Start a Laundry Business

Start a Laundry Business

Gain Experience in the Laundry Industry

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

Carry Out Market Research

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

Write a Business Plan

All business ideas should start with a business plan. Even if you are not planning on getting a bank loan or venture capital for your business, a business plan will give you a deeper understanding of the market.
Your business plan should start with a list of the services you will provide. Will you deliver the laundry back to customers or offer any specialized cleaning services, such as dry cleaning or ironing?

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

List the Items You Will Need

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

Determine Your Target Market

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

Pick a Prime Venue

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

Failing that, look for a prime venue for your start-up that’s in a great location, such as on a busy street, to help get the business up and running. Naturally, the price of renting the venue will need to be factored into the business expenses and taken out of potential profits.
Space that has off street parking is attractive as this makes the dropping off and picking up process more convenient for customers.

Distinguish Your Laundry Business from Competitors

Besides making sure you have a good location, think about ways you will distinguish yourself from competitors. You may want to offer specialized services, such as ironing and dry-cleaning items or offer lower prices than competitors.
When you open the business, encourage customers to come to you by offering ‘first week deals’ such as two loads of washing for the price of one.

Start to Market Your Business

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

Think About Becoming a Laundry Franchisee

Business franchises come with a number of benefits, including the providing of everything you will need to get your business up and running. Systems like Laundry Care partner with entrepreneurs seeking to provide laundry services to local residents and commercial customers and help them build a business.
As the brand  and business model are already set-up and established, entering a franchise contract can come with less risk than starting a business entirely from scratch.


credit to: https://smallbiztrends.com

How Much Money Do You Need to Start a Laundry Business

Most Filipinos are now more focused on their careers and own businesses that they would rather pay for laundry services instead of wasting their time washing and rinsing a bunch of dirty clothes. This new Filipino way of life paved for laundry businesses to flourish in almost all parts of the metro. The demand for laundry services if undeniably high so GoBear has come up with an educated evaluation of how much money you need to prepare if you plan to establish a laundry service deal.

                                
•    Laundry equipment – Most washing machines used in this type of trade are not ordinary automatic washers. Dryers and washers are fused in one equipment to provide full laundry services and endure more than five hours of use in a day. You can buy traditional appliances from Php20,000 while modern ones with a card or coin features are sold from Php50,000.
Some packages range from Php 500,000 which includes three sets of stackable dryer and washer which provides setup and renovation services.
•    Business Permit – Budding entrepreneurs in the country need to face legal and bureaucratic fees associated with business set-up costs. You might need to set aside around Php40,000 for securing the business permit, again depending on the type of activity and your business location. Mayor’s permit alone can cost around Php12,000 to be paid upon submission of the business transaction form. Other expenses include Certificate of Registration and TIN to be applied from the Bureau of Internal Revenue.

•    Rental Costs – You can save on rental fees if you have your space to renovate. However, those who are planning to rent, you might want to allot around Php25,000 monthly rental. Most landlords require two months’ deposit and one-month advance cash payment and checks for the remaining months. Initially, rental fees cost up to Php75,000-Php150,000.
•    Renovation Fees – A laundry business space needs to have the right plumbing system for water supply to be generated and flushed out systematically. It should also provide proper ventilation and waiting area for customers to comfortably sit and wait for their laundry to be done. You can spend around Php200,000 for renovation costs including a provision of a unique plumbing and electrical wiring structure.
•    Salaries of employees – Ideally, you can hire one cashier, one staff for delivery and assistance, and one driver. But if you want a self-service laundry business, then one staff will be enough for the first three to six months of operation. As the firm grows, you can gradually add personnel depending on the demand. The salary of one regular employee is based on the minimum wage rate in the metro which is about Php12,000 for 25 days plus benefits.

•    Monthly bills and taxes – Percentage tax are imposed on businesses with gross annual sales not exceeding Php1.5 million. Percentage tax is usually equal to 3-5% of profits per month. On the other hand, monthly bills highly depend on the business. For a shop with 5-10 machines and air-conditioning system, electric bills can range from Php20,000 while water bill can sum up to Php15,000 per month.


credit to: https://www.gobear.com/ph