year while maintaining a full-time job. Jono operates Nina’s Laundrette, a laundry service based in Melbourne that has various sources of income.

      The business began with a self-service laundromat in Northcote, but the real catalysts for growth have been his commercial laundry service that caters to local businesses with linen and towel processing, along with a commercial laundry equipment leasing segment that provides new cashless machines to apartment complexes and strata properties at no upfront cost.

      Jono purchased the business a year and a half ago to diversify his investments. After taking ownership, he enacted several changes that significantly enhanced revenue and profitability.

      Listen to The Side Hustle Show interview to discover:

      - How Jono identified and evaluated the laundromat

      - The quick wins he implemented to boost revenue

      - Some unexpected challenges he faced along the journey

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      The Motivation to Acquire a Laundromat

      Jono has been investing in stocks since his late 20s and has also invested in some properties, but he felt the urge to diversify further. “I want to determine how much of my time I trade for money by the time I’m 40,” Jono shared. With this investment goal in mind, he created a checklist of criteria for his next investment:

      - It should require minimal hands-on involvement since he had a full-time job.

      - It should not be large enough to compete with major corporations.

      - It should enable him to leverage his skills and technology to add value (he wanted to enhance the business).

      A laundromat matched his criteria, prompting Jono to explore aggregator sites like SEEK Business where he found one in Northcote that was near his home and within his budget.

      Acquiring the Business

      Jono acquired the laundromat for AUD 83,000 (approximately $56,000 USD currently), which represented a valuation of around two years' worth of income from the business. He personally verified this figure by tracking customer visits and machine usage over two weeks, then extrapolated the data for a yearly estimate.

      He funded 20% of the purchase with his own savings and secured a bank loan for the remaining amount, backed by equity from an existing property. Jono considers the purchase price reasonable given the laundromat had 12 commercial washers that could have cost him AUD 200,000 if brand new.

      The laundromat also had four years remaining on the lease, which Jono found favorable. He noted, “If you sell shoes and your lease ends, you can move to the shop next door. However, in a laundromat, you need plumbing, so lease security is vital.”

      Implementing Improvements

      Jono immediately began making changes upon taking over the laundromat. He noticed it only accepted cash, which he thought was unviable in Australia. He quickly introduced cashless payment options, which had an immediate positive effect. “Customers appreciated not having to break a bill or visit an ATM; they could just tap their card,” Jono explained.

      While some customers initially struggled with cashless payments, those familiar with the technology helped those who weren’t. Now, 70-80% of transactions at the laundromat are processed via card.

      Creating a Website

      Jono observed the laundromat lacked any online presence. The former owner had little interest in marketing and did not have a website; instead, there was a Google My Business page created by a resident that displayed the wrong business name. Jono took it upon himself to develop a website which significantly increased local awareness of the laundromat.

      Enhancing Customer Experience

      Jono also recognized that laundromat customers generally have low expectations, as long as the premises are clean and the machines function properly. To ensure customer satisfaction, he installed audio cameras and QR codes on the machines, allowing customers to fill out forms online if issues arose. Jono could access these forms via email and would assist customers promptly, whether through audio support at the laundromat or by following up with phone calls or emails.

      “This approach enhances customer experience, something 99% of laundromats don't provide,” Jono stated