As the number of working people and students rises, the demand for convenience services also increases. Therefore, the laundry industry offers a great opportunity for business people. Entrepreneurs can generate stable income by starting a laundry business.
Whether a simple dry-cleaning service center or a coin-operated laundromat, businessmen need a comprehensive laundry business plan to succeed. Therefore, we have prepared a step-by-step guide on how to start a laundry business in this blog. We believe this will help entrepreneurs to initiate a lucrative business in the laundry industry.
Growing Demand for Laundry Business
Due to urbanization and busy lifestyles, the demand for laundry services is gro
wing. This industry is expected to grow continuously because of the increasing number of working people. Additionally, smart eco-friendly laundry technologies are attracting more people to use laundromats.
Therefore, the worldwide laundry market is expected to cross $118 billion in 2025 at a rate of 5.5% compounded annually. Thus, this industry presents profitable possibilities for entrepreneurs and laundry service providers.
Step-by-Step Guide on How to Start a Laundry Business
Below are the necessary steps to follow when starting a laundry business.
Step 1: Researching on the Laundry Industry
Research is the first step before starting any business. Entrepreneurs must also conduct surveys to learn about the trends in the laundry industry before entering the business. They must research consumer needs and behaviors. They must have answers to the questions like
- What type of laundry do they use?
- What improvements do they need in the present services?
- How often do they use laundry services?
- How many laundromats are operating in the area?
These questions will help businessmen understand the customer requirements and competition in a particular area. Additionally, they can decide on the laundry model they want to operate to generate profit.
Step 2: Defining the Laundry Business Model
To establish a successful business, selecting the right model is necessary. After researching the industry, entrepreneurs must choose the laundry business model according to the target audience and area of operation.
There are various laundry business models as below–
Traditional Laundromat Business Model
This model includes physical space where people can wash and dry their laundry using automated machines. Owners generate income through fees paid by customers for washing and drying per load.
Additionally, entrepreneurs can offer services like dry cleaning and laundry folding to make additional revenue. Traditional laundromats are self-operated and managed by attendants on the site.
Therefore, businessmen will have expenses including
- Machinery purchase and maintenance
- Rent for the physical store
- Staff salary
- Marketing of the business
Dry Cleaning Laundry Business
In this model cleaning services are provided for clothes that need special care to remove stains or smell using solvents. The clothes include suits, dresses, coats, and other soft fabrics. Laundromat owners can also offer additional services like
- Alterations and repairs
- Pressing and finishing
- Odor elimination
- Fabric protection
Entrepreneurs require specialized equipment and trained staff to operate a dry-cleaning laundromat. Additionally, they need effective advertising strategies to succeed in the field.
Coin-based Laundromat Business Model
This business model is self-service. Customers use coins or tokens to activate the coin-operated washing machines. The owner generates revenue from machine usage fees. Owners can also set prices for washing and drying per load.
Requirements in a coin-based laundromat–
- High-quality washers and dryers
- Coin or token changers
- Bill acceptors
- Equipment maintenance
- Washing utilities and supplies
- Trained staff
Besides, businessmen will spend on the laundromat space and marketing strategies.
Wash-and-fold and Delivery Laundry Business
This model offers door-to-door laundry services including washing, drying, and folding. Customers can book laundry pickups. Then, the laundromat staff collects the laundry from their home. After cleaning and drying, laundry is delivered back to the customer within 24 to 48 hours.
Laundry owners can charge per load or item for the services. They can enhance income by offering premium services such as same-day delivery. For this business model, owners need expenses for
- Physical space for laundromat
- Delivery vehicles
- Trained staff for washing and delivery
- Online booking and payment system
- Marketing and advertising purposes
Step 3: Develop a Laundry Business Plan
Once the business model is selected, it is time to build a thorough laundry business plan including expense calculations, marketing strategies, and operations. Business people can estimate investment for equipment, rent, and other utilities as below
- Physical space for laundromat– $30,000 to $50,000
- Washing machines and dryers– $100,000 to $150,000
- Insurance and permits– $ 10,000 to $20,000
- Water supplies and electricity– $5,000 to $15,000 per month
- Staff salaries– $5,000 to $ $15,000 per month
- Marketing and Advertising– $5,000 to $15,000
Estimated start-up costs can vary from $250,000 to $500,000. However, these expenses may change according to the location, size, and equipment.
Step 4: Registering Business and Getting Certifications
Another important step to starting a laundry business is registration and getting certifications. This is required to avoid any possible hindrance in the future.
Some of the necessary licenses and permits are as follows:
- Business Licence
- Sales Tax Licence
- Labor and Equipment Insurance
- Certification from Certified Textile Laundry (CTL)
- Environmental Permits
Step 5: Getting Equipment and Supplies
Getting the right equipment and supplies is necessary to run a laundry business smoothly. Owners must buy high-quality washing machines, dryers, irons, and other equipment from reputable brands. Other supplies include detergent, fabric softener, and cleaning solvents. Additionally, there must be laundry carts, coin or token changers, and sanitary items.
One should consider the following things while selecting equipment
- The machines should be energy-efficient
- They should have great capacity
- The laundry machines should be easy to regulate and mend
- All machines must have guarantee and support
Step 6: Finding a Suitable Location to Start a Laundry Business
A strategic location with an efficient layout is necessary for a successful laundry business. Select an area with high footfall and visibility so people can easily find your laundromat. A high-populated residential area can be an ideal location. Additionally, a place near colleges or apartments can be another best choice for starting a laundromat.
However, entrepreneurs must consider competition in a particular area before setting up their laundry business.
Another impactful factor is the carefully designed layout of the laundromat. When designing the layout, place the equipment to have sufficient space for sorting and folding. There must be a comfortable waiting area with proper seating and other amenities like Wi-Fi or televisions. Besides, the laundromat must have strategic lighting and ventilation to avoid suffocation due to detergent odor.
With a planned layout owners can–
- Decrease energy consumption and costs
- Increase machine capacity
- Provide satisfactory customer experience
- Easily maintain the equipment
Step 7: Recruiting Trained Attendants and Other Staff
There will be a need for attendants to run a laundromat smoothly. They will help customers sort, wash, dry, and fold the laundry. Additionally, they can handle customer issues with machinery. Therefore, hiring trained attendants is important in starting a laundry business. Apart from attendants, entrepreneurs need staff to collect bills and maintain machinery and other equipment.
While hiring staff for various purposes, owners must consider their relevant experience and ability to work fast. Additionally, the staff members should have good communication skills to deal with customers.
Step 8: Marketing and Advertising of the Laundromat
Marketing plays a vital role in promoting any business to a wider audience. Laundromat owners can use traditional as well as modern marketing strategies to advertise their laundry business. Here are a few methods that can be used to establish a successful laundry business.
- Print Brochures and Flyers– Entrepreneurs can distribute flyers for their newly opened laundry business in local areas. They should offer appealing deals on pricing and promotions in brochures to attract customers. Additionally, flyers must have eye-catching infographics along with contact details such as address and phone number.
- Referral Marketing—Another effective method of promoting a laundry business is referral marketing. In this, owners can offer incentives to customers to refer their laundromats to friends and family. This, in turn, increases word-of-mouth marketing and a business’s reputation. Besides, it decreases marketing costs and increases revenue.
- Referral schemes may include-
- Reward points for sharing laundromat on social media
- Discounts or free services for referring a friend
- Buy one get one free service offers
- Social Media Marketing– Social media is the best option for a laundry business to have a strong online presence. This helps in direct interaction with customers and service promotion campaigns. Social media sites like Instagram, Facebook, and Twitter can be used for
- Sharing promotional offers on laundry services
- Posting images and videos of the laundromat
- Replying to customer inquiries and reviews
- Running targeted ad campaigns
Contact New Traffic Tail for effective social media marketing for your laundry business. We provide you with the best deals at competitive prices.
How to Buy a Laundromat?
Entrepreneurs can also buy existing laundromats instead of constructing new ones. Here’s how.
- The first step in purchasing an existing laundromat is thorough research and planning. Before buying a laundromat, businessmen must calculate their budget and understand the competition in the local area. They should also consider additional factors like areas with a greater footfall and enough parking space.
- Then, find a laundromat to buy. For this purpose, entrepreneurs can visit websites such as LundromatForSale. Otherwise, they can contact brokers specializing in laundromat sales to buy laundry in the local area.
- The next step in the process is adjusting funds for the purchase. Decide on whether to pay the full or partial amount in cash. Entrepreneurs can apply for loans from banks or business organizations to purchase a laundromat.
- Finally, offer the negotiation terms to the laundromat owner and lock the deal. Entrepreneurs must review purchase documents thoroughly to avoid any kind of fraud.
- After purchase, businessmen can renovate the laundromat according to their needs and hire trained employees. They must plan effecting marketing to retail the existing customers and attract the new ones.
Merits and Demerits of Buying an Existing Laundromat Business
Buying an existing laundromat can be both beneficial and detrimental for an entrepreneur. Here are the advantages and disadvantages of purchasing a running laundry business.
How profitable is a laundry business?
A laundry business is one of the lucrative business ideas in today’s time. Some figures related to revenue generated by a laundromat are as below.
Revenue per washer per is approximately $50 to $80 on average.
Daily income- $1,500 to $2,500
Therefore, it generates a monthly revenue of $45,000 to $75,000. The profit margin in the laundry business is about 20% to 40%.
However, these revenue margins depend on various factors as below
- Business model and size of the laundry
- Location of the laundromat
- Competition in the local market
- Service pricing and functioning of the laundromat
Final Words
Starting a laundromat can be a highly rewarding business. Entrepreneurs can establish a successful laundry business by implementing the steps discussed in the blog.
For digital marketing purposes, laundromat owners can collaborate with expert digital marketing agencies, like New Traffic Tail, to get assured positive results.
If you are an entrepreneur entering the laundry industry, surely this blog will help you a lot in your business setup journey. Best of luck for your ventures!
Read More :
How to Start a Hair Extensions Business
How to Start a Nursery Business
How to Start a Construction Business
FAQs
Q1: What could be the ongoing expenses to start a laundry business?
Laundromat business owners have ongoing charges for utilities, staff salaries, and equipment maintenance and supply. This can cost from $10,000 to $30,000.
Q2: What should I consider when doing research for my laundry business?
You should research about the competition in your local area in the laundromat business. You should also learn about the customer needs in the specific place to offer satisfactory laundry services.
Q3: Where can I purchase laundry machines for my business?
You can purchase laundry equipment from online retailers. Otherwise, you can visit local distributors to buy washing machines and dryers.
Q4: How can digital marketing help my laundry business?
A coin laundry business can progress faster with digital marketing strategies. You can reach more people through Internet marketing compared to traditional marketing.
