A laundromat is an interesting business idea that has been around for decades. Since laundry seems to be a ubiquitous chore in most households, it could be a worthwhile opportunity to build a business around it. If you want to give this tried and true business strategy a spin, keep reading to find out how to buy a laundromat. 

How to buy a laundromat

If you want to buy a laundromat, it can be difficult to know where to get started. After all, it’s not as straightforward as buying a house or building out an online business, which comes with extensive resources. 

To make it easier to understand, I’ve compiled a step-by-step guide to buying a laundromat below. 

1. Talk to other owners

The first step in buying a laundromat is to talk to other owners. You’ll want to make sure you understand what you are getting yourself into before moving forward with a purchase. 

Spend time asking questions. You can learn from listening to other laundromat owners.

If you hear something interesting, don’t be afraid to ask for more information. You might be surprised by how much owners are willing to share. 

You can find other laundromat owners near you with a quick Google search along with their business contact information. You can reach out to them via email or phone to ask if they wouldn’t mind chatting with you about their business experience.

2. Do your research

Next up, it’s time to do your research about owning a laundromat. This would include determining the average costs of laundromats in your area, how much you are able to spend, what you can expect to make, and the time commitment involved in the process. Loopnet.com and Buybizsell.com are great places to start with assessing purchase prices.

As you take a look at the situation in your area, you’ll need to decide if the costs associated with purchasing a laundromat are worth it. 

3. Find the right location

It’s also important to do some research into your own city when finding out how to buy a laundromat. In some neighborhoods, laundromats may not be needed, if the area is full of houses that all have their own washers and dryers.

But in others, a laundromat (or dry cleaning costs) is an essential part of life for many residents who don’t have a washer and dryer in their home. 

As a business owner, it’s important to find the right place to begin your business.

You can do this by checking out several potential neighborhoods and finding out what kind of property – apartments, homes, condos, etc.- are most common. Then, find out if there are other laundromats in the neighborhood already.

In addition, look at parking, and how easy it would be for people to access the laundromat. This is all part of choosing a good location.

4. Work with a broker

Brokers often have their ears to the ground for potential laundromats for sale. If you are interested in making a purchase, you can likely find some leads through a broker.

Although the broker will take a commission on the sale price, they can also help you find a deal in the first place. 

Planet Laundry explains that when you’re looking for a broker, you should check local laundry distributors, and you can also pay attention to ads to see who is selling laundromats in your area.

If you aren’t having luck finding a deal through a broker, consider driving around town to local laundromats. The current owners might be interested in selling, it never hurts to ask. 

5. Run the numbers

As with all potential business ventures, it’s critical to run the numbers and answer the question, “How much does it cost to buy a laundromat?”. You’ll want to make sure that the business is profitable or at least has the potential to turn a profit. 

According to Laundry Solutions Company, some of the costs to consider are the utility bill and your lease. The average amount spent for a laundromat per month can be anywhere between $4,000 and $8,500 each month.

Another potential cost is maintaining the equipment. Older machines tend to come with higher maintenance costs.

As you consider the potential for profit, make sure to take all costs into account. 

6. Find the financing

As with more new businesses, you’ll likely need to make an upfront investment of capital. If you are like most entrepreneurs, you don’t necessarily have thousands of dollars sitting around to invest.

A few ways to finance the purchase include taking out a Small Business Administration loan or getting a business loan from your local financial institution.

Additionally, you could consider a personal loan.

However, the best way to buy a laundromat is with as little debt as possible. Which means you may need to create a savings plan and take some time to save before you make a purchase.

7. Manage the business

After you make the purchase, it’s time to manage the business. The basic management tasks involve keeping the machines operating, collecting the cash, bookkeeping, and making sure everything is clean for your customers. 

Some tweaks you might make to the business include offering a start-to-finish service, which includes washing and folding clothes. Other potential income streams through your laundromat include coin-operated vending machines and selling laundry supplies. 

As the manager and owner, you’ll also have many other tasks, such as marketing the business, hiring employees, and more, in addition to handling the day to day operations of the business.

Expert tip: Remember passive income takes time

Laundromats can generate passive income. But like all passive income streams, you’ll likely need to put in upfront work to make this asset produce a reliable amount of income.

If you want to buy a laundromat in pursuit of passive income, take the upfront work into account. Even if you buy an existing laundromat, it might take you some time to get up to speed on how everything works.

Is buying a laundromat a good idea?

Buying a laundromat can be a good idea, and the potential for profit makes buying a laundromat an intriguing possibility. Through the eyes of a business owner, buying a laundromat can make sense if you have the right location and opportunities.

According to the Coin Laundry Association, the average market value of a coin laundromat ranges from $50,000 to over $1 million. Based on the Coin Laundry Association’s estimates, these coin laundries can generate between $15,000 to $300,000 per year. 

Reasons to buy a laundromat

A laundromat offers plenty of benefits to the owner. If you are considering this opportunity, explore the possible benefits below:

Passive income potential

The allure of passive income is that you no longer have to trade your time for dollars. A laundromat opens the door to one of the best passive income ideas. 

Of course, the upfront effort of finding and opening a laundromat might not feel passive. But the upfront work can pay off in the form of relatively easy income later. 

New income stream

Multiple streams of income may help you build a more stable financial future. If one of your income streams is unexpectedly disrupted, you can lean on your other income streams to cover your costs. A laundromat can add another income stream to the mix. 

For example, let’s say you open a laundromat on top of your full-time job. If you lost your job unexpectedly, the funds from this laundromat could help you keep your family afloat. 

Minimal labor costs

The business model tends to rely more heavily on machinery and equipment than labor. With that, it might be possible to operate a laundromat with minimal labor costs. 

You might decide to tackle running the business on your own. Or you might hire an employee or two to help you run the operations.

In either case, reliance on machines can help you keep your labor costs down. 

Cash is king

Laundromats operate on a payment upfront model. Unlike some other business models, which rely more heavily on providing credit to customers, laundromat owners can expect immediate payment. 

As a business owner, the appeal of upfront payment is undeniably enticing. 

Full-time or part-time commitment: How to decide

While learning how to buy a laundromat, you’ll want to know how much time it takes. Depending on your situation, you could opt for a more hands-off approach by hiring a manager for the business.

In general, the manager would open and close the facility, keep things clean, and source maintenance when required. 

But you might choose to take a more active role, which generally involves a full-time commitment. As a full-time focus, you might be opening and closing the business on your own. Plus, you might handle customer issues more regularly. 

The decision of full-time or part-time work will depend a lot on your financial situation, whether you plan to hire employees, and how much time you have to commit to the business.

How much does it cost to buy a laundromat?

Knowing how much does it cost to buy a laundromat depends, but will generally be anywhere from $200,000 to $500,000.

There are many factors that determine price, and you’ll also need to decide if you’re opening a brand new laundromat or purchasing an existing one.

In addition, do you need to purchase equipment? What else do you need to buy? Answer these questions to help you find your answer.

Can I buy a laundromat with no money?

If you are asking yourself, ‘Can I buy a laundromat with no money?’ you aren’t alone, and it is possible. Since buying a laundromat may cost hundreds of thousands of dollars, most new business owners will need to find financing. 

In general, it’s difficult to purchase a laundromat, or get a loan to make the purchase, without a down payment. But if you have a solid business plan and ample experience, a lender might be willing to offer you a loan with no down payment involved.

So, is now a good time to invest in a laundromat? It’s very possible if you can secure the funds you need.

How is a laundromat valued?

A laundromat is valued through the process of valuation. Valuation is how you figure out what a business is worth.

Figuring out the value will involve many aspects of the business, including the net income, lease, competition, store, equipment, and more, according to Laundry Solutions Company. Furthermore, they state that valuing a laundromat involves using the net income and a multiplier that you choose.

In general, laundromats are valued based on a multiple of their Net Operating Income (NOI). You can determine the NOI of a laundromat by subtracting the costs from the gross income.

For example, if the business earns $200,000 per year and has $50,000 in expenses, the NOI would be $150,000. The size of the multiple is usually between 3.5-5x. So 3.5-5x the NOI will give you your answer for value.

Is buying a laundromat a good investment?

A laundromat can be a good investment because, according to Speed Queen Commercial, laundromats in the U.S. see a cash on cash ROI between 20% to 35%. That’s a fairly high return. 

When compared to investments such as stocks with an average return of 8%, a laundromat seems to be a good investment. But you’ll have to decide for yourself whether or not a laundromat makes a good investment for your portfolio. 

What do I need to know before buying a laundromat?

Before you jump into your laundromat purchase, here are some helpful things to know before buying. 

Financing costs can add up

If you choose to finance your laundromat purchase, be clear about the terms of the loan. You’ll want to determine exactly how much the financing is costing you. It’s important to factor these financing costs into the overall profitability of the laundromat. 

As you look for financing solutions, shopping around can help you save big on interest charges. 

Maintenance might be involved

Laundromats rely heavily on machinery, which can break. When a machine in your laundromat is out of service, it’s missing out on the potential to earn money for you. With that, getting it back in working order quickly is a top priority. 

As an owner, you can hire someone to help you repair machines. But if you are comfortable tackling these projects yourself, you might save significantly. 

May need to hire employees

Laundromats are relatively hands-off. After all, the machines handle the clothes for you. But many laundromats need employees on hand to help customers, keep things clean, and offer extra services. 

If you aren’t comfortable hiring employees, then opening a laundromat might not be the right solution. 

Articles related to buying a business

If you learned a lot from reading about how to buy a laundromat, you’ll love these other business-related articles!

• 9 Businesses That Run Themselves
• How To Start: Passive Real Estate Investing
• 30 Best Passive Income Ideas
• The 48 Best Business Ideas For Women

Discovering how to buy a laundromat could bring you financial success!

Opening a laundromat can potentially add a passive income stream to your financial situation.

While a laundromat can be a good move for some investors, it’s not the perfect fit for everyone. Take the time to explore all of your options before moving forward with how to increase your income. 

The post How To Buy A Laundromat In 7 Steps appeared first on Clever Girl Finance.

Are you considering starting a side hustle? Perhaps you imagine quitting your job one day to take your business full-time, or maybe you just need to make a little extra money in your spare time. When launching a successful side hustle, there are several foundational things you should have in place.

But before we dive into how to start a side hustle, let’s talk about what a side hustle is and the benefits you can gain from having one!

What exactly is a side hustle and how can it benefit you?

A side hustle is an additional job or income stream generated alongside a primary job. Side hustles are beneficial because they allow people to make more money while utilizing and practicing other money making skills and also working according to their own schedules.

With a successful side hustle, there is no limit to how much you can make. And with some extra money in your pocket, you can save, utilize the best way to get out of debt or take that trip you wanted.

As exciting as starting a side hustle may seem, you must have a solid plan to fully reap the benefits. In addition, you have to start with the hustle idea that is best for you.

10 Actionable steps for starting a side hustle

Finding the perfect side hustle that helps you make a little extra cash is only half the battle. You must also find out what business will work well for you and your lifestyle.

And then, of course, there’s how to start a side hustle and the rules and laws to follow. Here are all the details for how to begin your side gig.

1. Determine how much time you have

A crucial part of getting started with a side hustle is to think about how much time you have to spare. Are you free most evenings, or are you already super busy and you struggle to find a few hours a week to yourself?

For instance, if I have a couple of hours a day that I could work on my side hustle, I can pick something that requires more time from me on a consistent basis. But if I don’t have much extra time, I might create something that is mostly passive income after it’s set up.

Look at your calendar

In order to find out how much time you have and consequently what side hustle to choose, use a planner or calendar. Add the tasks that you do each day and the specific times that you do them.

You likely already do something like this, so it should be easy to take a look at your schedule.

You may find surprising results. For example, perhaps you have several hours free in the afternoons on Monday and Wednesday. Or maybe your schedule is busier than you realized, and you can only devote time on Saturday mornings to your side hustle.

Find out (realistically) what times you have available and how much time you can spare. Remember that your side gig should not interfere with your regular job, time with family and friends, or other responsibilities. Then, create your side hustle time management plan.

After you know how many hours and what times you are available, then you’ll know what to choose, whether it needs to be mostly passive income or if you can spend a few hours a week working.

2. Pick something that interests you

Think about what interests you. Since your full-time job probably takes most of your energy, finding a side gig that you’ll be excited about long-term is essential. Choose something that is easy for you or that you enjoy.

For example, if you love freelance marketing, you might have a career as a social media marketer. Find something that focuses on what you’re good at.

Let your hobbies guide you

If you aren’t sure where to begin, look to your hobbies for ideas. Maybe you love to write, bake cakes, garden, or organize and clean. See if any of the things that you enjoy doing could be part of a niche business idea that makes you an income.

If it helps, write down as many hobbies or interests as you can think of. Then highlight the hobbies that make money or that have income potential, and go from there.

3. Decide the amount of money you want to earn

It’s easy to say that you want to make extra money each month, but how much is a little extra? Consider some examples of financial goals and the amount of money you need to achieve them.

For example, how much additional income will you need to pay off debt? Perhaps you want to buy a new car; what is the cost involved? Knowing how much money you want to bring in can help you determine which side hustle to start with.

Some side hustles like taking online surveys or dog walking will bring in a couple of hundred dollars a month.

However, suppose you’re looking to replace your current salary or surpass it. In that case, you’ll want to start with a side hustle you can eventually transition into full-time.

How to know what amount you need to make

First, ask yourself why you decided to launch a side hustle gig in the first place. Is it for a one-time payment for something? Is it an ongoing need to make more money?

If it’s a one-time payment, determine exactly how much you need.

On the other hand, if you need an ongoing income, decide precisely the amount you need to be getting paid monthly.

After that, choosing a side hustle will be easier because you’ll know what will make the amount of income you need and what won’t. You’ll also be able to determine if a side hustle will be short or long-term, which may affect what you choose.

4. Create a solid business plan for your side hustle

If you’re in the process of starting a side hustle and do not have a business plan, you need to create one now. A business plan is essentially your roadmap for your side hustle to achieve your goals for a small business. You can’t have success in life without a plan!

Your business plan doesn’t need to be 100 pages long. Instead, it needs to focus on key things to help you build a successful business and show how you’ll start a profitable side hustle.

Your initial business plan should be fluid and will possibly change—a lot! These changes are expected because as you put your ideas on paper and your business comes to life, you may realize other factors.

As a result, you’ll better determine what you want and don’t want in your business or come up with entirely new ideas.

Below are some topics we recommend including and some questions to get you thinking as you create your business plan.

Create an executive summary

Your executive summary outlines your business and the problem you are solving with the product or service you’re offering. The executive summary section, usually a one-pager, will be easier to complete once you’ve built out the main sections of your business plan highlighted below.

Identify your target audience and avatar

When starting a side hustle, you need to know who you’ll sell to. Here, you’ll define your target audience, which includes identifying key demographics such as location, age, and income of your ideal clientele. You’ll also want to consider why your target audience would be interested in your business.

You should also know your ideal client and how you will find these clients. Since social media is a big part of everyone’s lives, LinkedIn, Facebook groups, and Instagram can be helpful in how to get clients online.

Decide on what products and services you’ll offer

Every business offers a product, such as jewelry or a pre-owned designer handbag, or a service like editing or photography. When deciding which side hustle business you should offer, think back to your executive summary. Whatever you offer should align with the problem your business will be solving.

Once clear on this, it’s a good idea to sketch out thoughts on how you will price your products or services. You’ll also want to consider how you’ll be selling them.

Figure out your operating model

A clear operating model helps you understand and lay out how you intend to deliver value with your products and services. It will also help determine the type of experience you plan to provide your ideal customer.

Start by asking yourself, are my products packaged in a way that aligns with the experience I want my customers to have? Is my website in line with my brand?

Once your operating model is fine-tuned and running, and you are branding for success, it will allow you to scale your side hustle because you’ll have well-established processes in place on how to run your business.

Research your competition

Ahh, competition. Everyone hates it, but everyone needs it! No business plan is complete without some insight into your competition.

Where is your competition located? What are the strengths and weaknesses of their offering? And how can you differentiate yourself from your competition and improve your offer?

Finding the answers will give you more clarity and help your business succeed.

Calculate start-up costs and financing

We’ll cover this in more detail below, but in short, this is a critical part of your business plan and something you won’t want to overlook when thinking of how to start a side hustle.

Here, you’ll outline your initial start-up costs, registration fees, branding costs, website development costs, etc. Then, consider your potential sources of funding and whether or not you’ll need investors. It can help to consider your financial goals and how the business fits them.

Figure out your cash flow and budget

Also called your working capital, your cash flow is how much you need to keep your side hustle running day-to-day. These costs need to be laid out as part of your operating expenses. They will give you a baseline of how much you’ll need at a minimum each month to keep your business going.

And, of course, you’ll need a plan for staying on track with your cash flow. That’s where your business budget comes into play.

Having a solid business budget and using budgeting best practices is essential to the success of your business. It allows you to manage your business finances properly and stay on top of your expenses.

Outline your revenues and profit forecasting

You can’t turn a profit if you don’t have a solid revenue stream. Your business plan should outline the products and services you plan to sell. Outline exactly how you will communicate those products and services to your potential customers.

It also means fine-tuning your revenue stream as you learn what works best (or doesn’t). Once you have a solid revenue stream, it becomes easier to forecast your business earnings and profitability.

Also, take a look at potential profits. Becoming profitable and finding out how to increase your income is great, but ideally, you want to have a clear understanding of exactly how much profit you are generating on each product or service you offer.

You can then assess how to maximize your profitability by reducing costs or competitively increasing your prices (or doing a combination of both).

5. Determine what type of business entity to set up

Before you start providing services or earning money when starting a side hustle, you must ensure it is set up correctly, legally and tax-wise. To do this, you’ll refer to the structure of your business.

There are different types of business structures to choose from that are recognized by the IRS. They include Sole Proprietorship, Partnership, Limited Liability Company (LLC), or Corporation. Be sure to talk to your accountant about the tax implications of each of these entities.

The different business entities include:

Sole Proprietorship

In a sole-proprietorship business structure, you run the business alone and are personally responsible for all of the related liabilities.

Partnership

As the name implies, in a partnership, you run the business with a partner or multiple partners. So, the business is managed based on the agreement you set up. You and your business partner(s) are responsible for all the related liabilities.

Limited Liability Company (LLC)

A Limited Liability Company gives you limited liability (similar to a corporation), which means you have no personal liability for business debts and claims.

You’ll also have flexibility in your management structure and ownership, similar to a partnership. LLC owners are called members.

Corporation (S or C Corp)

In a corporation, your business is a separate legal entity, and only the entity itself is legally responsible for any liabilities. Owners are called shareholders.

C corporations and S corporations are the two main types of corporations. The main difference is the way each entity is taxed.

6. Leverage free resources when starting your side hustle

Below are two invaluable resources you will need as you begin your small business journey.

These resources go into much detail regarding the business structures mentioned above. They include the pros and cons and what you need to do to establish your business under these structures.

• Your State Government Business /Taxation website
• The U.S. Small Business Administration website

In addition to these, be on the lookout for ways to gather information and learn new skills for your business. You may be able to find free courses, Facebook groups, etc., where you can learn more about the skills you need for your side hustle without paying any money.

7. Decide what you will call your side hustle

The next step in operation is to decide on a business name (if you haven’t already).

FYI—Your business name is a big deal! It will reflect your brand identity and be the world’s first introduction to your new venture. But before you decide on a business name, here are a few things to consider:

• Will your business name appeal to your demographic?
• How unique is it?
• Is the web domain available?
• Is your business name under someone else’s trademark?

Once you’ve answered these questions, you can register your business with your respective state.

8. Consider setting up business credit

Having a credit profile for your side hustle allows you to maintain a credit history for your business. Just remember how to use credit cards wisely! And this business credit profile is separate from your personal credit profile.

With separate credit profiles, none of your personal credit details will be tied to your business credit inquiries, approvals, or financing.

Different business credit also allows a clear separation of assets between the business owner’s personal assets and the assets that are tied to the business itself.

A separate business profile also means protecting yourself from business identity theft. If your business credit is intertwined with your personal credit, you might not be aware of any theft. You can also monitor your business similarly to how you would monitor your personal credit.

You want to ensure the credit bureaus and your business creditors and vendors can confirm your business information when you apply for financing or do business with them. Below are the steps you need to take to set up your business credit properly:

Incorporate your business

Set up a corporation or an LLC (Limited Liability Company) to ensure your company is considered a separate business entity. For businesses that are sole proprietorships and partnerships, the business is the same as the owner.

So to have separate business credit, your business needs to be a corporation or LLC.

Obtain a Federal Employer Identification Number

An EIN, or an Employer Identification Number, is the number you’ll use for tax filings and business registration. You’ll also need to provide this number to vendors you work with.

Your EIN is like your social security number but for your business. It will tie into your business taxes, hiring employees, and other essential and required legalities.

Open a business checking and savings account

You’ll need to open a business checking account and possibly open a business savings account in your registered business name. These accounts are where you’ll make your day-to-day business transactions.

Establish your business credit profile

Getting a business credit card, which you use for business transactions, can help establish business credit. Another way is through buying products and services from vendors and repaying them within a specified period, also known as net payment terms.

These vendors then make reports to the credit bureaus with your on-time payments. The three major credit bureaus for business are Experian, Equifax, and Dun & Bradstreet.

Pay your bills on time

Not just on time but in full where possible to build your business credit score, i.e., your Paydex Score. Paying on time not only helps your finances but it helps you build a good reputation for your business.

9. Create a plan to obtain funding for your side hustle if you need to

When starting a side hustle, one of the biggest roadblocks is being able to fund it. Even if your business idea is excellent, you still need money. I touched on this above, but here I’ll outline the different types of funding you should consider:

Self-funding

Self-funding your business from savings should be your first resort, in my opinion. I think funding your business is beneficial, so you don’t start with debt.

If you have no savings (or not enough) to put toward your business immediately, use free and inexpensive resources to get set up. Start saving a little bit at a time for your business.

Use a free blog platform, create a social media following, and create a small sample set of products instead of a full-blown product line. Also, consider using free online scheduling and planning tools.

Self-funding means you may need to start small and follow a slower growth progression than if you had a ton of money, but it comes with less risk.

Family and friends

The general rule is to keep friends and family separate from your business, but it depends!

Your friends and family can be great resources when it comes to funding. Why? Because you know and trust them, you can work out low or zero-interest payments with them.

But be careful not to ruin relationships. Loaning money to family can be difficult in some cases. Draw up contracts and make sure you are all in agreement with the contract terms.

Angel investors

Angel investors are typically high-net-worth investors who invest in your business. An angel investor is most likely looking for equity ownership in your business.

Although angels can be great investors, they mostly invest in companies vs. side hustles.

Bank loans

There are pros and cons of personal loans, but it may be an option. A business loan is also something to consider. The good news about getting a loan from a bank is that you don’t have to give up a share of your business in exchange for a loan.

However, you’ll need good credit, AND you’ll be taking on debt that you’ll have to pay back with interest over a specified period.

Crowdfunding

Crowdfunding collects money from various people (usually online) to contribute to your product or service creation in exchange for a reward.

The reward might be the first available offering of your product or some extra equity (shares/ownership in your business). Examples of crowdfunding include kickstarter.com and fundable.com.

With crowdfunding, you don’t always have to give up equity. You also won’t have to go into debt to fund your business.

However, it’s important to know that you will be paying the crowdfunding platform fees when you raise money via crowdfunding.

These fees will be based on the total amount that you raise. In addition, there are also significant tax implications.

Plus, you’ll have to put in a lot of work (including marketing) to ensure a successful funding campaign.

10. Make a schedule that works

One of the most vital things that I personally do when starting a side hustle is to create a daily routine schedule. I advise making a schedule that helps you have enough time for a lucrative side hustle and your day job.

With freelance work or an online side hustle, it will probably be easy to work on it whenever you have free time. But something with set hours will require a bit more planning.

Figure out your hours

How many hours a week or day can you devote to your business? Look at your schedule and see if you can take anything off your plate to make more time for starting a side hustle.

If not, you may find that working on it a little each day, even if it’s just for an hour, is most effective.

Stay organized

Stay organized when planning how to start a side hustle, including organized finances, scheduling, and time management. Get a planner or stick to a strict schedule to ensure you have enough time to devote to this new venture.

Remember to keep track of appointments and meetings and regularly check your emails.

Hire some help

At some point, consider bringing someone onto your team to help out. A virtual assistant can be helpful if you have the money for it.

While this won’t be needed for a while, it’s something to be aware of later when you can afford it and your time becomes more limited.

Expert tip: Be aware of your energy levels

As you can see, there is a lot to starting a side hustle, including setting up a business entity and finding funding. All of this is necessary work but it can leave you a bit drained if you aren’t careful. My idea is to remember to make time for self care and free time when possible, so you don’t get burned out from working too much.

11 examples of profitable side hustle ideas

Do you need help brainstorming ideas for starting a side hustle? Here are some great ideas to get you thinking! Also, check out the CGF book by Bola Sokunbi, The Side Hustle Guide!

1. Dog walker or sitter

If you love dogs or even if you’re a first time dog owner, dog walking and pet sitting are the perfect side hustles. Many people need someone responsible to help care for their furry friends. Plus, you can make a lot of money!

Check out sites like Rover to help you get started!

2. Real estate agent

While this requires time, licensing, and learning, becoming a real estate agent can be incredibly lucrative, especially if you live in an expensive neighborhood. Real estate professionals also get to set their hours to an extent.

3. Etsy shop

If you’re creative, consider opening an Etsy store. People love to find unique products like jewelry and blankets on this online marketplace.

If you can create a popular product, making a full-time income may be possible. You also get to make money doing something you love!

4. Blogging

If writing is one of your passions, or you love sharing what you know, a blog could be for you. Blogging works well as a part-time job and could lead to plenty of income in the future.

In addition, blogging is a great platform to earn additional profits through affiliate marketing and selling digital products.

Some bloggers make enough money to live on or even more than that. Find out how to make money with a blog for beginners and try this side hustle out.

5. Freelance writer

Enjoy researching and writing articles? You can become a freelance writer.

Help bloggers and companies to explain their products and services or share information with their readers. Freelance writing is a good side hustle that is profitable and flexible!

6. Graphic design

Love art? Graphic design is a fun and creative idea. What makes it one of the great side hustles is its versatility.

For instance, you can do website design and sell your work on Etsy, or check out Upwork, or Fiverr.

7. Social media manager

If you are really into social media, become a manager or marketer, or start a consultancy company. As a manager, you can help busy entrepreneurs and businesses find the right clients through Facebook ads, Instagram, Twitter, and other digital marketing.

8. Rent out your spare room using Airbnb

Do you have an extra room? Try using Airbnb. Or better yet, if you have a lot more space to rent or money to invest, you can make money from rental properties by buying a house to rent out.

There are a variety of YouTube channels to help you set up an attractive space for potential guests.

9. Freelance editor

A freelance editor can work with several clients at once and edit the work of writers. As a bonus, you can choose what hours you want to work on your side hustle since freelancers rarely have specific work schedules that must be followed.

10. Create a side hustle with Amazon

If you think about all the money you’ve spent on Amazon, it’s about time you start earning with them instead. Amazon offers a variety of ways to make a profit. Some of the side hustle ideas from Amazon include:

• Self-publish and start selling eBooks on Amazon Kindle Direct Publishing
• Deliver with Amazon through Amazon Flex
• Amazon Handmade, which is pretty much the same as Etsy

11. Start a food delivery business

Bringing food and groceries to people who don’t want to eat out is a simple and profitable side hustle business. You can work under numerous companies, such as DoorDash, or Uber Eats, or even Lyft and other delivery services.

You can choose your schedule and work when you want. Plus, starting a food delivery service is a great way to get familiar with restaurants in your area.

Can I start a side hustle with no money?

Yes, it is possible to start a side hustle with no money! There are several ideas for side hustles, including dog walking and food delivery, that don’t require any upfront costs. In fact, you may already have everything you need to get started and all you need to do is learn how to start a business with no money.

Start by brainstorming side hustle ideas, leverage free resources (e.g  YouTube to learn skills, Canva to design graphics, Mailchimp  to build an email list etc) and start saving to put some cash aside. Having savings is necessary because eventually, you might need to put some cash into your side hustle.

How do you start a side hustle with no experience?

To start a side hustle with no experience, choose something that allows you to begin without specific knowledge about the work.

For example, cleaning houses or offices, pet or house sitting, or taking surveys are all good ideas if you don’t have experience with the gig economy. Even if you’re thinking, “I have no skills!” these are all things that don’t require special training, or they are easy to learn about quickly.

How do you start a side hustle from scratch?

You can start a side hustle from scratch by choosing something that doesn’t require a lot of equipment or money to get started. There are plenty of options in the gig economy, such as driving Uber, delivering groceries or food, or even things that take more time, like writing eBooks.

Find something that either takes time but not money or something you can start quickly without a lot of effort. Discover more ideas by reading our article on how how to start a business from scratch.

Articles related to starting a side hustle

If you enjoyed reading about how to start your own side hustle, check out these articles next!

• 25 Side Hustles For Women That Make Real Money
• 14 Easy Side Hustles From Home To Try Today!
• 12 Of The Best Side Hustle Books To Check Out!
• Starting A Side Business: How I Made $70K In One Year

Starting a successful side hustle is possible!

Now you have all the specifics to set up your side hustle the right way, and you know what some of the best side hustles are. Remember to start with the logistical side first. Create a business plan. Make sure you have proper funding and set up your business entity.

Once you’ve established all that, you can choose a name for your side hustle and decide whether to offer a product or service.

As you can see, there are many unique side hustles to choose from.

However, if none of the above suggestions caught your attention, other resources, such as side hustle books or online courses, can give you more detailed guidance.

It’s time to follow your dreams and make them a massive success! It is possible to build an incredibly successful side hustle with patience and hard work. It may even become your full-time hustle one day if you decide!

The post How To Start A Side Hustle In 10 Steps appeared first on Clever Girl Finance.

If you want to start a cleaning business, by creating an executable strategy, it won’t be too long before you’re on your way to becoming a successful entrepreneur. Unlike a lot of other business ventures, it doesn’t require a lot of up-front costs or training, and you can count on a steady demand for cleaning services over time. To launch your business this year, leverage these key tips on how to start a cleaning business!

1. Conduct market research

No matter what business venture you pursue, market research is always a critical first step and this applies to starting a cleaning business. After all, you want to know what market you’re getting yourself into, right?

First, we recommend getting to know the market. Look at other cleaning businesses in your area—and even other cleaning businesses around the country.

Ask yourself questions like, “What types of cleaning services do they offer?” and “What are their rates?” Leverage what you find out to narrow down the services you’d like to offer and the rates you’d like to charge.

Then, get to know the job itself. Research the daily duties of what it takes to run a cleaning business to see if it’s for you.

Leverage platforms like YouTube to gain some insights on what a day as a professional cleaner looks like in real life.

Finally, get to know your own skills! Offer to clean a friend and/or family member’s house(s) to get honest feedback on your work and learn what you need to improve before working with clients.

2. Pick your niche

Cleaning may seem simple, but it can really get specific! If you didn’t already know, there are many different kinds of cleaning you can do for many different kinds of clients.

To narrow it down, first, decide if you want to specialize in commercial or residential cleaning.

Residential cleaning

Cleaning individuals’ homes (i.e., residential cleaning) is often the easier pick when you’re trying to figure out how to start a cleaning business. People’s houses are typically much smaller than big businesses. Plus, residential cleaning jobs usually require less equipment and simpler cleaning supplies.

As a residential cleaning business, working with just a few weekly clients on a fixed schedule with a time management plan is all you need. You’ll quickly start making a reliable income.

However, it’s worth noting that residential cleaning requires greater attention to detail; you’ll have to remember exactly how clients have arranged their homes so you can put everything back in the right place when you’re done cleaning.

Commercial cleaning

If you start a commercial cleaning business, then your clients will likely be schools, hospitals, businesses, and other commercial sites.

Note that these clients are harder to get for newer businesses, as they often contract with well-established janitorial companies. Plus, commercial cleaning usually requires heavy duty cleaning equipment and a large team to get the job done.

If you’re interested in commercial cleaning, you can get started by contacting smaller, local businesses first.

3. Choose your services

Once you’ve determined whether you want to focus on residential cleaning or commercial cleaning, it’s time to narrow down your specific cleaning niche.

For example, consider some popular cleaning services you can offer:

• Pressure washing
• Carpet cleaning
• Window cleaning
• Basic cleaning
• Deep cleaning
• Spring cleaning
• Move-out cleaning
• Laundry
• And more

As you decide on your list of services, think about what kind of equipment you’ll need for each offering. It sounds obvious, but don’t forget to ask yourself (honestly) whether or not you have the skills to provide all these services well.

It’s easy to be ambitious as you decide how to start a cleaning company. But remember that you can always add more services as you grow your business.

In the beginning, it’s better to do things differently by starting small and providing services that you know you can do well.

4. Register your business

Maybe you chose to begin your cleaning business because it’s one of the easy side hustles. Even if you only make a few hundred dollars a month, you need to register your business—and report your income to the IRS.

To begin, decide what form your business will take. A sole proprietorship, or maybe an LLC (limited liability company), a partnership, etc. The U.S. Small Business Administration website offers insight on how to pick the business structure that’s right for you.

Depending on the kind of business you decide to register, you may also need to create an EIN (or an Employer ID Number) for tax purposes. You should apply for an EIN online with the IRS.

Next, you may also want to trademark your business name and/or claim your business’ domain name so you can create a client-facing website.

Dealing with business registration and all the legal stuff can be overwhelming. But taking the time to do the research and making sure all your ducks are in a row will help you avoid unwanted fees and/or penalties in the future.

Pro tip: Check out the SBA.gov tips on how to register a business with both federal and state agencies.

5. Don’t forget about insurance

Like business registration, make sure you prioritize insurance when you’re researching how to start a cleaning company.

While not all states require you to have insurance if you want to open a cleaning business, it’s definitely recommended! As a business owner, having insurance is key to protecting both you and your employees in the event one of you accidentally causes damage to an employee’s home.

For example, as a cleaner, you may be at risk of starting a fire, breaking something, causing a leak, etc.

With the right insurance, you can protect yourself from going into debt to pay for all these repairs yourself.

For your cleaning business, consider the following types of insurance:

• General liability
• Business owners’ policy
• Workers’ compensation (if you hire employees)
• Employment practices liability

6. Obtain a business license

In addition to registering your business, you may also need to get a business license to legally found your cleaning company.

Again, to figure out what licenses are needed to start a cleaning business, you’ll need to research the specific laws of the state you live in. Leverage the resource on SBA.gov to get started with setting up the business licenses you need.

In most cases, you’ll have to pay for your business license up-front—and then pay to renew it every year. While this may seem like a headache, this is one step you do not want to skip. Operating a business without a license can result in fines or other penalties down the line.

7. Finance your cleaning business

When wondering how to start a cleaning business, you should know that they do have lower up-front costs than other businesses, but you will still have some start-up expenses to get your new venture up and running.

For example, in addition to buying cleaning supplies and equipment, you’ll also have to consider the price of advertisements, business registration and license fees, insurance, etc.

To make things easier on your budget, remember that you can start small with just the bare minimum expenses and then scale up later as you get more clients.

If you lack the funds to get started, consider turning to friends and/or family to borrow the money (although loaning money to family can be challenging), taking out a business loan, or spending on credit.

Alternatively, if you’re not comfortable asking friends or family for help (and the idea of taking a loan or spending on credit makes you nervous), you can also save up to fund the start-up expenses yourself.

If that sounds overwhelming, don’t stress! This is definitely a doable goal. The key is to break up your spending goal into smaller, more manageable chunks.

For example, you can learn how to save $5000 in 3 months.

8. Create a budget

Give yourself a pat on the back for successfully managing your start-up finances … but don’t stop there! I recommend staying on top of your goals for a small business, especially business finances, every step of the way.

For example, as a business owner, I would need to monitor cash flow, taxes, expenses, invoices, etc.

Set up a business bank account

When you start your own business, it is key to separate your business finances from your personal finances.

The easiest way to do this is by getting a bank account.

However, you don’t have to spend money on a special “business” bank account; rather, simply having a separate personal checking account will work just fine. Use this separate account to accept payments from clients, pay taxes, and spend money on cleaning supplies and other business expenses.

Keep track of income and expenses

You might be well versed on how to budget and budget categories from a personal finance perspective. Now, leverage those same budgeting skills to manage your business budget.

You can use dedicated business management software (like HoneyBook or Quickbooks) or go simple (and free) by using Excel or Google spreadsheets (Check out the free Clever Girl Finance business spreadsheets in our worksheet library).

At the end of the day, any of these work just fine. What’s most important is that you track all your income and expenses and use this information to pay taxes throughout the year.

Manage invoices and receipts

With income and expenses comes managing invoices and receipts. While this may not be the sexiest part of being a business owner, it is of utmost importance—and unavoidable!

Again, you can leverage business management software to automate invoices for you. But if you’re on a budget, you can also DIY invoices for free. Try using a graphic design tool (like Canva) to help you, or just work in a free Microsoft Word invoice design template.

For tips on creating an invoice customized to your needs, head to Zapier for ideas on how to create a professional invoice.

Along with your invoices, remember to hold on to all business receipts. If you have paper receipts, consider scanning them and storing them digitally to keep everything organized.

Trust us—developing a system for storing invoices and receipts will make your life much easier come tax season!

9. Buy cleaning supplies

The specific cleaning supplies you’ll need will depend on the services you’ve chosen to offer when deciding how to start a cleaning business.

In general, here’s an overview of some of the cleaning supplies you can expect to put on your shopping list.

• Vacuum
• Face mask
• Rubber globes
• Trash bags
• Cleaning rags
• Mop and bucket
• Sponges
• Bleach
• Cleaners for different surfaces e.g. glass, wood, granite, etc
• Spray bottles

Remember that you don’t need to buy everything all at once. If your start-up funds are low, just start small. Prioritize which supplies you need the most, and then scale up your supply inventory as you grow and take on more clients.

Don’t forget that you can often get supplies at a cheaper rate by shopping from wholesale vendors. (Bear in mind, though, that these vendors will often want proof of your business registration before processing a sale.)

Some clients (especially residential clients) may request that you use their own cleaning supplies—which is an opportunity for you to charge them an extra fee.

10. Decide on your rates

Here is where your market research comes in handy. When it comes to how to start a business from scratch, you’ll need to set your own prices.

To get an idea of how to set the rates for your cleaning company, check out what other cleaning businesses in your area charge.

When it comes to nailing down a price, there are several different ways to set rates: by the hour; by the square foot; by the room; or by a flat rate.

For commercial cleaning services, it’s not uncommon for cleaning companies to charge by square foot. For residential cleaning, on the other hand, it’s common to charge by the hour or a flat rate.

To help you set flat rates, first, figure out how long it will take you to do the job. Then multiply that number by your typical hourly rate. After that, increase the price to offset fees for transportation, cleaning supplies, taxes, etc.

11. Advertise your cleaning business

No matter what business you decide to launch, you will have to advertise to get your name out into the world. And advertising your business is not just a start-up activity.

Instead, think of advertising as an ongoing practice—something you do whether you have clients or not.

Set a foundation for your advertising efforts by creating a website for your business, as well as a Facebook business page and a Google business profile. This will help you with how to get clients online for your new business.

Then, establish an online presence on social media. You don’t need to be present everywhere; instead, it’s best to only set up an account where you will be active. Facebook is a great option for a cleaning business because you can join local community groups to get your name out in places close to you.

You can also go old-school by advertising your cleaning business in local business directories and at places like the bulletin boards at your local grocery store or YMCA.

12. Find (and keep) clients

Once you’ve laid the groundwork, have discovered what licenses are needed to start a cleaning business, and know how to begin, it’s time to get out there and start making money!

In other words, you’ve got to hit the ground running to look for clients. Here are a few tips to get started:

Leverage your local network

When your business is just starting out, there’s no shame in turning to your friends and family for support. Ask them if they know anyone who needs cleaning services and if they would be willing to recommend you.

Here are a couple of networking tips: Always remember to carry your business card with you and share readily. (But don’t be too pushy—because an over-the-top salesperson is also a turn-off to potential clients.)

Finally, try reaching out to local businesses in your community and ask if you can put a flyer in their shop window. You never know who might see it!

How to find your first clients

Besides leveraging your local network, you can also find your first clients for your cleaning business online.

For example, Care.com, also TaskRabbit, and Handy are all reputable websites where you can find people looking for cleaning services.

Position yourself for referrals

As your business grows, you’ll likely find that most of your new clients are referrals—that is if you do a good job.

The key is to position yourself for these referrals.

When you work with your first clients, ask them if they would be comfortable sharing their contact info and serve as references. References are important for owners of cleaning companies. Prospective clients want to know that they can trust the person they’re letting into their home!

13. Create a cleaning schedule for your business

As your client roster grows, organization will be a key element in the success of your cleaning company.

After all, you don’t want to take on more than you can handle and end up letting down your newfound clients.

To stay organized, I personally would create a cleaning schedule and start implementing it from day one.

First, I’d create a routine for my cleaning process. For instance, how do I tackle cleaning a room? In what order will I sweep, vacuum, mop, wash windows, etc.?

Nailing down a cleaning routine and doing it repeatedly would help boost my efficiency—and make sure I never miss a thing.

Next, I’d create a schedule, or time management plan, for my roster of clients. You can leverage online appointment booking tools like Acuity Scheduling, Vagaro or Calendly that you can add to your website where clients can book you.

If you can, try to schedule clients who are located near each other on the same day. Note which clients are recurring—and how often.

My idea would be to set reminders in your calendar one day or a few hours in advance so you never forget about an appointment.

14. Grow your cleaning business

You may choose to start your cleaning business as a side hustle, wherein you take on both the cleaning and the administration tasks by yourself.

After going full-time, the next step, then, is to scale your business by hiring cleaners. This allows you to take on more jobs than you can handle yourself so you can increase your profit.

Find contractors to work with online—you can even put job postings in the same places you looked for work, such as Care.com and TaskRabbit. Then, train your new hires so they all understand your cleaning system and schedule and can provide the same service for every client every time.

15. Factor in transportation costs

When it comes to business expenses and how to start a cleaning company, there’s more to it than just cleaning supplies.

You also have to get to and from the places where you’ll clean—and this takes both time and money.

To keep your car expenses down, look for clients in a specific geographic radius so you can be more efficient with your time (and gas money).

And don’t forget to always have a backup plan for transportation! After all, you don’t want to risk not showing up for the job due to car trouble when learning how to start a cleaning business.

Expert tip: Choose your niche first, and then scale slowly

Starting a new business is exciting, and it’s natural that you’re going to want to throw all your energy into it in the beginning. But don’t let yourself get too carried away! Remember, if you want to build a truly successful, profitable business, then you’ve got to play the long game.

Rather than jumping into a giant service offering and attempting to hire a huge team of contractors from the get-go, start slowly.

Begin with a smaller service offering that you know you can really crush when it comes to quality. This will make it easier to build a loyal clientele who support your work. From there, you can expand beyond your niche to hire more contractors and offer different cleaning services to grow your business.

The worst thing you can do is become overwhelmed with the work and end up letting down your clients. Remember the golden rule of business: Underpromise and overdeliver!

How profitable is a cleaning business?

A cleaning business can be very profitable. Cleaning may not sound like a glamorous job but hard work can be very well rewarded!

ZipRecruiter explains that the average yearly salary for the owner of a cleaning business is $109,000 (or an average of $53/hour).

To build a profitable cleaning business, the key is to scale up your clients over time so you can hire employees and take on more jobs (for more profit) than you can handle just yourself.

Is a cleaning business worth starting?

One of the top reasons to learn how to start a cleaning business is that you can count on pretty reliable demand.

After all, people always need stuff to be cleaned. And if you do a good job, they’re almost guaranteed to be repeat customers. Because once things are cleaned, they inevitably get dirty again.

Plus, with seemingly the entire world worrying about AI and what it means for the knowledge workforce, a cleaning business has a stable market outlook. (AI isn’t going to be cleaning the gunk out of the sink anytime soon!)

Do I need a license to clean houses?

Whether or not you need a business license to start a cleaning business depends on where you live. This is why market research is one of the most important steps when figuring out how to start your business.

Before you do anything else, make sure you research the relevant business laws in your state. For extra guidance, consider hiring a legal advisor. If that’s out of your budget, companies like LegalZoom are great places to turn for affordable, reliable legal information.

Articles related to starting a business

If you enjoyed reading about starting a cleaning business, read these articles next!

• 25 Side Hustles For Women That Make Real Money
• How To Get Clients Online For Your Side Hustle
• A Guide For How To Start A Business With No Money
• How To Start A Business From Scratch

Start a cleaning business and become your own boss today!

We think starting your own cleaning company is a great opportunity for both new and seasoned entrepreneurs. With low up-front costs and reliable demand, this business idea has real, long-term profit potential.

Of course, you don’t get something for nothing. Starting a cleaning business always takes a lot of work—especially if you’re doing all the cleaning yourself before you can grow and hire staff.

To start and grow your business, it’s key to develop a growth mindset. While starting a side business or full-time business can be considered one of the comfort zone challenges, you can do it! Also, check out Choosing to Prosper by Bola Sokunbi to find out more about achieving your money dreams!

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