Discover How An Unemployed QA Engineer
Working Part Time Using Credit Cards And A
Home Equity Line Turned A Run Down
Coin Laundry Into A $450,000 Laundromat...
...And how you could do the same, using his system to find, analyze, evaluate, and buy a Laundromat, he repeated the process over and over. Now he owns five stores with an annual net income of way over $250,000, allowing both he and his wife to retire from corporate America, and has added over
$1 Million dollars to their net worth, doing it all… one quarter at a time!
From: Brian Brunckhorst
Subject: Building a Successful Laundromat can change your life
Dear Investors & Entrepreneurs,
It wasn't that long ago, in an economy very similar to this one, when I was called into the conference room of a startup company in Silicon Valley where the entire Engineering Department was meeting. The VP of Engineering told all of us that at the end of the month we were all loosing our jobs.
I’ll never forget my drive home that night, wondering how I would provide for my wife and three kids.
You see, prior to that, I had always excelled in my jobs. That day I had what some might call a paradigm shift. I called it a rude awakening, because I woke up to the realization that no matter how good I was at my job, as long as I worked for someone else I was vulnerable and could be let go at any time for any reason.
It was at this point that I became determined to never let a job be our family’s only source of income. I decided that I wanted to have a business in addition to my job, so that if I ever got let go again, I could still provide for my family. The business didn’t have to make me rich; it just had to make enough for us to get by on. A sort of safety net business if you will...
...So I started to look for a business, I had always wanted to be my own boss, but all the other business ventures I had ever tried before never seamed to worked out. This time things were going to be different...
The problem was my business track record to this point wasn’t what most would call stellar.
I sold Amway® at 16. I even signed up a couple of friends, but never made any money.
Started a mobile DJ company at 17, playing music at weddings and school dances, I was even a club DJ for 3 years, but when all my partners all got married the business folded.
I sold Cutco® Knifes door to door at 22, but cut my finger during a demonstration and gave it up.
I became a National Safety Associates Distributor at 23 selling water and air purifiers, but couldn’t sign anyone up except for my roommate.
When I graduated from college I became a Real Estate Appraiser, but then two months later the refinance market died and I couldn’t get any work.
I had the drive and desire to be my own boss, but it just wasn’t working out for me, so at the encouraging of my friends; I did what all my friends did. I got a job.
At the time, this was probably a good thing, because I started making some money. I took a part-time job as a customer service rep for the local cable company at night that way I could still do my appraisal business during the day. After 3 months and having no appraisals, I became a full time cable installer.
I’ve always worked hard at my jobs, and within 11 months, the company promoted me from cable installer to a MIS Regional Coordinator working in their computer department. You can imagine what my former coworkers must have been thinking when just 11 months before I was working in a cubicle answering customer service calls then climbing telephone poles installing cable, now I had an office. Things were pretty good, or so I thought.
Unfortunately for me, my boss and her boss didn’t see eye to eye on things, and since I was the new hire, I was caught in the crossfire. This was my first taste of workplace politics and I didn’t like it...
...So when a cable equipment Manufacturer offered me a job as a Field Engineer I jumped at the opportunity.
I was living the life, a real jet setter! Every week I traveled across the country, from one Cable Company to another. To give you some idea how much I was traveling, I flew over 150,000 miles domestically on my preferred airline and at least another 25,000 combined on the others per year. That’s a lot of frequent flyer miles! The only problem was that every week I would leave home on Monday and come home late Thursday or Friday, 48 weeks a year.
This would have been great when I was single, but I was married by this time and we just started a family. I regret missing so much of the first 2 years while my eldest daughter grew up. Every week I would come home and hear how she could do something else. I loved the traveling but missed being there for all her “firsts” in life. So when my wife got pregnant with our second child..
"I knew it was time to hang up my wings!"
I took a job as a QA Engineer at a high tech company in Silicon Valley . This was great because I was able to be home with my family every night. I continued to work hard and excelled at work and was quickly promoted up the ranks. Over time I became the lead of the department. Things were good until my boss decided to leave the company and I was overlooked for his position, the one he had been grooming me for over two years.
The company transferred me into the Systems Engineering Department and I again started working my way up the ranks, until I was eventually promoted to the manager of Systems Engineering. It’s a funny thing working for someone else. I worked really hard, devoted endless hours to the company, finally get the promotion I had been waiting for, and then found out, that I was not only going to do my new job, but I would still have to do my previous job as well. Oh yeah, one more thing, the new job was at the same pay as my old job.
I missed the days of being my own boss and working for myself.
I remembered the freedom that having my own company provided me and even considered trying to start a company, but then I got a call from my former QA Director. She had also made a move and took on a new position heading up the QA Department at a startup company. I decided to take a chance and went to work for her again, this time helping her build a department from scratch.
Working in a startup company was very challenging with long hours, but the environment was fun and exciting. We frequently had offsite meetings and team building exercises, like this one at Malibu Grand Prix. The company had a great product and over $350 Million in funding. What could go wrong?
"What was I going to do?"
When you suddenly have a lot of time on your hands, it can be pretty easy to be ... well unmotivated, but I couldn’t let that happen to me. I looked at buying several different types of businesses before settling on a Coin-Laundry, everything from franchise sandwich shops to window covering companies, from maid services to dating services.
What clinched it for me was that with all the other types of businesses I looked at, I felt like I was just buying a job. Sure I would be my own boss, but each of these other business opportunities would require me to work in them on a full-time basis and to be honest, I didn’t want to work that hard.
I wanted something that I could do part time.
With a Laundromat I felt that once I got it up and running the way I wanted, it would kind of run itself. The only problem was, I didn’t know the first thing about the coin laundry business. First I didn’t know how to find a Laundromat, and more importantly, if I did, I wouldn’t know how to analyze one.
So I began to study everything I could learn about the coin laundry business.
How to determine the value of a store.
How to perform a water analysis.
How to perform a demographic analysis.
I looked at buying several stores, about a dozen or so, and rejected every one, for one reason or another. It might have been the engineer inside of me, over analyzing the deals. Knowing what I know now, in hindsight, I probably should have bought at least three of them.
When we finally did purchase our first store, we used our home equity line to pay for the business. Unfortunately, I made mistake in my analysis of the numbers. The cost of that little mistake:
“I over paid $35,000 plus lost $1,200 a month in cash flow.”
Sometimes the things you don’t know you don’t know, wind up costing you the most!
That all being said, I was still happy. I was the owner of a business, a real business, a brick and mortar business that made real money.
A Whopping $721.00 a month net to be exact.
But, I had a plan to turn this business into a thriving Laundromat. My plan was to remodel the store. We closed the store on September 22, 2003. At the time the store was grossing $5,824 a month. We reopened the store four weeks later on October 19, 2003.
“Within six months, the store was grossing $10,870 a month...”
Besides the gross income of the store going up, the net monthly income jumped. I had to take a double look at the numbers, just to be sure what I was seeing was real.
We were now netting $4,200 a month in just 6 months!
That is $50,400 a year! Heck, some people don’t make that much working full time in their jobs 40 hours a week. We were making that much, running our little business and spending just 10 hours a week on average.
Over time this store has continued to increase its monthly income as you can see by my monthly income video.
The debt on this store was paid off with the monthly cash flow, so today we own it free and clear. What is even better is that the current value of the coin laundry is around $450,000.
Think about that, in four years, we created an asset worth $450,000 that generates more than $6,500 a month in net income, month after month!
And this is just one store, we’ve got 5 and this isn’t even the best one, not by a long shot!
But here’s the best part:
Over time both my wife and I have been able to transition out of our W-2 jobs, as the businesses have replaced that income and we’ll never have to worry again whether one or both of us is going to get laid off.
We now have the freedom and time to live the lifestyle of our choice. For us that means spending time volunteering at the kids schools, managing our investments, traveling, and spending time together as a family.
On top of all of this, we have the satisfaction of knowing that we are providing a valuable service to the neighborhoods where are Laundromats are located as well as jobs for some of those who live in area.
What’s more, the rewards of owning Laundromats have allowed us to live in a beautiful home in the SF Bay Area ... take amazing vacations whenever we get the urge ... and give back to others in pursuit of their own business, hopefully even inspiring them as well.
I can teach you how to achieve similar results to what I’ve had in my stores.
Would you have an interest in learning how to do something similar?
While it is true that the Coin Laundry business is a simple one, don’t be fooled by its simplicity. Just like any business, there are ins and outs about this business that you would want to know, before you buy a store, or it could cost you. Big Time! And I am not just talking about your time either, I’m talking about real money.
As we became more and more successful in our business, I started to receive emails and phone calls from people asking me for advice. Unfortunately, a lot of times, they were asking for the advise after they already purchased a store.
It is really sad when I hear from someone who purchased a Laundromat only to find out that they over paid for the store by thousands of dollars, or worse, bought a store they thought was making money only to find out, in fact, they are losing money every month.
So at the encouragement of some friends, I decided to give back to those interested in getting into this type of business by sharing my experiences. I was asked to put together a class on how to find and properly evaluate a Coin Laundry business.
I agreed to do it, because I couldn’t find a single course, which actually explained how to go about finding a good Laundromat (one that makes sense), and how to evaluate it properly, so you won’t get burned by an unscrupulous seller.
Don't get me wrong, there are plenty of people willing to help you find a store, but most are Equipment Distributors or brokers hired by sellers. They are good people, but rarely will they teach or help you analyze the numbers and if they did, the information wouldn't be impartial.
I don't know what it is about this business, but I have found very few owners willing to open up and explain the ins and outs of this business.
Maybe they are afraid of a competitor coming in and opening up a store near theirs, or it could be that, since this is an all cash business, they are afraid of the IRS because they might not be reporting all of their income.
What ever their reasons are, I have nothing to hide.
I wanted to make a course that would give a new prospective Laundromat owner all the information that he or she would need, to be on a level playing field with not only potential sellers, but also laundry brokers, and Landlords.
As the word spread about my course, I had people all over the country sign up for it. I knew that I had a lot to share and wanted to make sure that everyone who took the course got as much out of it as possible. With that in mind, each week, before the call, I emailed out an outline containing the material that we were going to cover. I figured that having an outline would really help people take notes, especially when we started to get deep into all of the formulas and calculations.
When creating the course, I tried to put myself into the chair of the student. I tried to anticipate, as best I could, all of the questions that might be asked for any given subject and cover those during each call. I knew, however, that people would still have questions and I wanted to make sure the students had an opportunity to have their questions and concerns addressed, so in every call I opened up the lines for Q & A.
My thinking was if someone was asking the question, there were probably 10 others thinking it. As my grandfather always use to tell me, "the only dumb question is the one not asked."
Would it be helpful in your search and evaluation of a Laundromat to have me answer your questions? As a bonus for my students who take my course, I include some email support.
I also felt that it would be nice for those attending the class to be able to re-listen to each call, so I recorded them. I can't tell you how many times I have taken a class or gone to a seminar and wished that I had a recording of it, so I could review the information again.
I made each of the recordings available to my students and recommended that they listen to each call at least 5 times. That way they can pick up all the information they missed the first couple of times they heard it.
The class was very successful and I had several students purchase Laundromats with the help of the information they received in the course.
Today, I am often asked to speak on the subject of Laundromats to various groups and organizations.
Here is a recent interview I did with the Author and Speaker
Fred Gleeck about Laundromats.
I received lots of phone calls and emails from people wanting to know how they too could get into this business.
I got so many in fact, that what I did was to make the audio recordings of this same course available to those who would like the opportunity to take the course themselves.
You see, there are many fine points that one must look at when evaluating a Laundromat, everything from the Profit & Loss Statement, to the Utility Bills, from the Demographics, to the Competition. Proper Due Diligence is a must!
When you purchase a self-service laundry, the purchase price is determined by a multiple of the Net Revenue per month. Nationally, this “Multiplier” starts at 50 times Monthly Net Income. Then there is several “adjustments” that you make to this multiplier, plus or minus, based upon factors which include the Lease terms and length, the equipment age and condition, the competition, and so on.
If as a perspective store owner, you are told the monthly Gross Income is say $9,000 and the Expenses are $5,000, then the Net Income is $4,000 a month. If the Store Multiplier is equal to 50, that would equate to a $200,000 Laundry.
But remember, this is an all cash business.
What if the owner is wrong about the Gross Income and overstated it by just $500 per month and then “forgot to mention” an expense or two which added up to another $500 a month? Suddenly, this Laundromat that you thought was making $4,000 a month is now only Netting $3,000 a month.
Moreover, besides the loss of the $1,000 cash flow that you are not receiving, the true value of this business is not the $200,000 you thought, but rather, $150,000 or $50,000 less. If you paid $200,000 for the business, guess what you got taken to the cleaners. Ouch, that hurts.
That is what happened to me!
Don't forget about the Lease Negotiation. It is one of the most important documents you will have. A great lease will leave you feeling secure about the future in that location. You need to beware, however, of the common tricks building owners will try to get you to sign off on or you could wind up working for the Landlord!
Since I created my course, I've had hundreds of successful students all across the country going out and getting into the Laundromat business. As things have changed in the world of coin laundries, I felt compelled to update the class material to give you the very latest information on the industry today.
My new course has so much information that you will be able to avoid many of the costly mistakes I've made and short cut your way to success!
So, if you're ready to make to a move towards financial independence and can see yourself as a successful Laundromat owner, then I can help because I've put together something special for you to get you started.
What you'll get is my powerful, "Own a Laundromat Webinar"
This video class is like a Bachelors course on Coin Laundries and comes with over 6 Hours of Instruction and Q&A, Plus, Detailed Outlines for each Module.
You'll have all my Formulas with Examples and Case Studies to follow along with, while you are watching. I also have included a Sample Purchase Agreement, which we will go over during one of the sessions.
Here are just a few of the things that you will learn:
I'll teach you the Steps to Finding the Right Laundromat for Sale, the one that is best for you.
You will learn how to properly determine the value of a Laundromat so you don't wind up overpay for a store. The value of this alone could save you 100 times the cost of the course.
I'll also teach you what to negotiate in your lease.
Walk you through the purchase process and guide you on filling out an offer for your store.
I share with you the 4 Most Common Financing Strategies.
I also spend a great deal of time going over how to do a Water Analysis and a Demographic Analysis to help you verify the seller's claim of reported income.
I teach you how to turn the active income from the business into passive income, which could save you thousands of dollars in taxes.
We will even get into the day-to-day operations of a store and I'll give you my top 10 marketing ideas to increase profits once you take over.
Plus much, much, more!
And here is a list of all the subjects we cover in the class:
Introduction of Brian Brunckhorst and How he Got Started in the Coin-Laundry Business
Economic Analysis of a Store
- Profit & Loss Statement Case Study
3 Types of Income
2 Types of Expenses
Pros and Cons of Building a New Store
Pros and Cons of Buying an Existing Store
ADVANCED: 7 Steps to Finding the Right Laundromat for Sale
5 Things to Check When Pursuing a Coin Laundry
4 Things to do First, Once You Find a Laundromat Worth Buying
What a Laundromat's Value is Based On
The Most Common Store Multiplier Range
Return On Investment (ROI) Calculations based on Multiplier
Turns Per Day TPD and why it is Important
Quick Formula for # of machines needed to generate the cash flow you want
Best Locations for a Laundry Mat
ADVANCED: Analyzing the Neighborhood Demographics Including:
The Important Information in Demographic Study
8 Steps to Computing Total Coin Laundry Business in a Neighborhood using the Demographic
Demographic Analysis Case Study
Alternative Method for Calculating Total Coin Laundry Business in a Neighborhood
The 12 Steps to Calculating a Laundromats Store Multiplier
Sample Multiplier Adjustment Table
Multiplier Adjustments Case Study
ADVANCED: How to Ask for and Get an Equipment Cost Deduction
4 Most Common Financing Options
Working With a Broker, Who the Broker Really Works For
The Purchase Agreement Form, What it's Called & Where to Find it
The 22 Things Every Purchase Agreement Should Contain
The Purchase Process, 10 Steps you should be aware of
An Overview of the Coin-Laundry Lease
Top 17 Things to Negotiate into your lease
ADVANCED: Step-by-Step Instructions to Perform a Water Analysis
ADVANCED: How to Determine the Best Equipment Mix for a Store
Top 4 Benefits of Remodeling Your Coin Laundry
The 17 Basic steps to the Remodeling Process
ADVANCED: Entity Structuring For Maximum Protection and Tax Savings
Operations of a Coin-Laundry:
Deciding Whether or Not to Open 24/7
11 Must-Have's Regarding Staff
6 Things You Must Know About Collections
Top 10 Marketing Ideas That Will Put Extra Cash In Your Pocket
Now when you go out and start looking at Laundromats you're going to have some questions. How would you like to be able to contact me directly and get the answers to your questions?
Would that be helpful?
Ok, I'm going to include some email support so you can get your questions answered by me personally. The value of getting email support is $100 a month and I want you to be successful, so I'm going to go ahead and include my email support as a bonus for enrolling in the course.
Also, the program comes with a 30-day, no questions asked money back guarantee.
GUARANTEE: Get the “Own A Laundromat Webinar” right now and if, for any reason, you are not 100% satisfied with the course, send me it back to me within 90 days, and I will personally refund every penny of your money, no questions asked.
It's as simple as that!
Then Click the Link Below and Choose the Package That is Right for You!