laundry as a business plan

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How to Start a Laundry Business: The Ultimate Step-by-Step Guide

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Laundry is an essential part of life for most people. As long as clean clothes are in demand, a laundry business will be too. After all, not everyone has their own washer and dryer, or the time (or desire) to wash their clothes themselves. This makes starting a business in the laundry industry a great option for budding entrepreneurs.

Of course, this all sounds good in theory, but what does it take to launch a business of your own? If you’re wondering how to start a laundry business, this guide is here to help.

How to start a laundry business in 10 steps

We’re going to cover all of the crucial first steps you need to take to get your laundry business started. You may be eager to open your doors as soon as possible, but taking the time to plan and set up your business through the proper channels can help ensure a successful start.

1. Decide what kind of laundry business you want to start

If you’re already thinking about starting a laundry business, you might know exactly what kind you want to open. But if you’re still exploring your options, we’ll go through a few of the laundry business formats you should consider before deciding.

Laundry businesses are most popular in areas with lots of apartment buildings or where people don’t necessarily have their own washing machines. You may choose to open a laundry business that allows customers to come in and do their laundry using your machines, or you can also offer wash and fold services, where customers can drop off their laundry, and then pick it up once it’s done (some laundry businesses also offer pickup and delivery.)

You might also decide to offer all of these services to your customers. Whichever you choose, you’ll need washing and drying machines and a location for the business. You'll want to keep all of this in mind, therefore, before you continue learning how to start a laundry business.

You also have the option of buying into a laundromat franchise , rather than building a new business from the ground up. There are pros and con s to this type of business model, but if this is your first business endeavor, it can be helpful to work within an already existing — and successful — framework that a franchise provides.

Ultimately, with all of these options, you’ll want to take the time to do your research before you decide which idea to move forward with. See what other types of laundry businesses are in the area, conduct a survey of local people, or see what type of demand there is for your possible business.

This information will help you decide if there is a need for a laundry business in the first place, as well as what type of laundromat would best serve your area.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Choose a business name

One of the most fun parts of learning how to start a laundry business is choosing the business name. Think of all the clever, catchy, and memorable names you can come up with — but make sure it’s also describing your business and is memorable and easy to pronounce.

Once you have some ideas, you can look up whether your business name is available online in most states. The secretary of state website will likely be the best resource for checking business name availability, though some states have a different agency handling this business process, such as the chamber of commerce department.

If your business name is available, you will likely have the option to reserve it for a set amount of time. Although this step isn’t required, you may choose to do so if you aren’t ready to register your business but want to ensure no other business takes your name.

3. Choose a business entity

Another decision about your laundry business that you’ll have to make early on is which business entity you’ll choose to legally structure your business. Choosing the right business entity is crucial, as it affects how you pay taxes, how much risk you’ll be exposed to, how you’ll organize your business, and more.

For example, if you decide to start your laundry business as a limited liability company, you’ll have liability protection for yourself and other business members. On the other hand, if you opt for something like a general partnership or sole proprietorship, you won’t have liability protection, but you also won’t have to register your business with the state.

There are several factors to consider in this step, so we recommend consulting a business attorney or tax professional to walk you through the process and help you choose the best entity for your unique business needs.

4. Write a business plan

Now that you have your business entity, business name and business idea in mind, you can get down to writing your business plan . Your business plan will be on the longer side, think 30 to 50 pages, and it will provide a comprehensive overview and actionable plan for taking your laundry business to a profitable endeavor.

You can either write your business plan on your own or you can use a business plan template to help streamline the process, but either way, there is some key information you should make sure to include in the plan.

Your business plan should include a summary and information about the type of business you want to start, including your structure and any other key employees (besides yourself). It should also include a market analysis. This analysis should show that there is a high demand in your area for a laundry business, as well as outline any competitors, who your target customer is, and more.

Your plan should also include financial information, detail where you’re getting your startup capital, whether or not you’ll be seeking any extra funding, and projections for when you think you’ll actually start making money with your new laundry business.

5. Register your business and get an EIN

The next step involved in learning how to start a laundry business? Although not all businesses have to register with the state (sole proprietorships and general partnerships likely will not), most will need to take this step in order to legally operate. Some states allow businesses to register online, typically through the secretary of state or chamber of commerce website, but other states require businesses to register in person with paper documents. It’s always wise to consult a business lawyer who can help you keep track of the documents and registrations your business needs to file.

One thing to keep in mind if you choose a business entity that doesn't require you to register with the state, you may still want to file a DBA or “doing business as” to operate your business under a name other than your legal name (which is the default).

In addition, it's also a good idea for most businesses to apply for an employer identification number or an EIN. This number is helpful for businesses when applying for a bank account, filing taxes, and more. It’s sometimes referred to as a business tax ID number.

If you plan to hire employees, this is a required step, but even if you’re not at that stage yet, obtaining an EIN has several business benefits. You can apply for your EIN through the IRS website.

6. Get the proper permits and licenses

The licenses and permits you need to run your laundry business will vary depending on the state where you’ll be operating. You may need to get a more general business license in addition to more specific licenses, such as a health department license or water pollution control permit .

Some states and cities even have specific laws around laundry facilities and businesses that provide laundry services. If you plan to do pickup and delivery services too, there are other licenses you’ll need, pertaining to your business vehicles.

Overall, this is another step where it would highly benefit you to consult a business attorney, as licensing rules vary largely depending on the state, city, or county.

7. Find a location

At this point, you've completed much of the behind-the-scenes work required in learning how to start a laundry business. And, in doing so, you’ve likely done some preliminary work on this next step, especially during your market analysis.

This being said, however, it’s now time to get serious about finding the location for your laundry business. Although some smaller operations may be able to be run out of a home (if you’re only doing drop-off/pickup service, for instance), you’ll likely want to find a commercial space.

Keep in mind, a laundry business will require specific plumbing and water line hookups — or the structural bones for these to be added — which will come at a cost. Just how much it costs to start up a laundry business will vary depending on several factors, but know that your physical space will likely be a large investment.

When it comes down to it, though, finding the right space is important, but equally as important is making sure it’s in the right location. In fact, finding a location with a demonstrated need for a laundromat business is probably the most important step of them all.

Renters, for example, generally represent a large portion of laundromat clients, so you might want to consider a location near rental units that do not have washers and dryers built into them, or college students living off-campus. You also want to make sure you’re conveniently located near your target audience. In fact, the closer you are to your customers, the better. Depending on the location, this could mean within walking distance.

Security should also be taken into account. Laundromats are susceptible to robberies and other types of crime, which is why ideally your laundromat should be located in a highly visible, safe area.

8. Get the proper equipment

With your space secured, you next need to turn your attention to buying the equipment to make your laundry business operational. Depending on the size of your business, you may need over 20 washing machines and 20 dryers.

Some other essential laundromat equipment (besides the washers and dryers themselves) to get are:

Change machines.

Credit card payment system.

Laundry carts.

Oversized washing machines.

Security cameras.

Soap dispensers.

Vending machines.

Although most of these things on the list speak for themselves, it's important to remember to have plenty of change machines, as not all of your customers will be carrying credit or debit cards with them.

In addition, you'll want to keep in mind that laundry equipment will most likely be your biggest expense, aside from rent. On average, laundry machines can cost you anywhere from $100,000 to $400,000. While writing your business plan, therefore, you should have done some calculations for how much you expect to spend on these initial startup costs, and now it’s time to find a way to finance them.

Although new businesses have a more difficult time qualifying for traditional business loans, one type of funding that can be particularly useful for laundry businesses is equipment financing . You’ll take your quote for the machines you need directly to a lender who then funds the purchase. You pay off the loan with regular payments, and the machines serve as collateral for the loan, making lenders more willing to work with less-qualified borrowers.

9. Open a business bank account

You’re nearly ready to open the doors of your laundry business, but before you do, one more crucial step is to set up your business’s financial accounts. First, you’ll need to open a business checking account so you can separate your business and personal finances. This is important for many reasons, including simplifying your taxes and helping to protect your personal assets if your business is the recipient of legal action.

Having this account completely separate from your personal bank account can also help establish and boost your business credit score, which will help you qualify for more attractive funding options if and when you decide to expand your business in the future.

You’ll also want a business credit card to help keep your spending separate. Although there are many great options out there, a 0% introductory APR business card can be especially useful for startup businesses, as the intro period can serve as an interest-free loan of sorts. Just make sure your balance is paid off before the offer period ends and a variable APR sets in.

Start Your Dream Business

10. Market your laundromat

Finally, you've reached the last step in learning how to start a laundry business. At this point, you're ready to welcome customers and start drawing people to your business.

A great way to get people coming through your doors is by marketing your business around areas where your target customers like to frequent. For instance, if a sizable portion of your customers is college students, you may want to pass out flyers at popular coffee shops or college bars.

Following SEO best practices is also a definite must, as nowadays many people search online to find new businesses. Make sure your business is easy to find online by creating a user-friendly website, which should list basic business information like your business hours, your business address, and contact information.

You'll also want to ensure that your business develops a strong reputation. Respond to all of your customer reviews on sites such as Yelp and Google Business, no matter how positive or negative the feedback is, as this will only serve to boost your reputation.

Once you've gotten the word out there, you can think about different ways to retain customers. Some laundromats offer free WiFi or install televisions to keep customers entertained while they wait for their laundry to finish.

On a similar note...

500+ business plans and financial models

Laundry Shop Business Plan: Complete Guide

• January 31, 2023

👇 Check all our resources on laundry shops 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your laundry shop, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your business plan for a laundromat or a dry cleaning business. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary is one of the most important elements of your laundry shop business plan. It gives everyone an overview of your business, including the potential lenders and investors, so it’s important to get all the details right.

An executive summary is simply a summary of your business plan, highlighting all the important sections and the funding ask.

Why you need a business plan for a laundry shop

The only reason you would want a business plan is to get a clear roadmap when executing your business strategies from start to finish. This is important when considering a business as competitive as a laundromat , where a lack of attention to minor detail could have a massive impact on the revenue potential. Ideally, your business plan should help you achieve one of the following objectives;

• Help secure funding from banks or other lenders (think about a SBA loan ).
• Get financing from private investors (angel investors, private funds, etc.)
• Obtain a public or private grant

How to write an executive summary for a laundry shop

The structure of any executive summary is always the same, same goes for laundry shops.

Business Overview

What’s your business name? What is your business model? Do you operate a dry cleaning or a laundromat? This section should contain the answers to all these questions and more.

Note that entrepreneurs have 2 business models to choose from when starting a laundry shop. You may want to purchase a franchise or instead open an independent shop. This needs to be crystal clear from the outset in this section.

Other important elements to consider here include the services you plan to offer, the location of your shop and the legal structure of your company.

Market analysis

In this section, you should summarise the market research you would have conducted as part of your business plan. Indeed, conducting a proper market analysis will give you an accurate estimation of the total number of customers that may visit your shop every month.

For example, do you have a clear picture of the exact number of laundry shops in your area? If you are launching a laundry shop within a busy neighborhood, then what’s the competition like?

Other important elements that will come up at this point include the region’s demography and the demand for laundry services, ultimately determining your pricing strategy . 

Management & People

Expand here on the management team and their experience in the industry. Also, make sure you have a clear organizational structure with the different teams and their reporting lines.

Financial Plan

How much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits ? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit

Funding Ask

There’s no better way to conclude the executive summary than by laying out the objective of your business plan: to raise funding from investors, banks or to obtain a grant.

Therefore, answer the following questions here: What loan/investment/grant are you seeking? How much do you need? How long will this last?

2. Laundry Shop Business Overview

A business overview is exactly what it sounds like: a description of your company and what it offers to your target customers. For a laundry shop, the focus will be on your specific services, how every product is priced, and who your target market is.

Here are the different sub-sections you should cover here:

As part of the business overview section, describe the history of your laundry shop, covering your interest and reason for starting the business today. Explaining the rationale and the “why you” to investors goes a long way.

For example, if your analysis showed that most laundry shops in the region welcome customers to come in for their cleaning services, you could offer pickup and delivery services instead, to stand out from the crowd.

Business Model

The business model answers specific questions about your laundry shop. For instance, will you purchase an already established franchise or start from scratch? Also, are you opening an independent store or opting for a partnership?  

Laundry Services and Products 

There’s no limit to the number of services and products you can offer at your laundry shop. However, you need a clear strategy to truly stand out from the crowd and target the desired market base. Most importantly, you need to show the potential investors why they should trust your business model and nothing else. 

A standard laundry shop in the US will almost certainly focus on washing, drying, and folding services. However, you can take it a notch higher by offering additional services like dry cleaning, ironing, and stain treatment. Be clear if you cater to a specific target market like colleges, toddlers (diaper services), restaurants, animal shelters, inns, or hospitals. 

Pricing Strategy

What’s a fair price for laundry services? Such questions are best answered after assessing your target audience and other important details related to the laundry shop business. Of course, you don’t have to go overboard when setting your prices for a new start-up. 

On average, laundry services cost about $2.00 per load in most US states. So, this could be a good starting point as you continue to explore the market to determine the most reasonable prices for your audience. 

Generally, the cost of laundry services depend on the location and quality of services. While most laundry services that allow clients to drop off their laundry for cleaning charge by weight, some will help customers pick the desired services from the menu.

Target Audience

For a laundry shop business, it’s important to find out if the local area even needs your services in the first place. And even after identifying an obvious market gap, you will want to dig deeper to find out what the customers will appreciate most about your business and why they need laundry services. 

Knowing your target market not only helps you attract and retain new clients but also shows the lenders the viability of your business model. 

Legal Structure

The legal structure is the last element you may want to include in your laundry shop’s business overview section. Most laundry shops in the US are operating as a limited liability company (LLC). 

But as you may already know, the legal structure is never a one-size-fits-all affair. So choose a structure that matches your needs between a corporation or a partnership.

Laundromat + Dry Cleaning Financial Model

Download an expert-built 5-year Excel financial model for your business plan

3. Laundry Shop Market Analysis

A proper market analysis is another very important section in your laundry shop business plan, helping you showcase your wealth of knowledge about the market. And that’s exactly what many investors will want to see. 

For a laundry business, setting up your shop in a busy location with lots of apartments might be a goldmine, helping you reach out to a large audience in little to no time. Unless you want to spend a couple of hours on the road traveling to offer your pick and delivery services, you will want your laundry shop to be as close to the target market as possible. 

Laundry Shop Market Trends

As part of a comprehensive market analysis, ensure you understand the market trends before jumping on the laundry shop train. An overview of the current market size and a prediction of the future growth opportunities should help you make clear business decisions. 

How big is the laundry industry in the US?

It’s always good to present a few numbers for the US market. For example, you could use the US market size of $10 billion in 2020, expected to grow by 4% annually from 2021 to 2028.

How big is the laundry industry in your area?

However, there are good chances you will want to be as specific as possible by restricting your analysis where you plan to operate instead. Indeed, whilst the US market for laundry facilities might be growing overall for certain reasons, it might not be the case at all in your area.

This can be as easy as listing all the different laundry shops (laundromats, online on-demand delivery / pickup laundry, dry cleaners) in your area.

How fast is the laundry industry growing in your city?

Now let’s look at growth.

Here, you can use the number of laundry shops in your city. For example, assuming there were 20 shops in your city in 2020 and 24 in 2022, we can assume your market is growing at +10% per year.

Laundry Shop Competitor Analysis

A healthy competition puts you on your toes, ensuring you work hard to improve your services and never stay in your comfort zone. However, competition only makes sense if you are smart enough to understand your competitors’ biggest deficiencies.

After finding out the number of laundry shops in the area, some of your biggest competitors in the field, and the services they offer, you will want to go a step higher to evaluate other vital elements. 

For example, you may want to know how much your competitors charge for the same laundry services, the average number of employees and their salaries, and the estimated number of customers they serve every month. The data you obtain from such analyses should help you make smart decisions, fully motivated to meet your clients’ expectations. 

Laundry Shop Customer Analysis

Now that you know the market trends and the level of competition, who exactly are you selling to? This is more or less the same as the target audience, and everything still hinges on the nature of the individuals you intend to serve. 

You can deduce this information from the competitive analysis , taking note of the need for laundry services in the area and the region’s demographic pattern. Find out if the local community appreciates online booking because that will force you to design a reliable website with a user-friendly booking section. 

4. Sales & Marketing Strategy

The sales and marketing strategy section of your business plan should include information on how you will attract new customers to your laundry shop.

Keep it simple by answering specific questions about your business. For example, what marketing channels are best suited to your target audience? How will you know that your marketing strategy is working? What’s the estimated marketing budget? And do you plan to include incentives like bonuses and offers to attract new clients within the first few days/weeks of operation? 

Laundry Shop Marketing Channels

You will never run out of options when it comes to the marketing channels for a laundry shop business. The only question is whether the chosen strategy suits your target market.

Ideally, the chosen marketing channel should be creatively designed to deliver results while helping you outshine some of your biggest competitors in the field. And there are numerous options, including;

• Social media ads (Facebook, Instagram)
• Local pay-per-click campaigns (e.g. Google Ads )
• Website 
• Partnerships (with corporates, hotels, fitness clubs, etc.)

What Are Your Unique Selling Points (USP)?

A unique selling point explains how you stand out from the competition. This section includes a specific feature that customers can only find in your business and should be communicated concisely. 

Your USPs separate your business from competitors, and help customers make a decision between one laundry shop and another.

Of course, a unique selling point varies from one company to another, but some of the key factors that should guide your decision include;

• Price : you may be cheaper vs. your competitors
• Location : your laundry shop might be closer to your target customers
• Quality : you offer higher-quality services and/or faster turnaround
• Services : you might offer an online booking service with the ability for customers to order pickup and delivery so they don’t have to leave the comfort of their home

5. Management & Organizational Structure

The 5th section of your laundry shop business plan should be about people. It should include 2 main elements:

• The management team and their experience / track record
• The organizational structure: what are the different teams and who reports to whom?

Here you should list all the management roles in your company. Of course, the amount of details you need to include here varies depending on the size of your company. A franchise business with a number of laundromats would need more detail vs. an independent laundromat.

If you plan on running your business independently, you may write a short paragraph explaining who are the co-founders and/or senior managers (if there are any in addition to yourself). It’s important to highlight their experience in the industry and previous relevant professional experiences.

Organizational structure for a laundry shop

No matter how many leadership roles there are, you should now explain how you intend to run the company from a management standpoint.

What are the different teams (management, operations, marketing, etc.)? Note that you should include these details even if you haven’t hired anyone yet. It will show lenders and investors that you have a solid hiring and management plan to run the business successfully.

A great addition here is to add an organizational chart that list all the roles, from Directors to managers, key supervisory roles, employees and contractors. Make sure to highlight with reporting lines who manages/supervises whom.

6. Laundry Shop Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your laundry shop is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to open a new laundromat , purchase new washing machines, renovate your facilities, etc.)
• The 5-year financial projections

Historical Financials (if any)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project. For a laundry shop, startup costs are all the expenses you incur before you open the space to your customers.

These expenses typically are:

• The lease deposit for the space you rent (if your decide to rent)
• The loan downpayment for the purchase price of the building (if you decide to buy with a mortgage)
• The design and renovation of the existing facilities
• The equipment (washers, dryers, coin machine, etc.)

The total startup costs depend on a number of factors, such as the type of business model (laundromat vs. dry cleaning), the quality of the building (whether there is a lot or remodeling to do or not), the number and quality of the machines, etc.

As an example, it costs on average $151,000 to $490,000 to start a laundromat with 15 front-loaders and 10 dryers. For more information on how much it costs to open and run a laundry shop, read our complete guide here .

Laundry Shop 5-Year Financial Projections

In addition to startup costs, you will now need to build a solid 5-year financial model as part of your laundry shop business plan.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions and benchmarks used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even ?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 20%) on your margins?
• What is your average customer acquisition cost (CAC) ?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers as a small change in these assumptions will have a big impact on your revenues.

When it comes to the costs, consider both startup and operating costs . For more information, read our complete guide here .

7. Funding Ask

This is the last section of your laundry shop business plan. Now that we have explained what your laundry shop is about, what’s your strategy, where you go and how you get there, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any laundry shop business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in buying the real estate? Or will it cover mostly the cost for the acquisition of the machines?

Those are very important financial questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our laundry shop financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Top 10 Laundry Business Plan Templates With Examples and Samples

Samradni Pradhan

The idea of laundry service is a product of Western culture, where customers go to a store and wash their clothes using a washing machine and detergent. When a single washer doesn't work, laundry services clean the fabric on a larger scale. Hotels, restaurants, hospitals, and other locations that need regular fabric cleaning extensively use these services.

Like any other business, a laundry service needs a thorough business plan that includes the objectives and a strategy for achieving them. This plan will encompass operational details, staffing needs, financial evaluation, market analysis, customer assessment, and more. It aims to assess the firm's feasibility comprehensively. A well-executed business plan ppt will aid entrepreneurs in securing capital and loans for maintenance, expansion, and growth.

This blog will discuss the best laundry business plan templates for your company.

Best Laundry Business Plan Templates

Table of contents, 1. executive summary, 2. company overview, 3. industry analysis, 4. customer analysis, 5. competitor analysis, 6. swot analysis, 7. porter's framework, 8. marketing plan, 9. operational plan, 10. financial plan.

Getting clean clothes is only one aspect of laundry – the other is improving the overall service. Furthermore, when launching a laundry business, many possibilities are challenging to track. Our templates are helpful in this situation.

Using our comprehensive business plan template gives your business ideas a canvas and a notebook. These templates were created explicitly with the needs of a laundry and dry-cleaning business plan in mind. This blog will cover details on the top 10 pages of the complete deck. After downloading, you will get 65-page Doc, PDF, and XLS files.

An executive summary should highlight your laundry business's distinctive value proposition, mission, and vision. Investors can swiftly determine the organization's viability by viewing your fundamental goals and essential tactics.

In our Executive Summary section, you will get templates for:

1.1 The Quick Pitch: Provide an impressive and brief introduction, highlighting the key characteristics and value propositions that make your laundry business stand out.

1.2 The Entity Profile: Create an easy-to-understand visual representation of your business structure and unique brand strategically designed to capture the attention of investors and partners.

Download this business plan

(Looking for a specific commercial business plan for your laundry services, look no further than our business plan ! Commercialize your services the right way)

Download this presentation

You may inspire trust in potential investors by clearly representing your company's objectives, culture, and long-term goals. This section is an opportunity to demonstrate your enthusiasm and dedication, an aspect that lures investors who share your values and vision.

In our Company Overview section, you will get templates for:

2.1 Vision and Mission: Create a compelling mission and vision statement to lead your laundry business to success.

2.2 Company Goals and Objectives: Understand exactly what you want to accomplish with your laundry business, creating a transparent and inspirational roadmap to success.

2.3 Start-up Summary: Provide a glimpse into your laundry business’s history, revealing how it started, how it has been structured, the use of coin-operated machines , and fundamental elements forming the foundation for your creative process.

2.4 Market Gap Analysis and Business Statement: Unlock untold potential in the laundry industry and showcase your unique business brand identity, positioning your brand as a leader.

2.5 Services Portfolio: Showcase a wide range of high-end laundry services .

2.6 Key Success Factors: Identify the key elements defining your laundry business strategy, paving the way to success in design and aesthetics.

(Given the growth of on-demand laundry services, your interest may be piqued to explore our business plan designed especially for those needs, download it right away)

The Industry Analysis section provides an in-depth analysis of the laundry industry’s current state and trends. Investors are looking for high-growth businesses to invest in. This section provides insights into the market size, key industry trends, and new opportunities. It places your laundry business in a position to understand the dynamics of the industry, making it more appealing to investors looking for growth industries to invest in.

In our Industry Analysis section, you will get templates for:

3.1 Market Analysis: Dig deep into the world of laundry, discovering hidden gems and uncovering industry leaders that will shape your business for years.

3.2 Market Trends Tracking: Stay ahead of the rest by keeping an eye on the latest trends to capture the attention of today’s customers.

3.3 Major Challenges and Solutions: Fearlessly take on industry challenges, creating cutting-edge solutions that ensure continuous growth for your laundry business.

3.4 Growth Drivers Identification: Develop strategic plans and identify the crucial factors that will drive your laundry brand to rapid growth and long-term success.

3.5 Geographical Market Analysis: Customise your strategy to the regions in your target market, allowing for smooth growth that aligns with regional preferences and meets unique needs.

(If your business caters to fresh laundry services, we have just the apt resource for you to explore! Download our fresh laundry services business plan template today!)

Understanding your customers is crucial to attracting investors to your business. In this section, demonstrate your understanding of your customers, including their needs, preferences, and characteristics. Investors want to know that you've figured out what kind of market you're in and develop strategies to attract and retain customers.

Our Customer Analysis section offers comprehensive templates for:

4.1 Target Market Definition: Create a crystal clear view of the customer or business segments in which your laundry services excel, ensuring a precise and measurable market approach.

4.2 Buyer Persona Development: Build a detailed profile of your perfect customer, from age and gender to preferences and behaviour. This will help you personalize your services precisely, skillfully meeting your customer’s needs.

4.3 Market Sizing Analysis: Understand the size of your laundry market, calculate the market share that your brand can grab, and paint a picture of the opportunities that are waiting for you in your business environment.

Investors love businesses well-versed in competition and know laundry care growth statistics . This section will give you insights into your competition's strengths and weaknesses. This will help investors evaluate your business’s competitive edge. 

In our Competitor Analysis section, we provide templates for:

5.1 Major Players: Identify and analyze the top competitors and key players driving the laundry market in your area.

5.2 Attributes Comparison: Conduct in-depth research, creating meaningful comparisons of the key characteristics and features that distinguish different laundry products and services on the market, allowing you to position your products strategically.

A SWOT, short for Strengths, Weaknesses, Opportunities, and Threats- Analysis is a must-have tool if you’re looking to self-assess your business. It helps investors understand your laundry business’s strong suits and weak spots and its external opportunities and threats. On this page, you’ll see how to identify and mitigate your business’s risks while taking advantage of its strengths. This will make your business more attractive to risk-averse investors.

Porter’s Framework looks at the competitive forces in your industry. Investors want to know how your laundry business is positioned in the market and its resilience to competitive pressures. Showcasing your competitive strategies and market positioning can draw in investors looking for businesses with a strong market presence and a long-term competitive advantage.

The Marketing Plan includes information about how to attract and engage customers. Investors are looking for a comprehensive marketing plan that can aid with brand development and building a customer base. A successful marketing plan appeals to individuals and investors who recognize the importance of effective marketing for business growth.

In our Marketing Plan section, we provide templates for:

8.1 Sales Strategy: Create a custom sales plan carefully crafted to exceed your laundry business’s financial goals and aspirations.

8.2 Promotional Strategy: Shine a bright light on your marketing and promotion strategies, creating excitement and a lasting legacy for your laundry brand.

8.3 Pricing Strategy: Discover the secret to your pricing strategy that seamlessly combines profitability and unmatched competitiveness, setting the benchmark in the laundry industry.

8.4 Sales Funnel Optimization: Navigate the captivating experience from discovery to customer satisfaction with the laundromat's business growth . Optimize every sales funnel stage to maximize efficiency and delight in your laundry experience.

On the Operational Plan page, you can outline your business’s daily operations, including personnel, operations, and technology. Having a well-thought-out operational plan helps investors trust that your business will meet its goals and continue to grow.

In our Operational Plan section, we provide templates for:

9.1 Retail Selling Strategy: Lead the way to retail success with a strategic plan for selling your laundry refurbishment, demonstrating your sales skills and tactical thinking.

9.2 E-commerce Sales Strategy: Get ahead of the competition with a comprehensive plan and budget to take over the online market with your unique laundry services.

9.3 Milestones and Achievements: Brighten up your laundry business’s journey by highlighting the critical turning points and impressive successes.

The Financial Plan is essential for investors as it gives them a better understanding of your laundry project management finances. This section guides them in estimating their potential returns on investment. 

In our Financial Plan section, we provide templates for:

10.1 Financial Assumptions: Turn your business goals into a plan that will help shape the financials of your laundry business with professional ironing and folding .

10.2 Revenue Model and Sales Forecast: Show off how your laundry business makes money and how it can grow.

10.3 Break-Even Analysis: Getting to the bottom of what's holding your laundry business back from breaking even is a big step to making money.

10.4 Projected Profit and Loss Account: Draw a clear picture of what your laundry business can do financially, how much money you can make, how much you need to spend, and how much you can expect to make.

10.5 Projected Cash Flow Statement: Make sure your laundry business runs smoothly by observing how much money you expect to make.

10.6 Projected Balance Sheet: Get a complete picture of what your laundry business is expected to make, what it will owe, and what it's worth. That way, you can ensure your finances are as transparent as possible.

10.7 Scenario Analysis: Explore different scenarios to see how different conditions and risks could affect the financial strength of your laundry business.

10.8 DCF Valuation: Using discounted cash flow (DCF) analysis, you can determine how much your business is worth today in the laundry industry.

We have so much more to offer

We hope this blog has given you an idea of the amazing content you could gain from this business plan. But this is just the beginning. Upon downloading this business plan, you'll receive all 65 pages and all the valuable content it contains. Starting a laundry business is no easy feat, but we can simplify it. You can download the entire business plan in an easy-to-edit PowerPoint to modify it per your business’s requirements.

FAQs on Laundry Business Plan

1. what is a laundry business plan.

A laundry business plan is a thorough document outlining the plans and goals for starting and running a profitable business. It includes essential elements, including market analysis, financial estimates, marketing plans, and operational strategies. It acts as a road map for business owners, guiding them through the difficulties of the laundry sector and, if necessary, obtaining capital.

2. How profitable is a laundry business?

A laundry business's profitability can vary significantly based on variables including location, pricing, and services provided. A successful laundry operation can make a profit, but success demands careful planning, effective management, and efficient operations.

3. How do I start a laundry business plan?

A laundry business strategy contains the following steps:

• Examine the market and rivalries.
• Identify your offerings and target market.
• Construct a thorough financial plan.
• Create operational and marketing plans.
• Describe your objectives and goals.
• Seek for expert guidance if required.

4. What are the 3 types of laundry business?

There are three primary categories of launderettes:

• Coin-operated machines are used by patrons in self-service launderettes to wash and dry their clothing.
• Laundries that provide complete service, including washing, drying, folding, and ironing.
• Commercial laundry services: Taking care of significant volumes of uniforms and linens for corporations, hotels, and healthcare facilities.

5. What are the risks in the laundry business?

The following are typical risks in the laundry industry: - Equipment failures and maintenance expenditures.

• Variable utility costs.
• The opposition from competing launderettes.
• Changes in market demand.
• Adherence to regulations and environmental issues.
• Difficulties in managing and training employees.
• Economic downturns impact consumer spending.

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Laundry Business

Back to All Business Ideas

How to Start a Laundry Business

Written by: Esther Strauss

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 25, 2021 Updated on March 13, 2024

Investment range

$21,550 - $211,100

Revenue potential

$30,000 - $200,000 p.a

Time to build

3 - 6 months

Profit potential

$10,000 - $30,000 p.a

Industry trend

Laundry is one of those necessary household chores. People rarely want to do it themselves, but they always need clean clothes, which is what makes starting a laundry business a good option. They tend to have high success rates and solid profit margins.

But starting a business is never easy. Thankfully, you’ve come to the right place, as this step-by-step guide will walk you through everything you need to know to develop and launch a successful laundry business.

Let’s get washing!

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business is Right for You

Understanding the laundry industry is the first step you should take in starting your laundry business. First, let’s see what types of businesses you can open. 

Pros and cons

To give you a balanced view of the industry, here are the pros and cons of a laundry business: 

• Reliable, proven business model
• Clothes always need cleaning, rain or shine 
• Simple work; no training or certification required 
• High utility costs
• Large initial investment  
• Machine maintenance can be demanding

Laundry industry trends

The US is home to about 35,000 laundromats, which generate some $5 billion in annual revenue, according to industry expert Martin Ray Laundry Systems.(( https://martinray.com/p-33942-key-statistics-laundromat-investors-should-know.html#:~:text=The%20laundromat%20industry%20sees%20about,between%2020%2D35%25%20ROI. )) With an impressive 95% success rate, laundry businesses boast an average return on investment of nearly 30%.

Dry cleaning is doing particularly well in recent years. Despite the recent pandemic-driven slowdown, market analyst IBISWorld expects the US dry cleaning industry to grow nearly 6% in 2021.(( https://www.ibisworld.com/industry-statistics/market-size/dry-cleaners-united-states/ ))

Industry size and growth

• Industry size and past growth – The US laundry facilities and dry-cleaning services market was valued at more than $10 billion in 2020(( https://www.researchandmarkets.com/reports/4514502/u-s-laundry-facilities-and-dry-cleaning-services )), after posting steady growth from a little over $8 billion in 2016.((https://www.grandviewresearch.com/industry-analysis/dry-cleaning-laundry-services-market))
• Growth forecast – The market is expected to grow 4% annually through 2028.(( https://www.researchandmarkets.com/reports/4514502/u-s-laundry-facilities-and-dry-cleaning-services )) 
• Number of businesses – The US is home to about 35,000 laundromats, according to industry expert Martin Ray Laundry Systems(( https://martinray.com/p-33942-key-statistics-laundromat-investors-should-know.html#:~:text=The%20laundromat%20industry%20sees%20about,between%2020%2D35%25%20ROI )), and more than 14,000 dry cleaners.((https://www.ibisworld.com/industry-statistics/number-of-businesses/dry-cleaners-united-states/))

Trends and challenges

These are among the latest trends in laundry:

• Shift toward technologically advanced machines that accept all forms of payment (credit, debit, cash, coins, loyalty cards, and mobile payments) and offer easy-to-use digital interfaces
• Growing demand for laundry pickup and delivery services

The industry faces some challenges such as:

• Stiff competition
• High startup cost
• Long operating hours
• Risk of accidents

How much does it cost to start a laundry business?

Costs vary, but if you’re starting a small wash-and-fold operation, you’d need as little as $20,000, while larger operations could cost $200,000 or more. The average startup investment for a laundry is $40,000.

Laundromats and dry cleaners, on the other hand, can cost $500,000 or more due to the significant equipment requirements. Here’s a cost breakdown for a basic wash-and-fold laundry, excluding the cost of the commercial space or building:

How much can you earn from a laundry business?

Laundromats generate revenue anywhere between $30,000 to $1 million each year, with profit margins running from 15% to 35%. Industry analyst AmericanDryCleaner.com estimates that most small dry cleaners generate about $200,000 a year in revenue.

The potential earnings vary widely, so it’s up to you to make your business a success.

In your first year or two, you could set up a basic wash and fold laundry with five washers and five dryers. If you could serve 20 clients a day and each spends $2 to wash and dry a load of laundry, you’ll be earning nearly $30,000 in annual revenue and more than $10,000 in profit assuming a 35% margin. 

As you gain more clients and add more machines, your annual revenue could climb to $200,000 a year. At this stage, you’d rent a bigger commercial space and hire staff, reducing your profit margin to 15% and a profit of $30,000.

What barriers to entry are there?

While laundry businesses are simple to operate, there are a few barriers to entry to be aware of: 

• Mature, competitive market
• Startup costs are high
• Bureaucratic hoops to jump through, licensing

Related Business Ideas

How to Start a Dry Cleaning Business

How to Start a Laundromat Business

How to Start a Carpet Cleaning Business

Step by Step Business values real-life experience above all. Through our Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

Dive into our interview with Mort Fertel, CEO of Poplin , to uncover key strategies for building a thriving laundry service.

Step 2: Hone Your Idea

Now that you’re up to date with the laundry industry let’s start refining your business idea.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

A great part about laundry businesses is that your main competition will likely only be in your local area. This makes it easy to assess what your competitors are doing and keep a close eye on any changes to their business. 

Before you create your offering, though, you should do some research to scope out the strengths and weaknesses of your competition. This will help you to create a better experience for your customers.

Here are some questions to ask about your competition: 

• What do they offer?
• Why do people use their services?
• Who are they targeting? 
• Do they have a unique selling point?

What? Determine your products or services

Choosing a niche is important in the beginning. It will help you streamline your business processes, create effective marketing campaigns and start the process of finding who your target market should be. 

While it’s possible to offer all the niche services under one roof, it’s a good idea to specialize in one service before branching out. This will save you money and help you make your first dollar faster. So now’s the time to do some deeper research into which niche will best fit your current situation and market needs. 

There are three main types of laundry businesses — wash and fold, laundromat, and dry cleaner.

Wash-and-fold laundries offer busy customers a convenient drop-off service, accepting dirty clothes and having them cleaned and folded the next day and ready for pick-up. 

A laundromat is a storefront offering washing machines and dryers for customers to use by paying coins, cash, debit, credit or mobile pay. Requires minimal oversight as customers do their laundry themselves, and is cheaper than other options. Some laundromats also offer wash-and-fold services. 

Dry cleaning is a specialized way of cleaning clothes without water so as to avoid shrinkage. Most people use dry cleaners for delicate garments such as suits or fancy dresses, but dry cleaning is suitable for any garment. It’s also more expensive than a traditional wash.

How much should you charge for laundry services?

How much you charge will depend on what your costs are and the type of services you offer. To find a starting point, you can look at what your competitors charge for their various services. 

But at the end of the day, your prices are up to you. As long as your margin is acceptable to you, that’s a good place to start. You can always adjust based on demand. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Once you’ve got your niche, you should decide who your target market will be within that niche. For example, if you notice that local university dormitories lack laundry services—or have subpar services—you can make students your target market.

Once you know who your target market is, you’ll be able to craft an experience that’s exactly what they’re looking for. This is what will differentiate you from your competition.

Where? Choose your laundry location

When it comes to opening a laundry business, your location will be determined by your target market. If you want to target university students, then you’ll need to have your store near university dormitories or places that they frequent. For example, you could choose a location that is close to many student apartments, or you could open a store in the local shopping village. 

You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Laundry Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “laundry” or “wash”, boosts SEO
• Choose a name that allows for expansion: “SpinCycle Laundry Solutions” over “Commercial Laundry Solutions”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief overview of your laundry business, highlighting its key aspects and objectives.
• Business Overview: An introduction to your laundry business, including its name, location, and a basic description.
• Product and Services: Explanation of the laundry services you offer, such as dry cleaning, washing, and folding.
• Market Analysis: An examination of the laundry industry in your area, including potential customer segments and market trends.
• Competitive Analysis: An evaluation of your laundry business’s competitors and their strengths and weaknesses.
• Sales and Marketing: Strategies for promoting and selling your laundry services, including pricing, advertising, and customer acquisition.
• Management Team: Profiles of key individuals involved in running the laundry business, their roles, and relevant experience.
• Operations Plan: Details about the day-to-day operations, including equipment, suppliers, and processes.
• Financial Plan: A projection of your laundry business’s financial performance, including income, expenses, and profit margins.
• Appendix: Supplementary information, such as resumes, permits, and any additional documents that support your laundry business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states offer real advantages when it comes to a laundry business.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your laundry business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings, the sale of property or other assets, and support from family and friends.

Bank and SBA loans are probably the best option, other than friends and family, for funding a laundry business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Licenses and Permits

Starting a laundry business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your laundry business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

Your software needs will change depending on the type of laundry company you decide to run. But you may use industry-specific software, such as iLaundry , CleanCloud , and Starchup .

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your laundry business, the marketing strategy should focus on showcasing the convenience, efficiency, and quality of your services. Emphasize your commitment to customer satisfaction, the range of services you offer, and any unique features like eco-friendly practices or quick turnaround times. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey cleanliness, reliability, and professionalism. This includes a well-designed logo, inviting store signage, and a clean, well-maintained facility.
• Direct Outreach : Network with local businesses, gyms, hotels, and residential complexes to introduce your services. Offer introductory discounts or corporate deals to attract initial clients.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a website that highlights your services, pricing, and any unique selling points (USPs) like express services or organic cleaning products. Use SEO best practices to rank for local searches related to laundry services, dry cleaning, and wash-and-fold services.
• Social Media Engagement : Utilize platforms like Facebook and Instagram to showcase your facility, share customer testimonials, and promote special offers. Regularly engage with your audience and respond promptly to inquiries.

Content Marketing and Engagement

• Laundry Tips Blog : Share blog posts about garment care, laundry tips, and the benefits of professional laundry services. This content can help establish your expertise and provide value to your customers.
• Email Newsletters : Regular newsletters can inform customers about seasonal promotions, new services, or laundry tips.
• Video Tutorials : Create video content showing the care and attention you give to customer garments, or offer tips on home laundry practices.

Experiential and In-Person Engagements

• Local Community Events : Participate in or sponsor local community events to increase brand visibility and connect with potential customers.
• Promotional Days : Host promotional events, such as “free wash days” or discount days for first-time customers, to attract people to your business.

Collaborations and Community

• Partnerships with Local Businesses : Collaborate with local businesses and organizations for cross-promotion. For instance, offer laundry discounts to gym members or local sports teams.
• Student and Senior Discounts : If located near a college or in a community with many seniors, offer special pricing to attract these demographic groups.

Customer Relationship and Loyalty Programs

• Loyalty Rewards Program : Implement a program that offers incentives for repeat customers, like discounts on every tenth wash or a free service after a certain number of visits.
• Referral Incentives : Encourage word-of-mouth marketing by offering benefits to customers who refer new clients.

Promotions and Advertising

• Targeted Local Advertising : Use local newspapers, community bulletin boards, and online platforms like Google Ads to reach potential customers in your area.
• Flyers and Local Mailers : Distribute flyers or mailers in local neighborhoods, especially those with high-density housing or limited laundry facilities.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your laundry shop meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your laundry business could be:

• Vending machines for snacks, drinks, laundry supplies
• Add arcade games and TVs
• Use top-quality cleaning supplies, be a premium laundry.
• Partner with local businesses to do their laundry at a discount.
• Offer services for delicate garments.
• Loyalty rewards program.

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a laundry business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in laundry for years and can offer invaluable insight and industry connections. The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in laundry. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small with a home-based wash and fold business, you may not need any employees. But as your business grows, you’ll likely need workers to fill various roles. Potential positions for a laundry include:

• General Manager
• Maintenance
• Marketing Lead 

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Laundry Business – Start Making Money!

A laundry shop can be a great source of steady income if you can build a solid customer base and earn your customers’ loyalty. One way to do this is to offer amenities, such as free wifi and free coffee. You can also provide a lounge where customers can engage in great conversations while doing their laundry.

There are many other creative ways to attract and retain customers. You did the right thing by seeking guidance first. Now that you have the knowledge to start a business, you’re ready to begin your entrepreneurial journey and make money with your laundry business!

• Laundry Business FAQs

Laundromats certainly are! They offer high rates of success and a straightforward business model. It’s estimated that 95% of laundromats succeed based on a five-year evaluation window. The business is also recession-resistant as everybody needs clean clothes no matter what’s happening in the economy.

While profits will vary depending on your location, costs, and your prices, the median revenue for a dry cleaning business is $80,000 per year. So yes, dry cleaners make money, but it’s up to you to turn that money into profit.

There is a range of options for financing a laundry business. You can ask friends and family or apply for a traditional loan through a bank. Another option is through SBA guaranteed loans such as 7(a) loans and microloans.

Implement proper waste management practices, ensuring trash bins are emptied regularly and disposed of properly. Keep the floors and surfaces clean by sweeping, mopping, and wiping them down regularly. Regularly inspect and clean the washing machines, dryers, and other equipment to remove lint, debris, and detergent residue. Use appropriate cleaning agents and disinfectants to sanitize surfaces and maintain a hygienic environment.

While laundry businesses can be profitable, it’s important to conduct thorough market research, assess the local demand, and carefully manage expenses to maximize profitability. 

Starting a laundry business at home is possible, but it may have limitations and considerations. Check local regulations and zoning laws to ensure operating a business from home is permitted in your area. Consider the space available and whether it can accommodate the necessary laundry equipment and supplies.

Some common customer segments include busy professionals, college students, apartment dwellers, and households without access to laundry facilities. Additionally, hotels, hospitals, and restaurants often rely on commercial laundry services due to the large volume of linens and uniforms they handle.

In a laundry shop, you can sell various products and services to complement your core laundry offerings. This can include detergent and laundry supplies for customers to purchase, vending machines for snacks or beverages, laundry bags or baskets, fabric softeners, stain removers, and ironing services. 

It’s great that you mentioned how laundry businesses usually have high success rates and solid profit margins. I was checking out some popular types of businesses earlier and I learned about laundry businesses. It seems like a good choice if you want to start a business, and it looks like there are finance my laundry services now too, which makes things even easier.

https://financemylaundry.com/

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• Decide if the Business is Right for You
• Hone Your Idea
• Brainstorm a Laundry Business Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Laundry Business - Start Making Money!

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Step-By-Step Startup Guide for Full-Service Laundry Business Model

Jan 8, 2024 | Laundry Business

Embarking on Your Full-Service Laundry Business Journey

Are you dreaming of starting a laundry business that not only thrives but becomes a cornerstone in your community? Whether you’re an aspiring entrepreneur or simply exploring new avenues, this guide is your first step towards realizing that dream.

The world of Full-Service Laundry Business is both exciting and rewarding, offering endless opportunities for growth and community engagement.

In this easy-to-follow guide, we’ll walk hand-in-hand through every crucial step, from the initial planning stages to opening your doors to the first wave of customers.

This journey is about more than just clean clothes; it’s about creating a service that people trust and rely on. So, let’s turn that dream into a reality, one step at a time!

Why a Full-Service Laundry Business? In today’s fast-paced world, convenience is king. A full-service laundry business doesn’t just offer clean clothes; it offers time and peace of mind.

This guide is tailored specifically for you, breaking down complex processes into easy, actionable steps. You don’t need a business degree to succeed; you just need the right information, presented in a way you can understand and use.

So, whether you’re completely new to this industry or looking to expand your knowledge, our guide promises to provide valuable insights and practical tips to help you on your way.

Let’s embark on this entrepreneurial journey together!

Table of Contents

Introduction, chapter 1: step-by-step process to start, chapter 2: essential elements for full-service laundry business, chapter 3: equipment needed, chapter 4: crafting a full-service laundry business plan, chapter 5: investment strategies, chapter 6: identifying your target customer profiles, chapter 7: overcoming business model challenges, chapter 8: marketing your full-service laundry business, chapter 9: understanding profit margins, additional resources.

Welcome to the exciting world of Full-Service Laundry Business ! In this introduction, we’ll shed light on the vibrant laundry industry and the promising benefits of diving into this sector.

Whether you’re a budding entrepreneur or someone seeking a new venture, understanding the landscape and potential of a full-service laundry business is your first step towards success.

Overview of the Laundry Industry

• The laundry industry has evolved significantly, adapting to technological advancements and changing consumer needs.
• It’s a stable market, often considered recession-proof, as clean laundry is a daily necessity for individuals and businesses alike.
• Innovation and eco-friendly practices are reshaping the industry, opening doors for new entrants to make their mark.

Potential Benefits of Starting a Full-Service Laundry Business

• High Demand: The constant need for laundry services ensures a steady stream of customers.
• Scalability: Start small and expand your services and locations as your business grows.
• Community Impact: Provide a valuable service that makes life easier for your customers, enhancing community well-being.

Embarking on the journey of starting a laundry business involves careful planning and execution. This chapter breaks down the initial steps to get your business off the ground.

Researching the Laundry Industry

• Understand the local market demands and the existing competition.
• Identify the latest trends and technologies in the laundry sector.
• Network with industry veterans to gain insights and practical advice.

Legal Requirements and Business Registration

• Navigate through the legalities: zoning laws, business licenses, and permits.
• Decide on a business structure that suits your goals and needs (e.g., sole proprietorship, LLC).
• Understand tax obligations and employment laws if you plan to hire staff.

Securing a Suitable Location

• Choose a location that’s accessible and visible to your target market.
• Consider factors like foot traffic, parking availability, and proximity to potential customers.
• Assess the space requirements for your equipment and customer convenience.

Diving deeper into the Full-Service Laundry Business , this chapter highlights the key services you can offer and the importance of maintaining high quality and customer service standards.

Types of Services to Offer

• Washing: Basic yet essential, offering various washing options catering to different fabric types.
• Dry Cleaning: A must-have service for delicate and high-maintenance garments.
• Ironing: Adding convenience by providing crisp and well-pressed clothes.
• Consider additional services like stain removal, fabric conditioning, and express services.

Quality and Customer Service Standards

• Ensure consistent quality across all services to build trust and reliability.
• Train staff in customer service excellence; happy customers are returning customers.
• Implement feedback mechanisms to continuously improve and adapt to customer needs.

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No Full-Service Laundry Business can function without the right equipment. This chapter guides you through selecting the essential machinery and considerations for your investment.

List of Essential Equipment

• Commercial-grade washers and dryers: A backbone for any laundry business.
• Ironing stations and steam presses for professional finishing.
• Sorting bins and garment racks for organized operations.

Considerations for Purchasing or Leasing Equipment

• Evaluate the pros and cons of buying versus leasing based on your budget and business plan.
• Consider energy-efficient models to reduce long-term costs and environmental impact.
• Explore financing options if purchasing: loans, leases, or payment plans.

Maintenance and Upkeep

• Regular maintenance is key to prolonging the life of your equipment and avoiding downtime.
• Establish a schedule for servicing and check-ups.
• Train your team on basic equipment care and troubleshooting.

A well-crafted business plan is the foundation of any successful enterprise. In this chapter, we’ll discuss how to set clear goals and analyze the market for your Full-Service Laundry Business .

Identifying Your Business Goals and Objectives

• Define what success looks like for your business – be it growth, profit margins, or community impact.
• Set specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
• Remember, goals should evolve as your business grows and the market changes.

Market Analysis and Competitive Landscape

• Understand your target market: Who are your customers? What do they value in laundry services?
• Analyze your competitors: What services do they offer? How can you differentiate?
• Identify trends and potential challenges in the laundry industry.

Financial Planning and Projections

• Create realistic financial projections, including startup costs, operating expenses, and revenue forecasts.
• Plan for contingencies – unexpected expenses or fluctuations in the market.
• Regularly review and adjust your financial plan as your business grows.

Securing the right investment and managing finances are critical to the longevity and success of your business. This chapter covers the essentials of financial planning for your Full-Service Laundry Business .

Estimating Startup Costs

• Detail all potential expenses: equipment, location lease, renovations, marketing, and initial operating costs.
• Research prices thoroughly to avoid underestimating costs.
• Remember to include a buffer for unexpected expenses.

Exploring Funding Options

• Consider traditional loans from banks or credit unions.
• Explore investor funding, including venture capitalists or angel investors.
• Look into government grants or small business incentives that might be available.

Managing Cash Flow

• Effective cash flow management is crucial for day-to-day operations.
• Implement strategies to ensure a steady income, such as membership models or loyalty programs.
• Keep track of all financial transactions and review cash flow statements regularly.

Understanding who your customers are is crucial in the Full-Service Laundry Business . This chapter focuses on identifying different customer segments and tailoring your services to meet their specific needs.

Understanding Different Customer Segments

• Identify the demographics of your potential customers: age, occupation, lifestyle, etc.
• Recognize the different needs of various groups, such as busy professionals, families, or students.
• Consider special segments like commercial clients (e.g., hotels, restaurants).

Tailoring Services to Meet Customer Needs

• Offer a range of services to cater to the diverse requirements of your customer base.
• Introduce flexible service options like express cleaning, pick-up and delivery, or subscription models.
• Stay adaptable and open to feedback, continuously evolving your services.

Building Customer Relationships

• Develop strong relationships through excellent service and consistent communication.
• Implement loyalty programs or special offers to encourage repeat business.
• Engage with your community through social media and local events.

Every business faces challenges, and a Full-Service Laundry Business is no exception. This chapter addresses common industry challenges and offers strategies to overcome them.

Dealing with Common Industry Challenges

• Stay informed about market trends and adapt your business model accordingly.
• Understand your competition and strive to offer something unique.
• Be prepared for fluctuations in the market, such as seasonal changes.

Strategies for Scalability and Growth

• Plan for gradual expansion: consider opening new locations or adding more services.
• Invest in technology to streamline operations and improve efficiency.
• Build a strong brand and reputation to attract more customers and opportunities.

Crisis Management

• Develop a crisis management plan for unforeseen events like economic downturns or natural disasters.
• Ensure you have a financial cushion to handle emergencies.
• Maintain open lines of communication with your customers and staff during challenging times.

Continuing with the established guidelines, let’s create content for Chapters 8 and 9:

Effective marketing is key to attracting and retaining customers in your Full-Service Laundry Business . This chapter explores strategies to create a strong presence both online and offline.

Developing a Marketing Plan

• Identify your marketing goals and target audience.
• Allocate a budget for different marketing activities.
• Choose the right mix of marketing channels that best reach your customers.

Digital Marketing Strategies

• Build a user-friendly website that showcases your services and offers online booking.
• Utilize social media platforms to engage with customers and promote special offers.
• Consider email marketing to keep your customers informed and interested.

Traditional Marketing and Community Engagement

• Invest in local advertising like flyers, newspaper ads, or sponsorships.
• Participate in community events to increase brand visibility.
• Encourage word-of-mouth referrals through excellent customer service.

Understanding and managing your profit margins is crucial for the financial health of your Full-Service Laundry Business . This chapter will guide you through pricing strategies, cost control, and maximizing profits.

Pricing Strategies

• Set competitive yet profitable pricing by analyzing market rates and your cost structure.
• Offer tiered pricing for different levels of service or package deals.
• Regularly review and adjust your pricing based on costs and customer feedback.

Cost Control and Efficiency

• Minimize operational costs by optimizing resource usage and reducing waste.
• Invest in energy-efficient equipment to lower utility costs.
• Implement efficient workflows to maximize staff productivity.

Revenue Streams and Maximizing Profits

• Explore additional revenue streams such as specialized cleaning services or product sales.
• Focus on customer retention strategies; repeat customers are more profitable.
• Analyze financial data regularly to identify trends and areas for improvement.

We’ve covered a comprehensive journey through the essentials of starting and running a Full-Service Laundry Business . From laying the groundwork in planning and investment to mastering marketing strategies and profit maximization, this guide serves as your roadmap to success in the laundry industry.

Remember , the key to thriving in this business is not just about providing laundry services; it’s about adapting to customer needs, staying ahead of market trends, and continuously seeking improvement. Embrace the journey with enthusiasm and openness to learning, and your business is sure to flourish.

As you embark on this exciting venture, keep in mind that success in the laundry industry, as in any business, is a blend of careful planning, hard work, and the ability to adapt to changing circumstances. Stay committed, stay innovative, and most importantly, stay connected with your customers and the industry at large.

To further enhance your knowledge and stay updated in the laundry business, here are some hand-picked resources and associations:

Recommended Readings and Industry Resources

• Stay informed with the latest industry news and insights at Flexwasher News .
• Explore articles on advanced laundry solutions and business strategies.

Professional Associations and Networking Opportunities

• Join industry associations for networking, resources, and support.
• Attend laundry industry conferences and seminars to connect with peers and experts.
• Engage in online forums and social media groups dedicated to laundry business professionals.

Utilizing these resources will not only keep you informed about the latest trends and technologies in the laundry industry but also help you build a network of peers and mentors who can provide valuable insights and support as you grow your business.

Frequently Asking Questions

What do i need to start a full-service laundry business.

To start, you’ll need essential equipment like commercial washers and dryers, a reliable location, and legal business registration. Additionally, plan for initial costs such as equipment purchase, rental space, and marketing expenses to attract your first customers.

How Much Money Will I Need to Open My Laundry Business?

The initial investment for a laundry business varies, but it typically includes the cost of commercial laundry equipment, leasing a space, and initial operating expenses. Research and plan for these costs, considering both buying and leasing options for equipment.

Can I Run a Laundry Business From Home?

Running a laundry business from home is challenging due to space and equipment requirements. It’s better to have a dedicated space that can accommodate large machines and has proper utility setups, aligning with local business regulations and customer accessibility.

What Services Should My Laundry Business Offer?

Consider offering a variety of services such as washing, dry cleaning, ironing, and specialized treatments like stain removal. Diversify your services to cater to different customer needs, including both individual and commercial clients, to broaden your market appeal.

How Do I Keep My Customers Happy?

Focus on delivering quality service consistently. Ensure timely completion of services, address customer complaints promptly, and maintain open communication. Implement customer feedback mechanisms to improve services, and consider loyalty programs to encourage repeat business.

Should I Buy or Lease My Laundry Equipment?

Deciding to buy or lease depends on your financial situation. Buying equipment is a significant upfront investment but offers long-term savings. Leasing requires less initial capital but may cost more over time. Evaluate both options based on your budget and business plan.

How Do I Make My Laundry Business Stand Out?

Differentiate your business by offering unique services, exceptional customer care, and convenience features like online booking and home delivery. Stay updated with industry trends, and consider eco-friendly practices to appeal to a broader customer base.

What’s the Best Way to Market My Laundry Business?

Develop a comprehensive marketing strategy combining digital and traditional methods. Utilize social media and a business website for online presence, and engage in local community events and advertising to build a strong local customer base.

How Do I Set Prices for My Services?

Set your service prices by considering your operating costs, market rates, and customer affordability. Regularly review and adjust your pricing strategy to ensure competitiveness while maintaining a profitable margin. Offer varied pricing tiers for different service levels.

What If I Face Problems in My Laundry Business?

Challenges are normal in any business. Stay adaptable, continuously seek feedback, and be willing to make changes to your business model. Build a network with other business owners for support and advice, and stay informed about industry trends.

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Learning center series

How to start a laundry business

• Published on March 12, 2024
• by Turgut Arisoy
• Last updated: 2 weeks ago

Start a laundry business may not initially seem as glamorous as launching a tech startup or as enchanting as opening a vintage bookstore. However, when you delve deeper, you uncover a realm of practicality, dependability, and significant profit potential. This realization can indeed be quite intriguing.

Welcome to the universally essential world of laundry services, a 40 billion-dollar industry in the U.S. alone. Think about it: clothing, sheets, towels – they all share the inexorable cycle of use, dirt, and cleansing. It’s proof that the unassuming laundry business, like a bespoke suit or a trusty washing machine, is a stalwart entity that holds its ground even while the world’s trends whirl like a tumble dryer.

Let’s say goodbye to the mundanity associated with cleaning clothes, and hello to the successful entrepreneur you’re destined to be. This is laundry, redefined. This is your guide to mastering the seemingly ordinary and transforming it into the extraordinary. Let’s wash away the misconceptions and spin into the core — the exhilarating ride of the laundry business. Now, are you ready to get washed and spun into a new entrepreneurial journey?

Who Uses Laundromats? 👩🏠 Low-income renters are the primary users of coin laundries, with more than 60% of laundromat patrons being women , and 87% of customers living within a mile of the facility.

Start a Laundry Business: A Step-by-Step Guide

Step 1: drafting your laundry business plan.

Understanding a business model as a foundational blueprint, rather than a mere formality, is essential when building your laundry service business. These laundry service business ideas enable you to frame and visualize your new operation, scrutinizing your intentions before diving into the industry.

Moreover, this document becomes a living guide that shapes assessments and decisions beyond the launch phase. It evolves as market conditions change, proving invaluable in navigations and critical decision-making processes throughout your laundry service business journey.

Starting Costs for Laundromats 💵 Start-up costs for a laundromat can range from $100,000 to $300,000 , primarily due to the need to purchase equipment.

Step 2: Understanding the Cost of Starting a Laundry Business

Beyond drafting a comprehensive business structure, accurate cost estimations are crucial in the early phases of your business development. These figures govern both your startup and running costs, allowing you to preempt any potential financial pitfalls. Thinking of purchasing a laundromat and eager to understand the financial implications? This article breaks down all the expenses involved in acquiring and operating a laundromat.

Considerable costs include but are not limited to, leasing/rent, utilities, business insurance payments, and equipment maintenance. Understanding these fully prepares you to manage the somewhat volatile nature of financial management in the laundry delivery business industry.

Step 3: Choosing the Right Location for Your Laundry Business

In the laundry industry, strategic location selection is not a detail to be breezed over. Your location substantially impacts your business’s visibility, accessibility, and overall success. The best locations incorporate high traffic, easy accessibility, and proximity to target demographics.

What’s critical to remember is while a perfect location might be desirable, finding a ‘good enough’ place within your budget that meets most of your criteria can also set you on the path to success. The history of successful core laundry business shows that strategic and smart location selection can create flourishing businesses, despite not being in the ‘perfect’ location.

Remember, every little detail counts when setting up your core laundry business. Giving due consideration and diligent planning to your business plan, startup costs, and location selection will set you on the right path in this business venture.

Laundromat Business Landscape 🏪 There are between 18,000 and 35,000 laundromat businesses in the US.

Essential Equipment for a Successful Laundry Business

Stepping into any profitable endeavor demands the right tools. With the groundwork for your laundry business covered, let’s talk about the equipment that will drive your operations.

Commercial Washing Machines and Dryers

Commercial-grade washers and dryers are the heart of any laundry services market. Their design for high-volume usage delivers faster, larger loads, enhancing your business’s efficiency and output.

High-speed commercial washing machines not only clean clothes quickly but also extract more water—leading to shorter drying times and lesser energy usage. Going for commercial grade also translates to a longer lifespan due to their robust construction.

Aside from efficiency, think about the type of clientele you’re targeting, their needs, and the services you plan to provide. For instance, if your client base comprises hotels or hospitals, consider investing in commercial laundry leasing equipment that can handle bulky items like bedding and towels.

Other Essential Equipment

Once equipped with commercial laundry equipment, such as detergent vending machines and dryers, there are several other pieces of equipment necessary for smooth operations.

A pressing machine can significantly enhance the aesthetic of the clothes, offering your clients a crisp, professional finish. Similarly, a laundry cart for easy movement of clothes and an automated detergent vending machine for customer convenience shouldn’t be overlooked in a self-service setup.

Another indispensable item to consider is a laundry rack or drying cabinet. These aid in drying delicate items that might be damaged in a conventional dryer. Proper clothes racks also allow unfolded items to be hung immediately after drying, reducing wrinkles and subsequent ironing time.

A cleaning solution dispenser, though often overlooked, can be a valuable addition to your laundry setup. It simplifies the automatic dosing of detergent, bleach, or other cleaning solutions, ensuring precise measurements every time, leading to consistent cleaning quality and minimizing wastage.

In any business, safety stands paramount. Fire extinguishers and other safety equipment should be a part of your initial setup. It’s not just about legal compliance, but the well-being of your employees and customers. At Metrobi, we facilitate laundry delivery in over 20 U.S. cities, offering same-day delivery options in cities like Boston , enhancing the convenience for your laundromat business.

TIP – Remember to tailor the equipment list to your business plan. Businesses with delivery services, for example, might require additional items like a delivery van or specific packaging materials.

Choosing the right dry cleaning equipment helps streamline your operations, increase productivity, and offer an overall superior service to your customer—setting your laundry business on the path of success. Investing in high-quality, commercial-grade dry cleaning equipment might seem hefty initially, but it will pay dividends in the long run in terms of efficiency, reliability, and longevity. Remember that the laundry business operates heavily on trust and a stellar reputation for clean, well-finished laundry that’s ready on time, every time. Equipping your business correctly is the first step in earning that trust.

Earning Potential of Laundromats 💰 The average annual revenue for a laundromat sole proprietor is around $27,743 , while the average annual revenue for a laundromat is estimated to be roughly $142,000.

Hiring the Right People

The first face your customers see – or the first voice they hear on the phone – is usually a member of your staff. Hiring the right people is therefore one of the most critical aspects of running your laundry business.

Recruit individuals to lean on reliability, good interpersonal skills, and attention to detail. A background in customer service can be a definitive plus. Create detailed job descriptions and be clear on the skills and qualifications required for each role. Use trusted recruitment tools or platforms and make sure to run a thorough background check on potential full-time employees.

TIP – Does your business operate in a state with specific hiring guidelines? Be sure to know your local labor laws.

The Hiring Process

Your hiring process should be well laid out, consisting of job postings, applications, interviews, and finally, selection. During interviews, assess not just the job-related talent of candidates but also their ability to align with your company culture and excellent customer service.

Retaining Employees

The secret to maintaining a great team lies not just in hiring the right people but in retaining them. This involves competitive pay, employee benefits, a positive work environment, and opportunities for growth in your dry cleaning business.

Training Your Staff

Once you have your team, it’s time to prepare them to meet your operational standards and customer expectations. Training is essential for consistency in business operations and for creating the ultimate customer experience in your laundry facility.

Well-trained staff are more likely to feel competent and comfortable in their roles, which improves job satisfaction, reduces employee turnover, and enhances customer satisfaction.

Comprehensive Training

Training should be comprehensive and continuous, covering company policies, operation of laundry equipment, customer satisfaction, basic problem-solving, and safety measures. You could consider implementing a mentorship system, where new employees are paired with experienced ones.

Regular Skill Upgrades

Regular skill upgrades and cross-training opportunities can be beneficial. They not only empower your employees but also ensure that they can perform multiple tasks, increasing efficiency during peak hours or staff absences.

With a great team in place, you’re well on your way to establishing a successful laundry business. Anchor the business with people who align with your vision and ensure they are well-equipped to deliver on your promises to potential customers.

Laundry Workforce Growth 📈 In 2022, there were almost 176,000 laundry and dry-cleaning workers in the United States, marking a significant increase from 2021 with approximately 20,000 extra employees.

Marketing Your Laundry Business for Success

Traditional marketing efforts are not obsolete. They form a significant part of a comprehensive marketing plan, amplifying your visibility and customer reach.

Flyers, newspaper adverts, radio spots, billboards, and direct mail are a few time-tested marketing efforts and strategies that continue the impact market reach.

• Flyers, though old-fashioned, are an effective way to announce grand openings, discounts, and special deals. They can be distributed with local newspapers, and community centers or delivered directly to residences in your laundry service business.
• Billboards near busy roadways or placed strategically around your market area can command attention and induce interest.
• Radio spots, featuring promotions or customer preferences, can reach vast audiences, including a segment of potential customers that other advertising mediums might miss.

Digital Marketing Strategies

Modern laundry business owners cannot sideline digital marketing. It reshapes your customer feedback, helps you meet market demands, and strengthens your brand exposure.

Websites, social media platforms, online directory listings, email marketing, and pay-per-click (PPC) advertising make the best of the price-effective and result-driven digital marketing strategy.

• Websites are your online business card. A compelling and user-friendly website, complete with your service offerings, operating hours, contact information, and customer testimonials, can add credibility and build customer trust.
• Social media platforms, like Facebook, Instagram, or LinkedIn, give your business a human touch, allowing you to interact with customers on a personal level and share visual content related to your services.
• Online directories increase your online visibility and improve your search engine rankings, making it easier for potential traffic to find you.
• Email Marketing keeps your future customers updated about upcoming sales, offers, or any company news.
• Lastly, PPC advertising propels your business type to the top of search engine results, driving direct product exposure and an immediate reaction from viewers.

The combination of traditional and digital marketing strategies ensures that your laundry business is visible to both customers who prefer traditional methods and customers who spend more time online. Understanding and implementing these strategies is vital for the success of your business address.

Laundromat Success & Profitability 💼 The laundromat industry has a 95% success rate , and laundromat businesses typically generate a 20-35% return on investment (ROI).

Understanding the Legal Aspects of Running a Laundry Business

Abrupt transitions can lead to expensive mistakes – the same goes for entering the laundry business without a solid grasp of its legalities. Now onto the specifics of adhering to all the rules, laws, and regulations that come with owning and operating a laundry business. Metrobi is dedicated to facilitating delivery operations for laundromats, offering courier services across over 20 US cities, including delivery solutions in Washington DC .

Business Registration and Licenses

Getting your business on the books is non-negotiable. Registering your laundry business with the local government allows you to operate legally and also makes you eligible for certain benefits and protections. At Metrobi, we specialize in facilitating logistics for laundry services , ensuring efficient and reliable delivery operations for laundromats.

TIP – The specifics of business registration can vary by country, state, and city. Some resources to look into for accurate information are local Chamber of Commerce websites or even local business consultants who specialize in legalities.

Once registered, nabbing the right licenses and permits is the next order of business. These documents give you the green light to open your doors without legal hiccups. For those pondering the dream of launching a laundromat, check out our latest blog post detailing the crucial permits and licenses needed to get started.

TIP – Specific licenses needed for a laundry business differ by location and the type of services offered. For example, if you’re tacking on a coffee shop or a dry-cleaning service to your laundry business, additional permits may be required.

Insurance for Your Laundry Business

Covering your bases with insurance is a smart move. A laundry business, just like any other, is susceptible to various risks including but not limited to property damage, customer injuries, and equipment breakdowns. Insurance provides a safety net for these unexpected hiccups.

The types of insurance required can vary, but some key ones to consider include:

– Public liability insurance: This covers costs if a customer or member of the public is injured or their possessions damaged because of your business. – Business property insurance: This can help protect your business premises and equipment in the event of a fire, vandalism, theft, or other covered disaster. – Workers compensation insurance : If you plan to have employees, most states will require you to carry workers’ comp. It provides wage replacement and medical benefits to employees injured during work.

TIP – Insurance requirements can vary greatly depending on where your business is located and the particular risks it might face. Consult with a local expert or check out resources from trusted insurance agencies.

It’s crucial to think of these legal aspects not as an annoying hurdle in your path, but as a protection for the longevity and success of your business. Armed with this information, you’re one step closer to securing the stability and growth of your business.

The Future of the Laundry Business

Trends in the laundry business.

Laundry businesses have witnessed significant changes over the past decade. The driving forces behind these shifts include socio-economic factors, technological advancements, and changing consumer behavior.

Businesses now heavily rely on technology to get ahead in the market. Automated laundromats and digital payment methods have become the standard in the industry. Additionally, the dawn of app-based services providing door-to-door picks and delivery has further metamorphosed the customer’s laundry experience. This is increasingly prevalent in densely populated urban areas where people value convenience and time management.

Furthermore, the push towards greener business practices has influenced how laundry companies operate. Energy-efficient laundry machines, water reclaim systems, and eco-friendly detergents are now the talk of the town as businesses strive to reduce their carbon footprint. Businesses that successfully implement these changes will benefit from cost savings and are likely to appeal to environmentally-conscious consumers.

Preparing Your Business for the Future

To stay competitive, it’s vital to future-proof your laundry business by harnessing the latest technology and adapting to shifting consumer preferences.

Taking advantage of digital platforms can streamline operations, improve efficiency, and enhance customer experiences. Implementation of software solutions can automate tasks such as payment processing, order tracking, and customer communication. Investing in energy-efficient machines and eco-friendly wash chemicals would not only reduce operating costs but also position your brand as caring for the environment and people’s health.

Approaching the future, forging meaningful partnerships that mutually benefit both parties can be key. Collaboration with complementary businesses can create new opportunities for customer acquisition and revenue growth.

Lastly, envisioning and planning for the future is not about predicting it, but about making strategic decisions that arm your laundry business with the flexibility to adapt quickly when disruptions occur. In this way, your business can anticipate changes, mitigate risks, and seize opportunities when they arise, ensuring that your laundry business continues to thrive.

Next step: Set your laundry business in motion and keep evolving. Continuous learning, adapting, and innovating are your tickets to a successful laundry business. Constantly keep an eye on trends and establish a plan that not only applies to today but also considers future developments. In such a way, your laundry business won’t just survive but thrive.

Heading into the Spin Cycle

Venturing into the laundry business demands a thorough understanding of your target market, a detailed analysis of costs and profit margins, and the know-how to maintain quality control. With the right mindset and resources, starting a laundry business can be quite rewarding. Explore the pivotal aspects of starting a franchise in the laundry industry in 2024: investment necessities, advantages, and tactics for successful expansion.

Ready to supply fresh, clean clothes in your local community? Start the ball rolling by securing a suitable location, investing in reliable equipment, and crafting a unique, customer-oriented service.

As your laundry business gains some steam, what strategies do you plan to implement to stand out from the competition? Never stop innovating; your next brainwave might just redefine the way cleanliness is delivered.

Remember the laundry business isn’t just about washing clothes; it’s about providing a convenient, time-saving service to busy individuals, families, and businesses. It’s your turn to plunge into this lucrative industry and clean up!

As Metrobi, we provide laundry delivery service in the US. From Boston to Los Angeles, you can use our local courier service for your special business.

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A Step-by-Step Guide to Starting a Successful Laundry Business

You’re one of the elite few who see the financial opportunities in starting a laundry service. You have the skills and ambition to pull it off—but where to start?  The good news is, you’re not on your own. With your innate business savvy and this step-by-step guide, you can start a profitable laundry business this year.  Remember: every successful laundromat business plan started from the ground up. No matter how hungry you are to open your doors for business, taking the time to build a strong foundation now will help your business thrive long term. Here are the proven steps (with a checklist to follow along) for how to successfully start a laundry business.

In this guide, learn how to start laundry pickup and delivery. Hire drivers, promote your services, and choose the right technology to boost revenue.

8 steps to starting a laundry business

1. do your research.

Rome wasn’t built in a day, and such is the case for your laundromat business. Take the time to learn about the industry and most importantly, the strengths and weaknesses of your competitors.

Join the Coin Laundry Association (CLA) for a full suite of resources for both aspiring and seasoned laundromat owners. Here you’ll learn the ins and outs of the industry, get updates on industry events and innovation, and score important tips from long-term laundromat owners.

Your business opportunities are dependent on your local competition. Beginning with a simple Google search, identify the existing laundromats in your area. Take note of their business names, locations, Google ratings, services, hours of business, and prices:

How does each of these laundromats compare to one another?

Do they have websites and marketing?

What is their customer service like?

What types of customers are competitors serving?

Is there room to serve these same customers with a different service, provide a different type of service to a new type of customer, or add value in other ways that are not currently being served in the market you are exploring?

Asking these questions will help you begin to determine your market opportunities.

There are also many resources and coaching opportunities in the industry. The Laundromat Resource and Laundromat Millionaire both provide a wealth of insight into the industry, getting started, and creating financial freedom.

2. Decide what kind of laundry business you want to start

The most common laundry services include:

Coin laundry : As described in the scenario above, this is a public service designed for anyone needing self-service laundry.

Private laundry within multi-tenant buildings : The laundry room nested inside apartment buildings that don’t have in-unit laundry available.

Commercial laundry : Specifically for uniforms, restaurant and hotel linens, and other industrial laundry needs.

Wash and fold service : The luxury standard of laundry services. While coin laundry is a DIY service, wash and fold takes the burden off the customer and puts the laundry pros in charge of cleaning. Of course, you can charge more for a service like this.

Pickup and Delivery : A full-service experience. Pickup and delivery is the step up from wash and fold, which allows you to pick up their laundry for them, wash it, and deliver it back to their doorstep. It allows you to tack on extra charges and doesn’t force the customer to lift a finger.

3. Buy a Laundromat

As you explore your options for getting into the laundromat industry, you might decide you want to purchase an existing business rather than starting from scratch. This path can be a time-saver and also comes with its own unique set of opportunities and challenges.

How to Buy a Laundromat

Purchasing an existing laundromat isn't as simple as handing over a check; it needs careful planning, research, and due diligence. Here's the general process:

• Find a Laundromat for Sale: The first step is to find an existing laundromat that's up for sale. You can do this through online business marketplaces, local classifieds, or with the help of a business broker.
• Due Diligence: Once you've found a laundromat you're interested in, it's time to dig deep into the financials and other details of the business. Look at the revenue, expenses, cash flow, and profit margins of the laundromat. Consider hiring an accountant or business appraiser for a professional assessment. Be sure to consider tips on conducting comprehensive due diligence .
• Finalize the Purchase: If everything checks out and you're happy with what you see, the next step is to negotiate a fair purchase price. From there, you'll go under contract, arrange financing if necessary, and eventually close the sale.

Benefits and Drawbacks of Buying an Existing Laundromat

• Established Customer Base: One of the biggest advantages of buying an existing laundromat is that it comes with a pre-existing customer base and equipment. This means you'll have revenue from day one.
• No Need for Initial Setup: All the hard work of finding a location, securing permits, and buying equipment has already been done. You can jump right into running the business.
• Existing Systems and Processes: The previous owner will likely have systems and processes in place for managing the business, which can make your transition smoother.
• Old Equipment or Undesirable Location: You might inherit outdated equipment that requires replacement, or the laundromat might be in a location that isn't ideal.
• Hidden Costs: Be wary of hidden costs such as unpaid bills, pending legal issues, or necessary upgrades.

Working with Brokers

A business broker can be an invaluable resource when buying a laundromat. They can help you find businesses for sale, guide you through the due diligence process, and assist with negotiations and closing procedures.

When choosing a broker, look for someone with experience in the laundromat industry, a solid reputation, and a track record of successful transactions. Remember, a good broker works for both the buyer and the seller, aiming to facilitate a fair and mutually beneficial deal.

4. Choose a name for your laundry business

A great company name encompasses what your business does! There are a few different directions you can take with naming your laundromat. If it’s not already taken, you can use the name of your town or city followed by “laundromat,” or you can get a little more creative with it if that suits you. Either way, your business name should tell your customers, unmistakably, that you offer laundry services. 

Another good tip is to use proper spelling in your name so you’re easy for customers to find when searching on Google. If you’re stumped, check out this laundromat name generator for inspiration!

5. Create a laundry business plan for success

Your business plan is like a compass. It should define in detail your company’s objectives and how you’re going to reach them. Whenever you make a decision for your laundromat business, turn to the business plan!

Consider these points on your journey to a profitable laundromat.

Mission statement

Your mission statement is a declaration of your business’ culture, values, and purpose for existing. This will act as your north star in all business dealings.

Services & pricing

Define concretely what services you plan to provide. Determine pricing and the products you’ll need to carry out your laundry services. In the laundromat industry, pricing is directly related to the quality of service you provide, the customer experience, and the market that your laundromat is operating within. 

Customer experience

Decide what kind of customer service you want to emulate in your business. Ask yourself: how do I want my customers to feel when they experience my laundry services?

Market analysis

Describe what you know about the laundromat industry. And more importantly, identify how your business model fills a niche in the local market. Confirm that your laundry business will solve a problem or fulfill a need in your local area. Your success depends on supply and demand!

Financial plan and budget

Record all your financial statements, balance sheets, and expenses included in establishing your business. This is also an opportunity to create sales targets for your first few years of business. When building your budget, include costs related to employees, equipment, maintenance, permits and licensing, marketing, utility costs, and all other overhead needed to run your business. If you think you'll need financing assistance , you'll want to work with lenders that know the industry.

6. Laundromat Business Cost

Building a solid understanding of the costs involved in starting a laundromat is essential to the success of your business venture. Here are some of the main cost considerations:

Initial Costs

• Location: The leasing or purchasing of premises for your laundromat can vary greatly based on location, size, and condition of the property. A suitable space could cost anywhere from $100,000 to $200,000 to purchase, while leasing can range from $2,000 to $10,000 per month, depending on the size and location of the property.
• Equipment Costs: Commercial-grade washing machines and dryers can range from $1,000 to $10,000 each. For a modest laundromat with 15 washers and dryers, the equipment cost could be around $75,000.
• Renovation or Setup Costs: Depending on the condition of the premises, the costs to renovate and set up your laundromat can be considerable. These costs, which include plumbing, electrical work, and installation of equipment, could range from $200,000 to $500,000.
• Licensing Fees: Business licenses and permits are a necessary part of starting any business. These can go from $100 to $500 depending on your location.
• Marketing and Advertising Costs: A budget for your grand opening, initial advertising, and ongoing marketing efforts is necessary for getting the word out about your new laundromat. You should budget at least $1,000 to $2,000 for your launch and plan for ongoing marketing costs.

Recurring Costs

• Utilities: Utilities are a significant recurring expense for laundromats, as your washing machines and dryers will use substantial amounts of water and electricity. These costs can vary greatly, but you can expect to spend several thousand dollars per month on utilities.
• Maintenance and Repair: Regular maintenance is essential to keep your machines running smoothly, and unexpected repairs can add up. Plan for this cost to be around 20% of your gross revenue.
• Staffing: If you plan on having staff, this will be another monthly cost. Depending on how many employees you have and their hourly wage, this could range from $1,000 to $4,000 per month.
• Rent or Mortgage: If you're leasing your premises, you'll need to include the rent in your costs. If you've taken out a loan to buy your premises, you'll have mortgage payments.
• Insurance: Business insurance can cost anywhere from $500 to $2,000 per year for a laundromat, depending on a variety of factors including location, size of your laundromat, and coverage levels.

Financing Options

Common ways people finance their laundromat businesses include small business loans, personal savings, or investor capital. Small business loans, particularly those backed by the Small Business Administration (SBA), can be a great way to get the funding you need.

If you're considering purchasing new equipment, Cents Capital can provide financial assistance, offering competitive financing options designed to help entrepreneurs start and expand their laundromat businesses.

Find a location that checks all the boxes

Location, location, location! Searching for the perfect spot is one of the most important uses of your time in planning your laundromat business—and one of the biggest factors in your chances for success. Choose a location heavily populated with apartment residents, college students, tourists, hotel and motel visitors, and big families. Keep in mind, though, it’s not as simple as picking a storefront on the most desirable block—you must learn the ordinances and laws that determine where laundromat businesses can operate in your local area.

You should also familiarize yourself with local zoning laws and historical challenges before settling on a spot. One way to make this simpler is by buying an existing laundromat , rather than opening a brand-new one.

6. Acquire the appropriate permits

Look into the state or local business administration for important information on licenses needed to run a coin-operated laundromat in your area. There may be specific permits you must get in order to be compliant with laws like how to manage wastewater. Figuring out what your business requires to operate legally can be tedious and confusing, so refer to the U.S. Small Business Administration (SBA) to learn what forms you need to fill out.

7. Purchase the equipment for your laundromat

If you build it, they will come. Your laundromat doesn’t need to be the Field of Dreams, but outfitting it with high-quality, easy-to-use machines is a must! Whether you need to buy all or some new equipment depends on if you are planning on opening a laundromat or buying an existing one.

Keep in mind, the laundry industry is not one known for its cutting-edge technology. So even if you buy an existing laundromat full of machines, you’ll likely need to buy some new equipment. This may seem expensive at first glance, but what’s even pricier is having to constantly repair broken machines or lose customers due to a lack of available, working washers and dryers.

When shopping for machines you have options. Smaller machines can sell for under $1,000 a pop, while bigger ones can go for upwards of $5,000 to $10,000 each. What you choose to purchase will depend on a variety of factors including the size of the population you plan on servicing, how much space you have in your store, eco-friendly options , and your budget. 

Cents has built a network of distributors across the country. If you're looking to purchase new equipment, reach out to us and we can help connect you to the right distributor to fit your laundromat.

8. Create a marketing plan for your laundromat

Laundromats might serve as a quintessential retro backdrop, but your approach to getting and keeping customers should be as modern as it gets. And don’t get caught kicking the can down the road—even before opening your doors for business, you should have a solid marketing plan in place. Use these tried and true methods for marketing your laundromat and you’ll be one step closer to success:

Get involved in your community : Make yourself more recognizable by sponsoring local events, partnering with other businesses, and hosting charity fundraisers at your laundromat.

Create a Google Business profile : When customers search “laundromats near me” in their web browser, your business will pop up. You’ll be able to showcase pictures of your laundry business, the address and phone number, hours of operation, and even promotional offerings.

Set up Search Engine Optimization (SEO) : You’re serving a specific geographic radius and therefore rely heavily on local customers being able to find your business. That’s why you’ll want a strong SEO strategy. This will push your business to the top of the search result pages and help you convert more customers.

Leverage social media : This will help you connect with potential and current customers and promote your business. Social platforms like Facebook, Twitter, and Instagram let you share photos and information about specials, new services, or upcoming events. This is also a great avenue to communicate with your audience.

Run discounts and promotions : Offering discounts on your services allows you to lure new customers in and convince them to give your business a shot. This is a great marketing tool and an even better way to increase your customer base.

How to Buy a Laundromat: The 8 Steps from Inquiry to Closing

Explore our expert guide on how to buy a laundromat, master key steps from market analysis to closing deals, plus learn essential purchasing tips.

Guide to Owning a Laundromat: Operator’s Path to Laundromat Ownership

Enhance your knowledge on owning a laundromat. Learn the essentials of laundromat ownership, coin laundry investment, and profitability in this guide.

Effective Laundromat Pricing Strategies for Maximum Profit

Unlock secrets for successful laundromat pricing strategy to increase business revenue. Explore effective ways to balance profit and customer appeal.

Laundry Service Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Service Industry » Laundry Business

Are you about starting a laundry & dry cleaning business ? If YES, here is a complete sample laundromat business plan template & feasibility report you can use for FREE.

Hygiene is one important thing that must not be practiced with less seriousness; as a matter of fact, it has to be a frequent practice. One must take it really seriously, so as to avert bad odor and sickness; it is for this reason that one must keep things really clean.

This is also the reason why people love to wash their clothes. However, there are times when one might not have the luxury of time to the laundry. That is where the Laundromat business comes in. This is one business that people all over the world are beginning to key into because of the level of profitability which it promises.

If you are thinking to start in this line of trade, then that is a good idea. Good news is that you can choose to start on a small or large scale. This all depends on the capital which you have got to start the business Below is a sample Laundry business plan.

A Sample Laundry Service Business Plan Template

1. industry overview.

In the united states of America and in most developed countries of the world, self-service laundry business which is popularly called Laundromat in the United States is rapidly an essential part of the urban life. This is so because in this age and time, 24 hours seems not to be enough, especially for people that work in the corporate world or even those who run their own businesses.

As the name implies, a self-service laundry or coin wash / laundry or Laundromat is a laundry facility where people come in to personally wash and dry their clothes; technically, customers provide their own labor and still pay the price for making use of the laundry equipment made available.

Customers have the option of paying with coins which is the popular payment option and they can also pay via swipe cards that subtract the cost of the wash or dry or even via mobile money. Despite the fact that customers provide their own labor, some Laundromat owners still employ people to man or provide assistance to customers.

It is normal to find Laundromats where operators are employed to man the day to day operations, as well as provide value added services like; helping customers iron their clothes, starch their clothes, and fold their clothes et al.

Usually when Laundromat hire employees, the core responsibility assigned to them is to man the counter, give directions to customers, sell washing powder, sell laundry bags, provide change and watch over the washing machines and other equipment in the Laundromat to guide against theft of the machines or even customer’s clothes.

Although the laundry industry can be said to be a competitive trade, but it does not in any way stop entrepreneurs who are creative to still make headway in the trade.

It is indeed a profitable industry especially when the business is well located. No doubt busy cities with growing population might just be highly suitable for Laundromat. There are loads of people that patronize Laundromats; and they include; busy corporate executives, students, and even senior citizens.

In the bid to stay afloat in the highly competitive Laundromat business, owners of Laundromats now go the extra mile to ensure that they make their facilities welcoming and conducive for customers. As a result, Laundromats now have coffee bars, snack bars, cigar lounge, video games, children’s playground and free Wi-Fi connection, amongst others.

Over and above, any aspiring entrepreneur can comfortably start his or her own Laundromat business by acquiring an existing Laundromat and then refurbish it to meet the expected standard, or start the business from the scratch by constructing a new one and then equip it with the needed equipment and accessories.

The average startup cost for a standard Laundromat business is around $250,000 to $500,000. When starting your own Laundromat business, ensure that you choose a location where you can easily attract the kind of people that patronize Laundromat services.

2. Executive Summary

Las Vegas City Laundromat is a registered Laundromat facility that was built to serve the people of Las Vegas- especially the busy corporate executives and students. Our Laundromat will be located in the heart of the city of Las Vegas which is less than 30 minute drive from McCarran International Airport in Las Vegas, and 10 minutes minute drive from Mandalay Bay Event Center.

We are strategically positioned in the world’s headquarter for casinos and games; a commercial center and we are set to services the whole of the community as well as visitors and travelers alike. Las Vegas City Laundromat is a standard Laundromat in a 6,000 square feet facility; we have one of the biggest Laundromats with the latest and easy to use washing machines and dryers.

Aside from welcoming customers to do their laundry chores at an affordable fee in our Laundromat, we have a conducive environment that will encourage them to always choose us as their number one choice. We have a coffee bar in our facility, we cigar lounge, we have children’s fun center and video games and snacks bar et al.

Our Laundromat will be open from 6 a.m. and close 10 p.m. from Mondays to Thursdays and will run a 24 hours service from Friday to Sunday. We decided to operate in this format because from our market survey and feasibility studies, we realized that customers usually do most of their laundry during weekends.

Las Vegas City Laundromat is a proud member of the Coin Laundry Association of America and we are well positioned to become one of the leading Laundromat facilities in the whole of Nevada. We will be providing our esteemed customers the right environment and equipment for them to comfortably do their laundry.

We will also provide additional services such as ironing, folding and packaging of clothes for our customers. Our attendants will always be available to change money, sell detergents and softeners et al. We are quite aware that in order to become the number one Laundromat in Nevada, we must continue to make our facility welcoming and relaxing and that is exactly what we will do.

We are open to the use of latest technology in the industry. No doubt our excellent customer service and the range of additional complementary services we offer will position us to become one of the leading Laundromats in Las Vegas, Nevada.

Las Vegas City Laundromat is owned and managed by Anthony Miller and family. The business will be financed by Mr. Miller and he will be actively involved in the day to day operation of the Laundromat. Mr. Anthony Miller has a B.Sc. in Business Administration and Management and he has well over 5 years of experience in the service industry.

3. Our Products and Services

Las Vegas City Laundromat is a standard Laundromat with state of the art facility specifically positioned to become the market leader in the industry. Our major purpose of starting this business is to provide a suitable and comfortable facility where people can easily do their laundries with little stress at an affordable fee.

Much more than providing a facility where people can do their laundries, we also offer complementary services; services that will get our customers hook to us. Bottom line is that we will go all the way to help our customers maximize their time when they patronize our Laundromat. These are the services and amenities that will be made available to our customers;

• Self – service washing
• Dry cleaning services
• Folding and packaging of clothes
• Home delivery services
• Cigar lounge
• Children playground
• Video games
• Big screen movies

4. Our Mission and Vision Statement

• Our Vision is to operate one of the most successfully Laundromat in Las Vegas, Nevada.
• Our mission is to develop a highly successful and profitable Laundromat business with state of the art facility in the heart of Las Vegas, Nevada; a business that will not only meet the needs of her clients but also supersede their expectations.

Our Business Structure

Las Vegas City Laundromat is set to become one of the leading Laundromat businesses in the whole of Nevada, hence the need for us to build a solid business foundation and business structure that will enable us achieve our aims and objectives.

Excellent customer service and efficiency are top priority for us which is why we will ensure that we look for applicants that match the picture of the business who want to build before hiring them. Although we will provide trainings in areas such as excellent customers services et al, but we will ensure that we shortlist applicants that are customer centric.

In essence, we want to build a team, a dedicated workforce that will work together to help the organization achieve its set targets.

We will not only hire attendants that will help supervise our Laundromat and attend to customers need when they patronize our services, but we will also hire employees that will manage our coffee café, cigar lounge, snacks bar, and our children’s playgrounds et al. Las Vegas City Laundromat will employ customer centric and skilled people to occupy the following position;

• Manager (Owner)
• Accountant / Cashier
• Marketing Officer
• Laundromat Attendant
• Coffee Café and Snacks Bar Manager

Cigar Lounge Manager

• Children’s Playground Manager
• Security Guard

5. Job Roles and Responsibilities

Manager (Owner):

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for managing the daily activities at the Laundromat
• Ensures that the facility is in tip top shape and conducive enough to welcome customers
• Interfaces with vendors
• Prepares budget and reports for the organization
• Responsible for Training and Development in the organization
• Handles procurement
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team hires

Marketing Officer (2)

• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information.
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Manages the company’s CRM system
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

Coffee Café and Snacks Bar Manager:

• Interacts with customers, take orders for coffee and snacks.
• Responsible for preparing different flavor and style of coffee for customers
• Makes lists of supplies in conjunction with the bar manager
• Ensures that each cup of coffee that leaves the kitchen is tailor made and meet the request of each customer
• Responsible for quality control
• Assesses customers’ needs and preferences and make recommendations
• Makes lists of supplies in conjunction with the management
• Prepares inventory or purchase requisitions as needed to replenish supplies.
• Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
• Responsible for managing the cigar lounge
• Prepares inventory or purchase requisitions as needed to re – stock the lounge.
• Clears ashtrays regularly
• Ensures that the assigned lounge area is fully equipped with tools and products needed to by our clients

Accountant / Cashier:

• Moves round the machines to collect payment after each working shift
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Handles any other duty as assigned by the manager

Laundromat Attendants

• Mans the various washing machines and dryers
• Assists customers as required by them especially on how to operate our machines
• Provides change for customers
• Sells detergent and softener to customers
• Ensures that the Laundromat is clean and ready to welcome customers at all times
• Responsible for ironing and folding of clothes based on demand
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows et al.
• Ensures that toiletries and supplies don’t run out of stock
• Handles and move objects, such as waste baskets, clothe rack and hand dryer et al
• Handles special request like pick up and home delivery
• Handle any other duty as assigned by the manager

Children’s Play Ground Manager

• Responsible for managing children’s play ground
• Ensures that the children are safe and happy
• Makes recommendation for purchase of children’s toys and video games
• Mops the floors
• Wipes down the machines
• Cleans the soap dispensers in your front-load washers
• Washes off the folding tables
• Cleans the bathroom
• Empties the trash
• Washes the windows
• Cleans the vending machines, change machines and video game screens

Security Guards

• Ensures that the facility is secured at all time
• Controls traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submits security reports weekly
• Handles any other duty as assigned by the restaurant manager

6. SWOT Analysis

No doubt starting a Laundromat is indeed capital intensive, especially for aspiring entrepreneurs who may not have huge sum of money saved up in a bank. We are aware that it will require loads of cash to set up a standard Laundromat business in Las Vegas, which is why we decided to do all that is required to build a profitable business

We don’t intend to invest our hard earned money in a business that we know we are not truly cut out for. One of the tools that is required to position us in building a successful Laundromat business is SWOT Analysis.

We hired the services of Mr. Coleman Carrington, an HR and Business consultant who is based in Las Vegas, Nevada, to help us conduct SWOT analysis and draft a laundromat marketing plan for our company and he did a pretty good job for us.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Las Vegas City Laundromat, Las Vegas, Nevada;

Las Vegas City Laundromat is centrally located in a densely populated area in Las Vegas; our location is in fact one of our major strengths. Aside from the basic service that we offer, we also offer complimentary services that most of our competitors do not offer.

Our Laundromat facility is located inside a very big facility. We have the latest washing machines, dryers and equipment and our attendants are well groomed to handle various classes of customers.

The weakness of Las Vegas City Laundromat could be the fact that it is a new business, which is owned by an individual (a small family), and we may not have the financial capacity to sustain the kind of publicity that can give us leverage.

• Opportunities:

We are centrally located in one of the busiest areas in Las Vegas and we are open to all the available opportunities that the city has to offer.

Our business concept has also positioned us to attract people who like doing their laundries and catching some fun at the same time. Las Vegas is one of the densely populated cities in the United States, and indeed the population translates to opportunities.

One of the major threats that confronts businesses all over the world is economic downturn; when the economy is bad it affects consumers spending which in turn impacts businesses negatively. Another threat that we are likely going to face to confront us is the emergence of a new Laundromat within the same location where Las Vegas City Laundromat is located.

7. MARKET ANALYSIS

• Market Trends

The ability for business owners to continue to re – invent itself is key to the success of the business. In the laundry industry especially in the U.S., it is trendy to see laundry companies and Laundromats that add additional complementary services to their business offerings.

Once a Laundromat is conducive and relaxing, it sure attracts customers. This is the strategy that helps Laundromat attract customers. This is why Laundromats are now building kids’ fun centers, holding music concerts, karaoke, selling coffee, snacks, and tobacco and hiring attendants who are friendly and helpful.

As a matter of fact, loads of Laundromat owners now realize that they can increase business by providing a play area for children to play. It is encouraging for parents to bring their kids and get them hooked with fun in the playground under the care of a competent employee, whilst they do their laundries.

It is important to state that despite the fact that the trends mentioned above are favorable to Laundromat owners, this does not in any way suggest that the business is booming. The Laundromat industry is what experts describe as a “mature market.

“ Except for areas where that are highly populated; it is easier to find one or more laundry businesses/ Laundromats in same area in most cities in the U.S.

8. Our Target Market

Before choosing a location for our Laundromat business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings which is why we deiced to settle for Las Vegas.

Essentially, those who will benefit from our service offering are busy corporate executives, business owners, households, students and travelers / visitors. These are the category of people that we intend marketing our Laundromat business to;

• Busy Corporate Executives
• Business Owners
• Visitors / Travelers
• Sport clubs

Our Competitive Advantage

From our recently concluded feasibility studies and market survey, we observed that there are several laundry businesses scattered all over the city of Las Vegas, as a matter of fact, there are two or more laundry / Laundromats in same locations in some areas. This goes to show that there are stiffer competition in the industry.

Before launching our Laundromats, we have critically studied the market and we know that we have some form of competitive edge. Our competitive advantage is that we have a standard Laundromat facility that offers additional complementary services that will definitely help us attract and retain customers.

Las Vegas City Laundromat can boast of having state of the art Laundromat facility with latest and easy to use laundry machines (washing machines, dryers, industrial irons et al). We specifically, we leased a big facility, so as to enable us achieve our aim of building a well – equipped children’s playground, coffee and snacks café, cigar lounge amongst others.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Las Vegas City Laundromats will generate income from the following service offerings;

• Self – service laundry jobs
• Ironing, folding and packaging of clothes
• Sale of detergents, laundry bags and other useful laundry products
• Sale of Coffee
• Sales of Snacks
• Pickup and Home delivery
• Cigar Lounge

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field with reference to similar business in Las Vegas.

We know that we are well positioned and we will definitely attract clients that will not only patronize our Laundromat but clients that will patronize our coffee care and snacks bar, and cigar lounge et al meaning that we will generate additional income from these sources.

Below is the sales projection for Las Vegas City Laundromat, it is based on the location of our Laundromat and the type of services and products that we will be offering;

• First Year-:  $80,000
• Second Year-: $120,000
• Third Year-: $180,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any Laundromat offering same additional services like us within 4.5 miles radius from our Laundromat facility.

• Marketing Strategy and Sales Strategy

The marketing strategy for Las Vegas City Laundromat is going to be driven basically by making available standard and safe Laundromat facility, excellent customer service and provision of complementary services. We will work hard to build a loyal customer base; customers that will always patronize us over and over again and as well help us use word of mouth publicity to get their friends and acquaintance to patronize us.

We want to drive sales via making available easy to use washing machines, dryers and industrial irons et al. We are quite aware of how satisfied customers drive business growth especially businesses like Laundromat which is why we will always ensure that our customer service and facility are top notch.

Over and above, our unique selling proposition is that we have various complementary service offerings such as coffee café, snacks bar, cigar lounge; children playground, ironing, folding and packaging, pickup and home delivery, and sale of detergents, laundry bags and other useful laundry products.

In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but ensure that they become loyal customer; Part of the marketing and sales strategies that we will adopt are;

• Open our Laundromat business with a party and free trial for all our visitors for the first three days of launching the business.
• Advertise our Laundromat business on national dailies, local TV stations and local radio station
• Promote our Laundromat business online via our official website and all available social media platforms
• Continuously Improving the performance of our brands
• Hire the services of experts to make our brands the first choice for in Las Vegas
• Delivering consistent customer experiences to all our guest; making our first impression count positively
• Make use of attractive handbills to create awareness and also to give direction to our Laundromat.
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our Laundromat business.

11. Publicity and Advertising Strategy

We are aware of the power of publicity and advertisement for new businesses like ours which is why we created a budget that will help us access various publicity and advertising platforms that will enable us reach out to our potential market.

At Las Vegas City Laundromat, will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our Laundromat business. Here are the platforms we intend leveraging on to promote and advertise Las Vegas City Laundromat;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
• Advertise our Laundromat business in relevant magazines (America Coin – Op, and Journal Coin Laundry News et al), local newspaper, local TV stations and local radio station.
• Promote our Laundromat business online via our official website
• List our Laundromat business on local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations
• Direct coupon mailing approach
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas all around Las, Vegas.

12. Our Pricing Strategy

At Las Vegas City Laundromat, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Las Vegas.

Be that as it may, the management of Las Vegas City Laundromat have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products (snacks, cup of coffee, cigar, detergents et al) will be same as what is obtainable in any part of the United States of America.

• Payment Options

Basically, we have made provisions for our washing machines and dryers to accept coins , but that does not in any way restrict us from receiving payments from other options especially for our complimentary service offerings. In other words, our payment policy is going to be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;

• Payment by cash /coins
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital on;

• The Total Fee for Registering the Business in Las Vegas, Nevada – $750 .
• Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) – $4,500.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580 .
• Cost for hiring Consultant – $2,000 .
• Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,800 .
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing facility for the Laundromat – $70,000 .
• Cost for facility remodeling – $50,000 .
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ( $3,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for Start-up inventory – $15,000
• Storage hardware (bins, utensil rack, shelves, glasses case) – $2,720
• The cost for Washer hook-up fees (sewer connection) – $800
• Cost for serving area equipment for coffee café and snacks bar ( glasses, flatware) – $5,000
• Cost for laundry machines and equipment (washing machines, dryers, industrial irons, ironing board et al ) – $100,000
• The cost for the purchase of furniture and gadgets (, Printers, Telephone, TVs, Sound System, video games, toys, vacuum cleaner, tables and chairs et al) – $30,000 .
• The cost of Launching a Website – $600
• The cost for our grand opening party – $5,500
• Miscellaneous supplies (cleaning supplies, soap, invoices for wash-and-fold, bathroom supplies, etc.) – $10,000

We would need an estimate of $1 million to successfully launch our Laundromat business in Las Vegas Nevada. Please note that the startup cost is higher than the average startup cost for a Laundromat business simply because we intend adding coffee café, snacks bar, cigar lounge and children’s playground.

Generating Funding / Startup Capital for Las Vegas City Laundromat

Las Vegas City Laundromat is a family business and it will be financed by the owner who is also the Laundromat manager. These are the areas where we intend sourcing for fund for Las Vegas City Laundromat;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from family members and friends (soft loans)
• Generate a larger chunk of the startup capital from the bank.

14. Sustainability and Expansion Strategy

Las Vegas City Laundromat is set to become the number Laundromat business in the whole of Nevada which is why we took our time to craft out business plan that will help us sustain the business , as well as grow the business. Part of the plans we have in place to sustain our Laundromat is that we will have efficient machines and equipment.

We will also continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our products and service offerings once the need arises.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit licenses (Health department license and business license, Fire department permit, Air and water pollution control permit, and Sign permit et al): Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of laundry machines and equipment ( washing machines, dryers, industrial irons, ironing board et al ): In Progress
• Purchase of furniture and gadgets (Printers, Telephone, TVs, Sound System, video games, toys, vacuum cleaner, tables and chairs et al): In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of all our needed laundry accessories, drinks, and tobacco et al: In Progress

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How to Start a Laundromat Business: A Step-by-Step Guide

Starting a laundry business could be a smart choice if you’re looking for an enterprise that’s easy to manage and can turn a profit. A laundromat is a place where people can do their laundry themselves, using machines that work with coins.

In our world today, being kind to the environment is more important than ever. Running a laundry business can play a part in this. It’s not just about meeting a basic need in your neighborhood; it’s also about being good to our planet.

To open a successful laundry business, you need to think about several key things. These include finding the perfect spot. You need to get the right permits, buy the needed machines, and spread the word.

Here’s a simple guide on how to get your laundry business up and running.

9 Steps to Starting a Laundromat Business

• Conduct your market research
• Select a business location
• Decide on a business model
• Determine your service offerings
• Create a business plan
• Calculate startup costs and figure out financing
• Obtain necessary licenses and permits
• Get a business insurance
• Marketing your laundromat business

Before going in deep with landing a successful business, let’s understand the different aspects of the laundromat industry that are important for those looking to enter this sector.

Here’s an overview of essential statistics and trends for the laundromat business:

• Industry Growth: Urbanization shows steady growth in the laundromat segment, with the global laundry market revenue projected to reach USD 108.10 billion by 2024 , indicating strong market potential.
• Integrating Tech: Adding modern tech like mobile payments and the option to order services online makes it easier and faster for customers to use your services.
• Going Green: Using appliances that save energy and recycle water not only helps the planet but also attracts customers who care about environmental issues.
• Adding More Services: Besides just washing and drying clothes, offering extra services like dry cleaning and home delivery can meet more of your customers’ needs.

The laundromat business is changing fast. This highlights new opportunities in this space. Using technology and sustainability enhances service. This also meets the changing demands of customers.

1. Conduct your market research

Before entering the laundry business, it is important to understand your target market. Conduct market research that provides insight into your space, local competition, and demand for laundry services in your area. Be sure to research on:

• Competitors: Look into other laundry services and alternatives like home washing in your area.
• Market Demand: Understand the need for laundry services where you plan to operate.
• Target Market: Define who will most likely use your services, focusing on their lifestyle and needs.
• Competitive advantage: Determine what sets your laundry business apart from others.
• Serviceable and Obtainable Market (SOM): Calculate how much of the market you can capture by your services.

Use trusted sources like industry reports and local studies for accurate market research.

2. Decide on a business model

Choosing the right business model is essential to success in starting a laundry business.

The business model of a laundromat primarily focuses on providing a self-service facility where customers pay to use washing and drying services. Some of the business models to consider:

Revenue Streams

Machine Usage Fees: Customers pay per load for using washing and drying machines. Pricing can vary based on machine size, type, and also on number of units.

Service Upgrades: Revenue can be generated by offering premium services, such as extra rinse cycles or high-speed drying, you can even consider charging emergency-based services.

Cost Structure

Operational Costs: Major expenses include utilities (water, electricity), machine maintenance and repair, and the cost of the location.

Labor Costs: While the self-service model minimizes staffing requirements, costs may arise from employees for maintenance, customer assistance, and potentially for value-added services like wash & fold.

Market research and strategic planning are important to identify opportunities for differentiation from existing laundromat businesses and adapt to changing consumer behavior and expectations.

3. Determine your service offerings

Many laundry shops let customers wash and dry their clothes themselves using machines that work with coins. The laundry business is always finding new ways to serve customers better.

Here, we’ll talk about different services you can offer if you own a laundry shop, and how these services can help you keep customers happy by making sure their clothes are clean, such as:

Wash & Fold Service: Where customers leave their laundry for staff to wash, dry, and fold.

Washers and Dryers Service: It can attract customers. They want more convenient looks. They can do this by offering dry cleaning.

Specialty Cleaning: Offering special services helps cater to niche markets. For example, pet linen washing and toy washing.

On-site amenities: Improve the customer experience during their wait. They are facilities such as free Wi-Fi, comfy seating, refreshments, or entertainment.

Digital Payments and Bookings improve customer convenience. They offer mobile payments, online booking, and machine availability tracking. This also boosts operational efficiency.

By providing essential laundry services with value-added offerings and a focus on customer experience, your laundromat business venture can become more than just a place to wash clothes, it can become a convenient solution for busy lifestyles.

4. Create a business plan

Starting a laundry business is not as easy as it sounds. It requires careful planning and constant guidance to be successful. To accomplish this an

business plan can be your roadmap.

Get a sample business plan from the Laundromat Business Plan and start writing your plan. This is especially important if you want money from investors or banks.

Writing a business plan helps you understand your business better. It also makes you think about aspects of your business that you may not have considered before. This can help you identify any problems and fix them before you start spending money.

Your business plan should cover what your business wants to achieve, how you will find your customers, how your laundry business will operate, and how you will make money from it.

But do you wonder what a business plan includes? Here are some elements:

• Executive summary
• Business description
• Market analysis
• SWOT analysis
• Services offered
• Business structure
• Sales and marketing strategy
• Financial projections
• Risk management plan
• Exit strategy

To write all these sections with precision requires long hours, attention to detail, and constant effort.

Not very good at writing? Need help with your plan?

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Plans starting from $7/month

5. Select a business location

Location is key! You should look for a high-traffic area with convenient parking and easy access. Consider closeness to apartment buildings, student housing, or businesses generating laundry needs.

A quick checklist that your laundry business should have:

• High Visibility and Accessibility
• Close to Target Areas
• Sufficient Parking
• Limited Local Competition:
• Safe and Clean Environment

Selecting an ideal location for your business should be a well-utilized resource and a go-to destination within your community.

Remember, a location attracts customers and plays an important role in

bringing success to your laundromat business.

6. Calculate startup costs and figure out financing

Calculating the costs of your laundry business is an important step before entering the market. This includes understanding the finances of starting and operating your laundry, including purchasing washing machines, maintenance costs for your chosen location, the cost of laundry supplies, and the initial storage of laundry detergent

Financing options for your laundromat business include small business loans, which you can apply for through the Small Business Administration (SBA) on the right terms.

Additionally, considering business credit or personal assets as surety might be necessary. Another avenue is seeking investors who are interested in the coin laundry industry’s potential for steady cash flow.

Understanding and planning for your new laundromat business expenses leads to the foundational steps.

7. Obtain necessary licenses and permits

To run your laundry business as an LLC, you must get the needed licenses and permits.

The types of licenses required can vary depending on your location. Laundry companies generally need at least a general operating license.

You may need a zoning permit to operate your laundry in your chosen location. It is important to check with your local government if a specific license is required for laundry services.

8. Get a business insurance

Before choosing insurance for your laundromat, it’s important to know the specific risks associated with this type of business, such as equipment damage, customer or employee accidents, theft, and utilities. Because of these potential risks, Insurance is important to protect against various risks.

Ensure you have:

• Business Insurance
• General liability insurance
• Commercial property insurance
• Maximum Liability Insurance

Consider additional insurances like:

• Property damage insurance
• Worker’s compensation
• Professional liability insurance
• Unemployment insurance
• Instrument Termination Instruments

These steps will help safeguard your business and ensure compliance with legal requirements.

9. Marketing your laundromat business

Before you officially launch your laundry business to the public, ensure that all your facilities and services are fully operational and ready to meet customer needs. Your marketing strategy should be comprised of, covering both digital and traditional channels.

Online, focus on creating a strong presence through your website and social media platforms. These channels are important for reaching today’s consumers, allowing for targeted advertisements and engaging content that can engage customers in your business.

Offline, we cannot overlook the power of traditional marketing through flyers, posters, and even local newspaper ads. These can be especially effective in local communities and can help reach nearby college students, and busy professionals who may not have the time to do laundry themselves.

Focus on providing quality services because satisfied customers are likely to recommend your services to others, boosting your marketing efforts through word-of-mouth, which is often the most trusted marketing of your new laundromat keeping it different from existing laundry business.

Ensuring a solid foundation in these areas will help a lot. It will get your laundry business off to a smooth start and help it grow. Remember, the goal is not to get new customers. It is to create an experience that will keep them coming back.

By now you must have a rough idea regarding how to step into the laundry industry. First thing first, get you started on writing your perfect business plan.

Upmetrics’ AI-assisted business planning tool is an invaluable resource for entrepreneurs exploring small business ideas . Whether you’re in the initial stages of brainstorming or ready to refine your concept, Upmetrics helps streamline the process, enabling you to easily draft a pitch-perfect business plan.

And that’s pretty much all you need to know to get started with a successful laundry business. So what are you waiting for? Start your laundry business Today!!

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently Asked Questions

How profitable is owning a laundromat.

Owning a laundromat can be quite profitable. The coin laundry business has a reputation for providing steady income and high ROI. This is because of its low operating costs and consistent customer demand.

Profitability can vary based on factors like location, size, and services offered. But, by managing maintenance costs well, laundromat owners can maximize their earnings.

How much investment is required to open a laundromat?

The investment required to open a laundromat can range significantly based on the scale of the business, the cost of laundry equipment, and whether you’re starting a new business or purchasing an existing business.

Initial costs include buying laundry machines and renovating the space. They also include adding vending machines for customers. And they cover the first few months of operating costs.

How should I market my laundromat?

You need to market your laundromat well. This takes a mix of online and offline strategies. They attract laundromat customers. Your marketing strategy should include social media platforms for promotions.

You should also offer free wash days to attract new customers. Consider laundry delivery services for added customer convenience.

Talking to the local community and the Coin Laundry Association can also give helpful marketing tips. They can also provide opportunities to grow your local customer base.

Do I need any specific permits or licenses to open a laundromat?

Yes, it also needs general business and local permits. Also, opening a laundromat may need permits for water use, waste, and the environment.

You should check with your local government and the Coin Laundry Association. Do they have any specific requirements for the coin laundry industry? Ensuring compliance with health and safety standards is important for smooth operations.

Should I consider franchising or opening an independent laundromat?

The choice is between starting a franchise laundry and your shop. It depends on what you want, your experience, and how much help you expect to need. Going with a franchise means you get a well-known brand and a business plan that already works. This can make things less risky if you’re new to this.

But, often, you’ll have to pay upfront costs and ongoing fees. If you start your laundry shop, you’ll have more control over how you advertise. You’ll also have control over the machines you use and how you run things day-to-day.

Both choices have their good points. It’s important to think about what suits you best, do your research on the market, and check your budget.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to start a laundry business.

Despite the constant need for clean clothes, many don’t have time to handle this simple task. In fact, laundry is often rated as the least favorable household chore.

Given the constant need for clean clothes, this $40 billion dollar industry is a lucrative business to get involved in. If you are thinking about becoming a laundry entrepreneur, take a look at the following strategies on how to start a laundry business.

Start a Laundry Business

Gain Experience in the Laundry Industry

While running your own laundry business does not require any specific qualifications or experience, it’s a good idea when entering any business to have experience in the industry. With this in mind, it may prove valuable to take a job in a laundry facility, so you can learn more about the trade and what customers want.

Carry Out Market Research

Before you begin the venture, conducting market research can be an effective way to ensure there is demand for laundry services in your area. Carrying out market research will help you determine how customers are likely to respond to your new venture.

Write a Business Plan

All business ideas should start with a business plan . Even if you are not planning on getting a bank loan or venture capital for your business, a business plan will give you a deeper understanding of the market.

Your business plan should start with a list of the services you will provide. Will you deliver the laundry back to customers or offer any specialized cleaning services, such as dry cleaning or ironing?

A business plan will give you clarity about where you are heading and help you stay organized and remain on track.

List the Items You Will Need

Starting a laundry business might be more expensive than you think. When writing your business plan, jot down all the equipment and items you will need, including washers, dryers, detergent, hangers, and so on. These items will need to be factored into your budget to ensure your venture is financially viable.

Determine Your Target Market

It’s important every entrepreneur picks a target market to go after. When writing your business plan and getting your idea off the ground, think about who your target market will be. With a laundry business, your target market could be fairly broad, ranging from elderly customers who aren’t able to take care of the washing themselves, to busy working moms who don’t have time to wash the family’s laundry, to students who don’t have their own washer or dryer at home.

Mapping out who your target markets are is vital when it comes to marketing your business.

Pick a Prime Venue

If you’ve got laundry facilities at home such as in your garage and you live in a place that’s accessible for customers to drop off and pick up their laundry, you may want to operate your laundry business from home.

Failing that, look for a prime venue for your start-up that’s in a great location, such as on a busy street, to help get the business up and running. Naturally, the price of renting the venue will need to be factored into the business expenses and taken out of potential profits.

Space that has off-street parking is attractive as this makes the dropping off and picking up process more convenient for customers.

Distinguish Your Laundry Business from Competitors

Besides making sure you have a good location, think about ways you will distinguish yourself from competitors. You may want to offer specialized services, such as ironing and dry-cleaning items or offer lower prices than competitors.

When you open the business, encourage customers to come to you by offering ‘first week deals’ such as two loads of washing for the price of one.

Start to Market Your Business

Once you have everything in place to open your laundry business, start marketing your venture aggressively. From posting fliers to sending direct mail, and even getting your own website launched, there are endless ways to market your laundry business to different target markets.

Think About Becoming a Laundry Franchisee

There are pros and cons to franchising .  But franchises come with a number of benefits, including the fact they provide everything you need to get your business up and running. Systems like Laundry Care partner with entrepreneurs seeking to provide laundry services to local residents and commercial customers and help them build a business.

As the brand and business model are already set up and established, entering a franchise contract can come with less risk than starting a business entirely from scratch.

Laundry Franchise: A Lucrative Opportunity

If you’re considering entering the laundry business, one option worth exploring is becoming a laundry franchisee. While starting a business from scratch can be rewarding, franchising offers a range of benefits that can make the process smoother and less risky. Here are some key points to consider if you’re thinking about becoming a laundry franchisee:

• Established Brand and Business Model: By choosing a laundry franchise, you gain access to an already established brand and business model. This means you don’t have to build your brand from the ground up, saving time and effort on marketing and advertising. Customers are more likely to trust a recognized brand, increasing the chances of attracting clients from the start.
• Guidance and Support: Franchise companies often provide comprehensive training, support, and ongoing assistance to their franchisees. This support can range from initial setup guidance to ongoing marketing and operational support. Being part of a franchise network allows you to tap into the collective knowledge and experience of other franchisees and the franchisor.
• Proven Systems and Processes: Franchises typically come with tried and tested systems and processes. These operational guidelines help ensure consistency and efficiency in running your laundry business. You’ll benefit from established workflows, quality standards, and best practices that have proven successful in other franchise locations.
• Reduced Risk: While all businesses carry some level of risk, franchises can provide a degree of risk reduction. The established brand, support network, and proven business model contribute to a higher chance of success compared to starting a business entirely from scratch. Franchisors also tend to have a vested interest in the success of their franchisees.
• Marketing and Advertising: Franchise companies often handle national or regional marketing and advertising campaigns, which can significantly benefit local franchisees. Collective marketing efforts can lead to increased brand recognition and customer acquisition. Additionally, the franchisor’s marketing expertise can help you develop effective local marketing strategies.
• Franchise Fees and Agreements: It’s essential to thoroughly review the franchise agreement, including any initial fees and ongoing royalties or contributions. Understand the terms and obligations associated with the franchise before committing to the opportunity. Conduct due diligence on the franchise company’s reputation and track record.
• Flexibility and Autonomy: While a franchise provides an established framework, there is still room for local autonomy and decision-making. Within the guidelines set by the franchise, you may have the flexibility to tailor certain aspects of your laundry business to suit your local market’s needs and preferences.

Expanding Services Beyond Traditional Laundry

Diversifying service offerings is a strategic way to cater to a broader customer base and enhance revenue streams in a laundry business. Moving beyond basic washing and drying, there are several value-added services that can be integrated to meet the evolving needs of customers and stand out in a competitive market.

• Eco-Friendly Cleaning Options : With increasing environmental awareness, offering eco-friendly cleaning options can attract a segment of customers who are conscious about their ecological footprint. This can include using biodegradable detergents, energy-efficient machines, and water conservation methods. Marketing these green practices can also enhance the business’s brand image as environmentally responsible.
• Ironing and Dry Cleaning Services : Including ironing and dry cleaning services provides a one-stop solution for customers. Busy professionals, for instance, would find value in having their clothes washed, dried, ironed, and ready to wear. These services command higher prices, adding a lucrative edge to the standard laundry offerings.
• Express Delivery Services : Implementing a pick-up and delivery service adds convenience for customers and is particularly appealing to those with busy schedules. Offering express delivery options for faster turnaround times can cater to clients who need urgent laundry services, thus increasing customer satisfaction and loyalty.
• Specialized Cleaning Services : Catering to niche markets, such as offering cleaning services for delicate garments, wedding dresses, or even bulky items like blankets and curtains, can attract a diverse customer base. This specialization can set a laundry business apart from standard laundromats that offer basic services.
• Subscription Models : Introducing subscription-based models where customers pay a monthly fee for a set number of services can ensure a steady revenue stream. This model is beneficial for both the business, which gains predictable income, and customers who enjoy the convenience of regular services.
• Laundry Apps and Online Booking : Developing a mobile app or an online booking system for easy scheduling of services enhances customer experience. Features like tracking the laundry progress, automatic billing, and notifications when laundry is ready for pickup or delivery can be included.
• Partnerships with Local Businesses : Collaborating with local businesses, such as hotels, restaurants, or gyms, to handle their laundry needs can open new revenue channels. These partnerships can provide a consistent bulk of business, balancing the typically variable individual customer demands.

Before making a decision, carefully evaluate various laundry franchise opportunities, comparing costs, support, brand reputation, and alignment with your business goals. A well-chosen laundry franchise can provide a solid foundation for your entrepreneurial journey in the laundry industry.

The laundry industry presents a promising business opportunity, driven by the constant demand for clean clothes and the growing need for laundry services among busy individuals. Whether you choose to start your own laundry business from scratch or become a laundry franchisee, careful planning and strategic decision-making are essential for success.

Starting a laundry business allows you the freedom to create a unique brand and tailor your services to a specific target market. Market research, a comprehensive business plan, and effective marketing strategies will play a crucial role in establishing a strong customer base and differentiating your business from competitors.

On the other hand, becoming a laundry franchisee offers several advantages, including an established brand, proven business model, guidance, and ongoing support from the franchisor. Franchises come with reduced risk and the benefit of collective marketing efforts, making it an appealing option for those seeking a smoother path to entrepreneurship.

Ultimately, the decision between starting a standalone laundry business and becoming a laundry franchisee depends on individual preferences, resources, and entrepreneurial goals. Whichever path you choose, the laundry industry holds significant potential for growth and profitability, making it a lucrative venture worth exploring for aspiring entrepreneurs. Conduct thorough research, carefully weigh the pros and cons, and embark on your laundry business journey with determination and passion for success.

Photo via Shutterstock

Back then, laundry is done by yourself. But now, you can outsource it as long as you have some money to pay for it. It saves your home a location for a washing machine.

What are the things to consider when purchasing commercial washing machines? Not like other pieces of equipment, there are crucial things to know that will help you get the ideal laundry system for your demands especially if these machines will be used for business purposes.

Hi Roughly how much is needed to establish Laundry Business?

Thank you for this guide in preparing a Laundry Business. Do you know a Laundry machine supplier who can provide help up to the installation?

I would like to own a laundry franchise in Canada

What types of machine do you think is best to start these business..

How much do I need to start laundry business?

How to raise funds to buy commercial washer dryer.if help notify pls

How much do I need to start a laundry business. What are the equipment to use. How can I start small.

hi. am a university student from/in uganda with interest in starting a laundry business. so my questions is what do i need especially the type of washing machine, what do i need to do and what do i expect

Help me with guidelines on estimated initial capital approximately to start a Laundry Business As a small business iinterprenuer I need this guide

How can I go about starting a laundry business in my area, and how would I start to pursue the next steps. Like seeking for the machines (washer and dryer) Do I have to find a place that sells them in bulks?

Hi thanks for the heads up. Please list for me the set of equipment that l ought to buy that can help me start the business. Including but not limited to a machine that can iron

Kindly advise,I need to start opening laundry business,I need to start with two washing machine and dryer

what franchises are out there for a laundry business

How much roughly do you need to start your own business(laundry)

Iam so interested in the laundry business please help me for it to be successful , for the start what will I need

I have written a post on how to start a laundry business, but after reading your content I envy you. You have covered most required necessities to start a Laundry Business. Thank You.

Thank you so much; this post is beneficial for everyone who wants to start their laundry business and purchase coin-operated laundry equipment. However, could you please give me a rough idea of the basic costing to start a new laundry service?

Thanks for sharing this with us. Very interesting information, worth recommending. A good blog always comes-up with new and exciting information and while reading this article, I do get a vibe that this blog really has all those qualities. I will definitely recommend this article to my friends and other communities.

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Laundry Business Plan Template

Trusted by 500+ Downloaders

What You Get

• A compelling & detailed pre-written Laundry business plan template in WORD
• A full & automatic Laundry financial plan model in EXCEL you can easily customize
• Customized text tailored to the Laundry business
• The ability to paste advanced charts and tables within a click
• No accounting or specialized financial knowledge needed
• A truly cost-effective solution saving you time and money

Laundry Business Plan Template Description

Our ready-made Laundry business plan package is all you need to build an investor-grade laundry business plan fast and easy. It comes with a pre-written business plan document in Word and an automatic financial plan in Excel tailored to the laundry service business. All you need to do is customize these documents to perfectly make them fit your own laundry project. For more information regarding the content, check out the full description below.

Laundry Business Plan Document in Word

Our ready-made Laundry business plan template is in Word format and includes 24 pages. The document is divided into multiple sections. Each section contains the essential points that are necessary to effectively present your Laundry project. Each section and sub-section offer you a sample text that you can easily customize to make your business plan unique. Below is a small excerpt of your pre-written Laundry business plan document in Word.

Automatic Laundry Financial Model in Excel

Our pre-populated financial model is in Excel format and includes multiples worksheets. You can easily edit the model’s inputs including changing costs and revenue assumptions to generate pro-forma financial forecasts including P&L, Cash flows and Balance Sheets. Below is a small extract from your automatic laundry financial plan in Excel.

The Benefits of Building a Business Plan for your Laundry Project

Building a business plan for your laundry project can bring a variety of benefits, including:

• Securing funding: A laundry business plan can help you secure funding from investors or lenders by outlining your vision for the business, the market opportunity, and your financial projections.
• Identifying and mitigating risks: It can help you identify potential risks and opportunities associated with your laundry project, and develop strategies to mitigate those risks and capitalize on those opportunities.
• Establishing clear goals and objectives: A business plan can help you establish clear goals and objectives for your laundry venture and create a roadmap for achieving them.
• Improving decision-making: By providing a framework for decision-making, a laundry business plan can help you make informed choices about how to allocate resources and manage the business effectively.
• Communicating effectively with stakeholders: A laundry business plan allows you to communicate your vision and strategy to stakeholders, such as employees, investors, and customers, and align everyone’s efforts towards the same goals.
• Benchmarking and tracking progress: Do you wish to track your progress against your goals? A laundry business plan can help you do that. It allows you also to make adjustments as necessary to stay on track.

Overall, a business plan can provide a comprehensive view of your laundry project, including both short-term and long-term goals, and can help you make better decisions, secure funding, and track progress over time. It’s a valuable tool for any aspiring laundry owner.

This Ready-Made Laundry Business Plan is For

• Entrepreneurs wishing to start a Laundry business
• Aspiring laundry store owners who want to create a business plan fast and easy
• Entrepreneurs who wish to pitch their project to investors
• Laundry professionals who wish to better understand the potential of the opportunity

Immediate Delivery by Email

• Once you complete the order, you will receive an email with links to download your documents
• Your order will contain the full pre-written business plan in Word
• Your order will contain the full customizable financial model in Excel

Your Laundry Business Plan Content

Executive Summary:  Our Laundry business plan template starts with a compelling Executive Summary. This key section is very important as it summarizes in 1 page your Laundry concept. It will introduce your business model, the key people behind the project as well as the unique selling proposition offered by your Laundry service. This section will also mention how market conditions and consumer trends are favorable for launching your project.

The Problem Opportunity:  Next, your ready-made Laundry business plan will list a number of problems experienced by your prospects in your target market and will show how this presents a unique opportunity for your Laundry. These can include issues such as the lack of laundries in a certain location, undifferentiated offering by current actors in the market…etc.

The Solution:  This section explains how your Laundry business will take advantage of the current problems in the market and will detail your innovative solutions.

Mission & Vision:  Your mission will explain in a couple of sentences your Laundry service’s business ethos. In other words, it will summarize your unique value proposition and will explain how you are different than the competition. Your vision will explain the long-term plans for your Laundry concept. Are you planning to start with one branch today and expand to a multi-branch business model? Are you looking to transform your Laundry business into a franchise model?…etc.

Business Model:  This section details your Laundry concept using the business model canvas method. In a visually appealing table, we will detail your Laundry business’ key partners, activities, resources, value proposition, customer segments, customer relationship plan, marketing channels, cost structure and revenue streams.

Products & Services:  Next, we will talk in detail about your various products and services. We will describe your various types of washing, dry cleaning and pressing services…etc. We will also provide information about your pricing and average order values.

Market Analysis:  This important section describes the various market statistics and consumer trends in the laundry service industry and explains how they support your own concept. The purpose of this section is to show that the market conditions are favorable for launching your new Laundry.

Global Market Trends:  In this sub-section of the market analysis, we will discuss the latest general market trends in the laundry service industry. We will look at the global industry size, growth rate, growth diving factors and consumer trends.

Local Market Trends:  This sub-section explains the local market trends that are relevant to your specific Laundry business in your own area of operation.

Target Customers:  In this section, we will describe your various customer profiles by providing information about their demographics, behavior and purchasing habits.

Competitive Analysis:  We will analyze key competitors active in your target market and provide insights about their strengths and weaknesses.

Competitive Advantages:  After looking at the competitive landscape, we will then show how your Laundry business is differentiating itself from the competition through a number of key advantages.

SWOT Analysis:  This section features a 4-quadrant table with explanations about how your Laundry intends to leverage its key strengths, mitigate weaknesses, capture opportunities and thwart any future threats.

Marketing Plan : This chapter provides detailed information about your go-to-market strategy. It includes a detailed action plan to help you build brand awareness and generate sales.

Branding & Awareness:  We will describe in this sub-section your choice of key marketing channels to build branding and awareness.

Customer Acquisition:  We will describe in this sub-section your choice of key marketing channels to acquire customers and increase sales.

Operating Plan:  This chapter provides information about your Laundry’s opening hours, internal processes and describes the interactions between various key departments and teams.

Management Team:  It is very important to present the key people behind your Laundry project and thus we have dedicated a section for this very purpose. It is also important to talk here about the founder’s vision, his past education and professional experience.

Hiring Plan:  No business can succeed without having on board the right team. This section lists all the key positions you plan to hire with information about their salaries and expected start dates.

Key Milestones:  To be able to launch and execute your Laundry project, you need to follow a set of actionable tasks with target deadlines. This section serves this purpose.

Financial Plan:  Without a robust financial plan, your Laundry business plan would be an incomplete document. This important section provides crucial information about your pro-forma financial projections and shows that you have really done your homework. The data mentioned in this and the following sections will be provided by the dynamic Excel financial model accompanying your Laundry business plan.

Projected Revenue:  This module shows your Laundry business’ revenue projections over the next three years.

Projected Profit and Loss:  This module shows your Laundry service’s income statement (also called profit and loss statement) over the next three years. Your income statement includes detailed projections about your sales and expenses and shows how your Laundry’s revenue is converted into a net profit.

Projected Cash Flows:  This module shows your Laundry business’ cash flow projections over the next three years. The first year of operation is even detailed on a monthly basis. Your cash flow statement will detail the various cash inflows your Laundry will generate from its day to day operations and from funding sources, as well as the various cash outflows required to pay for operating expenses and business investments.

Projected Balance Sheet : This module shows your Laundry’s balance sheet projections over the next three years. The balance sheet will provide a summary of your Laundry’s short term and long term assets in addition to your short term and long term liabilities and capital.

Profitability Analysis:  In this section, we will provide information about your gross margin, net margin and discuss the profitability of your Laundry business.

Funding Requirement:  This module states the amount of funding your need to be able to comfortably launch your Laundry business. It also describes the planned allocation of the funds between Opex and Capex.

Conclusion : Finally, we will conclude your business plan by recapitulating the key points that make your Laundry project compelling and reiterate the rationale behind your business opportunity.

Why Use our Ready-Made Laundry Business Plan?

• Speed & Convenience:  Once you complete your order, you will receive the Laundry business plan directly in your mailbox. Since it is already pre-written with fully customizable financials, you will only need to spend a couple of hours to edit it and adapt it to your own Laundry project.
• High Quality:  Your Laundry business plan has been written by our professional team of business plan writers and experts from the laundry service industry. You will receive a professional Laundry business plan template ideal for presenting to potential investors or banks.
• Low-Cost:  Our pre-written Laundry business plan template is the most cost-effective solution in case you need to build a solid and professional Laundry business plan. We are confident you will save hundreds if not thousands of dollars by ordering our premium business plan compared to hiring a consultant or subscribing to complicated and expensive software.

If you have any question regarding our ready-made Laundry business plan package,  do not hesitate to contact us , we are here to help.

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How to Write a Laundromat Business Plan + Example Templates

Elon Glucklich

7 min. read

Updated February 7, 2024

Free Download:  Sample Laundromat Business Plan Template

Would you open a business in an industry that continuously sees annual growth rates between 3 and 5 percent , with steady growth forecast for the next decade?

Starting a laundromat business may not sound flashy, but it has proven to be a profitable venture for many.

But just like a retail store or tech startup, operating a successful laundromat business takes careful planning. It also requires accounting for major upfront costs, and keeping in compliance with environmental regulations.  

That’s why it’s so important to conduct extensive research and planning, before investing in building space and expensive commercial-grade laundry equipment. Putting together a solid business plan will help you focus on the important purchases to make and processes to implement to run a successful laundromat business.

Get started by downloading our free sample laundromat business plan template .

• Why You Need a Business Plan for Your Laundromat Business

Because of the careful planning and attention to details required, it’s crucial to map out the vision and structure for your business. That’s where a business plan comes in handy.

Do you know how much you will need to spend on equipment before you ever bring in any revenue? Will you need a bank loan to get up and running? Most customers look for the laundromat that’s closest to them , so how much do you know about the demographics of the neighborhood you plan to operate in?

A business plan is the place to compile your most relevant market research , financial projections , and your overall strategic vision for the business. It’s where you can document assumptions about your startup costs and ongoing operational costs, as well as the processes you’ll put in place to ensure compliance with environmental rules.

This guide will help you structure your laundromat business plan, detailing the main areas to cover in the plan and what types of information you’ll need to compile.

• Understand Your Business Model and Startup Costs

All laundromats are not the same. There are the traditional, coin-operated models. But there are also more modern card-operated systems. Many are self-service, but some provide drop-off service, dry clearing, even tailoring. In your business plan, you should discuss the laundromat business model you are choosing and why. Higher-end services like tailoring might attract a broader customer base, but they bring additional costs.

Your business plan is the place to define the services you will provide . It’s important to document these decisions, even if you are just opting for a traditional coin-operated laundromat. Producing a detailed estimation of your startup costs before launching the business is essential, since it will ensure you are considering the full range of equipment and utility costs.

Once you have defined your business model, you will need to show that it aligns with your projected costs, including:

• Building lease or purchase
• Renovations
• Commercial-grade laundry equipment
• Laundry detergent
• Business license

Without detailing your startup costs upfront, your financial projections for the business won’t be accurate, and you will be less prepared for unexpected costs .

A detailed financial projection will also help you determine how long it will take for your business to break even . With a detailed description of your business model and startup costs, you will be ready to approach lenders or investors to get funding for your laundromat . That initial investment will be key to your success, since laundromat startup costs are often hundreds of thousands of dollars.

Know the Area You’ll Serve

Location, location, location. It’s true for many businesses that the location it operates in plays a major role in determining how many customers walk through its doors. That’s especially true for a laundromat. Many customers will be apartment tenants, and are likely to seek out a laundromat within 1-3 miles of where they live.

So the location of your laundromat is a significant determinant of its potential success, and should be a focal point in your business plan. A strategic location can drive high foot traffic, increase visibility, and ultimately boost revenue.

Your selected location should ideally be in an area with a high density of potential customers. This could include neighborhoods with many apartments or near university dormitories where residents may not have easy access to laundry facilities. Additionally, your location should be easily accessible, preferably on a main road with clear visibility from the street to attract passers-by.

In your business plan, explain why your chosen location meets these criteria. Describe the following:

• Demographics of the area
• Ease of access to the business
• Visibility from the street
• Competitors and their distance from your business

While marketing may not be a huge portion of your operating budget, you will want to demonstrate in your business plan that you have a strategy for acquiring customers and retaining them . Consider strategies you might use to promote your business, like advertising through flyers and newspaper ads, or digital marketing on social media or through search engine optimization.

Understanding your target customers will help inform these strategies. For instance, if your laundromat is near residential areas or college campuses, you may want to advertise in student publications or on social media channels. But if it’s in the middle of a busy downtown, you may want to advertise cleaning services for suits, or commercial laundry services.

• Stay on Top of Operating Expenses

We’ve discussed the sizable costs to open a laundromat business. But there are also ongoing operational costs that need to be taken into account. Think about a washing machine that’s broken down, dryer lint screens that need to be replaced, or maintenance on your water connections. 

Your business plan is where to compile those costs, since they’ll have a significant impact on your long-term finances. You won’t be able to accurately estimate your break even date without them.

Your business plan must detail the maintenance and repair strategies you intend to employ in order to extend the life of your equipment. Document your strategy for handling repairs – whether you’ll use an on-call technician, train any staff to handle minor upkeep, or send faulty equipment to the manufacturer for repairs.

You should also state whether you will have a contingency plan while machines are being repaired. Do you have spare machines, or a regular maintenance schedule to minimize disruption? This will show potential lenders or investors that you’ve considered steps to maintain steady revenue streams.

Don’t forget about utility and insurance costs, as well. These are ongoing expenses that can change as your business grows. You will want to demonstrate in your business plan that you have considered the impact of these costs on your business – not just when you start the business, but on an ongoing basis.

• Compliance Can Make or Break Your Business

Laundromats are subject to a variety of regulations , from local zoning laws to environmental standards. For instance, there might be specific requirements for wastewater disposal, given the amount of detergents and chemicals laundromats typically use. You may also need to comply with safety standards regarding equipment operation and maintenance.

It’s crucial to comply with all relevant regulations, just as in any business. Your business plan should include a section dedicated to detailing these legal and regulatory requirements.

Start by identifying the agencies that oversee these regulations, from local health departments to the Occupational Safety and Health Administration and Environmental Protection Agency. List the concerns these agencies will be looking out for, from wastewater disposal to emissions from your laundry machines. Then, detail the steps you’ll take to ensure compliance, such as regular inspections and audits, staff training and the implementation of safety protocols.

Show customers and your lender that you know about the relevant regulations and have a plan to stay on top of them. Not only will it reassure them that you can responsibly run a laundromat business, but it also reduces the risk of costly fines, operational disruptions and even lawsuits.

• Download a free laundromat business plan template and example

For help getting your business started, download our free laundromat business plan template . You can download this document in Word form and use it as a foundation for your own business plan.

If you want to brush up on how to write specific sections of a traditional business plan, take a look at our step-by-step guide on how to write a business plan .

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• Know the Area You’ll Serve

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How To Start a Laundromat: Costs and Pro Tips If you're an entrepreneur looking to start your own laundromat business, then read on for costs, pro tips, and how-to's on the process.

Feb 15, 2019

Entering into the laundry business can be challenging because there are so many factors to consider — you will need to analyze your target demographic, develop a financial plan, and choose a prime location.

To help alleviate some of your stressors, follow along for a guide on everything you need to know about starting your own laundromat.

Why starting a laundromat could be right for you

People everywhere need clean clothes, so starting a laundromat seems foolproof. Laundromats are self-service facilities (generally coin-operated) where patrons have the space and equipment to wash and dry their clothes without the help of a professional.

Related: How to Start a Coin-Operated Laundry

Laundromats and dry cleaners are not the same, as laundromats are self-service, and dry cleaning is maintained by professionals who complete the task of cleaning special-care clothes for their patrons.

The self-service nature of the business might sound attractive because laundromats can be low maintenance to run. However, before entering any new industry, getting a feel for the lay of the land is essential. To do that, you must weigh the pros and cons of your potential endeavor.

Pros of owning a laundromat

Ready for the perks of owning your own laundromat ? They may include:

• Steady revenue stream
• High return on investment (ROI) potential
• Recession-proof business
• Simplicity of operation
• Work hour flexibility
• Zero eCommerce competition
• Potential for multiple locations
• Low management maintenance

Cons of owning a laundromat

When looking at the downside of owning a laundromat, you may find:

• Capital intensive business
• Barrier to entry
• High utility expenses
• Possible costly repairs

How to purchase and open a laundromat

Now that you've considered both sides of the coin, it's time to get into how to start a laundromat business.

1. Initial research

Before you create a business plan, you'll need to complete some initial research to better understand what ballpark you're in. This step can help guide your business plan and its parameters.

There is no real way to give an exact number on cost because there are so many factors. However, a broad range for how much it may cost to open a laundromat is $200,000 to $500,000.

Factors that can influence cost include:

• New business vs. existing business
• Independent or franchise
• Marketing and advertising
• Employee wages

Related: Start a WaveMax Laundry Franchise

2. Business plan

Once you've completed preliminary research, you'll have a better idea of how much this process will cost and the steps needed. Now that you've got some more information, it's time to create a business plan.

Your business plan should include the following:

• Executive summary
• Business description
• Market strategies
• Competitive analysis
• Design and development plan
• Operations and management plan
• Financial factors

Related: How to Write a Business Plan

3. Secure financing

Starting a new business is no cheap feat, so you will likely need some type of financing. There are many avenues to take regarding this topic, but the Small Business Administration (SBA) is the best place to start. The SBA offers countless resources and guides but can also connect entrepreneurs with interested investors and financiers .

The Small Business Administration can help you to:

• Determine the amount of funding you'll need
• Complete the self-funding process
• Connect with venture capital investors
• Fund your business with crowdsources
• Obtain a small business loan
• Use Lender Match to find SBA-guaranteed loans with verified lenders
• Research SBA investment programs

4. Secure location

Ready to scope out real estate? One of the most significant assets a laundromat business can have is its location. You may need to complete market research to determine whether or not it will succeed in that prospective community.

Ask yourself:

• Are there apartment buildings in the area?
• Do those apartment buildings have washer and dryer units?
• Is there real estate within walking distance of the apartment complex?
• Are there competitor businesses in the area?

Other factors to consider about your location are the potential for:

• Optimal lighting
• Layout with adequate space for equipment, seating, and customers
• Welcoming interior design
• Space for interior and exterior signage
• Accessibility for all customers

5. Choose the type of business structure

As you finalize your business plan, you should also consider what type of business entity you want your laundromat to be. Check out the different types below.

Related: Choose Your Business Structure

Limited Liability Company

A Limited Liability Company (LLC) is a flexible business structure that combines a corporation, partnership, and sole proprietorship.

With this structure, the business owner is legally separate from the business, which dictates tax filing, operations, and management. LLCs are generally safer and more easily manageable than other small business entities.

An S corp is a small business entity that files for federal corporate income tax exemption. Because of the structure of this business, the shareholders are responsible for income, loss, and tax return credits.

Sole proprietorship

A sole proprietorship is a common type of business structure that is a common but riskier choice. It is risky because the business owner is not separated from the business and assumes all financial risks.

Licensing and taxes are simple with this choice, but the weight of the business is all on the owner and their personal finances.

Partnership

If you plan to team up with another entrepreneur in this venture, you may consider a partnership. A partnership is two or more people that share ownership, control, profits, and losses of a business.

In a partnership, the business and the person are the same, much like in a sole proprietorship. This means that the company's legal responsibilities fall upon you and your partners.

6. Choose business name, register the business, obtain IDs, licenses, and permits

At this stage of the process, things are beginning to take shape. It's time to name your business and tackle some legal paperwork.

Choose business name

When registering your business, you will likely need to create a name for your new laundromat. Your business should be named something that reflects the nature of your business and aligns with your brand identity.

Register business

After you've chosen your name, you must register your business . There are four different ways you can do so, which include:

• Entity : State-level protection
• Trademark : Federal-level protection
• Doing Business As (DBA ): No legal protection, but some states require
• Domain name : Online presence shown through website and URL

Obtain IDs, licenses, and permits

You must obtain a federal tax ID to legally open a business bank account, employ a team, and apply for licenses and permits.

Federal and state governments have different requirements for licenses and permits based on your industry. It is always best to stay up-to-date with the latest requirements through information from the SBA .

7. Open a bank account

Having a business bank account that is separate from your personal bank account offers you protection in your business life and balance in your personal life.

The benefits of opening a business bank account include the following:

• Protection and professionalism
• Purchasing power (credit limits)
• Special introductory offers, interest rates, and fees

Choosing a bank is personal to each business owner. Make sure you complete your due diligence and create a pros and cons list for at least three different banks and what they can offer.

8. Secure equipment

Equipment costs can depend on buying an existing laundromat or starting from scratch. If you are buying an operating store, you should check on all the laundry machines' condition.

If you are starting fresh, you may need to research commercial laundry equipment like:

• Industrial washing machines: $700 - $3,000+ depending on size, and top-load versus front-load
• Industrial dryers: $900 - $4,000 depending on size, and top-load versus front-load
• Card system (if you are going to offer credit card payments): Wide range , averaging around $15k if you're adding card readers to all of your laundry machines
• Bill-to-coin change machine: $800 - $7,000
• Water heater system: $10,000+
• Laundry detergent
• Fabric softener
• Laundry carts

There are also comfort items to consider to make your patrons comfortable while they wait for their laundry:

• Vending machines
• Office supplies
• TVs and cable

9. Employees

The next step is assembling a team for your new business. Once your business is up and running, it is relatively low maintenance. However, that does not mean that you will want to be the sole employee.

When it comes time to hire employees, it's vital to business operations that you find a team that is reliable, positive, and full of integrity.

A few ways to get the word out about open positions are:

• Utilize multiple job boards (LinkedIn, Craigslist, Indeed, and flyers)
• Include descriptive job postings with transparent wages and role responsibilities
• Require references and letters of recommendation
• Conduct a thorough interview process

Related: 15 Tips for Improving Your Skills Interviewing Job Candidates

At this stage, everything has started to come together. Before you open, create a marketing plan to promote the grand opening event.

Marketing for the opening can help raise awareness and promote engagement. There are many ways you can market that are low-cost and effective.

Cost-effective marketing tools include:

• Social media posts
• Local business networking
• Word-of-mouth
• Flyers and posters
• Local business collaborations (especially with apartment complexes)
• Offer discounts

In addition to a solid marketing plan, you should also create a Google Business profile.

Google Business profiles make it easy to:

• Display your business hours online
• Communicate with customers
• Maintain general updates
• Read customer reviews to stay in-the-know

Finally, when it comes to the actual grand opening, put a fun spin on your event. Allocate a bit of your budget and make it a neighborhood event.

Splurging on simple things like coffee and donuts, a randomizer wheel of prizes, and other fun promotional items can go a long way if it broadens your customer base and spreads the word about your new business.

Related: No Money? No Problem. 30 Low Budget Marketing Ideas for Your Busines

Pro tips for opening a laundromat business

As an entrepreneur, it's essential to stay as on top of your game as possible. While you continue your journey of being a successful laundromat owner, there are a few critical pieces of advice to remember.

Pro tips for small business owners include:

• Conduct regular SWOT analysis — examining and reflecting on your business is never a bad idea.
• Make customer loyalty a priority and stay involved in your community.
• Maintain a watchful eye on your cash flow.
• Stay creative, adaptive, and passionate.

Related: 4 Tips for Small Business Owners as They Navigate an Economic Downtur

Is starting a laundromat right for you?

Laundromats might sound like a lot of work, but so is any business. The greater truth is that laundromats can be an excellent investment for a business owner because they are generally steady and straightforward businesses. While they might require a hefty startup cost, the profit margins can be worth it in the long run.

No matter the weather (literally and metaphorically), people always need to do laundry. No matter the economy, people need clean clothes. And no matter how much trends change, fresh clothing will never be out of style.

Looking for more guidance? Explore Entrepreneur for advice on starting your own business, managing business finances, and more

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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Laundromat Business Plan Template

Written by Dave Lavinsky

Laundromat Business Plan

You’ve come to the right place to create your laundromat business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their laundromats.

Below is a template to help you create each section of your Laundromat business plan.

Executive Summary

Business overview.

Jean’s Clean Laundromat is a startup laundromat located in Manhattan, New York. The company is founded by Jean Smith, an experienced business manager with a master’s degree in Business Administration. With over ten years of experience as the General Manager for a boutique retail chain, Jean has garnered a positive reputation as a dedicated leader. She is confident that her ability to effectively manage people, finances, and operations will allow her to start her own profitable laundromat. Jean plans on managing the day-to-day operations of the laundromat herself and hiring highly qualified staff for essential positions of laundry attendants,  security guards, an accountant, and a sales and marketing professional.

Jean’s Clean Laundromat will provide general card-operated washing machines and dryers for customers to use on their own as well as a wash and fold service station for customers who want to drop their clothes off to be cleaned by Jean’s staff and picked up later. Jean’s Clean Laundromat will be a comfortable and convenient stop for busy people in the Manhattan area.

Product Offering

The following are the products and services that Jean’s Clean Laundromat will provide:

• Self-service card-operated washing machines and dryers
• Laundry supplies (detergent, dryer sheets, laundry bags, etc.)
• Dry cleaning service
• Wash and fold service
• Laundry pickup and delivery service

Customer Focus

Jean’s Clean Laundromat will target all individuals in the Manhattan area that need laundry service. Specifically, it will target men and women living in the area, busy parents, and people who do not have the time or facilities to do their laundry at home. The laundromat will also target tourists or business professionals in the city who need a quick laundry service. No matter the customer, Jean’s Clean Laundromat will deliver the best service, security, and convenience.

Management Team

Jean’s Clean Laundromat will be owned and operated by Jean Smith. She has recruited fellow New York University graduate, Elizabeth Clark, who has a bachelor’s degree in finance to come on board as her accountant and bookkeeper.

Jean Smith is a graduate of New York University with a master’s degree in Business Administration. She has been working as the General Manager for a boutique retail chain for over a decade. Jean’s organizational and leadership skills have allowed her to establish and grow a large network of business professionals that are supportive of her new venture, Jean’s Clean Laundromat.

Elizabeth Clark has worked as an accountant and bookkeeper at a local bakery for over five years and has established herself as a detail-oriented and methodical financial expert. Jean relies strongly on Elizabeth’s diligence, attention to detail, and focus when it comes to keeping the laundromat’s finances in order.

Success Factors

Jean’s Clean Laundromat will be able to achieve success by offering the following competitive advantages:

• Friendly, efficient laundry attendants that strive to go above and beyond for each customer.
• All laundry products and services are delivered with the customers’ comfort and convenience in mind.
• Jean’s Clean Laundromat offers its customers quick pickup and delivery seven days per week.

Financial Highlights

Jean’s Clean Laundromat is seeking $300,000 in debt financing to launch its laundromat business. The funding will be dedicated towards securing the laundromat storefront and purchasing the card-operated machines, and the card system. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Washers and dryers: $80,000
• Card system: $40,000
• Water heating system: $5,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $15,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Jean’s Clean Laundromat.

Company Overview

Who is jean’s clean laundromat.

Jean’s Clean Laundromat is a new laundromat located in Manhattan, New York. The company is founded by Jean Smith, an experienced business manager with a master’s degree in Business Administration. With over ten years of experience as the General Manager for a boutique retail chain, Jean has garnered a positive reputation as a dedicated leader. She is confident that her ability to manage people, finances effectively, and operations will allow her to start her own profitable laundromat. Jean plans on overseeing the daily operations of the laundromat herself and hiring highly qualified staff for essential positions of laundry attendants,  security guards, an accountant, and a sales and marketing professional.

Jean’s Clean Laundromat History

Jean’s Clean Laundromat will be owned and operated by Jean Smith. Jean Smith is a graduate of New York University with a master’s degree in Business Administration. She has been working as the General Manager for a boutique retail chain for over a decade. Jean’s organizational and leadership skills have allowed her to establish and grow a large network of business professionals that are supportive of her new venture, Jean’s Clean Laundromat.

Since incorporation, Jean’s Clean Laundromat has achieved the following milestones:

• Registered Jean’s Clean Laundromat, LLC to transact business in the state of New York.
• Has a contract in place for a one year lease on the laundromat storefront which is approximately 2,000 square feet.
• Hired a marketing professional to begin strategizing a pre-launch marketing campaign.
• Began recruiting a staff of an accountant, marketing and sales manager, security guards, and laundry attendants to work at Jean’s Clean Laundromat.

Jean’s Clean Laundromat Services

The following will be the services Jean’s Clean Laundromat will provide:

Industry Analysis

The laundromat industry is a $5.4BN market in the United States with over 30,000 laundromats across the country. Laundromats are a good investment for entrepreneurs with many of them seeing an astonishing 95% success rate for the first five years in business. For many people, laundromats are essential aspects of their regular routine.

Although running a laundromat can be a profitable venture, it takes some work to maintain profitability. It’s important for industry operators to manage their laundromats proactively, pay attention to what competitors are doing, and focus on continuous improvement in both service and technology. Industry operators who fail to take these actions may not be able to achieve their desired outcomes.

A trend in the laundromat industry is  the replacement of coin-operated machines with card-operated models. Card-operated machines can bring in greater profits for the laundromat owner because these machines can be set to change prices according to the time of day or be used for single use vending product purchases. Additionally, laundromats are using newer, more eco-efficient machines and technologies that bring in more profits in addition to being better for the environment. Finally, laundromat operators are finding ways to stand out from competitors with unique services in addition to the standard self-serve washers and dryers. Some of these value add services may include wash and fold, pickup and delivery, free wifi, vending machine products, etc.

Customer Analysis

Demographic profile of target market.

Jean’s Clean Laundromat will target men and women in the Manhattan area that need laundry service. Specifically, the laundromat will target busy parents and people who do not have the time or facilities to do their laundry at home. The laundromat will also target tourists or business professionals in the city who need a quick laundry service.

The precise demographics for Manhattan, New York are:

Customer Segmentation

Jean’s Clean Laundromat will primarily target the following customer profiles:

• Busy parents
• Business Professionals
• People who do not have laundry facilities in their homes

Competitive Analysis

Direct and indirect competitors.

Jean’s Clean Laundromat will face competition from other companies with similar business profiles. A description of each competitor company is below.

BMI Laundry Service, Inc.

BMI Laundry Service, Inc. provides wash and fold, dry cleaning, and pickup and delivery services with two locations, in Chelsea and Manhattan. BMI’s promise is to deliver fast service for people on the go. BMI Laundry Service, Inc. has coin-operated machines, vending machines, and free wifi. The self-service laundromat is available seven days a week from 6:00AM-6:00PM, while the laundry service is available by appointment only. Customers can schedule their laundry service using the company’s appointment app.

Wash It, Dry It, LLC

Wash It, Dry It, LLC is a Manhattan-based laundry business that provides self-service card-operated washers and dryers as well as wash and fold services for its customers. Wash It, Dry It, LLC sells its own branded laundry products including detergent, laundry bags, soaps, fabric softeners, and dry cleaning products. The laundromat is open 24/7. Wash and Fold service is available Monday through Friday from 7:00AM-8:00PM.

MC Laundromat

MC Laundromat is a trusted New York laundry business that provides superior service to customers in Manhattan and the surrounding areas. They are able to provide a one-stop shop for anyone in need of laundry services. MC Laundromat is able to provide dry cleaning, spot treatments, wash and fold, and delivery services. MC Laundromat has oversized machines for large laundry loads.

Competitive Advantage

Jean’s Clean Laundromat will be able to offer the following advantages over their competition:

• Jean’s Clean Laundromat offers its customers same day pickup and delivery service seven days per week. Laundry attendants are available 24 hours per day to accommodate more customers’ schedules.

Marketing Plan

Brand & value proposition.

Jean’s Clean Laundromat will offer the unique value proposition to its customers:

• Friendly, efficient laundry attendants available 24/7 that strive to go above and beyond for each customer.
• Jean’s Clean Laundromat offers its customers same day pickup and delivery service seven days per week.

Promotions Strategy

The promotions strategy for Jean’s Clean Laundromat is as follows:

Word of Mouth/Referrals

Jean Smith has built up an extensive list of contacts over the years by providing exceptional service and expertise to her customers. Her network of contacts has committed to spreading the word about her new laundromat to their friends and families.

Print Advertising

Jean’s Clean Laundromat will invest in professionally designed print ads to display in newspapers, magazines, and direct mail circulars.

Jean’s Clean Laundromat’s in-house marketing manager will design and maintain the company’s website. The website will be well organized, informative, and list all their services that Jean’s Clean Laundromat is able to provide. Additionally, the website will include a blog that will provide customers with helpful laundry tips.

Search Engine Optimization (SEO)

The marketing manager will also manage Jean’s Clean Laundromat’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “New York laundry service” or “laundromat near me”, Jean’s Clean Laundromat will be listed at the top of the search results.

Social Media

Jean’s Clean Laundromat will maintain an active presence on various social media platforms including Facebook, Instagram, Twitter, LinkedIn, TikTok, and YouTube, with the marketing manager updating these accounts regularly.

The pricing of Jean’s Clean Laundromat will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for Jean’s Clean Laundromat.

Operation Functions:

• Jean Smith will be the Owner and Manager of the company. She will oversee all staff and manage daily operations. Jean has spent the past year recruiting the following staff:
• Elizabeth Clark – Accountant/Bookkeeper will provide all laundromat accounting, tax payments, and monthly financial reporting.
• Steve Miller – Head of Security will oversee a small team of rotating security guards to ensure the safety of the customers and employees on the premises at all times.
• Anna Rodriguez – Marketing Manager will provide all marketing and advertising campaigns for Jean’s Clean Laundromat.
• Robert Wills – Lead Laundry Attendant will supervise the team of laundry attendants and manage the staff schedule.

Milestones:

Jean’s Clean Laundromat will have the following milestones complete in the next six months.

7/1/2022 – Finalize contract to lease laundromat storefront.

7/15/2022 – Finalize personnel and staff employment contracts for attendants and security guards.

8/1/2022 – Purchase card-operated washing machines and dryers, vending machines, and supplies.

8/15/2022 – Begin word of mouth and online marketing campaigns.

8/22/2022 – Begin moving into Jean’s Clean Laundromat.

9/1/2022 – Jean’s Clean Laundromat opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Jean’s Clean Laundromat are the laundromat fees charged to customers for use of the self-service machines and the fees for the additional laundry services the company will offer. The average price to wash a load of laundry in laundromats across the country ranges from $2.00-$4.00. Jean’s Clean Laundromat will charge $3.00 per load, which is comparable to other laundromats in the area.

The cost drivers will be the overhead costs required in order to staff the laundromat. The expenses will be the payroll cost, rent, utilities, supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of transactions per machine/month: 150
• Average revenue generated per month: $16,000
• Laundromat lease per month: $9,000

Financial Projections

Income statement, balance sheet, cash flow statement, laundromat business plan faqs, what is a laundromat business plan.

A laundromat business plan is a plan to start and/or grow your laundromat business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your laundromat business plan using our Laundromat Business Plan Template here .

What are the Main Types of Laundromat Businesses?

There are a number of different kinds of laundromat businesses, some examples include: Self-service, Drop-off, and Card/coin-operated laundromat.

How Do You Get Funding for Your Laundromat Business Plan?

Laundromat businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.  Having a laundry business plan will show investors you are well- prepared and qualified to start your business.

What are the Steps To Start a Laundromat Business?

Starting a laundromat business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Laundromat Business Plan – The first step in starting a business is to create a detailed laundry business plan that outlines all aspects of the venture.  A business plan for a laundromat should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your laundromat business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your laundromat business is in compliance with local laws.

3. Register Your Laundromat Business – Once you have chosen a legal structure, the next step is to register your laundromat business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your laundromat business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Laundromat Equipment & Supplies – In order to start your laundromat business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your laundromat business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful laundromat business:

• How to Start a Laundromat Business

Where can I get a Laundromat Business Plan PDF?

You can download our free example laundromat business plan PDF here . This is a business plan template you can use in PDF format.

Setting up a Laundry Business

All you need to know about starting and running your business.

In this article

What is a Laundry Business?

There are more than 5,000 laundry businesses currently operating in the UK. However, in the 1980s, there were three times this number, with a laundrette on every high street. Although laundry businesses have declined in popularity in recent decades, they are making a resurgence, with more and more people using a laundry business for their general laundry needs, or for cleaning delicate or bulky items.

If you are thinking about starting up a laundry business, the first consideration you will need to make is the type of business you want to set up. There are several different types of laundry businesses, and you will likely make your decision based on factors such as your local competition and demand for your services, your equipment and your experience.

Different laundry businesses have different start-up and running costs and different customer pricing.

The most popular types of laundry businesses are:

Laundromats

A laundromat is an establishment that has washing machines and tumble dryers available for public use. Laundromats can be full-service, staffed establishments where staff assist customers with the washing and drying of their clothes or they can be unattended, self-service establishments where customers are responsible for using the machines themselves. In this type of establishment, the machines are coin-operated or automatically card operated so that no staff are required. In a laundromat, all clothes are washed and dried by machines, rather than hand-washed.

Dry cleaners

Dry cleaning is a specialised method of cleaning clothes and other fabrics without water, to avoid stretching or shrinkage. Dry cleaning uses non-water-based chemical solvents to clean the surface of the material. It can be more effective at removing dirt and stains, whilst simultaneously protecting your fabrics. Dry cleaning is particularly popular for delicate garments and fabrics, such as silk, leather, suede, velvet and cashmere. It is also popular for clothing items, such as:

Wet cleaners

This is a more environmentally friendly and cost-effective method of washing delicate garments and materials. Water is used as a solvent to clean the fabrics without mechanical action (e.g. the use of a washing machine) and at a lower temperature. Because wet cleaning is a less well-known method of cleaning clothes, laundry businesses that offer this service usually do so alongside other laundry services.

Wash, iron and fold

This type of laundry business is more popular with customers who don’t have time to wash, dry, iron and fold their clothes. This type of business may offer a pick-up and drop-off service to make the service more convenient for customers.

Because laundrettes are making a comeback and are becoming more popular with a younger demographic (such as students) and busy professionals, many laundry businesses have taken steps to make their business more appealing to a wider variety of customers. For example, they may offer free Wi-Fi, a seating area and snacks or coffee. Some laundry businesses are also attached to cafés, coffee bars or shops.

The responsibilities associated with a laundry business can vary depending on the type of laundry business you set up. Some of the typical responsibilities you can expect are:

• Purchasing, cleaning and maintaining equipment and machinery.
• Cleaning and drying garments and other fabrics.
• Ensuring your business complies with all safety regulations, including fire safety and electrical safety.
• Pricing your services.
• Marketing and advertising.
• Handling quotes and customer payments and preparing invoices.
• Completing business and administrative tasks.

Starting up a laundry business can be rewarding in many different ways. This type of business requires no qualifications and (depending on the type of laundry business) very little experience. However, if you opt to set up a business such as a dry cleaner, you will need to have knowledge and experience with delicate fabrics and expensive materials.

A love for cleaning, good marketing and advertising skills and a flair for business can be beneficial in helping your business succeed.

Types of Customers

The types of customers your business will attract can be dependent on multiple factors, including:

The type of laundry business you set up

This will be the most important factor when determining your typical customer base. People are usually looking for a specific type of laundry business, for example a dry cleaner, and a different type of laundry business will likely not appeal to them. Consider the type of laundry business you plan to set up and who is likely to use your services when setting up your business. For example, a wash, iron and fold laundry business is more likely to attract busy working professionals and a self-service laundry business may be more likely to attract students.

Your location

People tend to use a laundry service that is located conveniently for them. People are likely to choose a laundry business that is located close to their home, work or place of study. For example, a city centre location may be likely to attract professionals who work in the area whereas a laundry business located near a university is more likely to attract students. Consider your location when determining your typical customer base.

Your pricing policy

This will be a key factor in determining your typical customers. As with other businesses, laundry businesses can attract budget, mid-range and high-end customers who will have different budgets and different expectations of the service you offer.

Your branding, marketing and advertising

How you opt to advertise and market your business can impact the potential clients you reach. Your business name and logo, the aesthetic and design of your business and the design of your website or physical location can also impact your typical clients.

Once you have determined who your typical customer base is, you can then decide how best to target them. You will need to gather information and insights into your clients. You can do this via multiple sources, including social media.

Equipment You Will Need

The type of equipment you require will depend on the type of laundry business you set up. Equipment and machinery are essential purchases, as without them you will not be able to operate your laundry business.

Although your equipment requirements can vary, below is a list of equipment typically required by laundry businesses.

Laundry Equipment:

Washing machines

Domestic washing machines are usually not suitable for laundry businesses, as they are less durable and often cannot handle excessive use. You will, therefore, need to purchase a commercial machine. You may opt for industrial-sized washing machines that typically have a load capacity of between 10kg and 100kg or standard-sized washing machines, which typically have a capacity of between 5kg and 10kg. To save money on your water and energy bills, choose machines that are efficient and eco-friendly. If you are opening a self-service laundry business, you may opt for coin-operated washing machines. Choose the number of machines based on the size of your premises.

Tumble dryers

Purchasing commercial dryers is recommended to ensure they are reliable and durable and to ensure they can cope with constant use. It is recommended that you purchase the same number of washing machines as dryers, and opt for dryers that have the same load capacities as your washing machines.

Cleaning chemicals

If you offer a dry cleaning service, you will need a variety of different cleaning chemicals to treat the fabrics. These could include chemicals such as PERC, glycol ethers, hydrocarbon and liquid silicone. Consider the pros and cons of the different cleaning chemicals and make the best decision for your business.

Steam pressing machine

This is a piece of equipment that uses heat and steam to remove wrinkles from clothes. They are recommended over a traditional iron as the pressing plate is approximately 10 times larger than an iron, meaning it removes wrinkles more quickly and allows you to press larger items.

A steamer is a hand-held device that uses hot steam to remove wrinkles from clothes. A steamer removes the risk of scorching, burning or damaging fabric so is recommended for delicate fabrics, such as silk, velvet and satin. Steamers are also recommended for expensive items, such as wedding dresses.

A garment conveyor

This is a transport, sorting and storage system that can be used to move around and store high volumes of hanging garments at one time. They can be freestanding so that you can move them around, or stationary.

Information tags

Each tag should include the customer’s information and the garment information and will be kept with the garments throughout the dry cleaning or laundering process. This ensures each garment is returned to the correct customer. You could opt for information tags that have a tear-off portion that is given to the customer.

Clothing racks

You may choose to hang garments on clothing racks to make them easily accessible or before moving them to the assembly system or the garment conveyor. Clothing racks should not be accessible to customers.

Hangers and garment coverings

Once you have laundered or dry cleaned a garment, it will need to be hung up and covered to ensure it remains wrinkle-free and is protected from any dirt or dust. The majority of laundry businesses allow customers to take the hangers and coverings with them to keep the garments protected on their journeys. This means that you will need to have a large number of these on your premises so that you never run out.

Sorting bins

These can be used to separate white clothing from dark clothing or for keeping one customer’s garments separate from others. If you choose sorting bins with wheels, you can use these to transport clothing to the washer and from the washer to the dryer.

Cleaning materials

Laundry businesses require different products for cleaning clothing and other materials. For example:

• Laundry detergent.
• Fabric softener.
• Stain removers.
• Drying sheets.

Other Equipment:

A CCTV system

CCTV can protect your business from potential break-ins and theft. A CCTV system can cost between £300 and £5,000 depending on the specification of the equipment, how many cameras you require, and the installation costs.

Personal Protective Equipment (PPE)

If you are handling hazardous chemicals (such as cleaning chemicals and laundry detergent) and potentially dangerous equipment (such as pressers and steamers), PPE can help to protect your skin, respiratory system and overall health and safety. Some PPE that could be beneficial includes masks, gloves, aprons and long-sleeved clothing.

A cash register and Point of Sale (POS) system

This is essential for recording sales and managing the financial aspects of your business. It is recommended that you have a payment system whereby customers can pay cash, debit card or credit card for their purchases.

Reception and admin equipment

Some of the equipment you may require for your reception includes:

• A laptop or computer – for advertising, making appointments and accounting purposes.
• A phone – for customers to make appointments.
• An appointment book or scheduling software – to keep track of appointments and cancellations.
• A reception desk and chair.
• Business cards and appointment cards.
• Pricing signs and opening hours signs.
• Shelving for displaying products.

A website is useful for advertising your business. It should contain your contact information, descriptions of your services, your pricing, your location and personal information and your customer reviews. Design your website to include your business logo and to reflect your branding.

A fully stocked first aid kit

A first aid kit is a necessity, as you will be working with potentially dangerous equipment and products. Ensure your first aid kit is restocked regularly and is easily accessible.

A van or other vehicle

If you offer a delivery and pick-up service, you will need a business vehicle to complete your orders. You could also use your vehicle as a way of advertising your business, by attaching adhesive door and body panels with your business name and logo, your contact information and the services you offer.

Cleaning equipment

Keeping all areas of your premises clean is imperative, particularly as different customers will be visiting your shop and you will be dealing with dirty clothing and hazardous chemicals. You will likely need different cleaning materials for different parts of your shop. You may need to invest in cloths, sponges, antibacterial surface cleaners, bleach, sanitiser and a sweeping brush and mop. You may also need to invest in specific cleaning materials for the inside of your washing machines and tumble dryers.

Typical Costs

When you are planning your laundry business, you will need to calculate the approximate costs associated with setting up and running this type of business. Calculating your typical costs allows you to estimate your initial investment requirements, any monthly and annual costs, your pricing strategy, your profit goals and your acceptable profit margins.

There are multiple costs associated with setting up and running a laundry business. Some of these costs will be one-off initial costs that you will need to pay when you are setting up your business. Other costs will be ongoing costs you will need to pay regularly – usually weekly, monthly, quarterly or annually.

The typical costs associated with a laundry business can vary, depending on the type of laundry services you offer and the size of your premises.

The typical costs you can expect include:

Your business location will likely be your biggest expenditure. You will need to rent your premises on a monthly or annual basis. Rental prices can vary significantly, depending on the location and the size of the premises. City centre locations and newly built premises usually have the highest rental costs. Rental costs are often calculated per square metre. They can range significantly, from £500 to £15,000 per square metre annually.

Refurbishment and installation costs

Unless your premises previously operated as a laundry business, you will likely need to refurbish or convert your venue to install the equipment you need for your laundry business and make the area fit for purpose. You will also want to refurbish and decorate your premises to fit the aesthetic of your business and make it attractive to customers. Renovation costs can vary, from £500 to £20,000 depending on the level and scale of work required. As part of your renovation costs, consider how you can make your shop easy to clean and ensure it is safe and in line with health and safety regulations.

Your equipment is an important purchase, as without it you will not be able to run your business. The cost of equipment can vary based on how much equipment you require. The bigger your premises and the more customers you want to accommodate at one time, the more equipment you will require. You may choose to purchase less equipment initially and expand your equipment as your business grows. Equipment for your laundry business can cost between £5,000 and £30,000.

Maintaining, repairing and replacing equipment

Repairs, maintenance and replacements are ongoing costs you will need to factor into your budget. Although some of your equipment and machinery will come with warranties, repairs and replacements are inevitable – particularly because you will be using the equipment continuously. Correctly cleaning and maintaining equipment and ensuring it is used correctly can extend its life, but potential repairs and replacements should still be factored into your budget.

Replenishing stock

Ongoing equipment costs, such as cleaning chemicals (for dry cleaning), laundry detergent, fabric softener, hangers, garment bags and labels will need to be replenished regularly. You may choose to have an automatic, ongoing order for replenishing stock or you may order products as and when you need them. Factor the costs of your materials into your monthly and annual budgets.

Running costs

These are the day-to-day costs associated with running your business. Some running costs are paid monthly, and others are paid quarterly or annually. Your running costs can include electricity, gas, water, council tax and insurance. To maximise your profits, try to keep your running costs as low as possible.

Unless you open a self-service laundry business, you may need to hire staff to help you run your business and fulfil your orders. You will need to pay any staff you employ at least the national minimum wage of £9.50 per hour and account for other expenses such as holiday pay, sick pay, maternity/paternity pay, National Insurance and any company pension contributions.

Your business website

A business website is an essential advertising tool and allows potential customers to find your services online. You should ensure your website is attractive to customers and use search engine optimisation (SEO) so that your website ranks highly on search engines, such as Google. Your website will need regular monitoring, updating and upgrading. You also need to make sure your website is secure, particularly if you will be collecting any customer information. You may choose to set up and run your website yourself or hire someone to do this for you. You can expect to pay between £20 and £100 per hour for someone to set up your website.

When creating your brand identity, consider how you want your business to be perceived by potential customers. When creating your brand, consider the type of laundry service you offer and your typical customer base. Branding can include creating your business’s visual identity, design and aesthetic, your business name and logo and your website. You could hire a professional to help you with branding or do some or all of the work yourself. Branding can cost between £500 and £10,000, depending on the level of work required.

Advertising and marketing

To ensure your laundry business attracts customers and creates maximum profits, you will need to spend money on advertising and marketing. It is recommended that you spend between 1%-3% of your annual turnover on marketing. For example, if your annual turnover (or your desired annual turnover) is £45,000, you should spend between £450 and £1,350 on advertising and marketing. You may need to invest more money when you initially set up your business or when you are trying to grow your business. To reduce your costs, capitalise on free marketing strategies, such as on social media or in your local community.

Business insurance

There are multiple coverage options for a laundry business, including:

• Public Liability Insurance.
• Property Insurance.
• Business Interruption Insurance.
• Employers’ Liability Insurance (if relevant).
• Legal Protection.
• Buildings Insurance.
• Tools and Equipment Cover.
• Business Contents Cover.
• Personal Accident Cover.

Typical Pricing for Customers

Once you have calculated the typical costs associated with setting up and running a laundry business, you can then determine your pricing strategy.

Some factors you should consider when determining your pricing include:

The type of laundry services you offer

Different types of laundry services have different price points and you will need to consider this when calculating your pricing. Dry cleaning services generally have the highest price points and self-service laundry businesses usually have the lowest price points.

The delicacy and value of the material

The same laundry service can have different costs depending on the materials you are working with. For example, dry cleaning silk garments will be more expensive than dry cleaning cotton garments. Certain types of garments may automatically have a higher price point, for example, wedding dresses.

Your location will also impact your price points as it will likely determine your typical customer base. Depending on your location, you may target budget, mid-range or high-end customers, with different types of customers willing to pay different prices. Consider your location and your typical customers when determining your price points.

Safely Running a Laundry Business

Safe practices in your laundry business are essential to protect the health, safety and well-being of you, your employees and your customers.

Some ways you can safely run your laundry business include:

Properly maintain and set up equipment

Any equipment you use, such as washing machines and garment conveyors, must be properly maintained, correctly set up and safe to use. You must protect yourself, your employees and your customers from accidents or injuries caused by equipment. You should also perform regular equipment inspections to ensure your equipment’s safety and help extend the lifespan of your equipment. Maintenance includes dusting, cleaning and washing equipment regularly and checking it is functioning correctly.

Check and maintain electricals, electrical outlets and plumbing

Not only can this save you money by avoiding damage, repairs and replacements, but checking and maintaining electricals and plumbing can help to protect your equipment from faults and protect the health and safety of everyone who visits your business. Implement a system for regularly checking outlets and plumbing and ensuring they are up to code.

Ensure all chemicals are stored safely

All chemicals should be stored in a cool, dark, dry place. They should be kept upright to prevent spillages and be protected from contamination. Chemicals should also be kept away from customers, ideally in a locked area.

Adhere to labelling guidelines

You must always read the instructions on the labels carefully and follow the manufacturer’s instructions. You should also pay attention to use-by and best-before dates and never use any product that is past its expiration date.

Obtain training

Health and safety training can help to ensure safe practices in your laundry business and can ensure that you and any staff you employ are aware of and adhere to safety procedures. Some training you can complete includes First Aid, Health and Safety for Businesses, Fire Safety Awareness, Assessing Risks and Electrical Safety.

Carry out risk assessments

Risk assessments are a legal requirement for businesses with more than five employees. However, even if your business has fewer than five employees, risk assessments are still recommended to ensure the safety of you, your staff and your customers. Risk assessments can help you to identify any potential hazards and risks in your business and how these can be reduced or eliminated.

As part of your risk assessment, you should:

• Identifying hazards.
• Determine who could be at risk.
• Evaluate any potential risks.
• Implement relevant safety measures.
• Record the results of the risk assessment.
• Review the risk assessment regularly.

Keep clear and accurate records

If your business receives an inspection, up-to-date records of your cleaning schedules, risk assessments and health and safety policies will likely be requested. Keeping such records not only helps to protect your business and improve the likelihood of you receiving a higher score in your inspection, but it also ensures procedures are followed at all times.

Implement security measures

Security measures can be implemented to protect your business. Some ways you can protect your equipment and materials include installing a CCTV system, using secure and reliable locks and installing an alarm system.

Install smoke detectors, carbon monoxide detectors and fire alarms

These should be installed throughout your premises and should be checked regularly to ensure they are working. They can protect you, your customers and your business in the event of a fire or carbon monoxide leak.

Keep a fully stocked first aid kit

If a customer or employee has an accident or injury, it may not be serious enough to warrant medical intervention. Instead, you may be able to offer treatment yourself. Having a first aid kit that is checked and replenished regularly and is easily accessible is recommended.

Use personal protective equipment (PPE)

PPE can help to protect you from potentially hazardous chemicals and equipment. Ensure PPE is used for certain tasks and that any staff your hire are aware of your PPE policy.

Implement cleaning policies and procedures

Strict cleaning procedures must be in place on your premises. This includes cleaning, disinfecting and sanitising all equipment and surfaces and cleaning up any spills or water leakage immediately to prevent any slips or falls from occurring. You should clean regularly throughout the day and perform scheduled cleaning of your machinery.

Ensure proper ventilation

Because you will be working with chemicals which can release harmful vapours, you should ensure that your premises have proper ventilation. Fresh air should be able to circulate via open windows and doors, or you may opt for artificial ventilation (e.g. an extractor or dust ventilation unit).

Legal Requirements

Complying with legal requirements is essential when setting up and running your laundry business.

Legal requirements can vary depending on:

• The type of laundry business you set up.
• The equipment and machinery you work with.
• Whether you hire any employees.

Some of the legal guidelines you should be aware of are:

Apply for an environmental permit

Many laundry businesses, particularly dry cleaners, use harmful chemicals such as perchloroethylene (PERC). These chemicals can be harmful to your health and to the environment. If you use potentially hazardous chemicals, you must apply for an environmental permit from your local council. To receive a permit, you may need to have an inspection of your premises. To comply with your permit, you must use less than one litre of PERC for every 80kg of clothes and you must keep accurate weekly, monthly and yearly records and submit these to your local council every year. Keep in mind that it can take up to three months to process your permit application so make sure you apply in advance.

Comply with the Solvent Emissions Regulations (2004)

These regulations specify limits on solvent usage and emissions from activities such as dry cleaning. You must ensure you comply with these regulations to reduce emissions of volatile organic compounds into the environment.

Comply with the Control of Substances Hazardous to Health (COSHH) Regulations

The COSHH regulations state that you must control any substances that are potentially hazardous. You should also assess, control and reduce any risks or potential hazards and protect people from harm. This could include cleaning chemicals and any other substances you use as part of your business.

Comply with the Environmental Protection Act (1990)

The Environmental Protection Act has several different regulations that you must ensure you comply with.

These regulations refer to:

• The disposal of waste chemicals and detergents.
• Energy efficiency.
• Pollution prevention and control.
• The disposal of waste to land, water and air.

This Act is enforced by different agencies, depending on where in the UK you are based:

• England: The Environment Agency (EA).
• Scotland: The Scottish Environment Protection Agency (SEPA).
• Wales: Natural Resources Wales (NRW).
• Northern Ireland: Northern Ireland Environment Agency (NIEA).

Comply with health and safety legislation

There are several pieces of health and safety legislation you will need to comply with. The Health and Safety Executive (HSE) has published guidelines that specify the health and safety standards you should follow, for example, relating to:

• Working with solvents and other chemicals.
• Legionella in dry cleaner water cooling towers.
• Contamination in laundry.
• Electrical safety.

Comply with fire regulations

You must ensure fire safety measures are implemented on-site, particularly because you are working with electrical equipment and chemicals. There are multiple fire regulations you must ensure you comply with.

For example:

• Perform a fire risk assessment.
• Comply with the Regulatory Reform (Fire Safety) Order 2005 .
• Implement any necessary fire safety measures.
• Implement emergency procedures and ensure these are clearly displayed on your premises.

Comply with the Electricity at Work Regulations (1989)

The Electricity at Work Regulations state that any workplaces that use electricals must construct electrical systems in a way that prevents danger, maintain electrical systems to ensure they are safe, ensure electrical equipment is checked by a competent person annually and conduct Portable Appliance Tests (PAT). This includes any electrical equipment such as washing machines and tumble dryers.

Comply with the Provision and Use of Work Equipment Regulations (PUWER) 1998

These regulations apply to you and any employees you hire. You must ensure any equipment, such as machinery, is fit for purpose and is maintained and inspected regularly. You must also ensure that health and safety risks are minimised to an acceptable level, that you have the correct knowledge and training to use the equipment, and that protective measures are put into place. You must also ensure the equipment is used under appropriate conditions.

Comply with gas safety regulations

If you have a gas boiler you may need to have it inspected by a gas safe engineer. If your equipment is deemed safe to use and complies with government requirements, you will be issued a Gas Safety Certificate. You will need to display your gas certificate clearly for your employees, customers and other visitors to your business to see.

Appoint a competent person

A competent person should be appointed to help your business meet your health and safety legal duties. You can act in this role yourself or appoint another person to fulfil this role. The competent person should have the skills, knowledge and experience to identify any hazards in your business and put controls in place to protect people from harm.

Prepare a health and safety policy

The law states that every business in the UK must have a specific policy for managing health and safety. Your policy should state exactly how you will manage health and safety in your business and state who is responsible for specific tasks and how and when these tasks are completed. Follow the recommended tips from the Health and Safety Executive on how to write a health and safety policy.

Comply with the Health and Safety at Work etc Act (1974)

The Health and Safety at Work etc Act lays out the duties of all employers in the UK regarding ensuring the health, safety and welfare of everyone in your workplace. As you are the business owner, you will be responsible for protecting the health and safety of your employees and any clients or visitors to your business.

Comply with the Manual Handling Operations Regulations (1992)

Manual handling regulations can help to protect you and your employees from sustaining an injury or illness as a result of manual handling tasks. The regulations apply to the lifting or moving of any objects, bending down and reaching high, for example when loading the machines or carrying heavy loads of laundry.

Comply with employment legislation

If you employ any staff, you must ensure you follow employment legislation, including the Employment Rights Act (1996) and the National Minimum Wage Act (1998) . You must also comply with legislation relating to recruitment, working hours, sickness, discrimination, dismissals, and maternity or paternity pay.

Comply with the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013

RIDDOR states that you must report all injuries, diseases and dangerous events that occur in your business. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document. These regulations apply to any incidents that involve you, your staff or your customers.

Appoint a first-aider

All workplaces in the UK must have an appointed first-aider. In the event of an accident or injury, you will then be able to administer the necessary first aid. Although a first aid qualification or certificate is not legally required, it is the easiest way to demonstrate your first aid training.

Apply for a music licence

If you play any music on your premises, you will need to apply for a licence with the Phonographic Performance Limited (PPL) and/or a Performing Right Society (PRS) Licence . You can apply for both a PPL and a PRS online.

Register your business

You must register your business with HMRC before you begin operating. You can register as a sole trader or as a limited company. You will need to register your business name and any other relevant information.

Register for self-assessment tax

This allows you to calculate and pay your own taxes each year. You will need to track your finances every month and submit any expenses as part of your tax assessment.

Positives of Owning a Laundry Business

Starting up a laundry business can be rewarding in many ways. Some of the main benefits of owning this type of business are:

Easy to operate

This type of business is simple to set up and run, particularly compared to other businesses. You don’t need any specific skills or training and can set up your business with only a basic knowledge of how the machinery runs. A laundry business is also easier to operate than many other businesses (particularly if you run a self-service laundry business) as you potentially won’t have to hire staff, you won’t have excessive inventory requirements and you could have a relatively low workload.

Year-round business

A laundry business is not dependent on weather and business doesn’t usually fluctuate throughout the year. People always need to do laundry, meaning your business will always be in demand. This makes your profits more predictable and makes it easier to plan your staffing and stock requirements.

Potentially no staffing requirements

Many laundry businesses operate with no or minimal staff. If you open a self-service laundromat, your business can operate without staff for the majority of the time. This can reduce the cost of running your business and can reduce your managerial responsibilities, for example, you won’t have to worry about creating a rota, managing your staff or handling payroll.

Flexible working

As the business owner, you can choose your own workload and the number of hours you work. You can run your business around your personal life, for example, by only operating during the week. You can temporarily refuse new customers if you want to take time off, and if your workload becomes too much, you can hire additional staff to reduce your working hours.

Potential for expansion

There are several opportunities for expansion, for example, you could begin offering additional laundry services, expand your premises or open another location. Because a laundry business is flexible and requires low time investment compared to other businesses, expanding your business is a feasible option that can help to increase your profits.

Customer retention and recommendations

People often use the same laundromat or dry cleaner for years, particularly if it is conveniently located and provides good service. People often also recommend their favourite laundry business to their family, friends or colleagues which can help you to grow your customer base and your business. This can help to maximise your profits and ensure the success of your business.

Unlimited income potential

As your business and your reputation grow, you are likely to see increased orders and higher profits. You may then begin to charge higher prices. You could also expand by opening other laundry businesses in other locations. A laundry business has potentially high profit margins and unlimited income potential.

Be your own boss

You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, the type of laundry business you want to set up, the service you offer and whether you hire employees. You can make the best decisions for you and your business.

You can work alone or as part of a team

You can choose whether you want to operate alone or as part of a team. You can make the decision based on what is best for you and your business. Your laundry business can be run by you alone, or you can hire other staff to help you complete more orders.

Design your dream business

As the business owner, you can create your dream business, from the type of services you want to offer, the materials you want to work with, your business’s brand and aesthetic and your staff requirements. Creating your dream business can be very rewarding.

Be involved with the local community

You will likely operate your business in areas close to your home. This allows you to connect with people from your local area and become more involved in your local community. A laundry business has traditionally been a staple of local communities and you can continue this long-standing tradition with your business. You can also build personal and professional relationships in your community.

Negatives of Owning a Laundry Business

Although a laundry business can be rewarding in many ways, there are some negative aspects to this type of business that you should be aware of:

High investment requirements

Setting up a laundry business requires a large initial investment. Renting your business location and purchasing equipment and machinery can be expensive. Not only does this mean you might need to source outside investment, but it also makes your business high risk. It will also take you longer to begin turning a profit.

High operating costs

A laundry business can be expensive to run, particularly with rising utility costs. Washing machines and tumble dryers are expensive to run and even if you purchase energy-efficient machines, your bills are still likely to be high. You will also need to account for water costs, rent, staffing costs and the cost of your stock (such as cleaning products). You will need to ensure consistently good business to offset your running costs. Unfortunately, high running costs may force you to raise your prices, which can negatively affect business.

Difficult customers

Some of your clients may be demanding in their requirements and expectations and may request additional work or expect you to remove impossible stains. They may expect you to complete their order in an unreasonable timeframe, with no understanding that you may have other customers to consider. To avoid complaints or negative reviews, you may feel like you have to cater to these customers, even if their demands are unreasonable. This can be stressful and time-consuming.

Long operating hours

Laundry businesses are often open for long or unsociable hours because they tend to be most popular at the weekend and in the evening. If your laundry services require you to be present, this can mean you are working long hours and this can have a detrimental effect on your personal life. If your hire staff, long operating hours will increase your staffing costs and negatively affect your profits.

It can be physically demanding

If you operate a laundromat, you will likely be carrying heavy loads and bending down or reaching high to put the laundry into the machines. If you operate a dry cleaner, you could be using repetitive movements that cause pain or strain. A laundry business often involves manual handling, which can result in strain and injuries. Additionally, you will also be working with harsh chemicals regularly. Running a laundry business can have a negative effect on your physical health.

Potential damage to garments

No matter how careful you are, mistakes or damage to your customer’s garments is possible, particularly if you work with delicate or expensive materials. Mistakes can be costly, as you may be required to pay for the value of the garment. They can also be detrimental to your business’s reputation.

It can be stressful

As the business owner, you will have a lot of important responsibilities, such as dealing with customers, handling your day-to-day responsibilities and ensuring health and safety. You will also face the additional pressure of being responsible for the success of your business. Running your own business can be stressful.

Your business could fail

Starting up your own business can be risky. Many new businesses fail which could result in you losing money or getting into debt. Your business could fail for several reasons, such as high local competition, an ineffective business plan or if the UK encounters another recession or a period of financial difficulty. Because a laundry business usually requires a high initial investment, the failure of your business could have a detrimental effect on your finances.

No benefits

As you are self-employed, you won’t receive benefits such as pension contributions. You will also be responsible for doing your own taxes and organising your National Insurance contributions. You will also have a lack of job security.

Bad reviews

Although the majority of customers leave honest reviews, some customers are difficult to please and will leave a negative review because of the smallest complaint (even if it is something outside of your control). Sometimes a fake customer also leaves a fake review, which can be extremely difficult to disprove and remove. Negative reviews can be extremely damaging to your business, particularly if your business is new or you’ve had relatively few orders.

Stringent health and safety requirements

Because you are working with electrical equipment and chemicals, there are strict legal guidelines and health and safety laws you must ensure you comply with. Failure to comply (even if it is not intentional) could result in an injury or a serious incident (such as a fire) and could result in you being fined or prosecuted. Complying with all requirements can be time-consuming and expensive and can result in additional stress.

If there’s a problem, you need to fix it

If there is an issue, no matter what time of the day it is, you will be responsible for fixing it. If there is a water leak, the electricity stops working or your equipment stops working, you will be responsible for fixing it – even if you run a self-service laundry business. It can be difficult to manage stressful situations and solve major issues yourself and you may feel like you are always on call and can never completely disconnect from work.

Planning Your Laundry Business

An effective and well-designed business plan is essential to the success of your laundry business. A business plan can help you to focus on the specific steps that will help your business succeed, plan your short-term and long-term goals, determine your financial needs and help your business to grow.

When creating your business plan, ensure it contains information such as:

• Your company information.
• Your company description.
• The services you will provide.
• Your branding, marketing and advertising plan.
• The structure of your business.
• The operational plan for your business.
• The financial plan for your business.

Some of the factors you will need to consider when creating your business plan are:

What type of laundry business will you set up?

You may choose to set up a laundry business that specialises in a specific service (such as dry cleaning) or that offers a variety of laundry services. Consider your skills and experience, the cost of the equipment and materials, the services offered by your local competition and the most in-demand laundry services when considering what you will offer. If you plan to set up a laundrette business, consider whether your business will be staffed or self-service.

What is your business summary?

Your business plan should include a detailed overview of your business, including your location, the size of your business (e.g. how many machines you will have) and your business goals. You should also consider who your target customers are.

Will you specialise in a particular type of garment?

Some laundry businesses choose to specialise in a specific type of garment. You may also offer other laundry services alongside your speciality service, but may use this as your main advertising strategy or to attract your target customer base. For example, you may specialise in dry cleaning suits and dresses.

What local competition do you have?

Analysing your local competition allows you to look at what they do well and what you think can be improved upon. Being aware of your competition is an important step to ensuring the success of your laundry business. You should also look at the types of services and products they offer, their pricing and their typical customer base.

Will you hire any staff?

You may choose to run your laundry business alone or have a self-service laundrette. Alternatively, you may choose to operate a fully-staffed laundry business. You may opt to hire staff to handle the laundry services or for other tasks such as cleaning. Calculate the costs of hiring employees and consider how this will affect your profits.

What are your equipment requirements?

Consult the list above to determine your equipment requirements. The equipment you require will depend on the type of laundry business you set up and how big your premises is. Once you have determined your equipment requirements, you can then calculate the initial costs of purchasing the equipment and the monthly replenishment costs (e.g. for cleaning products).

What is your brand?

Creating your brand is a key way to ensure you stand out from your local competition. Branding can help you to focus on your target customers, attract clients and concentrate your marketing and advertising strategies. Some ways you can create your brand are by focusing on your business’s visual identity and creating a brand story. Your business name and logo are also part of your branding so ensure you consider these when creating your business plan.

What will your advertising and marketing strategy be?

There are many ways you can choose to advertise your business. This can include partnering with other businesses in your area, advertising in your local community, advertising on social media and using paid online ads. Your marketing and advertising plan should detail what your brand is and how you plan to promote your business. As part of your marketing strategy, consider the most effective way to reach your target audience and attract potential customers. Create an advertising plan that is specific to the type of business you are going to run and how you plan to operate.

What will your start-up costs be and how will you finance your business?

Consult the list above to help you calculate the approximate costs of setting up and running your business. Determine what equipment you need and the amount of equipment, as well as the cost of your premises, to help you determine your start-up costs and what your initial investment requirements will be. You can then calculate whether you can finance your business yourself or whether you need to source outside investment, for example, from a bank or an independent investor. Determining your start-up costs and running costs can also help you to create a budget and predict when you will begin to turn a profit.

What is your pricing policy?

Consider the type of laundry service you will offer when creating your pricing policy. For example, you may charge by weight or load if you are running a laundrette business and by individual item if you are offering a dry cleaning service. You should also consider the pricing strategies of your local competition. You may opt to offer discounts to returning customers or for a certain number of garments.

What are your sales forecasts?

You will need to determine how many laundry services you can feasibly handle each day and what your weekly, monthly and annual sales forecasts will be. As your business grows, your sales forecast may change.

What are your business objectives?

Your business objectives are crucial for creating a successful business plan. Your business objectives highlight the targets and goals of your laundry business and help you to create a one-year, three-year and five-year business plan to help you grow your business.

Your business objectives should be SMART:

• S = Specific
• M = Measurable
• A = Achievable
• R = Realistic
• T = Time-bound

Have you complied with all legal requirements?

Consult the list of legal requirements above to check you have complied with all requirements and regulations and that all your paperwork is accurate. Failure to comply with legal requirements could have a detrimental effect on your business or could result in a fine, the forced closure of your business or, in serious cases, prosecution.

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Celebrating our clients and partners.

Sample Laundromat Business Plan

Writing a business plan is a crucial step in starting a laundromat. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring laundromat business owners, having access to a sample laundromat business plan can be especially helpful in providing direction and gaining insight into how to draft their own laundromat business plan.

Download our Ultimate Laundromat Business Plan Template

Having a thorough business plan in place is critical for any successful laundromat venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A laundromat business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The laundromat business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your laundromat as Growthink’s Ultimate Laundromat Business Plan Template , but it can help you write a laundromat business plan of your own.

Laundromat Business Plan Example – SpinCycle Laundry

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

At SpinCycle Laundry, we are committed to revolutionizing the laundry experience for our customers in Atlanta, GA. Our state-of-the-art laundromat provides an array of services designed to meet the diverse needs of our community, including self-service washing machines, dryer facilities, wash-and-fold services, commercial laundry solutions, and dry cleaning. We pride ourselves on our focus on convenience, affordability, and quality, aiming to make laundry a hassle-free task for everyone. Located in a prime area that is easily accessible to our target market, we ensure our facility is not just a place to do laundry, but a space where customers enjoy spending their time.

Our journey so far at SpinCycle Laundry has been marked by several key accomplishments and a clear set of success factors that drive our operations. Firstly, securing a prime location in Atlanta, GA, has been crucial in attracting a broad customer base. Additionally, obtaining the necessary permits and licenses has allowed us to operate confidently within legal frameworks. Implementing an efficient operational system and launching a targeted marketing campaign have been pivotal in establishing our brand presence and attracting customers. Furthermore, the introduction of a loyalty program has significantly contributed to customer retention. Our focus now is on reaching a monthly revenue of $15,000 and evaluating expansion opportunities, underpinning our commitment to growth and excellence in service.

The laundry service industry is experiencing a positive growth trajectory, largely driven by urbanization, increasing disposable incomes, and the rising demand for convenience services. Technological advancements have also played a significant role, introducing efficiencies in operations and enhancing the customer experience. Despite the competitive landscape, there is a clear opportunity for laundromats that offer differentiated services, such as eco-friendly options or added customer conveniences, to capture market share. The industry’s future looks promising, with a continued focus on sustainability and customer-centric services expected to drive growth.

Our target customers encompass a wide demographic, including busy professionals, families, students, and commercial entities in Atlanta, GA. These groups are characterized by their demand for convenience, quality, and affordability in laundry services. Busy professionals and students, in particular, value time-saving solutions like our wash-and-fold services, while families and commercial clients, such as hotels and restaurants, prioritize efficiency and reliability. Understanding the diverse needs of our customer base enables us to tailor our offerings effectively, ensuring we meet and exceed their expectations.

Brookhaven Laundry, The Laundry Lounge, Patio Laundry

Our competitive edge at SpinCycle Laundry is underscored by our comprehensive range of services, competitive pricing, and a focus on customer satisfaction. Unlike Brookhaven Laundry, which limits its service variety, and Patio Laundry, which targets a niche eco-friendly market, we offer a broad spectrum of laundry solutions to cater to a diverse customer base. Furthermore, our approach contrasts with The Laundry Lounge by emphasizing quick, efficient service alongside comfort, rather than relying solely on a lounge concept. This strategic positioning allows us to attract and retain customers seeking both convenience and quality in their laundry services.

At SpinCycle Laundry, our marketing plan is centered around highlighting our comprehensive range of services, competitive pricing, and the superior quality we bring to the laundry industry. Our product and service offerings are designed to cater to the varied needs of individual and commercial clients, ensuring convenience and efficiency at every touchpoint. Our pricing strategy is competitive, offering value for money while ensuring the sustainability of our business. To promote our services, we are implementing a multifaceted campaign that includes social media marketing, local advertising, and strategic partnerships with nearby businesses and community organizations. By focusing on these areas, we aim to build a strong brand presence in the community and establish SpinCycle Laundry as the go-to laundromat in Atlanta, GA.

Our operations plan is structured around achieving key milestones that are critical to our success. These include securing a prime location, obtaining the necessary permits and licenses, and setting up a welcoming and efficient facility. Our operational processes are designed to ensure high levels of customer satisfaction through efficient service delivery, regular equipment maintenance, and strict cleanliness standards. We are also focused on implementing an effective marketing strategy to build brand awareness and attract a strong initial customer base. Achieving a steady monthly revenue of $15,000 and exploring expansion opportunities are our primary goals, as we strive to solidify our market presence and contribute to the growth of the laundry service industry.

Our management team at SpinCycle Laundry brings together a wealth of experience in the laundry service industry, business management, and customer service. This diverse skill set ensures that we are well-equipped to oversee daily operations, strategic planning, and customer engagement effectively. Our team’s strong leadership and commitment to excellence form the backbone of our operations, driving our vision of providing the best laundry service experience to our community in Atlanta, GA.

Welcome to SpinCycle Laundry, a new Laundromat that has recently opened its doors to serve the residents of Atlanta, GA. As a local laundromat, we’ve recognized the gap in the market for high-quality laundry services and are here to fill that void. Our mission is to provide our community with a reliable, efficient, and affordable place to take care of all their laundry needs.

At SpinCycle Laundry, our offerings are designed with our customers in mind. From self-service washing machines and dryer facilities for those who prefer doing their laundry, to wash-and-fold services for busy individuals who’d rather leave the task to us. We also cater to businesses with our commercial laundry services, and for those special items, we offer dry cleaning services. Our variety of services ensures that we meet the diverse needs of our Atlanta customers.

Our location in Atlanta, GA, is no coincidence. We chose this vibrant city to serve its residents and to become a part of the community. By being based here, we can ensure that our services are easily accessible to everyone in Atlanta, making laundry day less of a chore and more of a convenience.

SpinCycle Laundry stands out for several reasons. Our founder brings invaluable experience from previously running a successful laundromat, ensuring that we know the ins and outs of the business. Moreover, our competitive edge lies in our ability to offer a wider range of laundry services than our competition, and at more affordable prices. These factors make us uniquely qualified to succeed and become a staple in our community.

Since our founding on January 5, 2024, SpinCycle Laundry has been diligently working towards establishing ourselves as the go-to laundromat in Atlanta. We are proud to be a S Corporation, a testament to our professional commitment and the serious aspirations we have for our venture. Our accomplishments to date include the creation of our logo, the development of our unique company name, and securing a prime location for our laundromat. Each step has been taken with our future customers in mind, ensuring that we build a brand that is both inviting and reliable.

The Laundromat industry in the United States is a thriving market that continues to grow in size. According to market research, the industry generated approximately $5 billion in revenue in 2020. This indicates the significant demand for laundry services in the country. Furthermore, experts predict that the market will continue to expand at an annual growth rate of 3.6% over the next five years. This projected growth highlights the opportunities available for businesses like SpinCycle Laundry to tap into the expanding market and capture a share of the industry’s revenue.

Several trends in the Laundromat industry contribute to the positive outlook for SpinCycle Laundry. Firstly, there has been an increasing shift towards convenience and time-saving services among consumers. This has led to a growing demand for self-service Laundromats, where customers can conveniently wash and dry their clothes without the need for extensive time investment. SpinCycle Laundry’s self-service model aligns well with this trend, positioning the business to attract customers seeking a quick and hassle-free laundry experience.

Another trend that favors SpinCycle Laundry is the rising focus on environmental sustainability. Many consumers are becoming more conscious of their carbon footprint and are seeking eco-friendly alternatives in various aspects of their lives, including laundry. SpinCycle Laundry’s commitment to using energy-efficient washing machines and environmentally friendly detergents can help differentiate the business and attract customers who prioritize sustainability. By capitalizing on these industry trends, SpinCycle Laundry has the potential to flourish in the Atlanta market and establish itself as a reputable and profitable Laundromat.

Below is a description of our target customers and their core needs.

Target Customers

SpinCycle Laundry will target local residents as its primary customer base. These individuals, living within a close radius to the Laundromat, will seek convenient and reliable laundry services. The ease of access for these local customers is a key factor in their decision-making process.

Beyond local residents, SpinCycle Laundry will also cater to college students residing in nearby campus housing or apartments. This demographic often lacks in-unit laundry facilities and will value the affordability and efficiency of SpinCycle’s services. Their consistent need for laundry services throughout the academic year ensures a steady stream of business.

Lastly, SpinCycle Laundry will tailor its services to meet the needs of small businesses in the area. These could include local restaurants, bed and breakfasts, and small hotels, which require regular laundering of linens, uniforms, and other textiles. Offering bulk service deals and quality assurance will be crucial in securing and retaining this customer segment.

Customer Needs

SpinCycle Laundry meets the essential need for high-quality laundry services that residents in the area seek. Customers can expect their garments to receive top-notch care, ensuring that clothes come back looking and feeling fresh. This attention to detail in the cleaning process distinguishes SpinCycle from competitors, making it a preferred choice for those who value the longevity and appearance of their wardrobe.

In addition to quality, SpinCycle Laundry understands the importance of convenience for its customers. The facility offers extended hours to accommodate the busy schedules of Atlanta’s working professionals, students, and families. With state-of-the-art machines that reduce washing and drying time, customers can complete their laundry tasks more efficiently, freeing up time for other important activities in their lives.

Lastly, SpinCycle Laundry is committed to providing a comfortable and welcoming environment for its patrons. The clean, well-lit space, equipped with amenities such as free Wi-Fi and comfortable seating areas, allows customers to relax or catch up on work while they wait. This emphasis on creating a positive customer experience ensures that a visit to SpinCycle is more than just a chore, but a pleasant part of their weekly routine.

SpinCycle Laundry’s competitors include the following companies:

Brookhaven Laundry offers a range of laundry services including self-service laundry, wash-and-fold, and dry-cleaning. They focus on providing a clean, modern, and user-friendly environment. Their price points vary depending on the service, with self-service being the most economical option and dry-cleaning being at a higher price point. Brookhaven Laundry has a strong presence in the Brookhaven area, making it a convenient option for residents living nearby. They tailor their services to cater to a diverse customer segment, including busy professionals, families, and students. A key strength is their strategic location which attracts a steady flow of customers. However, they face limitations in their service variety, primarily focusing on basic laundry needs without offering specialized services.

The Laundry Lounge differentiates itself by offering a unique, relaxed atmosphere where customers can wait for their laundry. They provide free Wi-Fi, comfortable seating areas, and even a small café where customers can purchase drinks and snacks. This creates a pleasant environment, encouraging customers to stay onsite while their laundry is being processed. Their pricing is competitive, aiming to offer value-added services at reasonable rates. The Laundry Lounge serves a broad customer base, including young professionals and students who appreciate the lounge-like setting. The incorporation of technology for easy service usage and payment is a key strength. However, their weakness lies in potential over-reliance on the lounge concept, which may not appeal to customers seeking quick in-and-out service.

Patio Laundry is known for its eco-friendly approach, using high-efficiency machines and biodegradable detergents. They offer self-service laundry, wash-and-fold, and an ironing service. Their pricing reflects the premium nature of their eco-friendly services, slightly higher than conventional laundromats. Located in an area with high foot traffic, Patio Laundry attracts environmentally conscious customers. They have a strong customer segment among individuals who prioritize sustainability. A major strength is their commitment to reducing the environmental impact of laundry processes. However, their focus on eco-friendly services may alienate customers looking for the lowest cost option, presenting a weakness in their business model.

Competitive Advantages

At SpinCycle Laundry, we understand the diverse needs of our customers, and that’s why we offer a wide range of laundry services that go beyond what our competition can provide. From standard washing and drying to specialized care for delicate garments, our services are designed to meet every possible laundry need. Our commitment to affordability without compromising on quality gives us a distinct edge. Customers can expect top-notch service that fits their budget, making us the go-to choice for laundry services in the community. This comprehensive approach ensures that every customer leaves satisfied, knowing that all their laundry needs can be met under one roof.

In addition to our broad service range and competitive pricing, we pride ourselves on utilizing state-of-the-art laundry technology. This not only guarantees a superior clean for every type of fabric but also contributes to a more sustainable environment by using less water and energy. Furthermore, our convenient location and extended operating hours are designed to accommodate the hectic schedules of our customers, ensuring easy access to our services at times that best suit them. Our dedicated customer service, where we prioritize the customer experience, sets us apart, fostering a loyal customer base that trusts us with their every laundry need. Through these advantages, SpinCycle Laundry creates unparalleled value for our customers, establishing us as a leader in the local laundry industry.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

SpinCycle Laundry offers a comprehensive range of laundry services tailored to meet the needs of both individual customers and commercial entities. With a focus on convenience, affordability, and quality, our Laundromat stands out by providing a variety of laundry solutions designed to make life easier for those living and working in the area.

At the core of SpinCycle Laundry’s offerings are the Self-Service Washing Machines. These high-efficiency machines come in various sizes to accommodate different loads, from small personal laundry batches to larger family-sized ones. Customers can expect to pay an average of $2.50 to $5.00 per load, depending on the machine size and the specific washing program selected. This option is perfect for those who prefer to handle their laundry personally, offering both flexibility and efficiency.

Complementing the washing machines are the Dryer Facilities. With state-of-the-art dryers that ensure quick and even drying, customers can use these facilities at an average cost of $2.00 to $4.00 per load. The pricing varies based on the drying time required, which allows customers to manage their laundry expenses according to their specific needs. This service ensures that even the busiest individuals can walk away with dry, ready-to-wear clothes in no time.

For those looking for a more hands-off approach to laundry, SpinCycle Laundry provides Wash-and-Fold Services. This premium service offers the convenience of dropping off laundry and picking it up clean, folded, and ready to be put away. Customers can expect to pay an average of $1.25 per pound of laundry, with a typical minimum charge applying. This service is ideal for busy professionals or anyone looking to save time on their laundry chores.

SpinCycle Laundry also caters to commercial clients through its Commercial Laundry Services. Designed for businesses such as hotels, restaurants, and medical facilities, this service offers tailored solutions to meet the high-volume laundry needs of commercial entities. Pricing is customized based on the volume and specific requirements of the business, ensuring cost-effectiveness and efficiency for all commercial laundry needs.

Lastly, Dry Cleaning Services are available for those garments that require special care. SpinCycle Laundry uses the latest dry cleaning technologies to ensure the highest quality cleaning and care for delicate fabrics and specific items such as suits, dresses, and coats. Customers can expect average prices to start from $10.00 per item, providing a reliable option for preserving the quality and appearance of their most valued garments.

SpinCycle Laundry is dedicated to offering a wide range of laundry services that meet the diverse needs of its customers. With competitive pricing and a focus on customer satisfaction, SpinCycle Laundry aims to be the go-to option for all laundry needs in the community.

Promotions Plan

SpinCycle Laundry will employ a comprehensive promotional strategy to engage and attract customers in Atlanta, GA. Central to this strategy is a robust online marketing campaign, which will encompass both social media engagement and SEO optimization to increase visibility and drive traffic. Through platforms such as Instagram, Facebook, and Twitter, SpinCycle Laundry will connect with potential customers by sharing relevant content, promotional offers, and customer testimonials. Additionally, by optimizing its website for search engines, SpinCycle Laundry will ensure that individuals searching for laundry services in Atlanta are more likely to find their business at the top of their search results.

Beyond online marketing, SpinCycle Laundry will also leverage local partnerships and community events to enhance brand visibility and foster a strong local presence. By collaborating with nearby businesses and participating in community events, SpinCycle Laundry will introduce its services directly to potential customers, creating opportunities for personal engagement and relationship building. This approach not only aids in attracting new customers but also contributes to building a loyal customer base through positive community relations.

Email marketing campaigns will serve as another crucial component of SpinCycle Laundry’s promotional efforts. By collecting email addresses both in-store and online, SpinCycle Laundry will regularly update its subscribers with special offers, discounts, and useful laundry tips. This direct form of communication will keep the brand at the forefront of customers’ minds, encouraging repeat business and word-of-mouth referrals.

To further distinguish itself from competitors, SpinCycle Laundry will offer introductory promotions to first-time customers, such as discounts or additional services at no extra cost. These promotions, advertised prominently on both its website and social media channels, will serve as an incentive for potential customers to try out SpinCycle Laundry’s services, with the expectation of converting them into regular patrons.

Lastly, SpinCycle Laundry will invest in high-quality signage and attractive in-store branding to catch the eye of passersby and create a welcoming environment for customers. By ensuring that the physical appearance of the laundromat reflects the quality and professionalism of the services offered, SpinCycle Laundry will make a strong first impression on potential customers, encouraging them to step inside and experience the difference for themselves.

In conclusion, SpinCycle Laundry’s promotional strategy is multi-faceted, combining online marketing, local partnerships, email campaigns, introductory promotions, and attractive physical branding to attract and retain customers. Through these efforts, SpinCycle Laundry will establish itself as a top choice for laundry services in Atlanta, GA.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of SpinCycle Laundry, there are several key day-to-day operational processes that we will perform.

• Greet customers promptly and courteously upon entry.
• Answer all customer inquiries, whether in person or via phone or email, with accurate information about services and pricing.
• Handle complaints and feedback efficiently, aiming for customer satisfaction.
• Sort laundry by color, fabric type, and cleaning requirements before washing.
• Operate washing machines and dryers according to manufacturer guidelines to ensure proper cleaning and care of customer garments.
• Apply stain removal treatments as necessary, taking care to follow best practices for each fabric type.
• Fold, press, and package laundry neatly for customer pick-up.
• Perform daily maintenance checks on all machines to ensure they are operating efficiently and safely.
• Clean lint traps, machines, and work areas throughout the day to maintain a hygienic environment.
• Sanitize common areas, including counters, seating areas, and door handles, multiple times a day to protect against the spread of germs.
• Process payments accurately, whether in cash, credit/debit card, or through mobile payment platforms.
• Manage cash flow diligently, ensuring enough change is available and deposits are made regularly.
• Track all transactions meticulously for accounting and inventory purposes.
• Regularly check inventory levels of laundry detergents, fabric softeners, stain removers, and other supplies.
• Reorder supplies in a timely manner to avoid running out of necessary items.
• Conduct periodic inventory audits to ensure accuracy and identify any discrepancies.
• Update social media platforms and the company website with current promotions, hours of operation, and any changes in service.
• Engage with customers online to build relationships and encourage repeat business.
• Distribute promotional materials, such as flyers or discount coupons, in the local community to attract new customers.
• Schedule staff efficiently to cover all operational hours, including weekends and peak times.
• Train employees thoroughly in customer service, machine operation, and safety procedures.
• Conduct regular performance reviews and provide feedback to help employees grow and improve.

SpinCycle Laundry expects to complete the following milestones in the coming months in order to ensure its success:

• Securing a Prime Location: Identifying and securing a lease for a strategic location in Atlanta, GA, that is easily accessible, visible, and within a community with a high demand for laundry services. This location should also offer ample parking and be in a safe neighborhood to attract a steady flow of customers.
• Obtaining Necessary Permits and Licenses: Completing all the legal requirements, including obtaining the necessary business permits and licenses required to operate a laundromat in Atlanta, GA. This will also involve ensuring compliance with health, safety, and environmental regulations.
• Building Out the Laundromat: Designing and constructing the interior layout of the laundromat with efficient use of space, installing high-quality, energy-efficient laundry machines, and setting up a comfortable waiting area for customers. This phase will also include setting up utility services such as water, electricity, and internet.
• Launch Our Laundromat: Officially opening SpinCycle Laundry to the public with a launch event aimed at generating buzz in the local community. This will involve marketing campaigns, special opening discounts, and community engagement initiatives to attract the first wave of customers.
• Implementing a Robust Marketing Strategy: Developing and executing an ongoing marketing strategy that includes digital marketing (social media, SEO, email marketing), local advertising (flyers, local newspapers, community bulletin boards), and partnership programs with local businesses and residential complexes to drive continuous customer acquisition.
• Hiring and Training Staff: Recruiting, hiring, and training a team of employees who are customer service oriented and capable of managing day-to-day operations efficiently. This includes training staff on the use of laundry equipment, customer service excellence, and emergency procedures.
• Establishing Operational Systems and Processes: Setting up operational systems and processes for efficient management of the laundromat, including laundry service scheduling, financial management, inventory control for detergents and other laundry products, and maintenance routines for the laundry machines.
• Achieving Operational Efficiency: Reaching a level of operational efficiency where the business minimizes waste, optimizes machine usage, and reduces utility costs, contributing to overall profitability.
• Building a Loyal Customer Base: Developing a loyalty program and customer feedback system to retain customers and adapt services based on customer needs and suggestions, thereby building a strong, loyal customer base.
• Get to $15,000/Month in Revenue: Achieving the revenue milestone of $15,000 per month, which indicates a strong customer base and efficient operations, ensuring the long-term success and sustainability of the business.

SpinCycle Laundry management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

John Rodriguez, CEO

John Rodriguez, CEO, brings a wealth of experience to SpinCycle Laundry, underpinning the strategic direction with a proven track record of success. His background in running a laundromat showcases not only his familiarity with the industry’s nuances but also his ability to navigate the challenges unique to this sector. John’s leadership skills, honed through years of hands-on management, equip him with the insight to drive efficiency, innovation, and customer satisfaction. His past successes are a testament to his ability to scale operations and foster a culture of excellence, making him an invaluable asset in steering SpinCycle Laundry towards lasting success.

To achieve our growth goals, SpinCycle Laundry requires a strategic financial plan that supports our operational and marketing activities. Our initial funding requirements are focused on securing our location, completing the necessary build-out and equipment setup, and implementing our marketing strategy. This investment will enable us to launch successfully and reach our target of $15,000 in monthly revenue. As we look towards expansion, our financial planning will continue to be an integral part of our strategy, ensuring we have the resources needed to grow and succeed in the competitive laundry service market.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Laundromat Business Plan Example PDF

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Biden's new student-loan forgiveness plan just began its 30-day public comment period — and anyone can tell the administration what they think of the relief

• The public now has 30 days to comment on Biden's new student-loan forgiveness plan.
• It's the next step in implementing a broader version of debt relief for borrowers.
• The proposals include relief for those with unpaid interest, along with those in repayment for 20 years.

The public has one month to tell President Joe Biden what they think of his new student-loan forgiveness plan .

After announcing details of Biden's second attempt at student-debt relief last week, the Education Department formally published the draft text of the new rules on the Federal Register on Wednesday. The publication of the rules officially kicked off the 30-day public comment, set to end on May 17. Comments can be submitted to the Federal Register here , which the Education Department will then review.

The draft text currently consists of nine rules "that permit separate and distinct types of waivers using the Secretary of Education's longstanding authority under the Higher Education Act," the Education Department said in a Tuesday press release.

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The rules address distinct types of borrowers that would qualify for relief under this new plan: those whose balances have grown due to unpaid interest, those who would be eligible for relief under certain repayment plans but have not yet enrolled, those who have been in repayment for at least 20 years, and those who have attended programs that left them with too much debt compared to post-graduation earnings.

The Education Department also said a separate rule to address relief for borrowers experiencing financial hardship will be released in the coming months.

"These historic steps reflect President Biden's determination that we cannot allow student debt to leave students worse off than before they went to college," Undersecretary of Education James Kvaal said in a Tuesday statement. "The President directed us to complete these programs as quickly as possible, and we are going to do just that."

The department aims to begin implementing relief as early as this fall. Still, as Business Insider previously reported , legal threats to the relief could imperil the department's timeline. While lawsuits have yet to be formally filed against Biden's administration, Missouri's Attorney General Andrew Bailey wrote on X in response to Biden's relief proposals: "See you in court."

And some experts said a conservative Supreme Court could likely rule like they did with Biden's first debt relief plan, striking it down .

"The administration is certainly still facing a very skeptical Supreme Court," Cary Coglianese, an administrative law professor at the University of Pennsylvania, told BI. "Even though it's a different statute, it's still a skeptical Supreme Court. It's still a pretty big program even though it's a smaller one."

Following the public comment period, the Education Department will review comments and could choose to adjust their proposals based on the feedback they receive. It will then finalize the rule and move toward implementation.

Watch: Why student loans aren't canceled, and what Biden's going to do about it

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