Starting a laundry business: Some basic considerations

landry biz

Because clothes — clean clothes, of course — is a necessity for all of us, laundromats or laundry shops have become a viable business idea. Today’s modern lifestyle, including limited-space condominium living and the hectic pace of living – exacerbated by the often horrendous traffic in the metropolis — has elevated demand for laundry service even more.

Advantages of a laundry business

The laundry business is one of those business ideas that may be considered low-barrier.  This means it is an easy business to go into, requiring not too much in capital, technical know-how and management skills.

However, low-barrier businesses are also enterprises easy to exit or shut down as they tend to proliferate, making competition tough.

The business may be started right from home, which means you do not have to buy or rent a space, for starters.  However, you might need to move to a more strategic location in order to grow.

You don’t also need many employees to run it.  You can start with only yourself, your spouse or some other member of the family.  As you grow, of  course, you need more hands on deck.

Things to consider

  • Register your business.  Start your business right by conforming with the law.  Business registration starts by enlisting with your barangay, applying for a business name with the Department of Trade and Industry, and getting a license from your city or municipal hall.
  • Consider renting or leasing a space in an accessible, visible location (that is, if you’re not thinking of a  home-based business).
  • Take account of your equipment requirements and their costs.  These would include a   washing machine, dryer, industrial iron, pressing table, generator, shelves and hangers, supply of detergents, starch, bleach and nylon.
  • Check the availability of water in your location.  Obviously, the business you have chosen requires water, water and more water.
  • Basically, the business needs someone to handle the washing, another to take charge of ironing and a delivery man.  You and one or two members of the family can handle any of the duties along side administrative roles if you intend to cut cost. But if you get outside help, you must consider salaries for these assistants.
  • Consider the tax you will pay at the end of the year.
  • Consider pricing.  Your pricing must enable you to compete with others in the same business while allowing you reasonable profit.

Market your business

Like any other business, you have to promote your laundry service. Thus set aside a budget for it.  Give out flyers, go house to house to distribute your leaflets.  Consider loyalty programs to ensure old customers keep coming.  Most of all, offer a consistently high-quality service so your business will grow by word of mouth.

Write your business plan

It is best to prepare a business plan – crucial to the success of any business.  You have to describe the way you would like to run your business in writing. List the services you will provide including specialized ones such as pick-up and delivery, wash-and-fold, etc. Here is a sample laundromat business plan template you can start with.

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