A steady cash flow is vital to keep any business going. It is advisable to keep 10-20% of your monthly revenues on hand to reinvest and grow your coin laundry business.
The following are three ways to maintain a consistent cash flow:
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Keep tab of your bottom line
In addition to the daily expenses related to running your coin laundry operations such as utilities and laundry supplies, you must also have a clear picture of your bottom line. Discounts on services may help you to attract more customers but you must not operate at a loss which may result in a negative cash flow.
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Always add value
Giving discounts may not be an ideal way to ensure a constant cash flow. You can find other ways to serve your customers better. Being a self-service business, a coin laundry must rely on intangibles to draw customers. These could include extra services such as in-store entertainment, food and drinks vending machines and children’s corner for families.
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Encourage repeat business
Besides enticing new customers, you must ensure that your existing customers return to help you maintain a constant cash flow. Introducing a loyalty program may be one way to do it. You could offer a freebie such as free detergent or special laundry charges after a number of visits.
A coin laundry business transacts largely in cash which increases with the number of customers. Hence, it is important to keep your machinery in tip-top condition to satisfy your customers’ need for excellent service. Find ways to attract new customers and encourage old ones to return. All these efforts must be done with an eye on your operating costs. That way, you will be sure to have a healthy cash flow for your coin laundry business.
