Category: David Shulick

Scaling a real estate development business requires more than just having a great idea or a few successful projects. It takes strategic planning, financial acumen, leadership, and the ability to navigate a highly competitive industry. As the market for real estate continues to evolve, executives who seek to grow their businesses must adopt methods that ensure sustainable success. David Shulick will explore key strategies for scaling a real estate development business, offering insights into how to expand operations, build strong teams, and capitalize on opportunities in the market.

Develop a Long-Term Vision

Before embarking on any growth initiative, real estate executives must clearly define their long-term vision. Scaling a business without a clear sense of direction can lead to wasted resources and missed opportunities. This vision should encompass the company’s goals over the next five to ten years, outlining specific metrics such as revenue growth, geographic expansion, and the types of properties the company aims to develop.

Having a well-articulated vision enables executives to align their team, investors, and partners with the company’s objectives. It also serves as a roadmap for making decisions that are consistent with long-term goals, allowing for more deliberate and focused scaling efforts.

Diversify Property Portfolio

One of the most effective strategies for scaling a real estate development business is to diversify the types of properties within the portfolio. Rather than focusing on just one type of development, such as residential or commercial properties, successful developers often expand into multiple sectors. For instance, diversifying into mixed-use developments, industrial spaces, or even affordable housing projects can broaden the company’s reach and reduce risk.

By diversifying, executives can better withstand market fluctuations in any one sector. This approach also opens doors to new revenue streams, particularly if certain sectors are experiencing higher demand. A diverse portfolio provides stability, especially during economic downturns, and positions the business to take advantage of emerging trends.

Strengthen Financial Management

Scaling a business requires substantial capital, which means that effective financial management is critical. Executives must not only secure the necessary financing for new projects but also manage cash flow, debt, and investments wisely. To scale successfully, it is essential to have a solid financial structure in place, including a comprehensive budget, accurate forecasting, and contingency plans for unforeseen financial setbacks.

Many real estate development companies secure capital through a mix of debt financing, equity partnerships, and reinvestment of profits. However, as a business grows, so do its financial needs. Establishing strong relationships with financial institutions, investors, and other stakeholders will ensure that the company has access to the capital needed for scaling. Additionally, implementing robust financial reporting systems will provide executives with the necessary data to make informed decisions as the company expands.

Invest in Technology

In today’s digital age, the role of technology in real estate development cannot be overstated. From project management software to data analytics, technology is a powerful tool that can streamline operations and provide real-time insights into market trends, project performance, and customer preferences. For example, many developers now use Building Information Modeling (BIM) to improve project coordination, reduce errors, and optimize resources.

Technology also plays a role in marketing and sales. Virtual reality (VR) and augmented reality (AR) tools can give potential buyers or tenants immersive experiences of properties before they are even built. This can significantly reduce the time it takes to close deals, especially for larger, more complex projects.

Executives who invest in the right technology can improve efficiency across all areas of their business, from property acquisition to project completion, while also gaining a competitive edge in the market.

Build Strong Teams

No business can scale without the right people in place. A key element in scaling a real estate development business is assembling a team that has the skills, experience, and motivation to execute on the company’s growth strategy. This includes hiring project managers, financial analysts, legal experts, and marketing professionals who understand the intricacies of real estate development.

Executives must also focus on leadership development within the company. Cultivating leaders at every level ensures that the company can handle larger, more complex projects as it grows. Providing continuous training and development opportunities will keep the team up-to-date on the latest industry trends, regulatory changes, and technological advancements, positioning the company for long-term success.

Leverage Strategic Partnerships

Scaling a real estate development business often requires collaboration with other firms, investors, and contractors. Strategic partnerships can provide access to new markets, resources, and expertise that the company may not have in-house. For example, partnering with a construction firm may allow a developer to expand into new geographic areas without the need for direct investment in construction resources.

These partnerships can also take the form of joint ventures, where two or more parties collaborate on a project, sharing both the risks and the rewards. Joint ventures are particularly useful for large-scale developments that require significant capital and expertise.

Successful partnerships rely on clear communication, shared goals, and a mutually beneficial structure. Executives should carefully vet potential partners to ensure that their values align with the company’s vision and that they bring complementary strengths to the table.

Capitalize on Market Trends

Understanding and capitalizing on market trends is essential for scaling a real estate development business. Executives must stay informed about shifts in demand, demographic changes, and economic conditions that could impact the real estate market. For example, the increasing demand for sustainable and eco-friendly buildings has led many developers to incorporate green technologies and materials into their projects.

Similarly, the growing trend of remote work has led to a shift in demand for mixed-use developments that combine residential, commercial, and recreational spaces. By staying ahead of these trends, executives can position their companies to meet the evolving needs of the market and capitalize on new opportunities.

Ensure Compliance and Risk Management

As a real estate development business scales, it must navigate an increasingly complex regulatory environment. Executives need to ensure that the company complies with local, state, and federal regulations, as well as industry-specific requirements related to zoning, environmental impact, and safety standards.

Effective risk management strategies are also critical. This involves not only mitigating financial risks but also addressing operational, legal, and reputational risks. Establishing strong risk management practices will protect the business from potential setbacks and ensure its long-term viability as it grows.

Scaling a real estate development business is a complex, multifaceted process that requires careful planning and execution. By developing a clear vision, diversifying the property portfolio, strengthening financial management, investing in technology, building strong teams, leveraging partnerships, staying ahead of market trends, and ensuring compliance, executives can position their companies for sustainable growth and long-term success in the competitive real estate market.

Corporate Social Responsibility (CSR) is no longer just a buzzword in today’s business world—it has become a core pillar of how companies operate, impacting everything from consumer preferences to investor relations. In the commercial real estate sector, integrating CSR principles is proving to be a powerful strategy for enhancing reputation, attracting investors, and aligning with community goals. As sustainability, social equity, and corporate governance become more prominent, commercial real estate developers increasingly prioritize CSR in their projects. David Shulick explores how CSR principles are transforming commercial real estate development, the benefits for developers and investors, and how this shift aligns with the needs and goals of communities.

The Evolution of CSR in Commercial Real Estate

In the past, commercial real estate developers focused primarily on profitability and expansion. The impact of their projects on the environment or local communities was often an afterthought. However, the landscape has shifted dramatically in recent years as consumers, investors, and stakeholders demand more responsibility and transparency from businesses.

Today, developers are being called upon to integrate CSR principles into every stage of their projects—from planning and design to construction and operation. This means minimizing environmental impact and ensuring that developments contribute to the social and economic well-being of the surrounding community.

CSR in commercial real estate can encompass a wide range of practices, such as:

• Sustainable building practices (e.g., using eco-friendly materials, energy-efficient designs)
• Community engagement and inclusion in the development process
• Job creation and local economic stimulation
• Affordable housing provisions and equitable access to commercial spaces
• Responsible land use and minimizing ecological disruption

Enhancing Reputation and Brand Image

One of the most immediate benefits of adopting CSR principles in commercial real estate development is the enhancement of the developer’s reputation. Companies that demonstrate a commitment to sustainability and social responsibility gain favor with investors, tenants, and the public.

For instance, a development that prioritizes green building certifications like LEED (Leadership in Energy and Environmental Design) or WELL (focused on health and wellness) can position itself as a leader in sustainable construction. These certifications not only validate the developer’s commitment to reducing the environmental footprint but also attract tenants and investors who value sustainability.

Developers with strong CSR initiatives are more likely to win public approval and face fewer hurdles in gaining permits and approvals from local governments. A company known for its social responsibility is perceived as a good corporate citizen, which can foster positive relationships with regulatory bodies and community leaders.

Attracting Investors and Tenants

Investors are increasingly looking for opportunities that align with environmental, social, and governance (ESG) criteria. As ESG investing gains traction, developers who incorporate CSR principles are more likely to attract institutional investors who prioritize sustainable and socially responsible projects.

For example, real estate investment trusts (REITs) that focus on green or socially responsible buildings have seen growth as ESG-conscious investors seek out opportunities that align with their values. Buildings that are energy-efficient or contribute positively to their local communities are viewed as lower-risk, longer-term investments because they tend to retain tenants, reduce operational costs, and experience fewer vacancies.

Tenants, too, are drawn to CSR-aligned developments. Companies that lease space in sustainable or socially responsible buildings can bolster their own reputation by associating with a development that aligns with their corporate values. In an era where businesses are increasingly judged not just by their profits but by their social impact, many tenants are willing to pay a premium to be housed in a development that reflects their commitment to CSR.

Aligning with Community Goals

One of the most significant ways CSR impacts commercial real estate development is by aligning projects with community goals. CSR-driven developments often involve direct community engagement and collaboration with local stakeholders. This can range from holding public forums to involving local businesses in the planning process to ensure that the development reflects the needs and desires of the community. Developers who engage with communities are more likely to avoid opposition or delays that can arise from community pushback. By fostering a dialogue with residents, business owners, and local officials, developers can create projects that are not only financially viable but also socially beneficial.

CSR can help developers address community issues such as affordable housing, infrastructure improvements, and environmental preservation. For example, a commercial development that includes a mix of office spaces and affordable housing can provide economic opportunities while addressing local housing shortages. Similarly, developments that prioritize green spaces, pedestrian pathways, and public transportation access contribute to the overall quality of life for the community.

Sustainability as a Cornerstone of CSR in Real Estate

Sustainability is a major component of CSR, particularly in the real estate sector, where the environmental impact of construction and building operations is significant. Energy-efficient buildings, water conservation measures, and the use of renewable materials not only reduce the environmental footprint of a development but also lower operational costs in the long term.

Developers who incorporate sustainable practices are likely to see financial benefits in the form of reduced energy bills, maintenance costs, and increased property values. Moreover, sustainable buildings are more attractive to investors and tenants, particularly as governments implement stricter regulations around energy use and environmental impact. For instance, cities such as New York, London, and San Francisco have introduced stringent energy efficiency standards for commercial buildings. Developers who preemptively adopt CSR-aligned sustainability measures can avoid costly retrofits and penalties, positioning themselves as ahead of the curve in meeting regulatory requirements.

Long-Term Financial Returns and Risk Management

While CSR-aligned development may require higher upfront costs, the long-term financial benefits often outweigh the initial investment. Buildings with energy-efficient designs have lower utility costs, and tenants are increasingly willing to pay higher rents for eco-friendly spaces. In addition, developments that engage with and support their local communities are likely to experience higher occupancy rates and tenant retention, reducing the risk of vacancies.

CSR also serves as a form of risk management. By aligning with environmental and social governance standards, developers can mitigate the risks associated with regulatory changes, market shifts, and public relations crises. A project that is built with the community in mind and adheres to sustainability principles is less likely to face legal or reputational challenges down the line.

The impact of Corporate Social Responsibility on commercial real estate development is profound and multifaceted. By integrating CSR principles into their projects, developers can enhance their reputation, attract investors and tenants, and align with the goals of the communities they serve. Sustainability, community engagement, and responsible governance are no longer optional in today’s market—they are essential components of a successful development strategy. As demand for responsible business practices continues to grow, commercial real estate developers who prioritize CSR will not only thrive in terms of financial performance but also contribute positively to the broader society and environment.

In real estate development, contract management plays a crucial role in ensuring deals are executed smoothly, projects are completed on time, and legal obligations are met. Contracts govern agreements between buyers, sellers, contractors, suppliers, and other stakeholders, making effective management a key component of any successful real estate business. However, managing these contracts manually can lead to inefficiencies, errors, and delays.

Fortunately, advancements in technology offer real estate professionals powerful tools to simplify contract management, improve efficiency, and minimize the risk of errors. In this article, David Shulick will explore how technology is transforming contract management in real estate, the benefits it offers, and the best practices for implementing these tools effectively.

The Challenges of Traditional Contract Management in Real Estate

Before diving into the technological solutions, it’s essential to understand the challenges of traditional contract management in real estate development. Contracts in this industry are often complex, involving multiple parties, various legal stipulations, and numerous deadlines. Some of the most common challenges include:

1. Manual Data Entry and Paperwork: Real estate contracts involve extensive documentation, often managed through manual data entry and paper forms. This process is time-consuming, prone to human error, and requires significant effort to track and maintain.
2. Lack of Centralized Storage: Without a centralized repository, contracts are often stored in different locations, making it difficult for team members to access necessary documents quickly. This lack of visibility can lead to miscommunication, delays, and the risk of missed deadlines.
3. Inefficient Collaboration: Real estate transactions typically involve various parties, including brokers, lawyers, contractors, and clients. Managing contracts manually can lead to communication breakdowns, delays in approvals, and lack of real-time collaboration.
4. Difficulty Tracking Changes and Compliance: Contracts are often subject to amendments, revisions, and legal updates. Keeping track of these changes manually can lead to compliance risks and potential legal disputes.

The Role of Technology in Contract Management

To overcome these challenges, real estate professionals are increasingly turning to technology to streamline contract management processes. Here’s how technology can transform contract management:

1. Digital Contract Creation and Automation

One of the most significant advantages of technology is the ability to digitize contract creation. Instead of drafting contracts manually, modern software solutions enable real estate professionals to generate contracts using pre-built templates. These digital templates can be customized to meet specific requirements, ensuring consistency and reducing the risk of errors.

Automation tools can also handle repetitive tasks, such as contract generation, reminders for key milestones (e.g., payment schedules or deadlines), and notifications for renewal dates. This automation reduces the administrative burden on real estate teams, allowing them to focus on more strategic tasks.

2. Centralized Contract Storage and Access

Cloud-based contract management platforms provide centralized storage for all contract-related documents. This ensures that all parties involved in a real estate transaction have access to the most up-to-date information in real-time. Centralized storage also makes it easier to locate contracts, track changes, and manage version control.

By storing contracts digitally in a secure cloud environment, real estate teams can mitigate the risk of lost or misplaced documents. This also enhances compliance with regulatory requirements by maintaining an auditable record of contract changes and approvals.

3. Enhanced Collaboration and Communication

Real estate development projects often require input from multiple stakeholders. Contract management technology enables real-time collaboration by allowing team members to access and review contracts simultaneously, no matter their physical location. Features such as digital signatures, approval workflows, and commenting tools facilitate faster decision-making and reduce delays in contract execution.

With contract management software, parties can review, edit, and approve contracts in a streamlined process. This eliminates the need for back-and-forth email exchanges and manual updates, accelerating the negotiation and approval process.

4. Compliance Monitoring and Risk Mitigation

Contract management tools are designed to help real estate professionals stay compliant with legal and regulatory requirements. These platforms can flag key compliance deadlines, track changes in legal terms, and ensure that all parties adhere to contractual obligations.

By automatically tracking key contract milestones and sending reminders for important deadlines, contract management software helps reduce the risk of penalties, disputes, or delays caused by missed deadlines. Additionally, audit trails created by digital systems provide a clear record of contract changes, ensuring accountability and transparency.

5. Integration with Other Real Estate Tools

Modern contract management platforms are often designed to integrate seamlessly with other real estate software, such as project management tools, accounting systems, and customer relationship management (CRM) platforms. This integration allows for a more holistic approach to managing real estate projects, ensuring that all data is synchronized across different platforms.

For example, integrating contract management software with accounting systems ensures that payment schedules are aligned with project milestones, reducing the likelihood of payment disputes. Similarly, CRM integration enables real estate agents to track client interactions and manage contracts more efficiently.

Best Practices for Implementing Technology in Contract Management

While the benefits of leveraging technology for contract management are clear, successful implementation requires careful planning. Here are some best practices for real estate professionals looking to integrate contract management tools into their operations:

1. Choose the Right Software for Your Needs

Not all contract management software is created equal. When selecting a platform, it’s essential to choose one that caters specifically to the real estate industry. Look for features such as customizable templates, automated workflows, and secure cloud storage. Ensure that the software can handle the unique complexities of real estate contracts, including amendments, renewals, and multi-party approvals.

2. Train Your Team

Introducing new technology requires proper training to ensure that all team members understand how to use the system effectively. Invest in training sessions and provide resources that allow your team to become proficient with the software. This will help avoid user resistance and ensure a smooth transition from manual to digital contract management.

3. Set Up Clear Approval Workflows

Contract management software allows you to create automated approval workflows, ensuring that contracts move smoothly through the necessary stages. Set up clear approval hierarchies and workflows based on your organization’s needs. This will help eliminate bottlenecks and speed up the contract approval process.

4. Monitor and Review Regularly

Technology is not a one-size-fits-all solution, and real estate businesses need to continuously monitor and evaluate the effectiveness of their contract management systems. Regularly review key performance indicators (KPIs) such as contract turnaround time, error rates, and compliance rates to ensure that the technology is delivering the desired results.

Technology is revolutionizing the way real estate professionals manage contracts. From automating repetitive tasks to improving collaboration and ensuring compliance, contract management software offers a host of benefits that can streamline operations, enhance efficiency, and reduce errors. By choosing the right tools and following best practices, real estate businesses can significantly improve their contract management processes, allowing them to focus on what matters most—successful real estate development. Adopting technology for contract management isn’t just a competitive advantage—it’s becoming a necessity in an increasingly digital world.

According to a CNN report, the commercial real estate (CRE) industry has finally hit a wall. Since the pandemic, some CRE properties are only 50% occupied, with office vacancies are at a record 13.1% high according to the National Association of Realtors.

At a time when the future of CRE seems uncertain, providing value by adapting to new consumer behaviors is integral for surviving the currently high interest rates in this credit-dependent industry.

A possible value proposition is offering a comprehensive list of services within the space. The appeal of convenience, the added foot traffic, and the sense of community can all go hand in hand in unlocking an environment profitable for business. David Shulick reviews how services like vended laundry can make a commercial property more successful.

Boosting Property Appeal Through Convenience

A way to set property apart from others is providing a diverse array of services at a single location. Although e-commerce now accounts for 15% of all retail and is slowly becoming the default way consumers shop, not everything is possible online.

When running errands, the convenience of letting a consumer do their laundry, stock up on groceries, and get a haircut all at the same location can be the deciding factor for a thriving commercial space.

Generating Multiple Streams of Revenue

Services that require minimal supervision, such as vended laundry, allow spaces to generate income almost passively. And by leveraging technology, the management of these facilities become even easier.

Remote monitoring and cashless payment systems can allow the owner or building manager to oversee the operation of the laundry facility without being physically present. The ease of use can also be appealing to consumers, particularly the younger, tech-savvy demographic.

While vended laundry is unlikely to cover the operational costs of an entire commercial space, it’s still a reliable source of cash flow that contributes to the bottom line.

Attracting Foot Traffic to Different Areas

For unused areas of the property, turning them into services that fulfill a basic need, like vended laundry, can generate income and increase foot traffic to the surrounding areas as well.

The foot traffic can range from students to travelers, to the occasional professional with a stained suit. This diverse mix of people are then exposed to the other businesses available within the space, allowing businesses to cross-pollinate each other, ultimately increasing overall profitability.

Creating a Shared Space for Community Interaction

Humans are creatures of habit, and this shared space can become an area for people to interact, connect, and build relationships while engaging in a routine task.

Aside from amenities and accessibility, the feeling of community and belongingness can also be a factor for happy tenants and a profitable commercial space.

Conclusion

Adding low-maintenance, self-sustaining services like vended laundry can be a financially rewarding investment for CRE. By anticipating the needs of the property’s tenants and the surrounding market, this addition can unlock success, profitability, and a thriving community by providing value that other spaces have overlooked.

According to the Coin Laundry Association, coin laundries are able to generate anywhere between $15,000 to $300,000 of cash flow in a year. The numbers are surprising for this unassuming sector, but they make sense–everyone needs to wash their clothes.

Coin laundries can be seen in practically every American neighborhood, but they perform best in areas with a high population of renters. With a recession-proof track record, vended laundry is an attractive opportunity for investors who want financial stability with operational simplicity.

In this article, David Shulick takes coin laundry businesses for a spin, enlightening potential investors on the benefits of clean clothes and tidy profits.

Hygiene is a Basic Need

There are many businesses with peaks and valleys depending on the season, or are significantly impacted by economic factors. However, like many basic human needs, the demand for clean clothes remains stable regardless of current economic circumstances.

In fact, laundry services could experience an uptick in usage during dire economic situations where more people are forced to rent and/or choose more affordable services in response to tightening budgets.

Predictable Cash Flow

Cash flow issues are the reason why 82% of small businesses fail. Meanwhile, a coin laundry is a pay-as-you-go operation, meaning monthly cash flow is easily predictable once enough time has passed to gather data.

The simplicity of the business model allows owners to strategize for success more effectively as compared to other business ventures. This simplicity extends itself to the operations side as well.

Simplicity of Operations

Aside from the knowledge of how to troubleshoot a malfunctioning washer or dryer, there’s minimal know-how required to get a coin laundry business running compared to other businesses.

Because a coin laundry requires minimal supervision, an owner can allocate their focus on growing other sources of income while at the location, or even invest in tools that allow them to monitor their business without being physically present.

Minimal Inventory or Employees Needed

There’s very little physical inventory needed in a coin laundry, and the few that it does require like detergent, fabric softener, and dryer sheets aren’t perishable. This streamlined inventory means lower operational costs with less risk of waste.

As coin laundries are self-service, the customers are the ones washing and drying their clothes. The self-service nature means there is minimal need to hire a lot of employees, and the extra help can quickly learn to manage the location with simple accounting and basic property and equipment maintenance.

Conclusion

For the savvy investor, clean clothes represent not just personal hygiene, but also a bright future of financial stability. By entering the world of coin laundries, aspiring business owners can build a recession-proof asset that can be passed down to the next generation.

As our cycle around the lucrative world of vended laundry comes to an end, one thing is clear: this is not the average commercial real estate investment. With the right location, machinery, and maintenance solutions, a coin laundry can be financially rewarding while only requiring minimal involvement and a bit of smart decision-making from the owner.

Vended laundry businesses, more commonly known as laundromats, are some of the most successful businesses in the United States.

Vended laundry franchises are plentiful; membership is offered by companies such as Eco Laundry Company, Speed Queen, and Zoom Express. Compared to private ownership, franchised laundromats come with a number of benefits: a higher rate of success, higher profitability, an easier startup process, and more advantages for customers are a few of the highlights.

Below, David Shulick discusses the opportunities and benefits of franchises in the vended laundry industry.

Franchise Opportunities in Vended Laundry

Nearly 20,000 laundromat businesses are operating in the US, and a large portion of them belong to franchises. The startup costs associated with vended laundry businesses are high, and there can be many barriers to entry. Luckily, there are plenty of laundromat franchises eager to expand their reach across the country. Three of the most popular franchises are:

1. Eco Laundry Company: This company prides itself on environmentally-sound business practices. It is also one of the more accessible franchises with its lower buy-in amount and liquid cash requirements.
2. Speed Queen: Speed Queen has fairly strict requirements for membership, but they offer a lot to the people who make the cut: an online management platform, payments via an app, and bonus services such as pickup and delivery.
3. Zoom Express: Zoom Express is another accessible franchise that specializes in time management; faster wash and dry times allow franchisees the opportunity to offer a unique service to their community.

No matter what type of laundromat business an individual has in mind, or what their net worth looks like, there is a franchise out there perfectly suited to their needs.

Benefits of Franchises Over Private Ownership

Vended laundry franchises are associated with several advantages over private ownership. Franchise-specific benefits do exist as well, but there are a few that are common to all.

Higher Rate of Success

Although laundromats in general have a very high rate of success, there is even more of a guarantee when the business belongs to a franchise. Networking opportunities, high-quality machines and products, and an intact consumer base all contribute to high rates of success with franchised laundromats.

Higher Profitability

A privately-owned vended laundromat will make, on average, $15,000-$100,00 each year. Laundry franchises, on the other hand, can make as much as $10,000-$40,000 each month. Since higher profitability will translate to better business security and more opportunities for growth, franchises are the clear winners here.

Easier Startup Process

Just like any other franchise industry, membership in a franchise streamlines the startup of a new business. Established marketing structures, supply chains, and well-tested equipment makes it a lot easier for new business owners to get their business up and running. Plus, there are plenty of experts available to answer questions or offer advice.

More Advantages for Customers

Many franchise locations offer unique benefits for their consumers that private owners just can’t offer. This can look like alternative payment methods (card or mobile), play areas for kids, pickup and delivery services, comfortable seating, and more.

Wrapping Up

The versatility of the vended laundry franchise market offers every individual the opportunity to get off to a great start in the industry. Given the long list of advantages and the incredibly high success rate, franchised laundromats are the best way forward.

On an annual basis, small businesses account for half of the economic activity in the United States. They are much more important than headlines would lead people to believe. But how do small businesses boost economic growth?

David Shulick says that unlike large corporations, small businesses need to outsource things like accounting, marketing, maintenance, and legal services. They primarily choose local businesses for this purpose, and this is the main way they contribute to local economic growth. Small businesses are also responsible for the majority of job creation and innovation across many industries, further stimulating growth in the economy.

Small Businesses Impact the Local Economy in Big Ways

Small businesses are an integral component of local economies, but their influences often go unnoticed by the general public and industry experts alike. However, small businesses actually contribute more to the economy than large corporations. Here’s how.

Outsourcing

Small business owners outsource many of their organization’s needs; they simply don’t have the internal structure to handle it all in-house. Services such as marketing, accounting, maintenance, and legal counsel are usually provided by other local businesses. Many of them may also be small businesses, and the shared benefits of the partnerships will improve the local economy for all.

Job Creation

Over the past 25 years, small businesses have been responsible for the creation of 12.7 million jobs; that’s 66% of all new jobs created during those years. After the coronavirus pandemic, small businesses alone were responsible for a 60% recovery rate from the 9.1 million jobs that were lost as a direct result of the pandemic.

As countries—and their economies—have rebounded in the wake of COVID-19, small businesses have become even more relevant than ever before. Many people turned to small business ownership as a source of income, and as they’ve grown, they have hired other individuals from their local community.

As small businesses earn more money and hire local individuals, those people will be able to contribute more significantly to the local community with their shopping habits.

Innovation

Two defining characteristics of small businesses are flexibility and an entrepreneurial spirit. These two traits allow for fresh perspectives, operational changes, and innovative thinking without too much financial investment or community backlash.

As a result, small businesses are drivers of innovation in their industry. In their startup phase, small businesses have the flexibility to try new things and see how they work out, a luxury that is not afforded to large corporations. When these innovative ideas pay off, it not only benefits the entrepreneur and their business but also the local economy through media awareness.

Final Thoughts

Although the importance of small businesses is underrepresented in the media and overlooked by business tycoons, small businesses are more impactful than large corporations when it comes to both economic fundamentals like job creation and revolutionary advancements in various sectors of industry. On a local and national level, small businesses contribute to the economy in big ways.

Amidst the hustle and bustle of everyday life, one often overlooked yet essential service silently supports our communities – vended laundry. However, just like all forms of technology and appliances around to make our lives a bit easier, vended laundry is evolving. David Shulick explains more on this innovative laundry concept below.

According to industry experts, the popularity of vended laundry hubs seem to indicate that it is the next big vended laundry modernization. Possible reasons for the popularity of laundry hubs may be the advanced technology used, the wide range of people it can serve, and the community partnering that it strengthens.

Below, the main reasons why laundry hubs could quite possibly be the newest vended laundry trend is discussed.

Vended Laundry Hub Trends

Vended laundry hubs have gained immense popularity and are considered the next step in the evolution of the traditional vended laundry service. There are three primary reasons behind their widespread appeal, highlighting their significance in the industry.

Additionally, vended laundry hubs cater to a wide range of customers, making them highly inclusive and versatile.
Lastly, these hubs excel in community partnering. They understand the importance of fostering strong relationships with the communities they serve.

In the subsequent sections, an exploration of how the advanced technology, diverse customer base, and community partnerships have revolutionized the vended laundry landscape is explained.

Advanced Technology

Technology keeps moving forward, and the laundry business is no exception to this trend. First and foremost, these hubs boast advanced technology, incorporating cutting-edge features that enhance the laundry experience for users. From high-efficiency washers and dryers to smart payment systems, the integration of such technology sets them apart.

Wide Range of Customers

Whether it’s individuals seeking a convenient and efficient laundry solution, busy professionals with limited time, or even students looking for an accessible option, these hubs accommodate diverse needs. Their ability to serve a broad customer base has significantly contributed to their popularity.

Ultimately, more services are provided beyond self-service. This appeals to more demographics who with an interest in dropping off clothes to pick up at a later date/time.

Ultimately, this grows profits as the options have expanded.

Community Partnering

Finally, community partnering is one of the most significant reasons why laundry hubs are the way of the future. Timeless services are usually centered around timeless values, like helping one another and building community.

Laundry hub offers this in the form of giving back to communities. This is done through the network of owners and operators of laundry hubs which work together to supply charitable or generous events for the communities they’re stationed in.

By collaborating with local businesses, organizations, and even schools, these hubs establish themselves as more than just laundry facilities. They become integral parts of the community fabric, offering additional services, supporting local initiatives, and creating a sense of belonging.

This sense of community will last as long as technology itself, from generation to generation.

In Conclusion

The vended laundry industry’s newest innovation is laundry hubs. As these hubs continue to gain momentum and redefine the landscape of the industry, it is evident that they encapsulate innovation and convenience like never before.

As more and more individuals and communities embrace the concept of laundry hubs, they are here to stay, marking a significant leap forward in the evolution of vended laundry. So, whether you’re a busy professional seeking efficiency, a student in need of accessibility, or a community looking for a reliable partner, laundry hubs are poised to become the go-to choice, revolutionizing the way we approach laundry in the modern era.

Self-service laundromats have undergone an image change in recent years. Instead of run-down places to be endured, their popularity is on the rise.

Setting up a vended laundry business is simple, and although helpful, previous experience in the sector isn’t required to be successful. But what aspiring laundromat owners should consider is the ideal location for their store in a mature market, and any other additional services that they can provide to increase revenue.

David Shulick provides below some reasons why this business is so profitable, and how best to set up a laundry business for success.

Selling Points of a Vended Laundry Business

One of the main factors that make opening a laundromat so appealing is the fact that it is very easy to do. Maintenance costs can be low, and some people find that they learn how to repair the machines quite quickly. Labor costs are negligible, and aside from the machines, there is no store inventory to manage.

Laundromats are also a safe option. Unlike other businesses, they don’t see any seasonal declines in usage, as people will always need a way to wash and dry their clothes. According to a study by the Coin Laundry Association, over the span of 5 years, coin-operated laundry businesses had a 95% success rate.

Due to lower labor costs and requirements to operate a laundromat, business owners can dedicate less time to their stores. Many owners choose to see the enterprise as a part-time venture, allowing them to dedicate time to other projects. On the flip side, those with more than one location tend to devote themselves to the laundry business full-time.

Setting up a Laundromat

When looking to set up a coin-operated laundry business, a number of factors should be considered to ensure the best return on the investment.

Location

Entrepreneurs should look for a suitable location for their laundromat that ensures that they will have a reliable customer base. Locations that are surrounded by rental or student accommodation, apartment blocks, or low-income areas see more traffic. Often these types of properties don’t have the infrastructure to support a washer or dryer, or they have no outside space for a clothesline.

Potential laundry business owners should make sure that the unit they choose is at least 2,500 square feet in size. Accessibility features, such as easy access and nearby parking can also entice customers.

Payment Options

The most common type of laundromat setup uses coin-operated machines. However, there has been an increase in the number of cashless machines. Although more costly to set up, it can help to futureproof the business as people start to carry less cash with them and provide a hygienic payment option. Some businesses have a combination of coin and card-operated equipment to offer customers the choice.

Opening Times

Although laundromats don’t see seasonal drops in customers, there are certain times in the day when they are used more often than most.

Common times for people to wash their laundry are after work, or on a weekend, so staffing around this time is crucial to offer assistance and services. If the laundromat doesn’t have any additional services, they could facilitate this by operating 24/7.

Initial Expenditure and Licensing

The initial cost for starting in the vended laundry business varies depending upon whether an existing laundromat is being taken over, or a retail unit is being purposefully renovated into one. For an average size laundromat with no extra services or features, estimates can range between $200,000 and $500,000.

New laundromats will also have to consider the cost of permits and licenses. These include health and safety licenses, fire department permits, and sewer connection fees.

Potential Earnings from a Laundry Business

Despite the initial expenditure, laundromats can start to see a return on investment quite quickly.

One store’s annual gross income might range from $30,000 to $1 million, with the running costs and expenses ranging between 65 and 115 percent of the gross profits. For example, a laundry business that is turning over $50,000 a year nets $17,500 at best and loses $7,500 in the worst-case scenario.

As technology continues to advance, new and innovative laundry machines and dry-cleaning equipment have made the industry more competitive. The added pressure is pushing dry cleaners to differentiate their services and offer competitive pricing. However, by expanding their facilities with vended laundry, dry cleaners can increase business and overcome market pressures.

By adding vended laundry units to their existing storefronts, dry cleaners can attract more foot traffic and generate new customers while tapping into a revenue stream that can offset the cost of traditional dry cleaning. Furthermore, David Shulick says that expanding into the vended laundry industry can improve customer loyalty thanks to the added convenience and affordability of DIY laundry.

Vended Laundries Attract Customers Seeking Convenience

Dry cleaners that offer vended laundry services can benefit from the increased foot traffic and customer base that these units attract. Customers are always looking for new ways to save time and vended laundry provides a convenient solution for those who don’t have the time (or desire) to wash their clothes at home.

What’s more, customers can use vended laundry units at any time of day or night, making them a convenient option for those with busy schedules. And, thanks to the 24/7 availability of vended laundry, dry cleaners can generate revenue even when their storefront is closed.

Vended Laundry is an Affordable Option for Customers

In addition to being convenient, vended laundry is also an affordable option for customers. The DIY nature of vended laundry means that customers can save money on laundry services, which can entice them to use a dry cleaner’s vended laundry units over a more traditional laundromat.

Moreover, the lower prices associated with vended laundry can help dry cleaners attract price-conscious customers who may not have considered using their services in the past.

Vended Laundry Units Can Offset the Cost of Traditional Dry-Cleaning

By expanding their business to include vended laundry, dry cleaners can offset the cost of traditional dry cleaning. The initial investment in vended laundry units may be higher than the cost of traditional laundry machines, but the added revenue can quickly make up for the difference.

Furthermore, the lower cost of operating vended laundry units means that dry cleaners can pass the savings on to their customers, making their services even more competitive.

Expanding Into Vended Laundry Can Improve Customer Loyalty

In addition to generating new customers and revenue, expanding into vended laundry can also improve customer loyalty. The added convenience of vended laundry units can make dry cleaners’ existing customers even more likely to use their services. What’s more, the increased foot traffic that vended laundry units attract can lead to more customers using the dry cleaner’s traditional services.

Final Thoughts

The laundry industry is becoming increasingly competitive, and dry cleaners are feeling the pressure to differentiate their services. However, by expanding their business to include vended laundry, dry cleaners can increase business, generate new customers, and offset the cost of traditional dry cleaning. Thanks to the convenience and affordability of vended laundry, dry cleaners can improve customer loyalty and attract price-conscious customers.