2006-12-18 14:41:56 · 3 answers · asked by vjtptn 1 in Business & Finance ➔ Investing
Pretty simple. Get a handle on the revenue coming in. That needs to be high enough to cover the original investment, ongoing expenses (including the cost of replacing worn out equipment) and also provide a return on the investment that makes the risk worthwhile. If you invest a dollar, you want to end up with at least $1.15 after all expenses or else you might as well buy some good common stocks.
2006-12-18 14:47:17 · answer #1 · answered by united9198 7 · 0⤊ 0⤋
If you are starting from scratch used coin washing machines and dryers will cost you about $1800 each. Multiply that by how many you plan to put in your place. You also want to think about the vending machines for pop, snacks, and laundry items. Plus look for a building to lease or for sale. Expect a high electric and water bill.
2006-12-18 22:51:08 · answer #2 · answered by Mariposa 7 · 0⤊ 0⤋
Every line of business has a "multipler" for its valuation. For examle, I know 20 years ago in NYC the grocery business has a multipler of 10, meaning monthly revenue multiplied by 10 is the fair price for the business.
The coin-op laundry business in your target marketplace has a prevailing multipler, too. I don't know what it is, but you can find out yourself. Go ask a few coin-op laundry business owners in your marketplace but not in your immediate neighborhood (so you are not in direct competition), and find out what that multiplier is. Then with the revenue number you know the fair value of the business.
2006-12-18 23:32:53 · answer #3 · answered by rhbj03 2 · 0⤊ 0⤋