laundry business plan pdf philippines

Laundry Business Philippines 2023: How To Start, Capital, Profit (Plus, Tips To Succeed)

Clean clothing and good hygiene are the most basic requirements for healthy living. Because laundry is an integral part of daily life, the laundry business has proven to be resilient to external factors such as weather seasons and economic recessions. This makes it appealing to aspiring and seasoned entrepreneurs who want to invest in a more resilient business model.

In this guide, you’ll learn how to invest in a laundry business that has been integral to many busy Filipinos’ daily lives.

Table of Contents

What is a laundry business.

As the name suggests, the laundry business is a company that offers services and facilities for washing clothes for clients. Laundry services are beneficial in densely populated areas with people who are too busy to do their laundry or do not have washing machines at home.  

How Much Does It Cost To Start My Own Laundry Business in the Philippines?

The cost to set up a laundry business can be anywhere from ₱1,000,000 to ₱2,500,000 or more, depending on factors such as your rent, franchise cost, size and scale of your store, number of machines you purchase, and much more.  

How Does a Laundry Business Make Money?

A laundry business earns by providing any of the following: 

• A full-service laundry to their clients at a fee 
• A facility of self-service washing machines and dryers that customers can use on their own 

Business models also provide both kinds of services to their customers.  

How Much Does a Laundry Business Make?

As a baseline, a business that washes 75kg of laundry per machine daily can expect to earn roughly ₱10,000 per month. This profit level can still vary greatly depending on your pricing strategy and potential costs, which will also vary greatly depending on your chosen location. 

For a more accurate estimate of the expected profits and capital requirements, consulting with a franchisor or one of the many available laundry business consultations and setting up companies would be best. 

What Is the Cheapest Way To Get Into the Laundry Business?

Act as the middle man between self-service laundry businesses and customers who want a full-service experience. You can collect the laundry of the customers who want full-service and do their laundry at a self-service laundry business. You then ask for a service fee from the customers you did their laundry for.  

This is a more laborious method, but it is the cheapest and fastest way to earn money through the laundry business. There is also almost no risk involved because you do not have to shell out large amounts of cash to procure machinery or rent a location. All you need is a cost-effective and efficient method of collecting clothes and a lot of hard work. 

Kinds of Laundry Businesses

1. your original laundry business from scratch (do-it-yourself).

Like any other business, you can set up shop and do everything from scratch. This gives you a great range of freedom to customize your business almost however you want. However, this also means you must figure out everything from branding to pricing strategy.

2. Franchise

On the other hand, you can also get a franchise of established laundry businesses such as Suds, Dr. Spin, and Tiny Bubbles . The franchise fee will vary depending on the company but will typically cost between ₱100,000 to ₱500,000.  

The franchisor will provide several integral support services, including staff training, location approval, etc. This reduces your need for pre-existing business knowledge, especially if it’s your first time venturing into this industry.   

Getting a franchise also streamlines a lot of the work and processes, such as procuring equipment and supplies necessary to improve your business efficiencies and chances of success.  

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

1. conduct research & feasibility study.

a. Learn About Your Customers

One of the things you need to learn about your customers is whether they prefer self-service or full-service laundry. Both of them use the same kind of machines and technology. The difference lies in the added services and associated manpower cost to provide a full-service experience to customers. 

A full-service and hassle-free experience is often preferred by people who prioritize their time and don’t mind having their clothes handled and washed by others. A trip to a self-service laundry can take you more than an hour. It’s even more tedious when you consider the effort of having to bring several kilograms of dirty laundry instead of just having someone pick it up and do everything for you. 

On the other hand, a group of customers prefers to do their own laundry for privacy or personal satisfaction reasons. These are the people who are more likely to go to self-service laundromats. 

Aside from differences in their behavior, it is worth mentioning that self-service laundry solutions are cheaper, making them more attractive to college students and households with lower incomes. 

b. Study Your Competition

Understanding the competition is every bit as important as understanding your customers. It will help you stand out from the competition and identify possible gaps in the market that you can take advantage of. 

Here are a few tips on what to look for in the competition and how to act accordingly: 

• Find out who they are and how many of them there are . The more competitors you have in an area, the harder it will be to penetrate the market. Having too many competitors fighting over a small population will also negatively affect your ability to price your services at a favorable rate. 
• Find out what aspects of laundry service you can do better than your competition. Look for gaps in the market where you can provide your clients with a superior version of their service to make them switch to yours. Some examples could be better customer service, store ambiance, and special promotions. 
• Learn and apply the best practices your competition employs to your business . This will go a long way in providing the best experience for your customers. 

c. Determine Your Price List

To determine your pricing strategy, you need to look at a few factors: 

• Compute your break-even point . This is the point at which all your costs equal your revenue. This should be your baseline from which you add your markup to determine your profit.
• Look at the competition . Consider the pricing strategy of your direct competitors within your area. Check out what kind of services they offer and if you can offer them at a competitive rate without sacrificing much of your profit.  
• Determine how much your customers are willing to spend on your services . This is where your understanding of your customers’ wants and needs will come into play. If you can offer your customers a superior experience better than the competition, you can price your services higher than them. 

2. Determine Which Kind of Laundry Business You Want To Start

a. Original Do-It-Yourself Laundry Business

I. who is it best for.

DIY laundry businesses are excellent for seasoned or more resourceful entrepreneurs who already know how to run a business or are willing to go the extra mile to learn things from scratch.

Laundry businesses are fairly straightforward but require a lot of planning. From how much water you use to which machines to choose, every detail must be carefully thought out to maximize potential earnings. 

Experienced entrepreneurs are also more likely to be accustomed to managing the risks of starting a business from scratch. They also have the experience to know when to call it quits in case the business starts to fail and know how to liquidate the assets to minimize losses. 

ii. Advantages

• No franchise fees . Since you’re not getting a franchise to help you start your business, you don’t have to pay any franchise fee. Your savings from the franchise fee can be allocated to other business expenses.  
• Flexibility and freedom . You are free to run your business however you want. Unlike franchises, you can create your original concept, which allows you to be different from the competition. 
• Unlimited business growth potential . Your success is only limited by your own capabilities and imagination. Your brand has the potential to become its own franchise if you successfully execute your business concept. 

iii. Disadvantages

• Fewer resources for knowledge and experience 
• No pre-existing brand name that can help increase foot traffic into your store 
• Less technical support for troubleshooting your equipment 

iv. Available Third-Party Support Resources

If you’re going into the laundry business for the first time, it would be best to ask for advice from people who are already much more experienced in the field.

There are a few businesses that specifically help aspiring entrepreneurs start their own laundry businesses. These companies offer equipment packages, staff training, and other support services that you would otherwise get from a franchisor. Their services may be a little more limited than what you can expect to receive from a franchisor, but these companies can give you invaluable advice and insights that will help you succeed. 

Here are a few of those companies: 

b. Franchise Laundry Business Model

Getting a franchise is an excellent choice for novice entrepreneurs looking to enter the laundry business. The support systems and services provided by the franchisor will go a long way in helping you start despite having limited knowledge and experience in the field.   

ii. Advantages:

• Easy to start and maintain . Getting a franchise gives you access to the expertise and support services of the franchisor. This will speed up many processes to get things started, such as site review and approval, store construction, and supply and equipment sourcing. 
• Lower risk . Experienced franchisors know the ins and outs of the laundry business. They can help reduce your risk by advising you on the best practices. 
• Higher chance of getting a business loan . Banks are more likely to approve a business loan backed by a franchise. This improves your chances of getting capital and helps smoothen your cash flow. 

iii. Disadvantages:

• Initial cost . Aside from your business’s capital expenses and other fixed costs, you must also pay a franchise fee. This can cost anywhere from ₱100,000 to ₱350,000. 
• Less Control . Franchises will have their own business direction and management style, directly affecting how you can run your business. Since the brand is not yours, you will have less control over several business decisions, such as pricing, choice of equipment, and marketing. 

iv. Available Franchise Packages

For interested parties, here is a short list of franchise packages from different companies specializing in the laundry business: 

3. Choose a Good Brand Name (for DIY Laundry Businesses)

A brand name is such an important part of your business conceptualization because it is the first interaction of your customers with your own business. With that in mind, here are a few tips on how to create your brand name:

• Easy to remember and distinct – Create a brand name that is easy to remember and distinct enough from the competition 
• Descriptive and meaningful – The brand name can immediately give your customers a good idea of what kind of service you’re providing.  
• Malleable and expandable – The brand name should not limit you to a specific niche, especially if you plan to expand your operations. An example would be a brand name that suggests that you will only provide self-service laundry facilities when you may eventually have plans to offer full-service laundry options. 
• Sounds good – Choose a brand name that sounds good when mentioned. Avoid brand names that may mean something terrible when read out loud. 
• Simple – Don’t overcomplicate this process by spending too much time overthinking your brand’s name. Creating a brand name is important, but it is not everything. Many successful businesses have brand names that are fabricated and meaningless. There is more to business success than just the brand name. 

4. Find a Good Location for Your Business

Choosing a good location is vital to the success of a laundry business. It will directly impact your store traffic, pricing strategy, key operational expenses, and profit. Here are some characteristics of a good location : 

a. Affordable Rent

As mentioned, rent will be one of your recurring expenses, which can quickly eat into your profit margins. You should choose a location that you know you can afford. 

b. Central Location and Accessibility

Please choose a location central to your customers and easily visible and accessible to them. Laundry service is a business of convenience. Locations near condominiums, villages, other residential areas, and universities are ideal for laundry businesses. 

Consider a parking space if you expect customers to bring their cars. You can also place your laundry shop near transportation terminals. The more you make yourself convenient to your customers, the more likely they will avail of your services. 

c. Competitors & Beneficial Businesses

Choose a location where there aren’t too many similar competitors, especially if your core services and prices are similar. 

You can also choose a location where businesses can synergize with your operations or overlap with your customers’ behavior. An example would be to place your full-service laundry business beside a cinema or grocery. Customers can drop off their laundry at your shop while they do their weekly routine groceries for a few hours, then pick up their laundry afterward.

d. Sufficient Space

Make sure to choose a location with adequate floor space for your machinery to maximize your profit margins. You should also consider the floor space dedicated to your customers, especially for self-service laundry businesses where customers will be waiting for their laundry to finish. 

e. Access to Reliable Water

Choose a location with an adequate and reliable water supply. Water is truly the lifeline of your business. Each load of a washing machine will use 40 to 140 liters of water 7 or more depending on the kind and model of your washing machine. Assuming you’ll be washing 75kg of laundry spread across nine loads, you’ll use anywhere from 360 to 1,350 liters (.36 to 1.35 cubic meters) of water daily. 

Modern commercial washing machines need between 14.5 and 116 psi 8 (pounds per square inch) of water pressure to fill the machine properly. Some machines may not work correctly without the correct water pressure. Consult with the machine vendor or your franchisor to get the specific details and requirements of the machine you’re purchasing. 

With these in mind, avoid places prone to water shortages and choose a location with sufficient water pressure to supply your needs sufficiently. Consult franchisors who can help with site planning and location approval. 

Companies such as Maytag Commercial and BigWash also provide support via seminars and training services.  

Avoid locations that are prone to robberies and theft. These locations are not only a danger to you but also to your potential customers.  

5. Do a Financial and Self-Assessment

a. Forecast Your Financial Success, Learn About Your ROI

ROI, or return on investment, is a valuable metric used to predict the benefit you gain concerning the amount you invested into your business. In other words, it is a simplified formula to estimate a project’s financial success. 

Like all estimates, it is not intended to be a precise measurement method. It is an additional means of preparation and planning so that you can make a more informed decision before investing in a business. 

b. The ROI Formula:

Monthly ROI = (Monthly Profit / Total Monthly Expenses) x 100 

Monthly Profit = Gross Revenue – (Fixed Expenses + Variable Expenses) 

Let’s break down that formula into its parts so that you can compute your ROI. 

Fixed expenses cost the same each month regardless of your business activities. These include but are not limited to 

• Business loans  
• Equipment and depreciation 
• Phone bill 
• Employee wages 
• Store maintenance and cleaning 
• Other fixed expenses (Wifi internet, business permits , etc.) 

Variable expenses are expenses that fluctuate depending on the amount that you use: 

• Detergents 
• Electricity 
• Other utilities, if applicable (gas, spillage, etc.) 

Gross Revenue is the total income produced from your business activities: 

• Revenue from washers 
• Revenue from dryers 
• If applicable, revenue from other add-on services (delivery, service charge, etc.)  

Total Monthly Expenses are the sum of your fixed and variable expenses. 

Once you’ve accurately included everything into your list, it is time to plug everything into the ROI formula.  

c. Sample Computation

Here’s a sample computation. First, let’s compute your total fixed expenses:

Total Fixed Expenses = ₱30,000 

• Rent = ₱15,000 
• Employee Wages = ₱13,000 
• Maintenance and cleaning = ₱2,000

Next, let’s compute your variable expenses. This is directly tied to how much you use your washing machines to do your service. So, the more clients you have, the more it goes up.

Variable expenses = ₱35,000 

• Detergents = ₱10,000 
• Water = ₱5,000 
• Electricity = ₱20,000

Next is your revenue. You get this by computing how much each kind of laundry service you provide has earned for the month.

Gross Revenue = ₱120,000 

• Washer Revenue = ₱60,000 
• Dryer Revenue = ₱60,000

You can then plug the three values above into the formula to get your monthly profit:

Monthly Profit = Gross Revenue – (Fixed Expenses + Variable Expenses)  

Monthly Profit = ₱120,000 – (₱30,000 + ₱35,000) 

Monthly Profit = ₱55,000

Now that you have your monthly profit, you can start computing your monthly ROI:

ROI = (₱55,000 / ₱65,000) X 100 

ROI = .846 X 100 

ROI = 84.6%

A greater than 0% ratio means you earned a profit for that specific investment. In the example above, you would have earned an 84.6% return for that specific month. You will have to do this computation every month to get a better idea of your longer-term profitability.

This is useful if you want to know how profitable your business is monthly. Your ROI is also a metric some banks and lenders will look into to assess if they would be willing to give you a business loan.  

d. How Long Will It Take for Me To Get My Investment Back?

The breakeven period, often confused with ROI in the Philippines, is how long it will take for you to get your initial investment back.

Breakeven Period = Total Investment / Monthly Profit

Let’s say you must spend ₱2.5M to launch a laundry business. Continuing from the example above, let’s assume a monthly profit of ₱55,000.

Breakeven Period = ₱2,500,000 / ₱55,000

Breakeven Period = 46 Months

In this instance, it will take you at least 46 months or three years and ten months to earn back what you plan to invest in the laundry business. Of course, this doesn’t consider the initial months when you are not yet profitable or any fluctuations in the monthly profit. More likely than not, it will take a longer time.

6. Decision Time – Are You Ready To Invest the Money and Time Into the Business?

Like all other businesses , there is no guarantee that yours will succeed despite doing your due diligence to study the ins and outs of the industry. Given your current financial situation, you must personally assess how much risk you can handle. Here are a few tips to help you make a proper self-assessment:

• You’re hopeful of succeeding but ready to fail. All entrepreneurs go into businesses with high hopes of success, but it is a harsh reality that not all businesses will succeed. You must be realistic in your expectations and realize that failure is possible.  
• You’re ready with a backup plan. Please find out how to pivot your business and transform it into a different concept. Learn how you will be able to liquidate your assets to minimize your losses. 
• You have a unique selling proposition, or you know you can corner a specific market. This works if you have some kind of competitive leverage, such as owning a property ideal for a laundry business.  
• You’re willing to put in the necessary time and effort . Aside from money, expect you to invest a lot of emotions, time, and effort to get things started. Reaching your break-even point can take a significant toll on you. Be prepared.

So with these tips in mind, alongside your financial estimates, it’s up to you to decide whether you want to continue doing a laundry business. Once you decide to proceed, you’ll need to spend considerable money, time, and effort.

7. Purchase Your Equipment

Compute the number of machines you need based on your available floor space, expected business volume, and available capital funding options. You can also explore getting a business loan to help secure the capital you’ll need to purchase your machinery. 

Consult with your franchisor to discuss your equipment and machinery options. Most franchisors provide planning assistance to maximize floor space and recommend the best possible machines to improve profit margins. 

For DIY laundry businesses, consult with third-party laundry business consultation companies that can help you choose the right equipment based on your needs.

8. Register Your Business & Secure a Business Permit

Like most other businesses, you must register your business properly with government authorities. This process includes registering your business name with the DTI or SEC, getting a registration certificate from the BIR , and securing a business permit from your local government .

Here are the business permit requirements specifically for a laundry business:

• Barangay Business Clearance . You can obtain this from the barangay hall with jurisdiction over the location of your laundry business.
• Occupancy Permit. This is issued by the building official as required by the National Building Code.
• DTI Certificate with CTC (for sole proprietors and professionals) or SEC Certificate with CTC (for partnerships and corporations) 
• CDA Accreditation (Cooperatives); 
• Business Capitalization ( Sworn Statement) . Also known as the Sworn Statement of Capitalization, this document is where you will declare the amount of your initial capital investment.
• Community Tax Certificate or Cedula . You can get this from the treasurer’s office at your city, municipal, or barangay hall.
• Contract of Lease. You can obtain this from your landlord if you rent your business’s location; 
• Proof of Ownership or Tax Declaration . Present this if you own the property where your laundry business is located (alternative to the lease contract).
• Sketch/Vicinity Map of Business Location . The easiest way is to present a screenshot of your location from Google Maps.
• Printed Photos of the Business Establishment . Some LGUs require pictures of your location from different angles.
• Safety Seal (for commercial establishments) proving the business has fulfilled minimum health requirements as a precaution against COVID-19. 

9. Build Your Store

For franchisees, you will be guided by the franchisor to conform with their design and overall quality requirements. This will make this process easy, quick, and straightforward. The downside is that you have little say in how the store will look.  

For DIY laundry businesses, you can hire your own crew of designers, architects, and construction professionals to customize your store as you see fit. Renovation expenses could cost up to ₱200,000 or more depending on your store’s size, personal design requirements, and necessary electrical wiring and plumbing systems.

If you need help designing your store, Maytag Commercial offers seminars that include shop setup, layout, and design. BigWash and LaundryPh also offer consultation services to laundry business entrepreneurs.

10. Launch Your Laundry Business

Now that everything is in order, it’s time to open your store. Some franchisors and laundry business consultants can help you get your shop up and running in a few weeks; some even claim they can have everything done in less than a week. 

Be sure to be ready with the following before opening your doors to customers: 

• Decide your store’s opening and closing times. This will depend on your customers’ behavior patterns and what the franchisor prescribes if you get one. Ensure adequate staff and supplies to address customers’ needs during peak hours.
• Prioritize your customer’s comfort and convenience in your store. A happy customer is likelier to return to you for regular laundry needs. Build a good relationship with your customers and learn more about them as you do business with them. These will help you in giving them a better customer experience.
• Continue to learn more about the industry and find ways to improve your services. Don’t be complacent. Learn more about the industry and your competition through observation and research.  

How To Manage Your Laundry Business and Deliver Added Value to Customers

A. strengthen your core selling points and manage your business.

Now that everything is running, make sure you can be consistent with what you promise your customers so that they have the same good experience every time they visit you. 

• Keep your store clean. The upkeep and cleanliness of your store show how much you care for your business and customers. A poorly maintained store will reflect badly on you and deter customers from entering or staying at your laundry. 
• Ensure that all of your machines are properly functioning. A malfunctioning machine is a loss of potential profit and reflects poor reliability. Ensure all your appliances are well maintained and always have an emergency backup plan. 
• Ensure that your staff is well-trained to handle problems . In the service business, it is inevitable to encounter difficult situations, including machinery malfunctions, electrical issues, and bad customer behavior. Make sure that your staff is well-prepared to handle the worst. 

b. Tack-On Business Ideas

There are a lot of opportunities to add extra services and products, especially for self-service stores where customers will have to wait for extended periods for their clothes.  

Products and services that provide comfort and convenience are excellent add-ons to boost your laundry store’s revenue. Here are some additional services you can provide to your customers: 

• E-load selling – you can sell e-load as an additional revenue stream amongst other over-the-counter purchases. 
• Selling accessories and household items such as cleaners, hangers, etc.  
• Ironing – consider offering ironing services for clothes. 
• Vending machines – small snacks and drinks will make your customer’s stay in your laundry shop more comfortable. 
• Dry cleaning – A few full-service laundry franchisors also offer dry cleaning as part of their services. Dry cleaning requires a different method, using only chemicals to clean laundry. It is usually used on clothes and fabrics that can be damaged by the wet cleaning process involved in traditional laundry cleaning. 

Getting a franchise that offers dry cleaning could be a great way to differentiate yourself from other laundry businesses. Survey your location to understand better your area’s supply and demand situation for dry-cleaning.

History of Laundry Businesses in the Philippines

One of the older traditions of washing clothes started with palu-pal o 9 , the washing, and beating of clothes using a wooden paddle. It was often done by the riverside for easy access to clean running water. As years went by, this form of manual washing evolved into hand washing using soap and detergents at home or by labanderas .

With the advent of washing machines, laundry was made faster and easier for people who could afford their own washing machines. Those who could not still have to do things by hand or had a labandera do it on occasion. 

Later, this changed through continuous innovations in the washing machine industry combined with businessmen’s entrepreneurial spirit. Laundry businesses now provide a time and cost-efficient method of getting your clothes washed conveniently. 

Tips & Warnings

1. market your laundry business.

This is one of the most important ways to grow your business, especially for DIY laundry services that must build their brand’s reputation from scratch. Here are a few ways of marketing your business to the community around you: 

• Personal networks . The easiest and cheapest way of marketing yourself is to seek the help of your family and friends near your laundry store. You can advertise your services and ask them to spread the news through their networks. 
• Social media . Advertise via Facebook ads or by creating your own Facebook page. You can even use your social media page to get orders for delivery services or customer feedback.
• Flyers. Traditional print ads and flyers are still good advertising, especially for condominium complexes, villages, and universities. You can distribute them through the homeowners’ association or student organizations for colleges and universities. 

2. Keep a detailed record of your business expenses

Your business’ success will depend on your ability to manage your operations efficiently. A vital part of the operations is managing your business expenses. This includes close tracking of your supply inventory levels, managing the cost of labor, setting aside a repair and maintenance budget, and managing your cash flows. 

3. Build a good relationship with your business partners

Laundry businesses heavily depend on efficiencies and reliability to be profitable. Your business partners and suppliers will be a valuable resource to ensure you get the best prices for each item you need. Building a healthy relationship with them will help you get fast and efficient services when needed. 

Frequently Answered Questions

1. can you make a regular washer coin operated .

Yes, converting regular laundry machines into coin-operated ones is possible, but it is not necessarily more efficient or convenient. A few businesses in America sell conversion kits, but there are reports that some machines may experience significant problems after conversion that frustrate customers.

Your safest bet is to purchase a brand-new machine from trusted suppliers. These may be more expensive, but they will likely last you longer and give your customers a more seamless experience.

2. Which is better: top-load or front-load washing machines?

The better choice for you will boil down to your available resources, such as your water supply, store floor space, and your initial available capital.

The most glaring difference between the two options is the price of the machine and the difference in the amount of water and detergent they need to use per complete wash cycle.   A commercial top-load washing machine will typically cost around half the price of a front-load machine. On the other hand, a front-load washing machine can use up to 60% less water 10 and 25% less detergent for a complete wash cycle while also being better at removing stains than top-load washing machines.   Regarding durability, both machines for commercial laundry businesses are made to last and have an average lifespan of 10 to 14 years. One last consideration would be space efficiency. Front-load machines can be stacked, whereas top-load machines can’t. 

3. Where can I get my washing machines if I don’t get a franchise? 

Some of the most popular options for commercial laundry machines include Maytag Commercial Laundry and LG Commercial Laundry machines.  Maytag Commercial specializes in manufacturing commercial laundry machines for businesses, so their units are designed to last. They offer a range of high-efficiency washers and dryers for commercial laundry businesses. Aside from their equipment, they also provide regular laundry business seminars for aspiring entrepreneurs 11 . There is a ₱798 fee if you’re interested in attending. The fee is waived if you purchase any laundry equipment from them. Visit their website for more information. 

BigWash is the leading distributor of LG commercial Laundry. They have serviced over 4,000 customers to set up their laundry businesses. Some of their services include 3D shop design, renovations, staff training, supply of equipment, and maintenance.    On the other hand, Laundry Setup PH is a service provider and laundry machine sub-dealer that offers installation packages, site inspection, shop design, and hands-on training for aspiring entrepreneurs. In short, they provide DIY laundry businesses and equipment options to help them succeed. Laundry Setup PH is an accredited sub-dealer of LG commercial laundry. 

4. How long do commercial laundry machines & dryers last? 

Commercial laundry machines are built to last. A typical well-built commercial laundry machine from a reputable manufacturer is expected to last 14 to 15 years or approximately 5,000 cycle loads of laundry. Purchase your machinery from a reputable seller or ask your franchisor. They will have the necessary expertise and experience to help you make a well-informed decision on which brand and model to purchase.

5. What are the common reasons why laundry businesses fail? 

There is no one definitive list of reasons why some laundry businesses fail, but the common reasons include:

a. Poor location and accessibility – convenience is a significant factor in why people go to laundry businesses to wash their clothes. Locations with bad visibility, limited access, and no parking space will negatively affect your laundry business capacity. 

b. Equipment reliability and efficiency – unreliable and inefficient washers can severely impact your laundry business. They use more electricity, water, and money to keep them running, losing you money through maintenance costs and opportunity loss. Faulty machines will also damage your reputation, especially if you have a self-service laundry business where customers may experience problems using a malfunctioning machine. 

c. Water and electrical supply issues – along with your equipment, water and electrical supply are the bread and butter of your operations. Without a reliable source of water and electricity to efficiently fuel your operations, you will likely lose clients who need you to be there at their convenience. 

d. Saturated market – an overly competitive market will likely force you to lower prices which will directly eat into your profit margins. This is why it is crucial to consider the amount of competition present in your prospective business location.

e. High rent – unless you own the land where you plan to set up shop, rent is an unavoidable recurring expense that directly affects your profitability. The rent price per square meter should align with your expected revenue based on the target number of transactions per day and the number of machines that could fit in the space. 

f. Lack of funds and financial management – as with other businesses, you need to understand your capital requirements. Knowing how much you need to start up and managing your cash flows are essential to making your laundry business’s daily operations successful.

• LG. (2021). Optimize Water and Energy Usage in Laundry Machines. Retrieved 21 May 2022, from https://danamark.com/resources/improving-water-footprint-laundry-machines/
• Laundry Business Seminar. Retrieved 21 May 2022, from https://www.maytagcommercial.com.ph/whirlpool-laundry-seminar
• Suds Laundry & Dryclean. Retrieved 21 May 2022, from http://philippinefranchise.com/suds-laundry-dryclean/
• Dr. Spin Launderette Lounge. Retrieved 21 May 2022, from http://philippinefranchise.com/dr-spin-launderette-lounge/
• Tiny Bubbles Self Service Laundry. Retrieved 21 May 2022, from http://philippinefranchise.com/tiny-bubbles-self-service-laundry/
• Save5 Self-Service Laundromat. Retrieved 21 May 2022, from https://www.franchisemarket.ph/franchise-listing/save5-self-service-laundromat
• What is Water Consumption per Wash?. (2020). Retrieved 21 May 2022, from https://www.samsung.com/in/support/home-appliances/what-is-water-consumption-per-wash/
• LG. (2021). LG CWM [Video]. Retrieved from https://www.facebook.com/watch/?v=1027739161364113
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Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated June 4, 2023 08:22 PM

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

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The Definite Business Plan for a Laundry Business [PDF]

In order to have a successful business, it is crucial to have a plan, a laundromat business plan . But, what exactly is  a business plan ? What should be included? How to know if the steps are being followed? This is what this article is all about!

➡️ Download your Laundromat Business Plan for FREE!

Step 1. The definition of a business plan is that it is a written description of the future of a business. It's a document that tells the story of what the plan is and how to make it happen.  Although every business has its own story, there are some generally accepted conventions about what a full-blown business plan should include and how it should be presented. First of all, the famous 5 W's: What, When, Who, Where, Why and How .  By answering this 5 questions in the right way, the business plan for laundry services will cover all the important matters that will contribute on making the business a success.

“Going into business without a business plan is like going on a mountain trek without a map or GPS support – you’ll eventually get lost and starve!”  - Kevin J. Donaldson

Any laundromat business plan should start with a list of the services that will be provided. Will the laundry be delivered back to the customers or will there be specialized services offered such as dry cleaning and/ or ironing? It does not matter if entrepreneur(s) will not be going for a bank loan or a venture capital, a business plan doc will give clarity about where the business is heading and it is a helpful tool to stay organized and remain on track.

A BUSINESS PLAN FOR A LAUNDROMAT BUSINESS  

Laundry business has had a boom in these recent years, since people have no time (nor are they are fund of) for washing, dry cleaning and ironing their clothes. This business sector is a great business opportunity to invest in due to the fact that it offers a solution to people's problems, which is why it has a very high and recurrent demand (people will never stop washing their clothes). Although laundry business has a great potential, it is crucial to understand the importance of a business plan in order to make this business work. 

Business franchises come with a large number of benefits, including the providing of everything needed to get a business up and running. 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.

KEY COMPONENTS FOR A SUCCESSFUL LAUNDRY BUSINESS PLAN

It is important that every business plan for laundry services answers the 5w's , the length does not matter, as some business are bigger than others or need a deeper explanation for its understanding. As stated before, the main objetive of a business plan is for your product(s) and/or service(s) to be understood.

The following topics are to be explained in a business plan:

• Basic Business Concept
• Strategy and Actions for its Implementation
• Competitive Advantages
• Target Market
• Financial Needs

1. Basic Business Concept

This is an overall of the idea, where the When & How should be explained. This is where the entrepreneur(s) should explain and discuss the following:

• The industry
• The business structure
• The introduction of the product or service
• The plan for making the business

The main objective of this section is for people (such as investors) to figure out if the business is attractive or not and where the What and How  will be explained. 

2. Strategy and Actions for its Implementation

After the introduction of the product or service is made, here is where the following questions must be answered:

What are the specific goals for this business? 

When and How  will the goals be accomplished? 

This three questions are the body of the plan, this is one of the most important sections, it could be said that it is the heart of the business plan. 

3. Competitive Advantages od a laundromat business plan

Why should people look at this laundry business plan instead of other? Why would customers want to purchase those products and/ or services and not those of the competitors? Here is where the chance to dazzle the readers with good and solid information about the laundry business is.

➡️ Download your Laundry Business Plan for FREE!

4. target market --> marketing plan.

Everything about the potential and actual customers. 

• What profile is being looked for? 
• What is the demographic audience? 
• What methods will be used to capture the specific audience? 
• How will the “attack” and retain of the customers will be done to gain more profit? 
• What sets your business apart from the competition?

5. Financial Needs

Starting a laundry business might be more expensive than people think. When writing down a laundry business plan , it is important to jot down all the equipment and items that will be needed such as: washers, dryers, detergent, hangers, and so on. These items will need to be factored into the budget to ensure the venture is financially viable.

These statements provide a model of how the ideas about a laundry business, its markets and its strategies will play out. It is important to remember that a business plan is based on facts and not feelings. The entrepreneur(s) have to stick on the projections and numbers instead of hopes, think about realistic expectations of profit instead of focusing on dreams of wealth. This section is about facts - checkable, demonstrable facts - because here, is were the most important component of all comes out: THE CREDIBILITY

IN CONCLUSION:

A laundromat business plan is a great tool that allows founders to present their vision and plans of a project. When using any business plan format, there are standard questions (such as the 5 w’s) that force every person involved to think, analyze & create a long term vision and strategy for the idea.  It is demonstrated that writing things down on paper helps as a guide to track the progress and have better control on the status to be accountable on the future.

“Business planning is incredibly helpful for describing what you do, understanding who your competitors are, and crafting a realistic three to five year plan. Each of these activities is crucial if you are looking to launch or expand a venture, and learning to speak concisely about your company will always be crucial no matter what stage you’re in.”   - Garrett Neiman , College Spring

HOW DID THE MOST FAMOUS SPANISH LAUNDRY STARTUP MADE IT HAPPEN?

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How To Start A Laundry Business Philippines 2024

Are you thinking about starting a laundry business in the Philippines? Don’t worry, we’ve got you covered! While setting up a laundry business can be a challenge, we’re here to help you navigate the process. In fact, we’ve put together an exclusive guide just for you! Our guide covers everything you need to know about starting a laundry business in the Philippines, including the best locations, costs, and extra tips – and yes, a few special hacks too!

But before we dive into all that good stuff, let’s talk about the most important thing you need to do: create a laundry business plan. Your plan will help you estimate your profits, understand the costs and risks involved, and so much more. So grab a cup of coffee, sit back, and let’s get started on building your successful laundry business in the Philippines!

If you want to set up a home-based laundry business in the Philippines, we will also explore this option.

Table of Contents

Starting A Laundry Business In The Philippines

1. your laundry business plan.

Starting a laundry business in the Philippines can be a challenging task, but with proper planning and research, it can also be incredibly rewarding.

In order to ensure your success, it’s important to list the services you wish to offer in your initial business plan, including any additional services like pick-up, delivery, and wash-and-fold.

To target the right customers, laundry shop owners often focus on busy professionals, apartment residents, and students living in dormitories. But no matter who your target audience is, it’s crucial to research the demand for your laundry service in your intended market.

So, how can you make your business stand out from the competition? By offering something unique! Consider special services, a comfortable waiting area for customers, loyalty programs, or delivery options.

One of the biggest questions you may have is how much it costs to start a laundry business in the Philippines. While an overall budget of approximately 900,000 PHP is needed to cover equipment, marketing, staff, rent, and a survival budget, the actual cost will vary depending on your specific circumstances.

For instance, starting a home-based laundry business will require considerably less investment than opening a store on the high street. Regardless of your business model, it’s important to focus on key areas such as:

• Competition,
• Target market,
• Financial summary,
• Growth analysis,
• Marketing plan,
• Operations, and
• Market research.

And to help you get started, we’ve put together an exclusive free business template targeted at businesses in the Philippines. Download it now and start building your successful laundry business today!

Whichever type of customer-owners choose to target, it is important to research if the laundry service demand is met for their intended market.

2. Your Laundry Business Location

Once you’ve nailed down your laundry business plan, the next step is finding the perfect location.

It’s important to keep in mind the accessibility of your chosen spot to your target market. For instance, a location near apartment complexes could be a great area to start a laundry business in the Philippines. Let’s face it, not everyone has a washing machine at home!

However, it’s crucial to avoid setting up shop too close to your competitors. If the rent in your desired location is too pricey, don’t sweat it. Consider opening a pick-up station instead, especially if you’re running a home-based laundry business in the Philippines. Just make sure the area is at least 25 square meters and that the water supply is sufficient and free from any harmful minerals that could affect your laundry process.

Speaking of home-based laundry businesses, did you know that by operating from home, you could save anywhere between 20,000-80,000 PHP per month in rental costs? That’s more money for you to invest in growing your business!

3. Renovation And Equipment 

Water supply is vital in any laundry business, so it’s crucial to ensure that the right plumbing system is in place. This means having a system that can systematically produce and flush out water. In addition, proper ventilation should also be installed for safety purposes. For self-service laundry shops, providing a comfortable waiting area for customers is a must. Renovating a location to include the necessary systems and equipment could cost up to 200,000 PHP, which includes electrical wiring and unique plumbing systems.

(you may also be able to sell items in a waiting area – a vending machine business could do very well here).

Investing in high-quality laundry equipment is also important, as this can save you time and electricity in the long run. Opt for washing machines that have a big capacity and a drum of decent size, and can complete a washing cycle quickly. If you choose a washing machine without a dryer, you can buy a separate dryer with a built-in sensor to help with maintenance. It’s recommended to have a machine that can operate for at least 5+ hours each day, and the price range for each washing machine used in laundry shops can range from 20,000 PHP to 50,000 PHP.

If you plan to have a self-service laundry shop, machines with a card or coin insert, or modern machines can cost around 25,000 PHP to 50,000 PHP. However, on research, you may be able to save many thousands if ordering in bulk. Equipment packages can cost 500,000+ PHP and include three sets of easily stacked washers and dryers. Laundry Setup PH offers laundry business packages, and some retailers across the Philippines also provide setting-up and renovating services.

Join 17,829 Others & Get Secret Tips

Additional services such as steaming and ironing can be offered, and branded steamers usually cost around 3,500 PHP to 7,000 PHP, while irons cost 1,500 PHP to 6,000 PHP. However, these services aren’t included in the rate per load, and customers may be willing to pay more to save time.

If you have the budget, investing in a dry cleaning machine could be a great idea. This service is not offered by many laundry businesses in the Philippines, and could be a unique selling point for your business. Additionally, some services can be seasonal, such as dry cleaning being in high demand during prom and wedding months.

4. Business Permits And Licenses For A Laundry Business

Entrepreneurs who want to set up a laundry business in the Philippines need to deal with legal and government fees. First, owners should register their laundry business with the Department of Trade and Industry for a sole proprietorship. Otherwise, business owners will need to go to the Securities and Exchange Commission for joint ventures or corporations.

Next, they would need to head to the municipal hall to secure a business permit. The cost of a Mayor’s Permit may be more than 10,000 PHP, which could add up to around 40,000 PHP. Once the permit is secured, it needs to be submitted together with the business transaction form. After that, entrepreneurs should obtain a Certificate of Registration and Tax Identification Number from the Bureau of Internal Revenue.

In addition, if the laundry business will have five or more employees, owners need to register with PhilHealth and the Social Security System . For laundry business franchises , the franchisors are responsible for registering the business and permitting owners to use its name. Taking care of these legal and government requirements may be time-consuming and expensive, but it’s important to ensure that the laundry business is operating legally and smoothly.

5. Find Employees For A Laundry Business In The Philippines

Starting a laundry shop in the Philippines may require hiring staff to assist with the operations. Home-based laundry businesses may not require staff, but for larger laundry shops, having employees is essential to ensure the smooth flow of customer transactions. A cashier, a customer service representative, and a driver could be a good starting point for hiring.

Self-service laundry shops, on the other hand, can typically operate with just 1 to 2 employees for the first few months. However, it is essential to keep an eye on the demand and hire more staff as needed in the long run.

When it comes to employee compensation, in Metro Manila, the minimum salary of a laundry shop staff is around 12,000 PHP per month with benefits for 25 working days. As the business grows and expands, it is crucial to provide competitive compensation and benefits to retain quality employees. Remember, happy employees lead to happy customers and business success.

6. Bills And Taxes For A Business In The Philippines

When it comes to taxes for laundry shops in the Philippines, those with annual sales under 1,500,000 PHP are subject to a percentage tax, usually around 3% to 5% of their monthly income. So, if your business falls within this bracket, expect to pay a chunk of your earnings to the government.

On the other hand, if you have or plan to set up a corporation for your laundry business, be prepared to pay the standard corporate tax rate of 30% . It may seem hefty, but it’s important to follow the legal requirements of running a business.

Of course, taxes aren’t the only expenses you need to worry about. Your monthly bills will also depend on how energy-efficient your machines are and how much power you use. If your laundry shop has five to ten machines and an air-conditioner, expect to pay around 20,000 PHP for electricity and 15,000 PHP for water each month. So, make sure you keep an eye on your utility usage to keep your bills from piling up.

7. Making Your Laundry Business Successful

The laundry business is a challenging but rewarding venture in the Philippines. While we’ve covered the essential steps to set up a laundry business, there are additional critical steps that we need to take note of, like marketing.

Marketing is a vital aspect of any business. You need to let people know about your laundry business, the services you provide, and how you differ from competitors. However, marketing doesn’t stop there. It’s not enough to inform people about your business; you need to convince them to become your regular customers. That’s the power of marketing.

Once you’ve successfully marketed your business, it’s time to move on to the start, stop, and continue stages. Starting is when you analyze your current situation and decide the most profitable course of action for your business. Stopping involves halting any business-draining activities that may be hindering your business’s growth. Continuing means strengthening what is strong and making progress.

In addition to marketing and the start, stop, and continue stages, you must consider taxes and monthly bills. For businesses with gross yearly sales under 1,500,000 million PHP, laundry shop owners must pay a percentage tax of around 3% to 5% of the monthly income, depending on the bracket the business falls in. For corporations, the standard tax rate is 30%. Monthly bills depend on the amount of energy and water the laundry shop uses. For example, a shop with five to ten machines and an air conditioner could have a monthly electric bill of around 20,000 PHP and a water bill of 15,000 PHP.

While there are many challenges to running a laundry business in the Philippines, it can be a lucrative and fulfilling venture. With hard work, dedication, and smart decision-making, your laundry business can flourish in no time.

Home Based Laundry Business In The Philippines Tips

Starting a laundry business from home in the Philippines is an excellent way to earn money without the high costs of operating a commercial laundry shop. Not only does it require fewer startup expenses, but it also offers valuable services such as delivery and other essential services to customers. To help you get started, here are some simple tips to keep in mind:

Tip 1: Choosing Where To Work

To save money on operating expenses, such as water and electricity, consider performing laundry at the client’s house. If you’re working from home, you’ll need an area of at least 25 square meters to accommodate your laundry needs.

Tip 2: Price List

Offering extra services such as ironing and dry cleaning can boost your profit margin. Consider referring to other local competitors for pricing and try to mix and match services to offer a better service for a lower rate while still making a good profit margin.

Tip 3: Record Keeping

Keeping track of your clients, payments received, and expenses is critical to the success of your business. Consider using free online tools like Google or Excel spreadsheets to manage transactions.

Tip 4: Buying In Bulk

Buying items in bulk can save you thousands of pesos. Before purchasing detergents, powders, and fabric softeners in bulk, try them out to ensure they meet your quality standards. Alibaba.com is an excellent way to save money by purchasing items directly from China, but be aware of import taxes and delivery costs.

With these tips in mind, starting a home-based laundry business in the Philippines is a great way to earn extra income while providing essential services to your community.

Is A Laundry Business Profitable In The Philippines ?

If you start a laundry business in the Philippines with an average of 50 kg to 55 kg of laundry services each day, then there is little room for profit in the early days. This is because the cost of business takes up the majority of profits. However, if you can increase the average to around 75 kg per day, you could earn around 10,000 PHP per month.

When looking at the profit potential of a laundry business in the Philippines, it’s a common question to ask if the profit is different if you own a laundry shop. The costs are different, so it is often harder to reach a profit. However, a store has many benefits above financial matters. For example, having a physical location can help establish credibility and make it easier for customers to find you. In terms of financials, a laundry shop that can service anywhere between 100 kg to 120 kg of laundry each day could earn around 30,000 PHP or more per month. And if the shop can handle 150 kg of laundry a day, it could earn 50,000 PHP or more every month.

Ultimately, the profit potential of your laundry business in the Philippines will depend on a variety of factors, including your location, pricing strategy, customer service, and marketing efforts. It may take some time to establish a customer base and build up a steady stream of income, but with dedication and hard work, it is possible to achieve success in this industry.

What Is a Day In The Life of A Laundry Business ?

Operating a laundry business in the Philippines can be challenging but rewarding. Whether you work independently or with employees, there are essential tasks that need to be completed daily. For instance, opening and closing the shop on time, cleaning the premises, securing the money, and checking the machines for maintenance. For business owners who have employees, there are additional responsibilities such as supervising them, ensuring they provide extra services like ironing or folding clothes, and checking the quality of their work.

Typically, laundry shops in the Philippines operate from 7 am to 6 pm daily, with weekends being the busiest days due to high customer traffic. Therefore, it is recommended to open on either Saturday or Sunday to capture the most customers. Depending on the market served, business owners could also consider alternate operating hours. However, opening on time is critical since customers allocate a specific time of their day to do laundry.

Overall, running a laundry business in the Philippines requires a combination of hard work, dedication, and attention to detail. With the right mindset and approach, it can be a profitable venture that provides a valuable service to the community.

Is Starting A Laundry Business A Good Idea ?

Starting a laundry business in the Philippines can be a great business opportunity, but it’s not without its risks. As with any entrepreneurial venture, financial risks need to be carefully considered. However, the potential for success is significant if entrepreneurs can carefully navigate these challenges.

Two important factors that can make or break a laundry business in the Philippines are location and service quality. Therefore, it is essential to conduct market research to identify the right location and target clientele, and to promote high-quality services that meet their needs.

Despite the challenges, a laundry business in the Philippines can be a lucrative venture with the potential for significant profits. With careful planning, research, and commitment, entrepreneurs can turn this opportunity into a successful business venture.

Summary of Expenses for Laundry Business in the Philippines

Below is a summary of the expected expenses of a laundry business in the Philippines.

Example of a business plan for a laundry business

The below is an outline of a fictional laundry service “Sparkling Clean Laundry Services”. The business plan below can be used as a starting point for your own laundry business.

Executive Summary

Business Name: Sparkling Clean Laundry Services Location: 123 Main Street, Downtown Manila, Philippines Business Model: Laundry and Dry-Cleaning Service Target Market: Working professionals, students, busy families Start-up Costs: ₱5,000,000 Expected Revenue: ₱15,000,000 in the first year Objective: To provide convenient, quick, and high-quality laundry and dry-cleaning services to the community.

Financial Plan

Start-up costs.

• Equipment: ₱2,000,000
• Rent and Utilities: ₱1,000,000
• Marketing: ₱500,000
• Staff Wages: ₱1,000,000
• Miscellaneous: ₱500,000
• Total: ₱5,000,000

Revenue Projections

• First Year: ₱15,000,000
• Second Year: ₱22,500,000
• Third Year: ₱30,000,000

Funding Requirements

Seeking a ₱2,500,000 loan to cover half of the start-up costs, to be repaid over a five-year period.

These conversions are based on an approximate exchange rate and should be updated as per current market rates when you use this business plan. Always consult with financial advisors and experts when creating your business plan.

Future Reading & References

• Laundry franchising Philippines https://www.franchisemarket.ph/franchise-listing/save5-self-service-laundromat
• Business tax https://www.bir.gov.ph/index.php/tax-information.html
• Professional laundry machines https://bigwash.ph/
• Laundry shop tips https://huebsch.com/news/6-tips-for-managing-an-efficient-laundry-business/
• Growing a laundry shop business https://optimoroute.com/laundry-business/

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• How To Start A Laundry Business In The Philippines (2023)

By   Yesh Quijano

April 18, 2023

If you've ever considered diving into the world of entrepreneurship, starting a laundry shop business in the Philippines might be an opportunity you'll want to explore.

The demand for convenient laundry shops continues to grow, mainly due to two reasons:

• Professionals continue to have less time for chores, including doing their laundry.
• The number of urban dwellers continues to increase.

In this article, we'll discuss why starting a laundry business might be a good idea for you, walk you through the steps on how to start a laundry business in the Philippines, and explore ways to dominate your local market.

Is Starting A Laundry Business A Good Idea?

A laundry business can be a lucrative and promising venture, particularly in the Philippines where the market is ripe for such services. With the right approach and proper planning, you can create a thriving laundry shop customers love.

The laundry industry is known for its resilience , as it's a service that people will always need, regardless of the economic situation.

Furthermore, the country's tropical climate makes laundry services even more essential , as frequent rain and high humidity make it challenging to dry clothes quickly at home .

How To Start A Laundry Business In 10 Steps

Prepare a laundry business plan.

While not a requirement, drafting a laundry business plan will prove helpful to your success. It should outline your objectives, target market, competition, startup costs, and financial projections.

You should also take into consideration local customs, preferences, and cultural nuances when crafting your plan.

Research the market trends in the Philippines , and find out what types of laundry services are in high demand. Also, consider the potential challenges, such as seasonal fluctuations in demand or the availability of water and electricity.

A laundry business plan should include the following essential components:

• Executive Summary: Briefly outline your laundry business concept and goals and provide an overview of your target market, competition, and unique selling points.
• Company Description: Describe the ownership structure of your business. Are you the only owner (sole proprietorship), do you have a co-owner (partnership), or is it a corporation? You should also explain the history and motivation behind starting your laundry shop.
• Market Analysis: Analyze the current market demand for laundry businesses in your area, identify your target audience and their specific needs and preferences, and assess the competition and potential barriers to entry.
• Products & Services: Detail the types of laundry services you'll offer (e.g., self-service, full-service, dry cleaning, ironing, pick up & delivery.). You can also explain any unique or value-added features that set your business apart.
• Marketing and Sales Strategy: Outline your approach to attracting and retaining customers, describe your promotional strategies, both online and offline, and discuss your pricing structure and any special offers or discounts.
• Operations and Management: Describe the day-to-day operations of your laundry shop, including staff responsibilities and workflow. Detail your plans for employee training and development. You should also explain your approach to equipment maintenance and inventory management.
• Financial Projections: Estimate your startup costs, including equipment, renovations, and initial inventory. This part is where you forecast your revenue, expenses, and cash flow for the first 3-5 years. You can also calculate your break-even point and expected return on investment (ROI).
• Appendices: This can be optional, but if plan to add an appendix, include any supporting documents such as market research data, supplier quotes, or relevant industry reports.

Tip: Run a feasibility study

Choose A Business Name And A Catchy Brand Name

Select a unique and memorable name for your laundry shop business that reflects the services you offer and appeals to your target customers. A catchy name can help you stand out from the competition and create a lasting impression on potential clients.

Register a Domain Name (OPTIONAL)

When selecting a name, consider the following:

• Its ease of pronunciation
• The potential for word-of-mouth marketing , and how it reflects your brand's personality.
• In the Philippines, incorporating local terms or phrases related to laundry services can help make your brand more relatable and memorable.

Selecting a unique and memorable name for your laundry shop business is crucial for creating a strong brand identity.

Once you've come up with a catchy business name, it's essential to secure a matching domain name for your website. This will help you establish a strong online presence and make it easier for customers to find you.

Some popular domain registrars where you can register a domain name include GoDaddy and Namecheap .

When choosing a domain registrar, consider factors such as:

• Customer support
• Additional services, such as web hosting and email accounts.

Create A Facebook Page

If you're not keen on registering a business website, you can always start with a Facebook page to kickstart your social media marketing campaign . The best part is it's free.

A well-maintained Facebook Page allows you to do the following:

• Showcase your services
• Share promotions and discounts
• Provide valuable information such as operating hours and location.
• Enables you to interact with customers, respond to inquiries, and collect valuable feedback.

By utilizing Facebook's vast user base and various promotional tools, you can effectively reach your target audience, increase brand awareness, and ultimately drive more business to your laundry shop.

Remember to post engaging content regularly, respond promptly to customer messages, and encourage satisfied customers to leave reviews and share their positive experiences.

Resources for Business Name Registration Tutorials

Before registering your business name, it's important to ensure that it's not already in use by another company. The following resources can guide you through the process of checking name availability and registering your business name:

• Philippine Department of Trade and Industry (DTI) – The DTI's website provides information on business name registration for sole proprietorships in the Philippines. You can use their online business name search tool to check if your chosen name is available and follow their step-by-step guide on how to register your business name.
• Securities and Exchange Commission (SEC) – If you're planning to establish a partnership or corporation, you'll need to register your business name with the SEC. Visit their website for detailed instructions on how to register your business name and submit the required documents.
• YouTube – Several entrepreneurs and business experts share their insights and experiences on registering a business name in the Philippines through YouTube videos. You can search for relevant tutorials by entering keywords such as "Philippines business name registration" or "how to register a business name in the Philippines."
• Business Blogs and Websites – There are numerous blogs and websites that offer tips, advice, and step-by-step guides on registering a business name in the Philippines. Some popular business blogs include Entrepreneur Philippines and Philippine Business Hub .

Finalize Your Price List

Determine your pricing structure by considering your target market, competition, and operating expenses. In the Philippines, the cost of living and average income levels vary significantly between urban and rural areas.

Thus, your pricing should be competitive and appropriate for your location. Be sure to strike a balance between affordability and profitability, taking into account the cost of utilities, labor, and supplies.

TIP 1: Research the pricing strategies of other laundry shops in your area to better understand the local market rates.

Take note of the prices they charge for various services, such as self-service, full-service, dry cleaning, and ironing. This will help you set competitive prices that attract customers while still allowing you to maintain profitability.

TIP 2: Don't forget to also consider the unique features and value-added services your laundry shop may offer when setting your prices, as these can justify a higher price point or help you stand out from competitors.

Offering different pricing tiers, packages, or discounts for bulk services can help attract a wider range of customers.

Find a Good Location for Your Business

Choose a location with a lot of foot traffic, close to universities or BPOs . Avoid residential areas and be mindful of rent prices .

In the Philippines, accessibility is key , as many customers may prefer to drop off and pick up their laundry on their way to work, school, or other daily activities. It's also important to consider the availability of parking spaces or public transportation near your laundry shop, as this can affect your customers' convenience and overall satisfaction.

Renovation And Equipment

Use the right equipment for the job.

Invest in high-quality, energy-efficient equipment that can handle the demands of your laundry business. This includes washing machines, dryers, ironing boards, steamers, and other necessary tools.

In the Philippines, it's crucial to choose equipment that can withstand the country's hot and humid climate, as well as the potential for water and power interruptions. Look for machines with built-in water-saving features and those that are designed for commercial use to ensure durability and long-term performance.

Some well-known commercial washing machine brands include:

• Speed Queen

It's also a good idea to befriend suppliers and service providers, as this can help you negotiate better deals and ensure timely maintenance and repairs.

Which is better: top-load or front-load washing machines?

Top-load washing machines tend to be more affordable and have shorter cycle times, which can be advantageous in a busy laundry shop.

However, front-load machines are generally more energy-efficient and use less water, leading to long-term cost savings. Additionally, front-load machines tend to be gentler on clothes and offer more advanced features, such as steam cleaning and sanitizing cycles.

Here's a quick comparison table for Top-Load vs. Front-Load washing machines:

Top-Load Washing Machines:

• Easier Loading and Unloading: Top-load machines allow users to add or remove clothes without bending, making them more convenient and accessible, especially for people with limited mobility.
• Faster Cycle Times: Top-load washing machines generally have shorter cycle times compared to front-load machines, allowing for quicker turnover and increased efficiency in a busy laundry shop.
• Lower Initial Cost: Top-load washing machines are typically less expensive than front-load machines, making them a more budget-friendly option for businesses starting with a limited budget.

Front-Load Washing Machines:

• Higher Energy Efficiency: Front-load machines use less water and energy than top-load machines, resulting in lower utility costs and a more environmentally friendly laundry operation.
• Better Cleaning Performance: Front-load washing machines generally provide more thorough cleaning due to their tumbling action, which can be especially beneficial for heavily soiled clothes or large loads.
• Space-Saving Design: Front-load machines can be stacked, allowing you to save valuable floor space in your laundry shop and accommodate more machines in a smaller area.

Ultimately, the choice between top-load and front-load machines will depend on your budget, space constraints, and the preferences of your target market.

Design Your Space With Efficiency In Mind

Create a functional layout that maximizes productivity and customer satisfaction. In the Philippines, laundry shops can benefit from a design that accommodates the country's warm climate by providing ample ventilation and natural light.

Organize your space into designated areas for washing, drying, folding, and ironing, ensuring that there's sufficient room for customers and employees to move around comfortably.

Consider the customer experience as well, by providing seating areas, entertainment options, and even refreshments or snacks. A well-designed space not only increases efficiency but also helps create a welcoming atmosphere that encourages repeat business.

Register Your Business

Secure the necessary permits and licenses to operate legally and protect your business from potential fines and penalties.

In the Philippines, you'll need to register your business with the Department of Trade and Industry (DTI) for sole proprietorships or the Securities and Exchange Commission (SEC) for partnerships and corporations.

Obtain a Barangay Clearance and Mayor's Permit from your local government, as well as a Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR).

Depending on your location and the nature of your services, you may also need to secure additional permits, such as an environmental compliance certificate or sanitary permit.

Hire Employees For your laundry business

When hiring employees for your laundry business, look for individuals with relevant experience, a strong work ethic, and good customer service skills.

In the Philippines, it's essential to provide proper training and guidance, as many employees may be new to the laundry industry or unfamiliar with certain equipment and procedures.

Offer competitive wages and benefits to attract and retain qualified staff, and foster a positive work environment that encourages teamwork and professional growth.

Tip: You can post in local Facebook groups, ask for referrals, or post near your establishment.

How to Dominate Your Local Market

Attract customers with quality and consistency.

Maintain high standards in every aspect of your laundry shop business to build a loyal customer base.

In the Philippines, word-of-mouth marketing is incredibly powerful, so ensuring that each customer has a positive experience can lead to more referrals and repeat business.

Regularly inspect and maintain your equipment, use high-quality detergents and fabric conditioners, and train your staff on proper handling and care of garments.

Learn About Your Customers

Understand their preferences in folding, detergent, and fabric conditioners. There's no need to be a jack of all trades, but catering to your customer's specific needs can help set your business apart from the competition.

In the Philippines, many customers have strong preferences for certain brands, scents, or types of fabric care. Offering a variety of options and allowing customers to customize their laundry experience can lead to increased satisfaction and loyalty.

Focus On Your Core Selling Points

Highlight your unique offerings and emphasize the value your laundry shop brings to customers.

In the Philippines, this might include offering additional services like express washing, ironing, or dry cleaning, or providing perks such as free Wi-Fi, loyalty programs, or discounts for students and senior citizens.

By focusing on what sets your business apart, you can differentiate yourself from competitors and attract customers who are looking for something more than just a standard laundry service.

Tally your business expenses

Keep a close eye on your expenses to ensure profitability and informed decision-making. In the Philippines, some common laundry business expenses include rent, utilities, salaries, equipment maintenance, and supplies.

By regularly monitoring and evaluating your costs, you can identify areas where you can save money or improve efficiency. This can help you maintain competitive pricing and adapt your business strategies to better meet your financial goals.

Market your laundry business online (social media and Google)

Leverage social media and Google to reach a wider audience and drive more business to your laundry shop. In the Philippines, platforms like Facebook, Instagram, and Google My Business are particularly popular and effective for promoting local businesses.

Create engaging content that showcases your services, shares customer testimonials, and highlights your unique selling points. Utilize targeted ads to reach potential customers in your area and offer special promotions or discounts to encourage them to give your laundry shop a try.

How Much Does It Cost To Start My Own Laundry Business in the Philippines?

The cost of starting a laundry business in the Philippines can vary depending on factors such as location, size, equipment, and services offered. Here's a general breakdown of the costs involved in setting up a laundry shop:

Initial Investment:

• Equipment: PHP 150,000 - PHP 500,000. This includes washing machines, dryers, coin-operated machines (if opting for self-service), water heaters, and other necessary equipment.
• Renovations: PHP 100,000 - PHP 300,000. This includes construction or renovation costs for your laundry shop space, such as plumbing, electrical, and interior design.
• Permits and licenses: PHP 5,000 - PHP 20,000. This includes fees for registering your business name, obtaining necessary permits and licenses, and other related expenses.

Ongoing Expenses:

• Rent: PHP 10,000 - PHP 40,000 per month, depending on the location and size of your shop.
• Utilities: PHP 5,000 - PHP 15,000 per month for water, electricity, and other utilities.
• Salaries: PHP 10,000 - PHP 25,000 per month for staff, depending on the number of employees and their positions.
• Maintenance and supplies: PHP 5,000 - PHP 15,000 per month for equipment maintenance, laundry detergent, fabric softener, and other necessary supplies.

Considering these factors, the total cost to start a laundry business in the Philippines can range from approximately PHP 300,000 to over PHP 1,000,000.

Keep in mind that these figures are estimates and may vary based on your specific situation, location, and the scale of your business.

It's essential to create a detailed business plan and conduct thorough market research to better understand the costs involved and make informed decisions about your laundry business.

How Long Will It take to get my investment back (ROI)?

Estimate the time needed to recoup your investment based on your expected sales and expenses. In the Philippines, the return on investment (ROI) for a laundry business can vary depending on factors such as location, competition, and the efficiency of your operations.

Generally, it may take anywhere from 1 to 3 years to recover your initial investment. However, with careful planning, strategic marketing, and diligent cost management, you can potentially shorten this timeframe and enjoy sustainable profits.

ROI (%) = (Net Profit / Total Investment) x 100

• Net Profit = Annual Revenue - Annual Expenses
• Total Investment = Initial Investment (equipment, renovations, permits, licenses, etc.)

To calculate the ROI of your laundry business, follow these steps:

• Determine your Annual Revenue: Estimate the average amount you will earn from your laundry services per month and multiply it by 12 to get your annual revenue.
• Calculate your Annual Expenses: Add up all your ongoing expenses such as rent, utilities, salaries, equipment maintenance, supplies, and other recurring costs. Multiply the total monthly expenses by 12 to get your annual expenses.
• Compute Net Profit: Subtract your Annual Expenses from your Annual Revenue to obtain the Net Profit.
• Calculate Total Investment: Add up all the costs associated with starting your laundry business, including equipment, renovations, permits, licenses, and other upfront expenses.
• Compute ROI: Finally, divide the Net Profit by the Total Investment, and multiply the result by 100 to get the ROI percentage.

This formula will give you the ROI percentage, which indicates the efficiency of your investment.

The higher the ROI, the more profitable your laundry business is relative to its initial investment. Keep in mind that the ROI calculation is an estimation and can vary based on factors such as market conditions, competition, and operational efficiency.

What amount of sales should I expect?

Forecast your sales revenue based on market research and your unique selling points. In the Philippines, laundry businesses can benefit from the growing demand for convenient and reliable laundry services, particularly in urban areas.

Consider factors such as population density, disposable income levels, and the presence of competitors when estimating your sales potential. Additionally, monitor your sales performance regularly to identify trends, opportunities, and areas for improvement.

Starting A Laundry Business In The Philippines Can Be A Profitable Endeavor

With careful planning, dedication, and the right strategies, you can build a successful laundry business that thrives in today's competitive market.

As you embark on this journey, keep in mind the unique challenges and opportunities that the Philippines offers and adapt your approach to best meet the needs of your customers and community.

With hard work and perseverance, you can create a thriving laundry shop that provides valuable services and contributes to the economic growth of your local area.

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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How to start a profitable laundry business in the philippines.

• June 29, 2023

In the bustling landscape of the Philippines, the laundry industry is experiencing remarkable growth. With an increasing demand for convenient and professional laundry services, entrepreneurs have an exciting opportunity to dive into this flourishing market.

Starting a laundry business brings with it the potential for profitability, flexibility, and the satisfaction of meeting customers’ laundry needs.

Researching and Planning Your Laundry Business in the Philippines

Research and planning are vital steps when embarking on the journey of starting a laundry business in the Philippines.

The first task is conducting thorough market research to identify the target market and understand the competition. This includes analyzing customer preferences, demographics, and their laundry service expectations.

Next, it’s crucial to determine the type of laundry business to establish. Options range from self-service laundromats, where customers use the provided facilities themselves, to drop-off services and convenient pickup and delivery options.

Each model has its own advantages and considerations, such as initial investment costs, staffing requirements, and customer convenience. Selecting the right type requires careful evaluation of factors like location, target market, and available resources.

Alongside these decisions, it’s essential to define clear business goals and objectives. These could include revenue targets, customer satisfaction metrics, or expansion plans. Setting these benchmarks helps maintain focus and provides a framework for measuring success.

It’s also important to consider long-term sustainability, incorporating factors like environmental responsibility and community engagement into the business objectives.

Legal and Financial Considerations for Starting A Laundry Business

When starting a laundry business in the Philippines, it is crucial to address the legal and financial considerations to ensure a smooth and compliant operation.

Firstly, entrepreneurs must register their business with the appropriate government agencies, such as the Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC). This step establishes the business as a legal entity and enables it to operate within the regulatory framework.

Obtaining the necessary permits and licenses is equally important. This includes securing permits for zoning, sanitation, and environmental compliance. By fulfilling these requirements, entrepreneurs can maintain a professional and trustworthy image while ensuring the safety and health standards of their operation.

Setting up a dedicated business bank account is essential for managing financial transactions and separating personal and business finances. It enables accurate bookkeeping and simplifies tax reporting.

Securing sufficient funding is another critical aspect. Entrepreneurs can explore various funding options, such as personal savings, bank loans, or investors, to cover startup costs, equipment purchases, and working capital requirements.

Creating a comprehensive business plan with detailed financial projections is vital for the success of the laundry business. This plan should outline the business goals, target market, marketing strategies, operational processes, and financial forecasts. It serves as a roadmap and helps secure funding from potential investors or financial institutions.

Choosing A Location and Buying Equipment for your Laundry Business

Choosing a strategic location involves considering factors such as proximity to target customers, accessibility, and visibility.

Assessing space requirements and designing an efficient layout for the laundry facility ensures smooth operations and optimal use of the available space.

Investing in high-quality laundry equipment is essential for delivering top-notch service and maintaining customer satisfaction. Whether purchasing or leasing the equipment, it is important to select reliable machines that can handle the expected laundry volume and meet industry standards.

To maximize equipment lifespan and minimize downtime, proper maintenance and regular servicing are necessary. Implementing a maintenance schedule, performing routine inspections, and addressing repairs promptly contribute to the longevity and efficiency of the equipment.

How To Price Your Laundry Business Services

When starting a laundry business in the Philippines, it is important to carefully determine the laundry services to offer, such as wash and fold, dry cleaning, and ironing, based on customer preferences and market demand. Establishing competitive pricing is essential and requires conducting thorough market research and considering operating costs to set prices that attract customers while ensuring profitability.

To stand out from competitors and attract more customers, entrepreneurs should consider offering additional services such as alterations or shoe repair. These value-added services can help broaden the customer base and provide convenience, leading to increased customer satisfaction and loyalty.

By thoughtfully selecting laundry services, establishing competitive pricing, and offering additional services, entrepreneurs can create a compelling value proposition for their laundry business, gaining a competitive edge and driving growth in the Philippine market.

Hiring and Training The Right Staff for Your Philippines Laundry Business

Determining the staffing needs is essential to ensure smooth operations. Recruiting reliable and skilled employees who are knowledgeable about laundry techniques, customer service, and equipment handling is very very important.

Additionally, providing proper training to the staff is necessary to maintain consistent quality, efficient workflow, and exceptional customer service.

Investing in training programs that cover all aspects of the laundry business equips the team with the necessary skills and knowledge to deliver exceptional results and foster customer satisfaction.

How To Market Your Laundry Business in the Philippines

To effectively market your laundry business in the Philippines, start by creating a strong brand identity that resonates with your target market. Here are some marketing ideas:

• Develop a user-friendly website and utilize social media platforms to reach and engage with potential customers.
• Implement marketing strategies like offering discounts, loyalty programs, and referral incentives to attract and retain customers.
• Collaborate with local businesses and community organizations for cross-promotion opportunities.
• Utilize online and offline advertising channels, such as local newspapers and online directories, to increase visibility.
• Lastly, prioritize exceptional customer service and encourage satisfied customers to leave positive reviews and testimonials, further boosting your business’s reputation.

Managing The Day to Day Operations of Your Laundry Business in the Philippines

Efficient operations and excellent customer service are key to the success of a laundry business in the Philippines. Establishing streamlined processes for receiving, sorting, and tracking laundry items ensures organized and efficient workflow.

Prove prompt and reliable delivery or pickup services, as it enhances customer convenience and satisfaction. Implementing quality control measures, such as thorough inspections and adherence to high laundry standards, ensures consistent and satisfactory results.

Actively seeking customer feedback enables the business to address any concerns and continuously improve its operations. By prioritizing operational efficiency and delivering exceptional customer service, a laundry business can establish a strong reputation and foster long-term customer loyalty in the Philippines.

Can You Get Rich With A Laundry Business in the Philippines?

The potential for financial success with a laundry business in the Philippines exists, but it depends on various factors. Factors such as location, target market, competition, pricing, operational efficiency, and marketing efforts all play a role in determining the profitability of a laundry business.

By providing quality services, attracting a loyal customer base, managing costs effectively, and implementing sound business strategies, it is possible to generate substantial income. However, it is important to note that success and wealth are not guaranteed, and it requires dedication, hard work, and adaptability to market conditions.

Conducting thorough market research, creating a solid business plan, and continuously improving operations can increase the likelihood of financial success in the laundry industry.

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How to Start a Laundry Business in the Philippines

Starting a laundry shop is sure way to gain a profitable venture, especially now in and around Metro Manila, where the population is booming and jobs are on the fly with no time for handling small weekly chores such as cleaning your clothes.

With the expansion and rise of condominums, people live in small spaces in which they can not fit a washing machine and the same can be said true as well for apartment dwellers cramped up in a single bedroom.

As such, a laundry shop could easily provide a convenient service that handles all the miniscule task of folding and ironing laundry as well. In case you are wanting to start up your own laundry business, here are a few important tips that you should take note of so as to have a successful and profitable venture!

1. Evaluate the Site of your Laundry Shop

The first important tip you need to know is the location of your laundry shop, as this determines your failure or success depending on a variety of factors. For the convenience of your prospective customers, it should be located nearby , especially for those who live in apartments and condominiums. For an extra appeal to customers, establish it where they commonly walk around: the ground floor. This helps expose your business to people who are interested in your service.

Next, study the core social class of your clients. As much as possible, try to give a reason why they should stop by and do business with your laundry shop instead of others. For example, if most of your customers are busy bodies with no time to waste, offer free parking spaces so as to make it easier for them to access your shop for convenience.

2. Ensure you Have the Proper Equipment

There are a number of rules to follow when doing laundry at home, and they still apply for commercial use. Delicates, as the name suggests, are clothers requiring extra care which you can do by buying laundry nets. The laundry nets have varying size from big to small, so ideally you should have a set of them each so as to not have mutiple random sizes that you don’t need.

Another important equipment, the weighing scale provides how many kilograms any given bag of clothes a client has, as this can give you a set rate for a specific amount of weight. Opt for digital scales instead of old-school ones as digital ones provide an easy-to-read and accurate results.

Lastly, don’t buy 2nd-hand washing machines, more so if they are old models, as they have been phased out and you would have a hard time finding spare parts as well as risk damaging the clothes of your customers. On that note, only use commercial machines as they are specifically made for handling bigger loads of laundry every day compared to its common house variety.

3. Remember your Customer’s Standard of Quality

Each and every one of your customer has their own measure of quality, and meeting them is the bare minimum for customer satisfaction. Exceeding their expectations would require more effort but in a long-run results in increased customer loyalty.

Small things such as appropriate usage of soaps and detergents for the different materials of clothes each client has can give you a big approval. Other acts include separating their clothes from others, quickly remembering who owns which, and double-checking if they are missing any clothes can show customers you care about their own possessions. Their loyalty and trust will be gained if you follow through these simple yet powerful acts of concern.

4. Give Incentives for Customers

Sometimes, doing the laundry isn’t enough, maybe your customer is a lazy one, so why not provide door-to-door pick-up and delivery? Or how about dry cleaning as those are rarely provided by laundry shops and the demand for them are mostly from wealthy individuals who live in condominiums.

Additional services can increase convenience for your customers and the likelihood for coming back as a loyal and regular client.

5. Look out for Inefficiencies in your System

There are two types of laundry shops: self-service and the regular staff-care. If you choose to do the former, know that efficiency can help a lot in a business where there is a lot of foot traffic going around.

Placing the washing machine next to the drier would make transferring clothers quicker and reduces the amount of drips on the floor and avoiding any chances of slipping. Another tip is to know how just how much you need for a day’s inventory so as to not waste storage and spoilage past expiration due!

6. Register your Business at the Appropriate Departments

Now that you know where you set up shop, have the right equipment for the job, and have planned how your service will differentiate from others, all you need to do is to register your business! Simply put, just head on to the Bureau of Internal Revenue (BIR) for business registration as well as the Department of Trade and Industry (DTI) for your business name, trademarks, and logo!

33 responses to “How to Start a Laundry Business in the Philippines”

I am thinking of this laundry business can you please let me know how to start with this business?

May I know how much I can start ?the cost to start this laundry bussines, I want to start in small amount to become bigger in the future.

How much it cost when starting laundry business

how can i start with this kind of business. how much does it cost.

Hi i wanted to start a small laundry in my province how can i start

Is there specific place of store for the self service laundry shop and how much each washer and dyer cost? Im thinking to have a laundry shop

tell me more about this!

I’m doing a feasibility study about Laundy Business.I’m wondering what are the tips that you can share in do’s and don’ts in this field Thank you!

I do really like to put up a laundry business But I don’t have any idea where to buy the equipement and how much for start up The location is not a problem Please help me Thank you in advance

how much it cost to establish small laundry sho

I am very interested on how to start Laundry business..Is there any free seminar to start the said business?

What do I have to consider if I want to start a laundromat business like this in a small university in paranaque, lets say in a dormitory?. How many machine should be invested to ensure balance and gains and how much is the capital investment and their specifics.

I wanted to start a small laundry bussiness in my province, how much capital can start a small laundry shop?

How much the cost if I start 6 laundry machines and how to start this business. Thank you for giving me some details.

I want to start a laundry now much does it cost

how much it will cost to open a laundry shop for 5 washing machine and 5 dryer.im planning to open in laguna,how can we start ?is there any contact information to contact the business? how long is the process if you have a place to start the operation?

Just want to inquire how to franchise laundry business??

I’m planning to put up a small laundry business hoping it will become bigger in the future… Please advice me what to do…

I am planing put up this kind of business and I want to start even to machine…where can I buy this kind of commercial washing machine?

pls walk me through opening a laundry business suppliers list and great tips for starters

Hi. Im interested to start like this kind of business. Help me how. And please send me email, Im currently working as an OFW so you can reach me through email. Thank you.

Hi👋 Im planing to have a laudry Shop business can you help me how to start it please🙏

I am planning to start a home laundry business. How much money is needed to start a franchise? Thanks.

is there a way that some companies who owns industrial washing machines offers a loan to start a laundry shop business?

Hi wanted to start a small laundry shop in our province probably 6 washer and 6 dryer. Could you please help me start with my dream business dont have any idea how to start..please let me know. Thank you!

Hi how much is the start up capital to start a laundry business. Ty

Im interested hm po to franchise?

How much do I need to start a small laundry business? What is cheaper to start, self-service or staff care? Thanks

How much cost the start up capital of this franchise laundry business?

Hi, I am planning to start my own laundry shop and want to know the initial capital to start this business.

Hi, I wanted to know how much would be the start up cost for a small laundry business? Thank you!

i’m interested’ can you give me details please. how much?

I plan to start a laundry business in Pagbilao Quezon. How much does it cost for 5 washers and 5 dryers? Thanks

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Starting A Laundry Business Plan (PDF)

Setting up a laundry services business is a very profitable venture. Most people work long hours and do not have time to do certain chores such as laundry thus, setting up this kind of business is lucrative. As the middle class grows together with their disposable income, the demand for dry cleaning services and laundry services will continue increasing in the coming years. As many countries continue to develop with the urban population increasing, the demand for convenient services such as dry cleaners and laundromats will continue to rise. Nowadays, both spouses work and there are a few stay at homes parents and many people pay someone to do their home chores such as laundry or make use of laundromats. This article will outline how to set up a laundry services business as well as the laundry services business plan – PDF, Word and Excel.

If you want to set up a successful laundry business there are some important factors you need to consider. First you need to decide on the type of laundry services you need to offer, your target market and your location. The type of laundromat you set up will be based on the amount of capital you are willing to invest in the business.  It is also crucial to research the market as well as the industry before you set up your business and have a good business plan for laundry services.

Location & Premises

The location and premises of your laundry business is essential because the success or failure of your business depends on it. Therefore, when choosing a location for your laundry services business consider where your target market is, the amount of road and foot traffic, as well as how accessible your facilities will be. Consider setting up your laundry services at a popular shopping centre, a mall, or somewhere close to your target market. It is also important to consider how the surrounding area will affect your business. You do not want to set up your business in a saturated place where there are a lot of similar services. Also consider the size of your premises and make sure that they are large enough for your machines, dryers and can accommodate your customers without them crowding. Parking space is also essential when considering your premises. Your customers should not have hard time when it comes to parking space if they are to come to your laundromat. Your laundromat business plan should include the costs of purchasing or leasing the premises.

Permits/Licenses, Insurance & Business Bank Account

Permits or licenses.

Normally, a laundry business must have an operating or shop license. This is usually given by your respective local municipal authorities. In some cases this might not be necessary, especially if you are operating say, from your home. Business or company registration is necessary, especially if you want to be taken seriously. Proper registration will also make it easier to get bigger clients and to source funding if need be.

Insurance & Business Bank Account

Under normal circumstances you will be dealing with machinery. This implies that anything can go wrong any time. To prepare yourself for such scenarios you must insure your laundry business. After all, you will be dealing with people’s clothes. Insurance helps you to not bleed financially if unfortunate incidents occur. Open a business bank account to take note of, trace, and generally manage your laundry business finances. You would not want to be personally liable when things go south.

Machinery & Equipment For Laundry Services Business

For any business to run successfully it needs the right machinery & equipment. It is important to invest in quality washing machines, and dryers for example. If you are the kind of laundry service company that will travel to pick up and drop off laundry you will need to purchase a vehicle as well. Ensure that your business plan has a list of all the machines, equipment, detergents needed by your laundromat business. The kind of services you choose to provide will determine the kind of equipment and detergents you will need. The costs of purchasing the machines & equipment should be included in your laundry business plan.

Products And Services

You should have a clear picture of the kind of products and services you plan on offering. These products and services will be depend on your target market. Some of the popular services offered by other laundry service companies include washing,  drying, and dry cleaning of regular clothes , beddings, blankets, carpets and curtains to name a few. There are other laundromats that have complimentary services such as shoe repairs in addition to their laundry services plus there are others that also offer garment mending. It may be profitable to offer other complimentary services in addition to the regular laundry services. However, make sure that your services are profitable and are required by your target market. You can pick up and deliver laundry, provide a self-service laundromat, or offer dry cleaning services. Whatever services you decide to provide, your laundry services business plan should clearly outline them.

Competitive Analysis

Do market research to figure out where the market gaps are. This is because it would be ideal to find a location that is underserved or not served at all. If your intended target market has other laundry businesses close by then study them. The quest is to find out how you can differentiate your laundry business. Differentiators start off with choice of location, types of services, prices, and add-ons, amongst others. Learn from the competitor laundry businesses and capitalize on their shortcomings.

Staff & Management

Your staff members have a direct effect on how successful your laundromat business will be. As such, it is important to hire people that are experienced in this kind of business and who also love doing their jobs. You will need to hire cleaners, laundry attendants, and finance & operations staff who will assist you in running your business. The number of people you hire will depend on the size of your operations as well as the services you intend on offering. Make sure that your workers know how to safely use detergents, cleaning chemicals, laundry machinery and handle delicate materials. Laundry equipment and cleaning chemicals can be dangerous thus it is important to hire experienced staff.

It is important to set up procedures and processes to make your operations efficient and simple. Ensure that your laundry attendants know how different fabrics are treated, washed, and dried. Handling people’s clothes and other belongings needs special care if you want to run a successful laundry services business. Also adhering to industry safety regulations is crucial if you want your  business to be successful. Your laundromat business plan should have a clear description on who you will hire, your operational procedures as well as the salaries and  operational costs of your business.

Some of the day to day activities of a laundry services business include;

• Washing and drying of clothes using washing machines, dryers and handwashing
• Serving customers, taking and delivering orders,
• Advertising and marketing
• Cleaning the facilities

The market for laundry services is very large. With an increasing population and more people entering the workforce very few people have time to do their laundry. Students, working parents and other professionals have very busy lifestyles with limited time on their hands. As such, the demand for laundry services is very high. The demand for laundry services in institutions such as prisons, schools, universities, and hospitals is high. Many of these organisations would rather outsource their laundry needs than buy expensive washing machines and dryers. Not everyone can afford a washing machine so setting up a laundromat close to apartments or flats to serve individuals can also be profitable.

Given the increase in the number of working professionals, the need for laundry services is likely going to go up in the coming years thus, setting up a laundry services business is profitable. Before you venture in any kind of business developing a business plan is essential. That way you can determine whether your business idea is feasible or not. With a a good laundry business plan, you can outline the risks associated with your business, ways to minimise them, your operational and financial plan.

Keys To Profitability

Strive to score regular and bulk clients.

The laundry business is a game of numbers. The more clothing items you push, the more the revenue. The best way to easily achieve that is by getting regular and bulk clients. These are clients who normally need laundry done almost daily and in large quantities. Examples of such clients are health facilities, academic facilities, or hospitality facilities. Common examples of such are hospitals, schools, and hotels. Retainer arrangements with them would be great.

Provide Unbeatable Convenience

There are many ways you can do this. A good example is to offer cheap (or even free) pick-up and deliveries. The driving element in people wanting to get their laundry done is convenience. Often time clients have to walk in and drop their laundry. Then they come back later to get their clothes. Most people honestly do not enjoy or have time for that. You can step in to offer convenience by offering to do pick-ups and deliveries later on. You can charge a small almost negligible fee or you can offer these as free services. This is a good example of how you can score more clients. Ensuring the shortest possible turnaround is another way to provide convenience. This also means you must even strive to have a service where clients walk-in and wait for their clothes.

Quality Services Are The Master Key

People expect their clothes to be properly cleaned or washed. A sure way of retaining your customers is by making sure you produce quality every time. Your laundry business must be synonymous with guaranteed quality. Customers might not even be bothered if you are pricey. So long you insist on and ensure consistent quality, customer experiences will be top notch. Not only does that build customer loyalty but it generates word of mouth marketing. A quality-oriented laundry business promotes customer loyalty and drives customer acquisitions.

The laundry business wields vast business prospects in many areas around the world. There are still many places where laundry businesses are non-existent or sparsely available. Those are good indicators of why you should start the laundry business.

Pre-Written Laundry Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the laundry services business, we encourage you to purchase our well-researched and comprehensive laundry services business plan. We introduced the business plans after discovering that many were venturing into the laundry business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global laundry business plan will make it easier for you to launch and run your laundry services business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a laundry business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the laundry business.

Uses of the Laundry Business Plan (PDF, Word And Excel)

The laundry business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your laundry business
• As a laundry business proposal
• Assessing profitability of the laundry business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Laundry Services Business Plan (PDF, Word And Excel)

The business plan for laundry includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the laundry business fail, so that you can avoid their mistakes
• Ways to raise capital to start your laundry business

The laundry services business plan package consists of 4 files

• Laundry Business Plan – PDF file (Comprehensive Version – 81 Pages)
• Laundry Business Plan – Editable Word File (Comprehensive Version – 81 Pages)
• Laundry Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 41 pages)
• Laundry Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Laundry Services Business Plan (PDF)

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Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

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Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Get the Laundry Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your laundry services business! Check out our collection of business plans  , and more business ideas .

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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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Laundromat Business Plan

Laundry business plan philippines.

Most investors might consider laundry franchise when they planned to venture into laundry business. What if there is a new option? A laundry business without required to pay royalty fee to franchisor? Introducing U-OWN-IT™ laundry business plan. 

Starting a laundromat business

No experience needed.   CS Laundry System provides a comprehensive one-stop  solution ~ U-OWN-IT™ to help you set up your coin laundry  business. We understand that every business has different needs and our knowledgeable team will work closely with you to design your very own laundry shop from advice of your location, renovation, shop design, leasing, to gas licensing, chemical suppliers and many more.

The laundromat business is 100% yours

Full control over the operations of your business. 100% profit 100% yours. CS Laundry System   with over 25  years of expertise, will drive you towards 100% profitability, and  provide you with unparalleled after-sales support.  The best thing is, no royalty fee is required to pay  CS Laundry System, because this is not a franchise.

Why Speed Queen machines?

Speed Queen’s reliable reputation is backed up by robust equipment, able to withstand harsh environments, and demanding usage along with a two-year warranty. Do you prefer a long-lasting machines or a cheap but short lifespan machines?

Talk to our specialist now. Request a DIY laundry business quotation here.

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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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Laundromat Business Plan

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Universal Laundromat

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

Many urban residents lack access to in-home laundry facilities, and existing laundromats may not provide a pleasant, efficient environment for customers. Additionally, environmentally conscious customers are seeking sustainable laundry options that minimize water and energy waste.

Universal Laundromat provides a clean, modern, and comfortable space equipped with energy-efficient washing machines and dryers. We strive to create a welcoming atmosphere with customer-focused amenities, while also promoting environmentally friendly practices.

It’s been shown that the best method of advertising is through word-of-mouth. No major newspaper ad campaign is planned. However, we shall run weekly specials. In addition, we shall have an incentive program for referrals. Those customers who refer someone else to the store will be rewarded with two free washes, and the referee will receive an introductory gift of a free wash. In addition, we will ensure a clean environment, reliable machines, and friendly, prompt services.

Competition

Universal Laundromat would like to set itself apart from other laundromats that may offer only one or two services. Although the focus of Universal Laundromat is a washing and drying service, we do wish to offer our clients the convenience of these other services in one location. Those services include folding and potentially pick-up/delivery service, as well as online reservation and membership for pick-up and delivery. Most importantly, it’s our convenience that sets us apart from the competition.

Universal Laundromat is a full-service coin-op laundry (washing, drying, and optional folding) service dedicated to consistently providing high customer satisfaction by rendering reliable machines and furnishing a clean, enjoyable atmosphere at a competitive price/value relationship.

Expectations

It is very important to note that the minimum monthly amount of loan payback should decrease as principal decreases. Furthermore, the profit projected in the table is after all expenses and monthly loan payback have been subtracted. All net profit will then be paid as an additional sum to greatly shorten the term of the loan.

Financial Highlights by Year

Financing needed.

Currently, Mr. Mihn Doung owns a small permanent shop in 7th Berryessa Flea Market selling power tools every weekend. That store brings in approximately $4,500/month on average in revenue. The profit averages out to approximately $2,500/month. Considering the potentiality in the coin-op laundromat industry, he’d like to take on further challenges by starting another venture.

To achieve this objective, Universal Laundromat is seeking $150,000 in additional loan financing. This loan will be paid by the cash flow from both the shop at the Flea Market and the laundry business, and will be collateralized by the assets of the business and steady income it brings along with an initial $75,000 down payment, and backed by the character, experience, and personal guarantees of the owner.

Problem & Solution

Problem worth solving.

Every person needs clean clothes. Not every family can afford a washer and dryer or laundry soap. 

Our Solution

Our Mission : To provide convenient, clean, and friendly laundry service.

Our Motto : "Professional, convenient, friendly service and competitive pricing"

Target Market

Market size & segments.

Universal Laundromat’s target market is every household that needs laundromat services within the immediate area of east San Jose. There is no market segmentation strategy associated with this potential market. The Market Analysis table indicates the estimated number of potential customers and their growth rate.

Current Alternatives

Our advantages.

Universal Laundromat would like to set itself apart from other laundromats that may offer only one or two services. Although the focus of Universal Laundromat is a washing and drying service, we do wish to offer our clients the convenience of these other services in one location. Those services include folding and potentially pick-up/delivery service, as well as online reservation and membership for pick-up and delivery. Most importantly, it’s our convenience that sets us apart from the competition.

Keys to Success

The keys to success in our business are:

• Location : the potential business is to be located in a nice small shopping center of a poor to lower-middle class, ethnically Mexican neighborhood, where it’s the closest and most convenient place to get services. In addition, there are two apartment complexes located nearby. In addition to being the sole laundromat in this neighborhood and surrounded by residences, there is no potential for a competitor.
• Convenience : offering clients services ranging from full-service washing and drying to optional folding, and extended business hours.
• Environment : providing an environment conducive to giving clean, friendly, and professional service.
• Reputation : long-term reputation resulting from friendly, professional service will encourage customers to return.

Marketing & Sales

Marketing plan, locations & facilities.

The laundromat is located in San Jose, California. It will utilize 1,500 square feet. The location is strategically situated on one of the busiest streets in East San Jose. More specifically, it’s located in a small attractive shopping center next to the poor to lower-middle class homes; therefore, there is NO possible competitor (after very careful examining). In addition, there are two apartment complexes located nearby. Surrounding it, there is a Mexican neighborhood whose residents get most of their services and needed goods in this plaza where the laundromat is located.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• # of reviews we receive, we shall especially pay attention to the locals
• # of people who walk in verse make a point of calling to see if we are in 
• the cost of running the machines

Ownership & Structure

The business is managed by the owner, who has extensive leadership and management skills as well as an innovative and creative character. Unlike most laundromat businesses, Universal Laundromat will have an on-site staff person(Maintenance/Cashier) dedicated not only to store and machine maintenance but who also acts as a cashier to the retail business within the laundromat. As part of the management philosophy, this Maintenance/Cashier person will be carefully evaluated for friendliness, professionalism, efficiency, and honesty. The salaries are shown in the personnel plan table. As Mr. Mihn Duong already has a steady income from his power tool shop, his salary will be less than what would be expected if this was his sole source of income.

Management Team

Minh Duong is an ambitious, hardworking, philosophical leader and businessman. He has extensive business experience, and knowledge in various fields including retail sales, service and the Internet industry. Over the years, he has started various small businesses ranging from offline retail sales of a wide variety of products and services to online hosting services. He has extensive leadership skills as he had been elected to be President of five different clubs in High School. In college, Minh had founded two organizations at the University of California, Berkeley. In addition, he had also been elected to various leadership roles such as President and Vice-president of three different large organizations with membership over 500 members. School-wide, Minh had been fortunate to be elected by the student body of the university to be a Senator in the student government. During his term of office, he headed the Finance Committee that dealt with over $500,000 in student fund allocation. Moreover, he also headed the Student Affairs Committee as well as the Computing Facilities of the student government. Realizing his service and efficiency, fellow senators elected him to the board of directors of the Berkeley Student Foundation, the largest scholarship foundation for minority students sponsored by the Associated Students of the University of California. There, Minh dealt with the decision process of fund allocations to top high school minority students throughout the country. In the business world, Minh currently owns a permanent Flea Market Power Tools Shop at the Berryessa Flea Market in San Jose, CA. He is also the President/CEO of a small start-up Internet company providing business solutions to other businesses. He is currently working with five other colleagues at his college on that business. In academia, he is currently working with Professor Bradford Delong, a former Bill Clinton’s Foreign Policy Advisor Committee member, as a Research Assistant on  a book titled,  A Time Series of Changes Due to Globalization . Independently, he is currently working on a research paper titled, "Is Chinese Reform Sustainable? Is It Different?"

Minh is currently a fifth year Pre-med, Pre-MBA student with a triple major in Economics, Mathematics, and Statistics. He is currently 22 years old. He came to the U.S. on Nov. 7, 1990 from Viet Nam. After finishing his college education, he plans to achieve an MBA from Harvard Business School and an MD from John Hopkins Medical School.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Key Assumptions: 

• People need and appreciate clean clothes 
• People will be willing to pay 20 dollars to have someone help with the wash and fold 
• Not everyone can afford a washer and dryer
• Those who can’t afford them still need somewhere to do clothes. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We estimate $30K in startup expenses, which are mainly location fix-up, some signage, some legal. 

We estimate $40,000 in purchasing assets including the appliances, some furniture and fixtures. 

Sources of Funds

Mr. Duong will invest $80,000 of savings. He will also have $8,000 in accounts payable, left over from some assets purchased. The plan includes a 10-year SBA guaranteed loan for $75,000. 

If all goes according to plan, he will be able to pay off the SBA loan early, in the third year. However, that detail is not included in the plan. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

Tax Season Savings

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LAUNDRY BUSINESS PLAN

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