How Jono Transformed A Dying Laundromat into 180K per year

Read Time: 3 minutes 33 seconds

Welcome to this issue of Cashflow Chronicles, where we explore how entrepreneurs in Canada can unlock their potential and build wealth.

In this edition, we delve into a case study of a digital marketing specialist who used his skills to buy and transform a laundromat business, generating an extra $180K in just one year!

This inspiring story will show you the power of using your expertise to improve existing physical businesses and unlock their growth potential.

Let’s start at the beginning…

Bringing Traditional Businesses into the Digital World

The Journey from Buying a Laundromat Business for a Passive Income to Generating $180K in One Year

Jono Santamaria, a digital marketing specialist, tripled his revenue in a year by purchasing Nina's Laundrette, a laundromat located near Melbourne, Australia.

In this case study, we will see how he transformed a conventional laundromat into a solid cash flow machine by utilizing his network and digital marketing expertise.

His experience will undoubtedly motivate you on why and (most importantly) how to build a side hustle. Another great learning will be how to acquire and turn a business around successfully.

The Business

Jono Santamaria's inspiration to buy a laundromat came from his investing goal- to be financially independent of a job by the time he turned 40. With this in mind, he acquired Nina's Laundrette in Northcote, Australia, in July 2021 and kickstarted his entrepreneurial career.

Jono believed the traditional laundry industry could be transformed into a 21st-century enterprise through automation and digital marketing skills.

One of the first launderettes in Northcote, Nina's Laundrette opened its doors in February 1973 with just nine machines. It started as a sewing and full laundry service and transformed into a self-service laundromat only in the year 2000.

It also recently celebrated its fifty years of operation and continues to run strong with an increasing client base and revenue that has tripled in just a year. Jono improved the conventional coin-operated laundry service into one that offers deliveries, commercial laundry services, a solid digital presence, and a welcoming environment for customers.

The Spark

Having hands-on experience in digital marketing, Jono Santamaria had been looking out for business opportunities where he could leverage his digital marketing skills to make a difference.

Jono had a few things in mind before he decided to invest in a business; the business should ideally run on an auto-mode as he had a full-time job, the company should have fewer competitors, and there should be a possibility to use his skills and improve the business. While watching random videos on TikTok, the idea of buying a laundromat struck him.

Two weeks later, he acquired a laundromat that was listed for sale. It cost him AUD83,000, which was ideal for his financial capacity then. The amount was equal to two times the business's annual revenue. He assessed the business by sitting in the store for four to five hours together, counting the number of customers who walked in and noting how much they spent on the machine.

He did this for two weeks, arrived at a number based on the usage, extrapolated it over 12 months, and then found the annual income the Laundromat was generating. He invested 20% of his savings and took a loan for the remaining 80%. He was now a business owner.

The Journey

Once Jono decided to buy a laundromat, he knew that he had first to gain experience on how to run one. He understood the internal dynamics of the machine and the suppliers from the previous owner. He then found a local supplier to learn how the coin laundry equipment worked.

As soon as Jono bought the Laundromat, he looked into things that needed improvement. When he started the business, the Laundromat had only nine machines and was completely mechanical; customers had to use coins to start the machine. He quickly made the payment mode cashless, which had an immediate impact. Now 70 to 80% of the payments are through cards. See how to set this up for businesses in Canada here.

Next, Jono brought in large-capacity washers and dryers. He then focused on increasing the customer's total spending per visit. So, he added a vending machine in the store for customers to get detergent, snacks, and drinks, contributing to about 20% of the customer's spending.

The Challenges

Jono faced a few challenges in maintaining the infrastructure. The building was over 50 years old, and there were issues with the electricity supply, especially while adding new machines or moving machines around.

However, he managed it by investing in solar and building repairs. Another major challenge was to address the customers' concerns when the payment mode did not work or when they faced problems operating the machines.

He addressed this by installing an audio camera with QR codes for complaints if the payment machine did not work. He attended to these complaints immediately by turning on the camera and addressing the problem, mailing or calling the customer again.

The Growth

Jono worked full-time in digital marketing. So he knew the importance of having a robust online presence for his business. He created a website, built a brand, added signages, installed solar power, and invested in SEO tools. Here are the best website builders in Canada.

He used Google Ads to target keywords like Laundromat Near Me, Northcote Laundromat, etc. and made the website visible on Google search. He added backlinks and used SEO tools to rank his Laundromat at the number 1 position in seven months.

He also created a blog for laundry content while ensuring a strong digital profile. He increased customer spending by having his washers programmed for standard and premium superwash offers. He also introduced delivery commercial laundry services for health clinics, gyms, hotels, and many more, generating up to $25,000 annually.

Learn more about expanding business revenue streams in this article.

Secret Sauce

Jono's secret was to use his digital marketing skills to target the local online audience who were not even aware that this business existed. He also improvised the laundry experience with a few add-ons.

He invested in the auto opening of the store, security cameras, and strong Wi-Fi. He also made it a point to clean the store himself while the machines were on, which reduced the cost of cleaning services.

This also helped him to constantly interact with his customers, learn about their interests and concerns, and improve his services. Jono puts in about five hours of physical labor every week, and the Laundromat earns roughly $3,000 a week or up to $15,000 per month in revenue.

Future Plans

The future holds a further investment in machines and buying another laundromat if Jono finds the perfect deal. He feels that to quit his full-time job, he would have to have four laundromats which may not happen soon.

Resources

For Jono, the books and podcasts that helped him become a good businessman are Rich Dad Poor Dad, The Resilience Project, The Laundromat Podcast, and Humankind.

The technology was primarily digital marketing, SEO, website and content.

Tips for Beginners

For those interested in starting a business, Jono recommends downloading the Audible app and listening to audiobooks about emotional intelligence and business-related topics. He further believes that it doesn't matter what kind of business it is as long as it is consistent with one's long-term goal and is something that one can contribute to by utilizing their network and skills.

Learning Points

A. Even plain old physical businesses can be turned around by digital marketing.

B. Due diligence of the target business is critical.

C. Improving customer experience is vital to ensure repeat business.

D. Focus on how you can get an existing customer to spend more. It's much easier than acquiring a new customer.

He took a business which has existed for decades with high demand, and brought it into the digital modern world.

By combining digital marketing savvy with a focus on customer experience, even traditional brick-and-mortar businesses can enjoy newfound success in the modern era.

With many businesses like this also existing in Canada and their owners looking to retire, could you do a similar thing to Jono?

See you next week.

Alain

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hint: one of them is a laundromat! ^^^

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