This article gives you a comprehensive description of the things you need and preparations necessary to start a clothes washing business.
When I finished college, I was excited at the prospect of building my career in financial accounting. Little did I know what lay in the waiting – a long journey of sending resumes to a thousand companies and meeting countless human resource managers.
I had to find a way of raising money quickly or I would find myself in the streets. That’s when a friend of mine told me about the laundry business. She suggested taking out a small loan and setting up the business near Drexel, whereby I’d be able to target the students.
And that’s what I did.
With my dedication, lots of research, and my friend’s help, I was able to get an income north of $3000 per month in just 6 months.
I won’t say that wasn’t much – it was! I had never seen so much money that belonged to me, or rather that I had made. Although I later quitted (to practice in the finance world), I can tell you for sure that laundry is a good business if you’re committed and if you do it right. I have seen people making upwards of a hundred grand with it.
Well, enough talk.
I am here to share with you my step by step guide to starting your own laundry business. Having used it myself, I can tell you it works.
Step 1 – Craft A Plan
When starting any business, the first thing to do is create a business plan. This serves as your roadmap, showing you exactly where you want to steer your business, and serving as a reminder any time you lose your way.
Unless you’re starting a company, you don’t have to write a complicated business plan.
Just indicate the services you’re looking to offer, such as wash, pickup, wash and fold, ironing, odor removal, stain removal, dry cleaning, delivery, and so on.
In the business plan, be sure to define your target market. Who will be your main customers? Students? Busy professionals? Apartment dwellers? Do some digging and see the most suitable audience to target in your area.
In the business plan, that’s the part where you also define your competitors. Are there similar businesses in the area? How do you plan to defeat them? Specialized services, lower prices, and better-quality services are all tactics of rising above the competition.
Another very important aspect of your business plan is the budget.
Some folks will tell you that you need $250 thousand to start your own laundry business. Well, I started with $800.
I used the same little apartment where I was staying during my years at college, so I was not paying any rent. As for the equipment, I only got two portable washing machine and dryer units that costed around 300 bucks each and a few small items like detergent. That was enough to get my business rolling. Luckily, as it was just a small business with zero employees, I didn’t have to do any formal registrations.
Over the next few months, I saved up and purchased a full-size washing machine and that’s how my business grew.
With laundry businesses, a small capital doesn’t matter. It is a good plan to raise money and boost your business as you go that matters.
Step 2 – Find A Suitable Location
The next challenge is to get a location that is appropriate for your business. One thing to keep in mind is that it should be easy for your potential customers to access you.
One way you can do that is to rent a space near the place where the customers are located – perhaps near their place of work or school. I found it more practical to set up a laundry business near residential areas.
If possible, rent a space in a place where there is an off-street parking area for your customers to park their vehicles as they drop and take their loads.
Pro tip: if you can buy an existing laundry shop, that would work better as you already have a customer base and you don’t have to shop for every little piece of equipment needed.
Step 3 – Your Checklist
The checklist refers to the items you need to conduct your business. That means equipment and supplies.
The most important items when starting a laundry business are:
- Washers
- Dryers
- Carts
- Detergents
- Bleaches
Create a full list of the items you’re going to get based on the size of your budget. I made an article about the best compact washing machines. There you will find some units that are even as cheap as 300 bucks.
A 100 to 300-dollar portable washing machine for apartment (that is where it is mostly used) is not the best for business, but if you’re on a tight budget, it can get you started. It did it for me.
If your budget is bigger, get a good full-size washer. This can cost you anywhere between 3000 and 20000 dollars. The higher the price, the more the features. Some washers can even be operated like vending machines so that customers wash their clothes automatically and pay the machine.
Others can track customers’ orders, which makes it easy to issue discounts to loyal customers.
When shopping for items, check out what various sellers are offering on sites like Amazon and eBay and read the reviews to make sure you’re getting something worthy.
Step 4 – Get the Necessary Permits
If you’re opening a small business that you will be operating from your home like I was, you likely don’t need any formal permits. Still, you got to visit your local government offices and consult with the people there to make sure you’re on the right side of the law.
If you’re operating a bigger business that even has employees or a company, you will likely need to get one or a few permits and licenses. Visit your local government offices and consult with the guys there on what you need.
Some items you’ll probably need include a license from the health department, a business permit, and a pollution control permit.
Step 5 – Market
Marketing is paramount to any business’s success. And not just marketing, but proper marketing.
Luckily, these days, there are countless ways of giving your business exposure, both online and offline.
Start with the offline ways. The most effective is word of mouth. Tell your friends and neighbors about your business, and ask them to tell their friends. The network could bring in lots of clients. If possible, go from house to house, especially homes, telling people about your business. Give them a phone number or business card that they can call whenever they need something washed. That’s what I did and it worked like a charm.
Also, create business cards and flyers and issue these to your friends and prospective clients.
Don’t ignore the online opportunities for marketing. Start by creating a post on Facebook to notify your friends about new business. Consider sponsoring a Facebook ad, as this works very well. Be sure to target your audiences accurately to increase the chances of success.
Starting a Laundry Business – The FAQs
Is a laundry business profitable?
Based on statistics by the Coin Laundry Association, most laundry business rake in 15000 to 300000 USD in profits per year. In general, the laundry business presents moderate chances for making profits. How profitable your business is depends on the size of your market.
Is a laundromat a good investment?
The thing about laundry businesses that makes them a fantastic investment is that they don’t have recess periods. People will always need to have their clothes washed.
As long as you have a good location to establish your laundromat, a laundry business is a great idea.
What items do I need to start a laundry business?
A laundry business can require little or lots of money to start depending on what is on your checklist. The most essential items to get include:
- Portable washing machine (perhaps with a dryer attached)
- Dryer
- Sorting bins
- Tags
- Detergents
- Racks and hangers
How much do I need to open a laundry business?
That depends on the size of your target market. For a laundry business, you can start with little to no cash as long as you have a portable washing machine and can operate from home. For a small business outside your home, have a budget of around 10000 to 250000 USD. Most of the starting capital goes into purchasing the machines – washers and dryers.
What makes a laundry business good?
Simplicity and profitability
You can start a laundry business at home with little to no money. All you need is a good source of customers. The business is also quite profitable, and doesn’t attract lots of money in running costs. The only major expenses are energy and detergents.
How big should a washer for business be?
Usually, the washer that most people have at home has a capacity of 1.7 to 2.5 cubic feet. These are called portable washing machines.
Washers classified as small and compact have their size ranging between 1.7 and 2.3 cu.ft. Medium washing machine range between 2.1 and 2.5 cu.ft, while the large capacity washers, which are ideal for business, have a capacity of between 2.7 and 3 cu.ft.
How can I market a laundry business?
When looking for a place to set up your laundry business, look a residential location or a place near a college. That is the first step to ensuring a steady flow of customers. Here are ways of marketing your business:
- Word of mouth – ask your clients to tell their neighbours and friends about your services.
- Good service – wash the clothes excellently and take good care of them. Nothing sells a business better than good service. If your customers are happy, they can easily feel obliged to spread the good news about your business.
- Flyers, business cards, and posters – give these to your customers and potential customers and stick others near the gates of apartment buildings.
- Social media – create a page and make ads targeted on people in your location.
Final Word
If you’re looking for a small business idea, laundry may not have crossed your mind. But laundry is actually a pretty good business for two reasons.
For once, it is simple to start. You don’t even have to have money. If you can run it from home and use your existing portable washing machine and dryer, it is indeed possible to start with no money at all.
Secondly, this business is recession-proof. There’s no period that will come when people are okay with wearing dirty clothes. Not forgetting too, that laundry businesses also have minimal running costs.