How Jono Increased His Laundromat’s Revenue by Three Times in One Year

How Jono Increased His Laundromat’s Revenue by Three Times in One Year

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      In this week’s episode, our guest didn’t start his side hustle from scratch; instead, he acquired an already successful business and managed to triple its revenue within his first year, all while maintaining a full-time job. Jono operates Nina's Laundrette, a laundry service based in Melbourne, which has various income streams.

      The venture began with a self-service laundromat located in Northcote, but significant growth has come from his commercial laundry service that processes towels and linens for local businesses. Another important aspect of his business is the commercial laundry equipment leasing division, providing new, cashless machines to apartment buildings and strata properties without any cost to the property owners.

      Jono bought the business 18 months ago to diversify his investment portfolio. Upon taking charge, he made several strategic changes that significantly boosted revenue and profitability.

      Tune in to The Side Hustle Show interview to discover:

      - How Jono discovered and assessed the laundromat

      - The immediate actions he implemented to increase revenue

      - Some unexpected challenges he faced along the way

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      The Motivation for Acquiring a Laundromat

      Jono began investing in stocks in his late twenties and also ventured into real estate but felt the need for more diversification in his investments. “By the time I’m 40, I want to determine how much time I spend working for money,” Jono expressed.

      With this goal, he created a checklist outlining the qualities he desired in his next investment: it should be relatively hands-off (as he was employed full-time), not consolidated (to avoid competition with large firms), and allow him to enhance it through his skills and technology.

      A laundromat met these criteria, prompting Jono to explore aggregator websites like SEEK Business to find one for sale.

      He discovered a laundromat in Northcote, conveniently close to his residence, and it appeared to align with his budget, leading him to make the leap.

      Acquisition of the Business

      Jono acquired the laundromat for AUD 83,000 (approximately $56,000 USD today), which was roughly a two-year multiple on the business's income. He confirmed this figure by observing customer traffic at various times of the day and how much customers spent on machines over a two-week span. He then projected this data over a year, reaching the AUD 83,000 figure.

      He financed 20% of the purchase price from his own savings and obtained the remainder through a bank loan secured by equity in existing real estate. Jono believes the price was reasonable given that the laundromat had 12 commercial washers, which could have cost him AUD 200,000 if purchased brand new. He was also pleased to find there were four years left on the lease.

      Jono explained the importance of lease security, noting that while a shoe retailer could easily relocate to another space if their lease expired, a laundromat's plumbing makes such a move more complicated.

      Implementing Improvements

      Upon taking over the laundromat, Jono promptly initiated improvements. One significant observation was that the laundromat only accepted cash, which he recognized as impractical in Australia. He introduced cashless payment options, which made a noticeable difference.

      “Customers appreciated not having to break a note or visit an ATM; they could simply tap their card,” Jono noted. While cashless payments required some adjustment for certain customers, those familiar with the process were enthusiastic about helping others.

      Today, 70-80% of the laundromat’s transactions are processed via card.

      Developing a Website

      Jono also realized that the laundromat lacked an online presence. The previous owner was disinterested in marketing and unversed in digital platforms, resulting in the absence of a website and an inaccurate Google My Business page created by residents.

      Consequently, Jono established a website, significantly enhancing local awareness of the laundromat.

      Enhancing Customer Experience

      Jono found that laundromat customers typically have low expectations, as they are usually satisfied as long as the environment is clean and machines function properly. However, when machines malfunction at a self-service facility, it can cause customer anxiety due to the lack of assistance.

      To address this, Jono installed audio cameras in the store and implemented QR codes on the machines, allowing customers to report issues directly.

How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year How Jono Increased His Laundromat’s Revenue by Three Times in One Year

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How Jono Increased His Laundromat’s Revenue by Three Times in One Year

In this week's episode, our guest didn't begin his side hustle from the ground up. Rather, he purchased an already successful business and managed to triple its revenue in his first year, all while maintaining a full-time job. Jono Santamaria, hailing from Melbourne, Australia, is the proud owner of Nina’s Laundrette, a self-service laundromat in the area.