A former nurse in Arizona is now the proud owner of a laundromat—and a seriously improved work-life balance.
“It’s the first time I’ve been able to be home for all the holidays, to have every weekend off,” she told CNBC (1). “I never have to go to a boss or a manager so I can go on a random trip home or something. So my freedom of time has been completely changed.”
Cami, 38, has six employees at her laundromat and brought in $475,000 in revenue in 2024, which, when costs are accounted for, resulted in a profit of nearly $120,000. This year, she is on track to earn $451,000 in revenue.
She also receives nearly $30,000 from subletting the space next door to a hair salon, also leveraging adjacent business opportunities to cover her building rental costs.
And as she noted, it’s not just about the financial opportunities. It’s also about a lifestyle change. She estimates she spends about five or six hours a week running the business, plus about 10 hours a week creating social media content about her business, which generates additional revenue through views and brand offers. She anticipates making about $200,000 by the end of this year from this income stream alone.
Cami offers her $66,000 salary, sharing that money should be used to pursue your passions outside of work instead of trying to build a career out of what you love. He now focuses his free time on spending time with his loved ones.
Do you want to be an entrepreneur? Here’s what you need to know about starting a small business and the financial risks involved in doing so, plus some tips on how to protect your finances when you make the leap into self-employment.
While Cami is now considering either retirement in a few years or a second laundry business, her success was almost overnight – and she cautions that many hours have gone into building the business to where it is now, expanding the business model and reinvesting in renovations and upgrades.
“Now, I’m only working maybe five or six hours a week. But I’m also hesitant to tell people that, because that wasn’t the case five years ago — four or three years ago. I was working a lot more hours trying to grow this business.”
For example, she worked close to full-time hours as a nurse and ran the laundromat at the same time from October 2020 until April 2023, when she was able to profit enough from the laundromat not only to gradually reduce her nursing hours, but to leave her nursing career entirely.
She also sold her house in April 2020 and moved into a rental to fund the down payment on her business, which cost her $300,000, using a significant portion of her personal savings and taking out loans for things like new washing machines and other equipment.
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This is a considerable risk for an entrepreneur, as most small businesses are doomed to fail within five years. In fact, according to data from the Bureau of Labor Statistics, between 20 and 24 percent of new businesses fail in the first year. After 10 years, only 34.7% of businesses are still in operation (2).
The average cost of running a business is also high. According to the American Small Business Network, small business owners can expect to spend an average of $40,000 in their first year of operation on a retail business (3). These costs can skyrocket if you need a physical location and if you need to hire employees. The US Small Business Administration offers a calculator to help you estimate startup costs (4).
Despite these challenges, a large number of Americans have caught the entrepreneurial bug, and an estimated 27% have a side hustle (5).
Cami was fortunate enough to take over an established business with a 20-year reputation. For other entrepreneurs, building a business from scratch may not be as easy (or profitable). For example, some of the top financial challenges include inconsistent cash flow, inability to find external financing or investment, and over-leveraging the business by trying to grow too fast (6).
“No parent wants to hear that their child isn’t beautiful, and no entrepreneur wants to hear that the opportunity isn’t perfect,” said Danna Greenberg, professor of organizational behavior at Babson College, in an interview with the Wall Street Journal (6).
However, becoming a successful entrepreneur means testing and understanding the market, including doing a lot of research to understand if your business is really viable.
Cami talked to a friend’s uncle who owned two laundromats himself, and he agreed to go over the numbers with her. Something he said stuck with her: “He said, ‘You know, if I could go back in time, I’d never go to college, I’d never get my master’s.’ He says, “All I would do is buy laundromats because laundromats scream money.”
Some of the questions you should consider include:
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Can you consistently expand and diversify your business to support growth without overextending yourself?
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Do you have multiple sources of cash flow to support the business if one source of cash fails?
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Have you considered legal compliance, including federal, state and local government regulations?
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Do you have a plan to find balance in your life? While passion can sustain you through 16-hour days in your first year, burnout is common among entrepreneurs. Find a way to prioritize your health and well-being first.
Also, consider that you need to protect your own finances before setting out on your own, especially if you have financial commitments such as dependents.
For entrepreneurs, in addition to understanding the legal and tax implications of your business, be sure to consider incorporating your business to separate business assets from your own personal assets as a way to limit your liability and create an insurance plan as another means of protecting your assets in the event of a lawsuit, accident, or unexpected loss (7).
Entrepreneurs should also focus their time on future-proofing their business. In Cami’s case, she says she listens to business podcasts, reads books and attends “at least one or two laundry room conferences a year.” And he managed to buy a new house in April 2023.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
@CNBCMakeIt (1); Bureau of Labor Statistics (2); Small Business Network of America (3); US Small Business Administration (4); Bank rate (5); Wall Street Journal (6); RBC (7)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
