This deal really blew my mind because there are 200 million people in Brazil, and having dryers in the house is very uncommon. Some people don't have the physical space to air dry because they live in apartment buildings and have no choice but to use a shared lavanderia (laundry mat).
This has created a linchpin in the consumer service economy for laundry services. Personally, I use laundry services in Brazil twice a week across different cities and neighborhoods, and they are almost always packed. So, I had to do my research on doing it myself.
I'm posting this because I'm personally going to do this in at least one location, with a maximum of 100 locations. Ideally, I'd like to start with 10.
Industry/Sector: Laundry and Dry Cleaning Services
Location: Brazil
Deal Type: Debt & Cash
Deal Opportunity
Deal Overview: Self Serving Laundry - 6 Units each locations
Market Opportunity:
200+ million people in Brazil
Very hard for Foreign capital to come into the market due to Bureaucracy. Need someone on the ground administratively & operationally
Growth Strategy:
Start at 10 locations and scale to 100 locations. Also find other "boring" services to cross sell to customer list
Financial Projections:
These are rough estimates (napkin math) and can be refined based on specific locations. These projections are intended to provide a general estimate only. Revenue projections are based on conservative data from local franchises, while expenses are derived from publicly available data.
Projected revenue: $360,000 (yearly)
CapEx: $300,000
Operational Expenses: $200,000 (yearly)
The numbers above are based on 10 locations with 6 units each. So here is breakdown of the Revenue:
(1) Location: $36,000 a year or $3,000 a month in revenue
(1) Machine: $6,000 a year or $500 a month or $16-17 a day in Revenue
Each machine charges $3.50-4.00
Each machine needs to run 5 times a day with 32-46 mins each run which means a use of 4 out of 24 hours a day (16.7% utilization)
