good laundry business plan

Newly Launched - AI Presentation Maker

Researched by Consultants from Top-Tier Management Companies

Powerpoint Templates

Icon Bundle

Kpi Dashboard

Professional

Business Plans

Swot Analysis

Gantt Chart

Business Proposal

Marketing Plan

Project Management

Business Case

Business Model

Cyber Security

Business PPT

Digital Marketing

Digital Transformation

Human Resources

Product Management

Artificial Intelligence

Company Profile

Acknowledgement PPT

PPT Presentation

Reports Brochures

One Page Pitch

Interview PPT

All Categories

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.

Related posts:

• Top 10 Car Wash Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)
• Top 10 Jewelry Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)
• Top 10 Cleaning Service Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)
• Top 10 Repair Shop Business Plan Templates with Samples and Examples (Editable Word Doc, Excel, and PDF Included)

Liked this blog? Please recommend us

Top 10 Management Summary Examples with Templates and Samples

Top 5 Expense Chart Templates with Examples and Samples

This form is protected by reCAPTCHA - the Google Privacy Policy and Terms of Service apply.

--> Digital revolution powerpoint presentation slides

--> Sales funnel results presentation layouts

--> 3d men joinning circular jigsaw puzzles ppt graphics icons

--> Business Strategic Planning Template For Organizations Powerpoint Presentation Slides

--> Future plan powerpoint template slide

--> Project Management Team Powerpoint Presentation Slides

--> Brand marketing powerpoint presentation slides

--> Launching a new service powerpoint presentation with slides go to market

--> Agenda powerpoint slide show

--> Four key metrics donut chart with percentage

--> Engineering and technology ppt inspiration example introduction continuous process improvement

--> Meet our team representing in circular format

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Start a Laundry Business: The Ultimate Step-by-Step Guide

Nina Godlewski helps make complicated business topics more accessible for small business owners. She covers small business topics such as payroll management and launching a business. She was previously a staff writer at Newsweek covering technology, science, breaking news, and culture. She has also worked as a reporter for Business Insider and The Boston Globe.

Christine Aebischer is an assistant assigning editor on the small-business team at NerdWallet who has covered business and personal finance for nearly a decade. Previously, she was an editor at Fundera, where she developed service-driven content on topics such as business lending, software and insurance. She has also held editing roles at LearnVest, a personal finance startup, and its parent company, Northwestern Mutual. She is based in Santa Monica, California.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Laundry is an essential part of life for most people. As long as clean clothes are in demand, a laundry business will be too. After all, not everyone has their own washer and dryer, or the time (or desire) to wash their clothes themselves. This makes starting a business in the laundry industry a great option for budding entrepreneurs.

Of course, this all sounds good in theory, but what does it take to launch a business of your own? If you’re wondering how to start a laundry business, this guide is here to help.

How to start a laundry business in 10 steps

We’re going to cover all of the crucial first steps you need to take to get your laundry business started. You may be eager to open your doors as soon as possible, but taking the time to plan and set up your business through the proper channels can help ensure a successful start.

1. Decide what kind of laundry business you want to start

If you’re already thinking about starting a laundry business, you might know exactly what kind you want to open. But if you’re still exploring your options, we’ll go through a few of the laundry business formats you should consider before deciding.

Laundry businesses are most popular in areas with lots of apartment buildings or where people don’t necessarily have their own washing machines. You may choose to open a laundry business that allows customers to come in and do their laundry using your machines, or you can also offer wash and fold services, where customers can drop off their laundry, and then pick it up once it’s done (some laundry businesses also offer pickup and delivery.)

You might also decide to offer all of these services to your customers. Whichever you choose, you’ll need washing and drying machines and a location for the business. You'll want to keep all of this in mind, therefore, before you continue learning how to start a laundry business.

You also have the option of buying into a laundromat franchise , rather than building a new business from the ground up. There are pros and con s to this type of business model, but if this is your first business endeavor, it can be helpful to work within an already existing — and successful — framework that a franchise provides.

Ultimately, with all of these options, you’ll want to take the time to do your research before you decide which idea to move forward with. See what other types of laundry businesses are in the area, conduct a survey of local people, or see what type of demand there is for your possible business.

This information will help you decide if there is a need for a laundry business in the first place, as well as what type of laundromat would best serve your area.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Choose a business name

One of the most fun parts of learning how to start a laundry business is choosing the business name. Think of all the clever, catchy, and memorable names you can come up with — but make sure it’s also describing your business and is memorable and easy to pronounce.

Once you have some ideas, you can look up whether your business name is available online in most states. The secretary of state website will likely be the best resource for checking business name availability, though some states have a different agency handling this business process, such as the chamber of commerce department.

If your business name is available, you will likely have the option to reserve it for a set amount of time. Although this step isn’t required, you may choose to do so if you aren’t ready to register your business but want to ensure no other business takes your name.

3. Choose a business entity

Another decision about your laundry business that you’ll have to make early on is which business entity you’ll choose to legally structure your business. Choosing the right business entity is crucial, as it affects how you pay taxes, how much risk you’ll be exposed to, how you’ll organize your business, and more.

For example, if you decide to start your laundry business as a limited liability company, you’ll have liability protection for yourself and other business members. On the other hand, if you opt for something like a general partnership or sole proprietorship, you won’t have liability protection, but you also won’t have to register your business with the state.

There are several factors to consider in this step, so we recommend consulting a business attorney or tax professional to walk you through the process and help you choose the best entity for your unique business needs.

4. Write a business plan

Now that you have your business entity, business name and business idea in mind, you can get down to writing your business plan . Your business plan will be on the longer side, think 30 to 50 pages, and it will provide a comprehensive overview and actionable plan for taking your laundry business to a profitable endeavor.

You can either write your business plan on your own or you can use a business plan template to help streamline the process, but either way, there is some key information you should make sure to include in the plan.

Your business plan should include a summary and information about the type of business you want to start, including your structure and any other key employees (besides yourself). It should also include a market analysis. This analysis should show that there is a high demand in your area for a laundry business, as well as outline any competitors, who your target customer is, and more.

Your plan should also include financial information, detail where you’re getting your startup capital, whether or not you’ll be seeking any extra funding, and projections for when you think you’ll actually start making money with your new laundry business.

5. Register your business and get an EIN

The next step involved in learning how to start a laundry business? Although not all businesses have to register with the state (sole proprietorships and general partnerships likely will not), most will need to take this step in order to legally operate. Some states allow businesses to register online, typically through the secretary of state or chamber of commerce website, but other states require businesses to register in person with paper documents. It’s always wise to consult a business lawyer who can help you keep track of the documents and registrations your business needs to file.

One thing to keep in mind if you choose a business entity that doesn't require you to register with the state, you may still want to file a DBA or “doing business as” to operate your business under a name other than your legal name (which is the default).

In addition, it's also a good idea for most businesses to apply for an employer identification number or an EIN. This number is helpful for businesses when applying for a bank account, filing taxes, and more. It’s sometimes referred to as a business tax ID number.

If you plan to hire employees, this is a required step, but even if you’re not at that stage yet, obtaining an EIN has several business benefits. You can apply for your EIN through the IRS website.

6. Get the proper permits and licenses

The licenses and permits you need to run your laundry business will vary depending on the state where you’ll be operating. You may need to get a more general business license in addition to more specific licenses, such as a health department license or water pollution control permit .

Some states and cities even have specific laws around laundry facilities and businesses that provide laundry services. If you plan to do pickup and delivery services too, there are other licenses you’ll need, pertaining to your business vehicles.

Overall, this is another step where it would highly benefit you to consult a business attorney, as licensing rules vary largely depending on the state, city, or county.

7. Find a location

At this point, you've completed much of the behind-the-scenes work required in learning how to start a laundry business. And, in doing so, you’ve likely done some preliminary work on this next step, especially during your market analysis.

This being said, however, it’s now time to get serious about finding the location for your laundry business. Although some smaller operations may be able to be run out of a home (if you’re only doing drop-off/pickup service, for instance), you’ll likely want to find a commercial space.

Keep in mind, a laundry business will require specific plumbing and water line hookups — or the structural bones for these to be added — which will come at a cost. Just how much it costs to start up a laundry business will vary depending on several factors, but know that your physical space will likely be a large investment.

When it comes down to it, though, finding the right space is important, but equally as important is making sure it’s in the right location. In fact, finding a location with a demonstrated need for a laundromat business is probably the most important step of them all.

Renters, for example, generally represent a large portion of laundromat clients, so you might want to consider a location near rental units that do not have washers and dryers built into them, or college students living off-campus. You also want to make sure you’re conveniently located near your target audience. In fact, the closer you are to your customers, the better. Depending on the location, this could mean within walking distance.

Security should also be taken into account. Laundromats are susceptible to robberies and other types of crime, which is why ideally your laundromat should be located in a highly visible, safe area.

8. Get the proper equipment

With your space secured, you next need to turn your attention to buying the equipment to make your laundry business operational. Depending on the size of your business, you may need over 20 washing machines and 20 dryers.

Some other essential laundromat equipment (besides the washers and dryers themselves) to get are:

Change machines.

Credit card payment system.

Laundry carts.

Oversized washing machines.

Security cameras.

Soap dispensers.

Vending machines.

Although most of these things on the list speak for themselves, it's important to remember to have plenty of change machines, as not all of your customers will be carrying credit or debit cards with them.

In addition, you'll want to keep in mind that laundry equipment will most likely be your biggest expense, aside from rent. On average, laundry machines can cost you anywhere from $100,000 to $400,000. While writing your business plan, therefore, you should have done some calculations for how much you expect to spend on these initial startup costs, and now it’s time to find a way to finance them.

Although new businesses have a more difficult time qualifying for traditional business loans, one type of funding that can be particularly useful for laundry businesses is equipment financing . You’ll take your quote for the machines you need directly to a lender who then funds the purchase. You pay off the loan with regular payments, and the machines serve as collateral for the loan, making lenders more willing to work with less-qualified borrowers.

9. Open a business bank account

You’re nearly ready to open the doors of your laundry business, but before you do, one more crucial step is to set up your business’s financial accounts. First, you’ll need to open a business checking account so you can separate your business and personal finances. This is important for many reasons, including simplifying your taxes and helping to protect your personal assets if your business is the recipient of legal action.

Having this account completely separate from your personal bank account can also help establish and boost your business credit score, which will help you qualify for more attractive funding options if and when you decide to expand your business in the future.

You’ll also want a business credit card to help keep your spending separate. Although there are many great options out there, a 0% introductory APR business card can be especially useful for startup businesses, as the intro period can serve as an interest-free loan of sorts. Just make sure your balance is paid off before the offer period ends and a variable APR sets in.

Start Your Dream Business

10. Market your laundromat

Finally, you've reached the last step in learning how to start a laundry business. At this point, you're ready to welcome customers and start drawing people to your business.

A great way to get people coming through your doors is by marketing your business around areas where your target customers like to frequent. For instance, if a sizable portion of your customers is college students, you may want to pass out flyers at popular coffee shops or college bars.

Following SEO best practices is also a definite must, as nowadays many people search online to find new businesses. Make sure your business is easy to find online by creating a user-friendly website, which should list basic business information like your business hours, your business address, and contact information.

You'll also want to ensure that your business develops a strong reputation. Respond to all of your customer reviews on sites such as Yelp and Google Business, no matter how positive or negative the feedback is, as this will only serve to boost your reputation.

Once you've gotten the word out there, you can think about different ways to retain customers. Some laundromats offer free WiFi or install televisions to keep customers entertained while they wait for their laundry to finish.

Learning center series

Fundamentals of a laundry business plan

• Published on February 23, 2024
• by Marketing Team
• Last updated: 2 months ago

Surviving in the laundry business is akin to crossing the Sahara with only a water bottle- hopeful, but rarely successful. Indeed, an alarming 90% of laundry enterprises wither before they bloom. What makes this grim statistic less daunting, is that failure often leaves behind a trail of wisdom for the rest to tread upon.

From analyzing a decade’s worth of data, we’ve unravelled common pitfalls and silent killers lurking behind your launderette’s ‘Closed’ sign. Insights that not only shed light on why some businesses stumble but also unravel the tools to dodge those obstacles.

Watch a phoenix rise from the ashes of a failed laundry business, as we explore these illuminating lessons.

Worldwide Dry Cleaning Industry Size 🌍 The dry cleaning industry has an estimated total market size of approximately USD 60 billion globally.

Laundry Business Plan Essentials: Your Blueprint to Success

Understanding your audience and choosing the right venue are crucial for flourishing in the laundry business.

Understanding Your Target Market: The Key to Customer Acquisition

Better returns stem from better understanding of your audience. This cannot be overstated in the laundry business.

Market research lets you dive into the psyche of your potential customers. Think about it, a parent juggling work and personal life might prefer a comprehensive service that offers door-to-door pickup and delivery services over service. On the other hand, students may prioritize affordability over other services. At Metrobi, we specialize in managing delivery operations for laundromats, providing an efficient service for door-to-door laundry collection and delivery .

By identifying your target customers, you can better cater for their specific needs, thereby increasing customer acquisition.

Ever thought about who your ‘go-to’ customer is? Identifying and understanding your target market is not about casting a wide net, but rather focusing on a specific consumer profile. It’s not about appealing to everyone, but about being the best for someone. Your business model, services, and even pricing should be designed around your target audience’s preferences and behaviours.

Choosing the Right Location: The Cornerstone of Your Laundry Business

Location is key in the physical realms of business. It’s no different in the laundry industry.

There are factors to think about when choosing your business’ location. Sure, a bustling city center might guarantee foot traffic. But also consider the convenience factor. Are you within a comfortable distance for your target market? Is there paring? What about competition in the area? These considerations play a crucial role when deciding where you set up shop. Does offering a delivery service for laundry enhance the accessibility of your business for those not within immediate vicinity? This article delves into how a laundry pickup and delivery option might broaden your customer base.

Your carefully selected location will significantly influence your business success. We’re talking increased visibility, ease of access and overall convenience for your customers.

Consider this, a parent tumbling under tons of chores would preferably want to drop-off and pick-up laundry en-route to work/school or shopping. If your business is located strategically, it’s hard to ignore!

Don’t be carried away though. Prime location comes with a heavy price-tag and increased competition. You need to carefully assess how this affects your bottom line.

U.S. Self-Service Laundromats Market Share 🇺🇸 In the United States, self-service laundromats account for about 85% of the overall coin-operated laundry equipment market share.

Common Mistakes in Laundry Business Planning: Avoiding the Pitfalls

Underestimating startup costs: a recipe for financial disaster.

Managing the finances is a critical aspect of launching any new serious business venture, including a laundry venture.

▪️ The establishment of a laundry business involves a host of expenses that are often overlooked. These range from capitalized rent, equipment, insurance, to more hidden costs like permits, licenses, and maintenance budgets. Entrepreneurs frequently underestimate these expenses, leading to inadequate budgets and financial strain down the line. Armed with a detailed understanding of these costs, you’ll start on the right foot.

▪️ The danger of underestimating startup costs is not to be taken lightly. It can result in a premature cash flow crunch, forcing the entrepreneurs to either inject more personal capital or take on high-interest debt. Keep your business afloat and thriving by accurately projecting your initial capital requirements.

Neglecting Customer Service: The Silent Business Killer

Customer service isn’t just important; it’s absolutely essential in the laundry industry.

▪️ In the often crowded and competitive laundry market, exceptional customer service can set apart a business. From handling customer complaints gracefully to offering services tailored to customer needs, it’s these details that make a lasting impression. Comprehend the integral role of customer service in the laundry business to ensure long-term success.

▪️ Strategies for improving customer experience are manifold. From training employees in customer interaction to implementing customer-friendly policies, several effective techniques can be adopted. Rigorous application of these strategies can help elevate a laundry business to the highest level of customer satisfaction, thereby creating a loyal customer base.

Self-Service Washers and Dryers Rental Revenue 💰 The rental revenue generated from self-service washers and dryers in the U.S. reached nearly USD 2.4 billion in 2020.

Effective Marketing Strategies for Laundromat Business: Attracting and Retaining Customers

Leveraging social media: connecting with your customers.

Social media has proven to be an essential tool for business marketing. As a laundry business owner, it offers a personal and direct interaction with your current and potential clients.

The role of social media in marketing a laundry business

Social media channels such as Facebook, Instagram, and Twitter can revamp the face of your laundry business from a simple service provider to a digital-friendly local household name. The power lies in their real-time communication and customer engagement capabilities. By sharing relevant content like laundry tips and techniques, responses to customer inquiries and snippets of fun and warmth behind the scenes of your operation, you build a community around your brand. This will, in turn, foster trust and loyalty among your customers.

Tips for effective social media marketing

Perfect social media marketing rides on consistency, creativity, and connection with your audience. Maintain frequent but meaningful engagements on your platforms, be it through content, responses, or promotions. Craft your posts with crisp and lively images, videos, text, and hashtags – visuals that draw attention and spark interest. To achieve this, ensure regular scheduling of posts, interactive and timely responses to clients, and even enticing yet accountable offers like social media exclusive discounts.

Growth Rate of On-Demand Laundry Services 📈 The on-demand laundry services market is growing at a CAGR of around 12%, driven primarily by urbanization and changing consumer preferences.

Implementing a Loyalty Program: Rewarding Your Customers

As much as attracting new customers is important, retaining your current customers is equally paramount. There are costs and efforts involved in acquiring a new customer while a satisfied and loyal customer brings repeat business and possibly referral clients.

*The benefits of a loyalty program for a dry cleaning and laundry business**

Loyalty programs inspire repeat customers, encourage an increase in purchase frequency, and nurture customer-to-customer recommendations, thus increasing your customer base. As they foster a positive business-customer rapport, these benefits culminate in higher profit margins and business growth.

How to implement a successful loyalty program

A successful loyalty program in the  laundry business  stems from understanding the needs and preferences of your customers, setting clear and achievable rewards, and maintaining simplicity in program understanding and reward redemption. This system could leverage a point-based or tiered system, rewarding customers based on the frequency and volume of services used. You could also incorporate non-monetary rewards like exclusive access to new services or products. It is essential to incorporate an easy to use tracking system, possibly digital, for accessibility and convenience for both the customer and your business.

Remember, a marketing strategy is as robust as its implementation. Engage with your customers, reward their loyalty and your laundry business will surely beat the daunting statistics.

Average Annual Spending per Household on Laundry Products 👨‍👩‍👧‍👦 American households spend an average of USD 250 annually on laundry products such as detergents, fabric softeners, and stain removers.

Financial Projections for Laundry Services: Planning for Profitability

Setting realistic revenue goals: the path to profitability.

Crafting a path to profitability begins with setting realistic revenue goals. Goals which are too ambitious could leave you disappointed and disheartened, while set too low could mean missed opportunities for growth and expansion. So, how do you strike the right balance?

For a laundry business, it involves understanding the earning potential within your market space and aligning it with your capacity and capabilities. Research competitors, assess your location’s laundry needs, and estimate the pricing of your services accordingly. Don’t forget to account for seasonality and fluctuations in consumer behavior. With proper research and planning, you can produce an initial financial forecast that paints a practical and profitable picture.

Just setting these goals isn’t enough though. This leads us to the next important task – regular financial assessments and adjustments.

In the dynamic world of business, conditions change and so should your goals. A regular financial review allows you to modify and refine your revenue expectations based on the actual performance and external factors such as increasing competition or changing consumer behavior. The aim is to keep your business sustainable and profitable in the long run.

Controlling Costs: Maximizing Your Bottom Line

Behind every profitable laundry business lies a well-implemented cost control strategy. Understanding the common costs associated with a laundry business is the first step

Energy expenditures (water and power), supply costs, equipment maintenance, and labor are some usual cost drivers in this industry. Making informed decisions in these areas can significantly influence your bottom-line. For example, investing in energy-efficient machines might be costly initially, but it can lead to substantial savings on utility bills in the long run.

Discussing strategies for cost control, the efficiency of your operations plays a huge role. Streamlining processes, investing in effective business management software and reducing waste are some common strategies. Employee training for better equipment handling can also help reduce maintenance costs.

Remember, every dollar saved is an additional dollar earned.

By carefully planning your revenue goals and implementing effective cost control strategies, you can pave the way for a sustainable and profitable laundry business. It’s all about understanding your earnings, controlling expenses, and constantly adjusting your financial plans to suit the business environment.

Every stake in profitability takes you a step further from being part of the 90% of laundry businesses that fail and a step closer to successful business ownership. It’s a complex task, but with methodical approach and continuous learning, it’s entirely achievable.

Global Laundry Care Market Growth 🌍 The worldwide Laundry Care market is projected to grow by 3.18% (2024-2028), reaching a market volume of US$122.50 billion in 2028.

Operational Considerations for a Successful Laundry Business: Ensuring Smooth Operations

Laundry businesses, commercial laundry, laundromat services, and laundry service are essential components of a successful laundromat business plan.

Incorporating washing machines, fold services, delivery service, and vending machines can enhance the customer experience and contribute to a solid business plan template. Metrobi specializes in elevating laundromats by offering streamlined services for delivering laundry .

Effective marketing materials, a well-thought-out sales strategy, and maintaining optimal business hours are crucial for cash flow and the overall success of laundromat businesses. By focusing on these key elements, a laundromat business can thrive in the competitive market of laundry facilities. Looking to enhance your laundromat business? Discover strategies for attracting new customers, optimizing your workforce, and expanding your commercial laundry operations .

Staffing Your Laundry Business: Building a Winning Team

Your team is the lifeblood of your business.

1 in 2 successful laundry businesses attribute their success to dedicated and skilled staff. Their role encompasses dealing with customers, maintaining, and operating the equipment, among others. Businesses with high staff turnover often have a bleak financial outlook.

Hiring quality staff goes beyond just filling positions. You need people who are dependable, quick to learn, and passionate about providing excellent service. A well thought hiring process can gear your laundry business to success—right from job postings to interviews and practical tests aimed at understanding a potential employee’s hands-on skills in managing laundry operations. Once onboard, retaining them should be your next priority. Employment benefits, a conducive work environment, and continuous training are among the techniques employed by successful laundry businesses to lower staff turnover rates.

Equipment Maintenance: Keeping Your Laundry Business Running Smoothly

Smooth operations translate to happy customers and ultimately, financial success. A key factor that facilitates smooth business operations is the state of your equipment. Ensure your critical machinery is always in top condition with laundry pick-up and delivery services , streamlining your operational efficiency and bolstering customer satisfaction.

Regular maintenance of your laundry machines is non-negotiable. Your business heavily depends on this machinery. Broken machines mean no service, and no service means no income. Implementing and sticking to a maintenance schedule will not only ensure your equipment lasts longer but can also save you significant amounts in repair costs down the line. Embrace the convenience and advantages of delivery services for laundry , ensuring your business continues to operate smoothly without the downtime of broken machinery.

Creating a maintenance schedule may seem a daunting task, but it’s simpler than most think. Start by reading the manufacturer’s guide for each machine. Highlight the recommended maintenance activities and how often these should be performed. Next, chart a plan based on these activities, designating times when they can be executed with minimal interruptions to business operations. The ultimate goal is to ensure regular checks and timely rectification of problems before they worsen and cause operational downtime.

US Laundry Care Market Growth 🇺🇸 The Laundry Care market in the United States is expected to grow by 2.46% (2024-2028), with a market volume of US$17.41 billion in 2028.

Why Do Laundry Businesses Fail: Lessons from a Decade of Data

Small business owners looking to establish a profitable laundromat may benefit from creating detailed business plans that outline financial projections and marketing strategies.

Securing small business loans can help cover initial costs such as laundry equipment and supplies. Additionally, offering additional services like wash and fold can attract college students and other customers. Metrobi supports laundromats by managing their delivery operations, delivering services across more than 20 US cities, with courier capabilities in Chicago .

Developing a strong financial plan and considering the legal structure of the business are crucial steps in ensuring the success of the existing laundromat. Implementing effective marketing channels and choosing a memorable business name can further enhance the visibility and reputation of the wash and fold service. Metrobi is at the forefront of offering delivery services across more than 20 US cities, including providing courier services in New York City , to support laundromats in expanding their operations efficiently.

Lack of Planning: The Biggest Culprit

Looking back at past laundry business failures, a dominant culprit is poor planning. A laundry business isn’t just about having equipment and a location; it encompasses detailed preparation and understanding of demographic data, competition, pricing strategy, and more.

In the same vein, the importance of a detailed, comprehensive business plan is paramount. It provides a roadmap for your business, showing the destination and how to get there. It outlines goals, operational plans, marketing strategies, and financial projections, forming the foundation of your venture.

Inadequate Marketing: Missing the Mark

With competition fiercer than ever in today’s digital age, businesses cannot afford to neglect the impact of marketing on success. It’s imperative that an adequate portion of the budget be dedicated to researched and tailored marketing strategies that resonate with the target audience.

Laundry businesses often falter, falling into common marketing pits. These missteps range from unclear branding to not leveraging social media platforms or ignoring online reviews. Avoiding these pitfalls and harnessing new marketing opportunities can greatly impact business growth and client base.

Poor Customer Service: The Silent Killer

Another major factor in the failure of laundry businesses is subpar customer service. In a rapidly evolving consumer market, customers demand high-quality, prompt, and personalized service. Neglecting this can quickly lead to dwindling customer loyalty and business failure.

In order to circumvent this, laundry businesses should adopt strategies for improving customer service and retaining customers. Emphasis on customer satisfaction, prompt response to complaints, and proactive actions to meet customer needs can boost loyalty and ensure a steady stream of clients.

Global Home & Laundry Care Market Growth 🏡 The worldwide Home & Laundry Care market is forecasted to grow by 4.09% (2024-2028), resulting in a market volume of US$239.80 billion in 2028.

Financial Mismanagement: A Fast Track to Failure

A common thread in business failure is financial mismanagement. Negligence or lack of expertise in handling finances can quickly deplete resources and impair growth.

Knowledgeable financial management tips such as setting clear financial goals, keeping track of spending, regularly reviewing financial performance, and planning ahead can aid survival. By keeping a close watch on finances, businesses can catch issues early on and rectify them before they become unmanageable.

Operational Inefficiencies: The Hidden Drain on Profits

Operational inefficiencies are a constant, albeit hidden, drain on profitability. It’s like a termite, eating away at the business, often unnoticed until it’s too late. Inefficiencies could stem from outdated technology, improper inventory management, or flawed workflow processes.

Laundromat owners in the local area can utilize their personal savings to invest in coin-operated machines. Conducting a competitive analysis is crucial before deciding to hire employees and secure funding.

Key aspects such as targeting apartment buildings, implementing search engine optimization, and preparing detailed financial statements are essential for the success of a new laundromat as a new business venture.

Harnessing measures to optimize operational efficiency can significantly boost productivity and profitability. These can include investing in the latest technology, fine-tuning workflow processes, and adopting data-driven inventory management systems.

Revenue of the US Laundry Care Market 💵 The revenue of the laundry business in the U.S. was $7,370 million in 2010 and is expected to reach $7,660 million by 2022 .

Stepping Out of the Spin Cycle: Learning from the Laundry Business Bust

Statistics don’t lie. Over the past decade, missteps in understanding your market, incorrect pricing strategies, and mismanaging growth plans are the common causes behind 90% of laundry businesses crashing and burning.

Remember, these challenges aren’t unique; they plague businesses across all sectors. Use the lessons drawn from laundry industry real-life scenarios to sidestep these pitfalls successfully.

Mitigate these risk factors by saying no to ‘one size fits all’ traditional marketing, embracing competitive pricing frameworks, and aligning your growth in sync with your capabilities. Because nothing worth having comes easy.

Could you identify any other potential choke points in the laundry business from your personal experience?

Here’s to the brave 10%, crushing it in the laundry business. You’ve got this.

Laundry delivery unpacked: Simplifying your chore routine

Adding a laundry delivery service can boost your profits

How to grow your commercial laundry service offering

‟If I did not have a reliable delivery service, my business would not be able to continue.”

Fleurs to You

‟On-Time Pick-Up & Courteous Drivers”

‟I am able to do twice as many orders because I don't spend time delivering”

‟My favorite drivers are there for me”

Field Trip Flowers

• Laundry Business Plan
• commercial laundry service

• laundry delivery service

• Laundry Delivery

• Brewery Marketing
• brewery marketing

• Brewery Supplies and Equipment
• brewery supplies

• Restaurant Marketing
• restaurant marketing

• Restaurant Software
• table reservation system

• Catering Sales & Marketing
• catering sales

• Restaurant Staffing
• Restaurant Staff Training

• Route Optimization
• travelling salesman problem

• Types of Shipping Methods
• International shipping

• Click and collect shipping

• omnichannel logistics

• dynamic route optimization

• Last Mile Delivery Glossary
• green transportation

Success Stories

Rebel Bread

GrandTen Distilling

Dorchester Brewing Company

Benz’s Food Products Inc.

DELIVER WITH METROBI

Grow with confidence

• 55 Court St floor 2, Boston, MA 02108
• [email protected]
• Team Metrobi
• Privacy policy
• Terms of service
• Write for us

Refer us to a company, you earn $250 and they earn $250. Learn more

• Shopify Delivery Planner App
• Delivery Management Software
• Atlanta courier service
• Boston courier service
• Chicago courier service
• Denver courier service
• Miami courier service
• New York City courier service
• Los Angeles courier service
• Philadelphia courier service
• San Francisco courier service
• Washington DC courier service
• See all locations
• Bulk Order Delivery Service
• Express Urgent Delivery Service
• Fixed Route Delivery Service
• On Demand Delivery Service
• Overnight Delivery Service
• Same Day Delivery Service
• Scheduled Delivery Service
• Wholesale Delivery Service
• See all delivery services
• Metrobi vs. Onfleet
• Metrobi vs. Roadie
• Metrobi vs. Roadie Support
• Artisan Food
• Food Producers

Want to access our large pool of drivers?

We started Metrobi to take operations off your plate. We provide drivers (rated 4.97/5), dedicated operation managers (70% cheaper), and routing software with a receiver notification system.

Small Business Trends

How to start a laundry business: a comprehensive guide, evaluating the laundry industry.

To ensure a successful start to your laundry business, it’s important to evaluate the laundry services market. By understanding the growth potential, different types of laundry services, and the benefits of owning a laundry business, you’ll be equipped with the knowledge to make informed decisions, from the best time to start a business to questions to ask yourself before starting a business in the laundry industry.

Understanding the Growth Potential

The different types of laundry services.

The laundry service industry offers a range of options to meet diverse customer requirements. Self-service laundromats provide individuals with a do-it-yourself approach, where customers handle their own washing and drying.

Benefits of Owning a Laundry Business

In summary, owning a laundry business can provide financial stability, flexibility, and a deep sense of community engagement, making it a rewarding entrepreneurial venture.

Developing a Laundry Business Plan

Identifying your target market, analyzing the competition, choosing a laundry business model.

Different laundry business models exist, such as self-service laundromats, full-service laundries, or online platforms. Consider your target market, competition, and personal preferences to select the most suitable model for your business.

Determining Your Unique Selling Proposition

Starting Your Own Laundry Business

Finding the right location, purchasing or leasing equipment.

To run a laundry business, you’ll need essential laundry machines like washers, dryers, and other necessary tools. Understanding the pros and cons of purchasing versus leasing equipment will help you make informed decisions about the best approach for your business.

Licensing, Permits, and Insurance

Staffing and training.

Marketing Your Laundry Services

Building your brand.

Building a strong brand is important for attracting customers to your services. Focus on creating a memorable logo, designing eye-catching signage, and establishing a consistent visual identity. Provide exceptional customer service and deliver quality results to build a reputation that sets you apart from competitors.

Developing a Marketing Strategy

Leveraging social media and online platforms.

Maintaining and Growing Your Laundry Business

Managing finances, monitoring and improving customer satisfaction.

Customer satisfaction is crucial for the growth of your laundry business. Regularly seek customer feedback and proactively address any concerns or issues. Implement quality control measures to deliver excellent service consistently. Offer loyalty programs or incentives to foster long-term customer relationships.

Expanding Your Services

Adapting to industry trends.

Final Tips for Success in the Laundry Business

Staying organized and continuously improving your skills will keep you ahead of the competition. With these strategies in place, your laundry business is well-positioned for growth and profitability. Best of luck on your entrepreneurial journey!

How to Start a Laundry Business FAQs

What is the average cost of starting a laundry business.

Starting a laundry business typically costs between $10,000 and $50,000, depending on factors such as location, equipment, and renovations. It’s crucial to create a detailed budget and explore financing options to ensure you have sufficient funds for startup costs and initial operational expenses.

How much profit can I expect from my laundry business?

Are there any grants or funding opportunities available for starting a laundry business, how can i make my laundry business more eco-friendly, what are some common challenges faced by laundry business owners and how can i overcome them.

Maintain regular equipment maintenance schedules to avoid breakdowns. Actively seek customer feedback and address any concerns promptly to ensure a positive customer experience and loyalty.

Laundry Service Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Service Industry » Laundry Business

Are you about starting a laundry & dry cleaning business ? If YES, here is a complete sample laundromat business plan template & feasibility report you can use for FREE.

Hygiene is one important thing that must not be practiced with less seriousness; as a matter of fact, it has to be a frequent practice. One must take it really seriously, so as to avert bad odor and sickness; it is for this reason that one must keep things really clean.

This is also the reason why people love to wash their clothes. However, there are times when one might not have the luxury of time to the laundry. That is where the Laundromat business comes in. This is one business that people all over the world are beginning to key into because of the level of profitability which it promises.

If you are thinking to start in this line of trade, then that is a good idea. Good news is that you can choose to start on a small or large scale. This all depends on the capital which you have got to start the business Below is a sample Laundry business plan.

A Sample Laundry Service Business Plan Template

1. industry overview.

In the united states of America and in most developed countries of the world, self-service laundry business which is popularly called Laundromat in the United States is rapidly an essential part of the urban life. This is so because in this age and time, 24 hours seems not to be enough, especially for people that work in the corporate world or even those who run their own businesses.

As the name implies, a self-service laundry or coin wash / laundry or Laundromat is a laundry facility where people come in to personally wash and dry their clothes; technically, customers provide their own labor and still pay the price for making use of the laundry equipment made available.

Customers have the option of paying with coins which is the popular payment option and they can also pay via swipe cards that subtract the cost of the wash or dry or even via mobile money. Despite the fact that customers provide their own labor, some Laundromat owners still employ people to man or provide assistance to customers.

It is normal to find Laundromats where operators are employed to man the day to day operations, as well as provide value added services like; helping customers iron their clothes, starch their clothes, and fold their clothes et al.

Usually when Laundromat hire employees, the core responsibility assigned to them is to man the counter, give directions to customers, sell washing powder, sell laundry bags, provide change and watch over the washing machines and other equipment in the Laundromat to guide against theft of the machines or even customer’s clothes.

Although the laundry industry can be said to be a competitive trade, but it does not in any way stop entrepreneurs who are creative to still make headway in the trade.

It is indeed a profitable industry especially when the business is well located. No doubt busy cities with growing population might just be highly suitable for Laundromat. There are loads of people that patronize Laundromats; and they include; busy corporate executives, students, and even senior citizens.

In the bid to stay afloat in the highly competitive Laundromat business, owners of Laundromats now go the extra mile to ensure that they make their facilities welcoming and conducive for customers. As a result, Laundromats now have coffee bars, snack bars, cigar lounge, video games, children’s playground and free Wi-Fi connection, amongst others.

Over and above, any aspiring entrepreneur can comfortably start his or her own Laundromat business by acquiring an existing Laundromat and then refurbish it to meet the expected standard, or start the business from the scratch by constructing a new one and then equip it with the needed equipment and accessories.

The average startup cost for a standard Laundromat business is around $250,000 to $500,000. When starting your own Laundromat business, ensure that you choose a location where you can easily attract the kind of people that patronize Laundromat services.

2. Executive Summary

Las Vegas City Laundromat is a registered Laundromat facility that was built to serve the people of Las Vegas- especially the busy corporate executives and students. Our Laundromat will be located in the heart of the city of Las Vegas which is less than 30 minute drive from McCarran International Airport in Las Vegas, and 10 minutes minute drive from Mandalay Bay Event Center.

We are strategically positioned in the world’s headquarter for casinos and games; a commercial center and we are set to services the whole of the community as well as visitors and travelers alike. Las Vegas City Laundromat is a standard Laundromat in a 6,000 square feet facility; we have one of the biggest Laundromats with the latest and easy to use washing machines and dryers.

Aside from welcoming customers to do their laundry chores at an affordable fee in our Laundromat, we have a conducive environment that will encourage them to always choose us as their number one choice. We have a coffee bar in our facility, we cigar lounge, we have children’s fun center and video games and snacks bar et al.

Our Laundromat will be open from 6 a.m. and close 10 p.m. from Mondays to Thursdays and will run a 24 hours service from Friday to Sunday. We decided to operate in this format because from our market survey and feasibility studies, we realized that customers usually do most of their laundry during weekends.

Las Vegas City Laundromat is a proud member of the Coin Laundry Association of America and we are well positioned to become one of the leading Laundromat facilities in the whole of Nevada. We will be providing our esteemed customers the right environment and equipment for them to comfortably do their laundry.

We will also provide additional services such as ironing, folding and packaging of clothes for our customers. Our attendants will always be available to change money, sell detergents and softeners et al. We are quite aware that in order to become the number one Laundromat in Nevada, we must continue to make our facility welcoming and relaxing and that is exactly what we will do.

We are open to the use of latest technology in the industry. No doubt our excellent customer service and the range of additional complementary services we offer will position us to become one of the leading Laundromats in Las Vegas, Nevada.

Las Vegas City Laundromat is owned and managed by Anthony Miller and family. The business will be financed by Mr. Miller and he will be actively involved in the day to day operation of the Laundromat. Mr. Anthony Miller has a B.Sc. in Business Administration and Management and he has well over 5 years of experience in the service industry.

3. Our Products and Services

Las Vegas City Laundromat is a standard Laundromat with state of the art facility specifically positioned to become the market leader in the industry. Our major purpose of starting this business is to provide a suitable and comfortable facility where people can easily do their laundries with little stress at an affordable fee.

Much more than providing a facility where people can do their laundries, we also offer complementary services; services that will get our customers hook to us. Bottom line is that we will go all the way to help our customers maximize their time when they patronize our Laundromat. These are the services and amenities that will be made available to our customers;

• Self – service washing
• Dry cleaning services
• Folding and packaging of clothes
• Home delivery services
• Cigar lounge
• Children playground
• Video games
• Big screen movies

4. Our Mission and Vision Statement

• Our Vision is to operate one of the most successfully Laundromat in Las Vegas, Nevada.
• Our mission is to develop a highly successful and profitable Laundromat business with state of the art facility in the heart of Las Vegas, Nevada; a business that will not only meet the needs of her clients but also supersede their expectations.

Our Business Structure

Las Vegas City Laundromat is set to become one of the leading Laundromat businesses in the whole of Nevada, hence the need for us to build a solid business foundation and business structure that will enable us achieve our aims and objectives.

Excellent customer service and efficiency are top priority for us which is why we will ensure that we look for applicants that match the picture of the business who want to build before hiring them. Although we will provide trainings in areas such as excellent customers services et al, but we will ensure that we shortlist applicants that are customer centric.

In essence, we want to build a team, a dedicated workforce that will work together to help the organization achieve its set targets.

We will not only hire attendants that will help supervise our Laundromat and attend to customers need when they patronize our services, but we will also hire employees that will manage our coffee café, cigar lounge, snacks bar, and our children’s playgrounds et al. Las Vegas City Laundromat will employ customer centric and skilled people to occupy the following position;

• Manager (Owner)
• Accountant / Cashier
• Marketing Officer
• Laundromat Attendant
• Coffee Café and Snacks Bar Manager

Cigar Lounge Manager

• Children’s Playground Manager
• Security Guard

5. Job Roles and Responsibilities

Manager (Owner):

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for managing the daily activities at the Laundromat
• Ensures that the facility is in tip top shape and conducive enough to welcome customers
• Interfaces with vendors
• Prepares budget and reports for the organization
• Responsible for Training and Development in the organization
• Handles procurement
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team hires

Marketing Officer (2)

• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information.
• Represents the company in strategic meetings
• Helps increase sales and growth for the company
• Manages the company’s CRM system
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

Coffee Café and Snacks Bar Manager:

• Interacts with customers, take orders for coffee and snacks.
• Responsible for preparing different flavor and style of coffee for customers
• Makes lists of supplies in conjunction with the bar manager
• Ensures that each cup of coffee that leaves the kitchen is tailor made and meet the request of each customer
• Responsible for quality control
• Assesses customers’ needs and preferences and make recommendations
• Makes lists of supplies in conjunction with the management
• Prepares inventory or purchase requisitions as needed to replenish supplies.
• Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
• Responsible for managing the cigar lounge
• Prepares inventory or purchase requisitions as needed to re – stock the lounge.
• Clears ashtrays regularly
• Ensures that the assigned lounge area is fully equipped with tools and products needed to by our clients

Accountant / Cashier:

• Moves round the machines to collect payment after each working shift
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Handles any other duty as assigned by the manager

Laundromat Attendants

• Mans the various washing machines and dryers
• Assists customers as required by them especially on how to operate our machines
• Provides change for customers
• Sells detergent and softener to customers
• Ensures that the Laundromat is clean and ready to welcome customers at all times
• Responsible for ironing and folding of clothes based on demand
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows et al.
• Ensures that toiletries and supplies don’t run out of stock
• Handles and move objects, such as waste baskets, clothe rack and hand dryer et al
• Handles special request like pick up and home delivery
• Handle any other duty as assigned by the manager

Children’s Play Ground Manager

• Responsible for managing children’s play ground
• Ensures that the children are safe and happy
• Makes recommendation for purchase of children’s toys and video games
• Mops the floors
• Wipes down the machines
• Cleans the soap dispensers in your front-load washers
• Washes off the folding tables
• Cleans the bathroom
• Empties the trash
• Washes the windows
• Cleans the vending machines, change machines and video game screens

Security Guards

• Ensures that the facility is secured at all time
• Controls traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submits security reports weekly
• Handles any other duty as assigned by the restaurant manager

6. SWOT Analysis

No doubt starting a Laundromat is indeed capital intensive, especially for aspiring entrepreneurs who may not have huge sum of money saved up in a bank. We are aware that it will require loads of cash to set up a standard Laundromat business in Las Vegas, which is why we decided to do all that is required to build a profitable business

We don’t intend to invest our hard earned money in a business that we know we are not truly cut out for. One of the tools that is required to position us in building a successful Laundromat business is SWOT Analysis.

We hired the services of Mr. Coleman Carrington, an HR and Business consultant who is based in Las Vegas, Nevada, to help us conduct SWOT analysis and draft a laundromat marketing plan for our company and he did a pretty good job for us.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Las Vegas City Laundromat, Las Vegas, Nevada;

Las Vegas City Laundromat is centrally located in a densely populated area in Las Vegas; our location is in fact one of our major strengths. Aside from the basic service that we offer, we also offer complimentary services that most of our competitors do not offer.

Our Laundromat facility is located inside a very big facility. We have the latest washing machines, dryers and equipment and our attendants are well groomed to handle various classes of customers.

The weakness of Las Vegas City Laundromat could be the fact that it is a new business, which is owned by an individual (a small family), and we may not have the financial capacity to sustain the kind of publicity that can give us leverage.

• Opportunities:

We are centrally located in one of the busiest areas in Las Vegas and we are open to all the available opportunities that the city has to offer.

Our business concept has also positioned us to attract people who like doing their laundries and catching some fun at the same time. Las Vegas is one of the densely populated cities in the United States, and indeed the population translates to opportunities.

One of the major threats that confronts businesses all over the world is economic downturn; when the economy is bad it affects consumers spending which in turn impacts businesses negatively. Another threat that we are likely going to face to confront us is the emergence of a new Laundromat within the same location where Las Vegas City Laundromat is located.

7. MARKET ANALYSIS

• Market Trends

The ability for business owners to continue to re – invent itself is key to the success of the business. In the laundry industry especially in the U.S., it is trendy to see laundry companies and Laundromats that add additional complementary services to their business offerings.

Once a Laundromat is conducive and relaxing, it sure attracts customers. This is the strategy that helps Laundromat attract customers. This is why Laundromats are now building kids’ fun centers, holding music concerts, karaoke, selling coffee, snacks, and tobacco and hiring attendants who are friendly and helpful.

As a matter of fact, loads of Laundromat owners now realize that they can increase business by providing a play area for children to play. It is encouraging for parents to bring their kids and get them hooked with fun in the playground under the care of a competent employee, whilst they do their laundries.

It is important to state that despite the fact that the trends mentioned above are favorable to Laundromat owners, this does not in any way suggest that the business is booming. The Laundromat industry is what experts describe as a “mature market.

“ Except for areas where that are highly populated; it is easier to find one or more laundry businesses/ Laundromats in same area in most cities in the U.S.

8. Our Target Market

Before choosing a location for our Laundromat business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings which is why we deiced to settle for Las Vegas.

Essentially, those who will benefit from our service offering are busy corporate executives, business owners, households, students and travelers / visitors. These are the category of people that we intend marketing our Laundromat business to;

• Busy Corporate Executives
• Business Owners
• Visitors / Travelers
• Sport clubs

Our Competitive Advantage

From our recently concluded feasibility studies and market survey, we observed that there are several laundry businesses scattered all over the city of Las Vegas, as a matter of fact, there are two or more laundry / Laundromats in same locations in some areas. This goes to show that there are stiffer competition in the industry.

Before launching our Laundromats, we have critically studied the market and we know that we have some form of competitive edge. Our competitive advantage is that we have a standard Laundromat facility that offers additional complementary services that will definitely help us attract and retain customers.

Las Vegas City Laundromat can boast of having state of the art Laundromat facility with latest and easy to use laundry machines (washing machines, dryers, industrial irons et al). We specifically, we leased a big facility, so as to enable us achieve our aim of building a well – equipped children’s playground, coffee and snacks café, cigar lounge amongst others.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Las Vegas City Laundromats will generate income from the following service offerings;

• Self – service laundry jobs
• Ironing, folding and packaging of clothes
• Sale of detergents, laundry bags and other useful laundry products
• Sale of Coffee
• Sales of Snacks
• Pickup and Home delivery
• Cigar Lounge

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field with reference to similar business in Las Vegas.

We know that we are well positioned and we will definitely attract clients that will not only patronize our Laundromat but clients that will patronize our coffee care and snacks bar, and cigar lounge et al meaning that we will generate additional income from these sources.

Below is the sales projection for Las Vegas City Laundromat, it is based on the location of our Laundromat and the type of services and products that we will be offering;

• First Year-:  $80,000
• Second Year-: $120,000
• Third Year-: $180,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any Laundromat offering same additional services like us within 4.5 miles radius from our Laundromat facility.

• Marketing Strategy and Sales Strategy

The marketing strategy for Las Vegas City Laundromat is going to be driven basically by making available standard and safe Laundromat facility, excellent customer service and provision of complementary services. We will work hard to build a loyal customer base; customers that will always patronize us over and over again and as well help us use word of mouth publicity to get their friends and acquaintance to patronize us.

We want to drive sales via making available easy to use washing machines, dryers and industrial irons et al. We are quite aware of how satisfied customers drive business growth especially businesses like Laundromat which is why we will always ensure that our customer service and facility are top notch.

Over and above, our unique selling proposition is that we have various complementary service offerings such as coffee café, snacks bar, cigar lounge; children playground, ironing, folding and packaging, pickup and home delivery, and sale of detergents, laundry bags and other useful laundry products.

In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but ensure that they become loyal customer; Part of the marketing and sales strategies that we will adopt are;

• Open our Laundromat business with a party and free trial for all our visitors for the first three days of launching the business.
• Advertise our Laundromat business on national dailies, local TV stations and local radio station
• Promote our Laundromat business online via our official website and all available social media platforms
• Continuously Improving the performance of our brands
• Hire the services of experts to make our brands the first choice for in Las Vegas
• Delivering consistent customer experiences to all our guest; making our first impression count positively
• Make use of attractive handbills to create awareness and also to give direction to our Laundromat.
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our Laundromat business.

11. Publicity and Advertising Strategy

We are aware of the power of publicity and advertisement for new businesses like ours which is why we created a budget that will help us access various publicity and advertising platforms that will enable us reach out to our potential market.

At Las Vegas City Laundromat, will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our Laundromat business. Here are the platforms we intend leveraging on to promote and advertise Las Vegas City Laundromat;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
• Advertise our Laundromat business in relevant magazines (America Coin – Op, and Journal Coin Laundry News et al), local newspaper, local TV stations and local radio station.
• Promote our Laundromat business online via our official website
• List our Laundromat business on local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations
• Direct coupon mailing approach
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas all around Las, Vegas.

12. Our Pricing Strategy

At Las Vegas City Laundromat, our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in Las Vegas.

Be that as it may, the management of Las Vegas City Laundromat have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us. The prices of our products (snacks, cup of coffee, cigar, detergents et al) will be same as what is obtainable in any part of the United States of America.

• Payment Options

Basically, we have made provisions for our washing machines and dryers to accept coins , but that does not in any way restrict us from receiving payments from other options especially for our complimentary service offerings. In other words, our payment policy is going to be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;

• Payment by cash /coins
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital on;

• The Total Fee for Registering the Business in Las Vegas, Nevada – $750 .
• Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) – $4,500.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580 .
• Cost for hiring Consultant – $2,000 .
• Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,800 .
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing facility for the Laundromat – $70,000 .
• Cost for facility remodeling – $50,000 .
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ( $3,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for Start-up inventory – $15,000
• Storage hardware (bins, utensil rack, shelves, glasses case) – $2,720
• The cost for Washer hook-up fees (sewer connection) – $800
• Cost for serving area equipment for coffee café and snacks bar ( glasses, flatware) – $5,000
• Cost for laundry machines and equipment (washing machines, dryers, industrial irons, ironing board et al ) – $100,000
• The cost for the purchase of furniture and gadgets (, Printers, Telephone, TVs, Sound System, video games, toys, vacuum cleaner, tables and chairs et al) – $30,000 .
• The cost of Launching a Website – $600
• The cost for our grand opening party – $5,500
• Miscellaneous supplies (cleaning supplies, soap, invoices for wash-and-fold, bathroom supplies, etc.) – $10,000

We would need an estimate of $1 million to successfully launch our Laundromat business in Las Vegas Nevada. Please note that the startup cost is higher than the average startup cost for a Laundromat business simply because we intend adding coffee café, snacks bar, cigar lounge and children’s playground.

Generating Funding / Startup Capital for Las Vegas City Laundromat

Las Vegas City Laundromat is a family business and it will be financed by the owner who is also the Laundromat manager. These are the areas where we intend sourcing for fund for Las Vegas City Laundromat;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from family members and friends (soft loans)
• Generate a larger chunk of the startup capital from the bank.

14. Sustainability and Expansion Strategy

Las Vegas City Laundromat is set to become the number Laundromat business in the whole of Nevada which is why we took our time to craft out business plan that will help us sustain the business , as well as grow the business. Part of the plans we have in place to sustain our Laundromat is that we will have efficient machines and equipment.

We will also continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our products and service offerings once the need arises.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit licenses (Health department license and business license, Fire department permit, Air and water pollution control permit, and Sign permit et al): Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of laundry machines and equipment ( washing machines, dryers, industrial irons, ironing board et al ): In Progress
• Purchase of furniture and gadgets (Printers, Telephone, TVs, Sound System, video games, toys, vacuum cleaner, tables and chairs et al): In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of all our needed laundry accessories, drinks, and tobacco et al: In Progress

Related Posts:

• Dry Cleaning Home Delivery Business Plan [Sample Template]
• Interior Design Business Plan [Sample Template]
• Personal Grocery Shopper Business Plan [Sample Template]
• Special Needs Daycare Business Plan [Sample Template]
• Shoe Repair Business Plan [Sample Template]

How to Write a Laundromat Business Plan + Example Templates

Elon Glucklich

7 min. read

Updated February 7, 2024

Free Download:  Sample Laundromat Business Plan Template

Would you open a business in an industry that continuously sees annual growth rates between 3 and 5 percent , with steady growth forecast for the next decade?

Starting a laundromat business may not sound flashy, but it has proven to be a profitable venture for many.

But just like a retail store or tech startup, operating a successful laundromat business takes careful planning. It also requires accounting for major upfront costs, and keeping in compliance with environmental regulations.  

That’s why it’s so important to conduct extensive research and planning, before investing in building space and expensive commercial-grade laundry equipment. Putting together a solid business plan will help you focus on the important purchases to make and processes to implement to run a successful laundromat business.

Get started by downloading our free sample laundromat business plan template .

• Why You Need a Business Plan for Your Laundromat Business

Because of the careful planning and attention to details required, it’s crucial to map out the vision and structure for your business. That’s where a business plan comes in handy.

Do you know how much you will need to spend on equipment before you ever bring in any revenue? Will you need a bank loan to get up and running? Most customers look for the laundromat that’s closest to them , so how much do you know about the demographics of the neighborhood you plan to operate in?

A business plan is the place to compile your most relevant market research , financial projections , and your overall strategic vision for the business. It’s where you can document assumptions about your startup costs and ongoing operational costs, as well as the processes you’ll put in place to ensure compliance with environmental rules.

This guide will help you structure your laundromat business plan, detailing the main areas to cover in the plan and what types of information you’ll need to compile.

• Understand Your Business Model and Startup Costs

All laundromats are not the same. There are the traditional, coin-operated models. But there are also more modern card-operated systems. Many are self-service, but some provide drop-off service, dry clearing, even tailoring. In your business plan, you should discuss the laundromat business model you are choosing and why. Higher-end services like tailoring might attract a broader customer base, but they bring additional costs.

Your business plan is the place to define the services you will provide . It’s important to document these decisions, even if you are just opting for a traditional coin-operated laundromat. Producing a detailed estimation of your startup costs before launching the business is essential, since it will ensure you are considering the full range of equipment and utility costs.

Once you have defined your business model, you will need to show that it aligns with your projected costs, including:

• Building lease or purchase
• Renovations
• Commercial-grade laundry equipment
• Laundry detergent
• Business license

Without detailing your startup costs upfront, your financial projections for the business won’t be accurate, and you will be less prepared for unexpected costs .

A detailed financial projection will also help you determine how long it will take for your business to break even . With a detailed description of your business model and startup costs, you will be ready to approach lenders or investors to get funding for your laundromat . That initial investment will be key to your success, since laundromat startup costs are often hundreds of thousands of dollars.

Know the Area You’ll Serve

Location, location, location. It’s true for many businesses that the location it operates in plays a major role in determining how many customers walk through its doors. That’s especially true for a laundromat. Many customers will be apartment tenants, and are likely to seek out a laundromat within 1-3 miles of where they live.

So the location of your laundromat is a significant determinant of its potential success, and should be a focal point in your business plan. A strategic location can drive high foot traffic, increase visibility, and ultimately boost revenue.

Your selected location should ideally be in an area with a high density of potential customers. This could include neighborhoods with many apartments or near university dormitories where residents may not have easy access to laundry facilities. Additionally, your location should be easily accessible, preferably on a main road with clear visibility from the street to attract passers-by.

In your business plan, explain why your chosen location meets these criteria. Describe the following:

• Demographics of the area
• Ease of access to the business
• Visibility from the street
• Competitors and their distance from your business

While marketing may not be a huge portion of your operating budget, you will want to demonstrate in your business plan that you have a strategy for acquiring customers and retaining them . Consider strategies you might use to promote your business, like advertising through flyers and newspaper ads, or digital marketing on social media or through search engine optimization.

Understanding your target customers will help inform these strategies. For instance, if your laundromat is near residential areas or college campuses, you may want to advertise in student publications or on social media channels. But if it’s in the middle of a busy downtown, you may want to advertise cleaning services for suits, or commercial laundry services.

• Stay on Top of Operating Expenses

We’ve discussed the sizable costs to open a laundromat business. But there are also ongoing operational costs that need to be taken into account. Think about a washing machine that’s broken down, dryer lint screens that need to be replaced, or maintenance on your water connections. 

Your business plan is where to compile those costs, since they’ll have a significant impact on your long-term finances. You won’t be able to accurately estimate your break even date without them.

Your business plan must detail the maintenance and repair strategies you intend to employ in order to extend the life of your equipment. Document your strategy for handling repairs – whether you’ll use an on-call technician, train any staff to handle minor upkeep, or send faulty equipment to the manufacturer for repairs.

You should also state whether you will have a contingency plan while machines are being repaired. Do you have spare machines, or a regular maintenance schedule to minimize disruption? This will show potential lenders or investors that you’ve considered steps to maintain steady revenue streams.

Don’t forget about utility and insurance costs, as well. These are ongoing expenses that can change as your business grows. You will want to demonstrate in your business plan that you have considered the impact of these costs on your business – not just when you start the business, but on an ongoing basis.

• Compliance Can Make or Break Your Business

Laundromats are subject to a variety of regulations , from local zoning laws to environmental standards. For instance, there might be specific requirements for wastewater disposal, given the amount of detergents and chemicals laundromats typically use. You may also need to comply with safety standards regarding equipment operation and maintenance.

It’s crucial to comply with all relevant regulations, just as in any business. Your business plan should include a section dedicated to detailing these legal and regulatory requirements.

Start by identifying the agencies that oversee these regulations, from local health departments to the Occupational Safety and Health Administration and Environmental Protection Agency. List the concerns these agencies will be looking out for, from wastewater disposal to emissions from your laundry machines. Then, detail the steps you’ll take to ensure compliance, such as regular inspections and audits, staff training and the implementation of safety protocols.

Show customers and your lender that you know about the relevant regulations and have a plan to stay on top of them. Not only will it reassure them that you can responsibly run a laundromat business, but it also reduces the risk of costly fines, operational disruptions and even lawsuits.

• Download a free laundromat business plan template and example

For help getting your business started, download our free laundromat business plan template . You can download this document in Word form and use it as a foundation for your own business plan.

If you want to brush up on how to write specific sections of a traditional business plan, take a look at our step-by-step guide on how to write a business plan .

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Table of Contents

• Know the Area You’ll Serve

Related Articles

12 Min. Read

How to Write a Food Truck Business Plan (2024 + Template)

7 Min. Read

How to Write a Cleaning Service Business Plan + Free Sample Plan PDF

6 Min. Read

How to Write an Ice Cream Shop Business Plan + Free Sample Plan PDF

13 Min. Read

How to Write a Business Plan for a Daycare Center

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Laundromat Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 5,000 entrepreneurs and laundromat owners create business plans to start and grow their laundry businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a business plan template step-by-step so you can create your plan today.

Download our Ultimate Laundromat Business Plan Template here >

What is a Laundromat Business Plan?

A business plan provides a snapshot of your laundromat business as it stands today, and lays out your business growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes research to support your business plans.

Why You Need a Business Plan for a Laundromat

If you’re looking to start or grow a laundromat, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your laundromat in order to improve your chances of success. Your laundromat services business plan is a living document that should be updated annually as your business grows and changes.

Source of Funding for Laundromats

With regard to funding, the main sources of funding for a laundromat are bank loans and angel investors. With regards to bank loans, banks will want to review your laundromat business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a laundromat is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a laundromat as they tend to focus on modern technology companies with quick and explosive growth potential.

Finish Your Business Plan Today!

How to write a laundromat business plan.

Your own business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your laundromat business plan, but it is normally the last section you write because it provides a summary of each key component of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of laundromat services business you are operating and the status; for example, are you a startup, do you have a laundromat that you would like to grow, or are you operating a chain of laundromats.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the laundry industry. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your laundromat marketing plan. Identify the key members of your team. And offer an overview of your financial and sales forecast.  

Company Analysis

In your company analysis, you will detail the type of laundry business you are operating.

For example, you might operate a traditional laundromat in which you offer coin-operated washers and dryers. Or, you might (also) offer fluff and fold laundry services in which your staff washes and folds your customers’ laundry. This wash and fold service could also include home/office pickup and delivery. Be sure to explore all dry cleaning and laundry services that could be of benefit to your target demographic.

In addition to explaining the type of laundromat you operate, the Company Analysis section of your laundry shop business plan needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales forecasts, goals you’ve reached, new store openings, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the laundry business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the laundromat industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards fluff & fold, it would be helpful to ensure your plan calls for offering such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your laundry shop business plan:

• How big is the laundry industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s future growth over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your new laundromat business plan must detail the patrons you serve and/or expect to serve.

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of laundromat you operate. Clearly, baby boomers would want a different atmosphere, pricing, and product options, and would respond to different marketing promotions than teens.

Try to break out your target customer base in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most laundromats primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers. For example, middle-class households may value clean laundry above all else, while upper-class households may value convenience most of all.

Finish Your Laundromat Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Laundromat Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

In this section, you should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other laundromats.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes laundry machines/dryers in consumers’ homes or living environments (e.g., in college dorms). You need to mention such competition to show you understand that not everyone who needs their clothing washed frequents a laundromat.

With regards to direct competition, you want to detail the other laundromats with which you compete. Most likely, your direct competitors will be laundromats located close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of clientele do they serve?
• What laundry services do they offer (self-serve laundry, wash & fold, dry cleaning, etc.)?
• What are their business hours?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior laundry services?
• Will you provide additional services that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire the services offered?
• Will you offer any additional amenities such as a coffee bar or free wi-fi access?
• Will you provide better customer service?
• Will you offer better pricing?
• Will you offer more payment options suitable for your customer base?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, the marketing section of a business plan includes the four P’s: Product, Price, Place, and Promotion. For a solid laundromat business plan, you should include the following:

Product : in the product section, you should reiterate the type of business that you documented in your Company Analysis. Then, detail the specific laundromat services you will be offering. For example, in addition to washing and drying machines, will you offer fluff & fold, dry cleaning, etc.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the services you offer and their prices.

Place : Place refers to the location of your laundry business. Document your strategic locations and mention how each location will impact your success. For example, is your business located next to a heavily populated office building, or gym, etc.? Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to offer fluff & fold services, detail the geographic area you will serve.

Promotions : the final part is the promotions section. Here you will document how you will create awareness and drive potential customers to your location(s). You might consider the following strategies to help promote your laundromat services:

• Making your storefront extra appealing to attract passing customers
• Marketing on social media platforms
• Marketing in local papers and magazines
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your laundromat business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your business such as serving customers, procuring supplies, keeping the store clean, maintaining laundry equipment, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your X,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a business.

Ideally, you and/or your team members have direct experience in the laundromat business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in laundromats and/or successfully running retail and small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will your sales strategy help you grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheet : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your new laundromat, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key startup costs:

• Location build-out including design fees, construction, etc.
• Start-up expenses if starting a new business
• Cost of laundry equipment like washers and dryers
• Cost of fixtures like folding tables, laundry carts, vending machines, counters, and lighting
• Cost of supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Putting together a new business plan for your business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the industry, your competition, and your customers. You will have developed a marketing strategy and will really understand what it takes to launch and grow a successful laundromat.

To further help you, we have other articles on key aspects of how to start your laundromat and running it effectively. Specifically, our laundromat marketing plan will help you develop the best promotions strategy. Our laundromat startup costs post will let you know what costs to expect.

Laundromat Business Plan FAQs

What is the easiest way to complete my laundromat business plan.

Growthink's Ultimate Laundromat Business Plan Template allows you to quickly and easily complete a business plan for your laundromat.

Where Can I Download a Laundromat Business Plan PDF?

You can download our sample laundromat business plan here . This is a business plan template you can use in PDF format.

Don’t you wish there was a faster, easier way to finish your Laundromat business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

• Sample Business Plans

Laundromat Business Plan

Planning on starting a laundromat? Great call.

Starting a coin-operated laundry business can be extremely profitable due to its huge market size and growth potential.

Anyone can start a laundromat, but you need a detailed business plan for raising funding, applying for loans, and scaling it for good.

So, in this article—we’ll discuss what the laundromat industry looks like, steps to make your business setup process easier, and finally, how to write a laundromat business plan.

Before you start writing your business plan for your new laundry business, spend as much time as you can reading through some examples of cleaning & maintenance business plans .

Ready to get started? Let’s roll!

Industry Overview

According to IBIS World , the Laundromat industry is reported to be a 6 billion dollar market in 2023, with 19,375+ operating laundry businesses employing over 52960 employees in the United States.

Although a slight downturn in recent times, the coin-operated laundry market is expected to grow at a compound annual growth rate (CAGR) of 9.4% .

These laundromats are a great help for students, professionals staying in dorms, or anyone who doesn’t have time to do their laundry—so it is a no-brainer that it could be a potentially profitable business venture.

Additional services like pickup and drop facilities can be an added advantage to your business, as it increases convenience for your consumers.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

Things to Consider Before Writing a Laundromat Business Plan

Pick a convenient location.

A convenient location is central to your business’s success . The location should be close to hostels, dorms, or apartment complexes to make it easier for your customers to access your service. After all, who would want to walk miles with all that heavy laundry?

Decide upon additional services

Coin-based laundries are gaining attention due to the additional services they have to offer. Your busy customers would highly appreciate services like pick up and drop, ironing, etc.

Having these services up for grabs makes it more convenient for your consumers and also gives you additional business opportunities.

Hence, it is a good practice to make a list of services your target audience would prefer to have and arrange resources for the same.

Pick a legal structure

Legal structures decide the taxes you pay, the risk to your personal assets, and many other aspects of your business. Hence, looking into your options and selecting the one that fits the best for your business is essential. Look into all of your options and pick one after considering all of its implications.

Gather market information

Know all there is to know about the industry, current market trends, target audience, preferences, competitors, their business and marketing strategies, and so on. This is one of the best business setup practices out there. It helps you understand what you are getting yourself into like nothing else. Hence, gather all the available information before getting started.

Chalking Out Your Business Plan

Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample Laundromat Business Plan for you to get a good idea about how perfect a Laundromat business plan should look and what details you will need to include in your stunning business plan.

Laundromat Business Plan Outline

This is the standard laundromat business plan outline which will cover all important sections that you should include in your business plan.

• Mission Statement
• Management Team
• Keys to Success
• Financial Summary
• 3 Year profit forecast
• Startup cost
• Market Analysis
• Industry Analysis
• Market Trends
• Corporate Executives
• Middle-Class Households
• Business Owners
• Sport Clubs
• Marketing Strategy and Sales Strategy
• Pricing Strategy
• Advertising Strategy
• Sales Forecast
• Financial Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this sample business plan into your business plan modify the required information, and download your laundromat business plan pdf or doc file. It’s the fastest and easiest way to start writing your business plan.

Download a sample laundromat business plan

Need help writing your business plan? Here you go; download our free laundromat business plan pdf to get started.

It’s a modern business plan template specifically designed for your laundromat business. Use the example business plan as a guide, and start writing your plan on your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write your business plan with Upmetrics

A business plan software like Upmetrics is the best way to draft your business plan. Getting started with this tool is a breeze thanks to the step-by-step instructions, customizable templates, and the library of 400+ sample business plans included.

So, whether starting a laundromat business or planning to grow an existing one, Upmetrics is the tool you need to create a business plan.

Related Posts

Dry Cleaning Business Plan

Carpet Cleaning Business Plan

How to Conduct Customer Analysis

Best AI Generators for Business Plan

3-Year Business Plan

5-Year Business Plan

Frequently asked questions, what key components should a laundromat business plan include.

The following are the key components your laundromat business plan must include:

• Executive summary
• Business Overview
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

What are the common mistakes to avoid in a laundromat business plan?

Following are some of the common mistakes to avoid when writing a laundromat business plan:

• Poor market research and ignoring industry trends.
• Inadequate and inaccurate financial projections.
• Undefined goals and lack of details.
• Including outdated and irrelevant information.
• Not proofreading the document for typos and grammatical errors.
• Not regularly updating your business plan.

How to get funding for your laundromat business?

There are several ways to get funding for your laundromat business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan —You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan —SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding —The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors— Getting funds from angel investors is one of the most sought-after startup options.

Apart from all these options, there are small business grants available. Check for the same in your location, and you can apply for it.

What is the easiest way to write a laundromat business plan?

There are many ways you can write your business plan, and using Upmetrics’ business plan template is one of them. It allows you to edit and modify the sections of your project as you need—it can be considered the easiest way to write a business plan.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Laundromat Business Plan Template

Written by Dave Lavinsky

Laundromat Business Plan

You’ve come to the right place to create your laundromat business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their laundromats.

Below is a template to help you create each section of your Laundromat business plan.

Executive Summary

Business overview.

Jean’s Clean Laundromat is a startup laundromat located in Manhattan, New York. The company is founded by Jean Smith, an experienced business manager with a master’s degree in Business Administration. With over ten years of experience as the General Manager for a boutique retail chain, Jean has garnered a positive reputation as a dedicated leader. She is confident that her ability to effectively manage people, finances, and operations will allow her to start her own profitable laundromat. Jean plans on managing the day-to-day operations of the laundromat herself and hiring highly qualified staff for essential positions of laundry attendants,  security guards, an accountant, and a sales and marketing professional.

Jean’s Clean Laundromat will provide general card-operated washing machines and dryers for customers to use on their own as well as a wash and fold service station for customers who want to drop their clothes off to be cleaned by Jean’s staff and picked up later. Jean’s Clean Laundromat will be a comfortable and convenient stop for busy people in the Manhattan area.

Product Offering

The following are the products and services that Jean’s Clean Laundromat will provide:

• Self-service card-operated washing machines and dryers
• Laundry supplies (detergent, dryer sheets, laundry bags, etc.)
• Dry cleaning service
• Wash and fold service
• Laundry pickup and delivery service

Customer Focus

Jean’s Clean Laundromat will target all individuals in the Manhattan area that need laundry service. Specifically, it will target men and women living in the area, busy parents, and people who do not have the time or facilities to do their laundry at home. The laundromat will also target tourists or business professionals in the city who need a quick laundry service. No matter the customer, Jean’s Clean Laundromat will deliver the best service, security, and convenience.

Management Team

Jean’s Clean Laundromat will be owned and operated by Jean Smith. She has recruited fellow New York University graduate, Elizabeth Clark, who has a bachelor’s degree in finance to come on board as her accountant and bookkeeper.

Jean Smith is a graduate of New York University with a master’s degree in Business Administration. She has been working as the General Manager for a boutique retail chain for over a decade. Jean’s organizational and leadership skills have allowed her to establish and grow a large network of business professionals that are supportive of her new venture, Jean’s Clean Laundromat.

Elizabeth Clark has worked as an accountant and bookkeeper at a local bakery for over five years and has established herself as a detail-oriented and methodical financial expert. Jean relies strongly on Elizabeth’s diligence, attention to detail, and focus when it comes to keeping the laundromat’s finances in order.

Success Factors

Jean’s Clean Laundromat will be able to achieve success by offering the following competitive advantages:

• Friendly, efficient laundry attendants that strive to go above and beyond for each customer.
• All laundry products and services are delivered with the customers’ comfort and convenience in mind.
• Jean’s Clean Laundromat offers its customers quick pickup and delivery seven days per week.

Financial Highlights

Jean’s Clean Laundromat is seeking $300,000 in debt financing to launch its laundromat business. The funding will be dedicated towards securing the laundromat storefront and purchasing the card-operated machines, and the card system. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Washers and dryers: $80,000
• Card system: $40,000
• Water heating system: $5,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $15,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Jean’s Clean Laundromat.

Company Overview

Who is jean’s clean laundromat.

Jean’s Clean Laundromat is a new laundromat located in Manhattan, New York. The company is founded by Jean Smith, an experienced business manager with a master’s degree in Business Administration. With over ten years of experience as the General Manager for a boutique retail chain, Jean has garnered a positive reputation as a dedicated leader. She is confident that her ability to manage people, finances effectively, and operations will allow her to start her own profitable laundromat. Jean plans on overseeing the daily operations of the laundromat herself and hiring highly qualified staff for essential positions of laundry attendants,  security guards, an accountant, and a sales and marketing professional.

Jean’s Clean Laundromat History

Jean’s Clean Laundromat will be owned and operated by Jean Smith. Jean Smith is a graduate of New York University with a master’s degree in Business Administration. She has been working as the General Manager for a boutique retail chain for over a decade. Jean’s organizational and leadership skills have allowed her to establish and grow a large network of business professionals that are supportive of her new venture, Jean’s Clean Laundromat.

Since incorporation, Jean’s Clean Laundromat has achieved the following milestones:

• Registered Jean’s Clean Laundromat, LLC to transact business in the state of New York.
• Has a contract in place for a one year lease on the laundromat storefront which is approximately 2,000 square feet.
• Hired a marketing professional to begin strategizing a pre-launch marketing campaign.
• Began recruiting a staff of an accountant, marketing and sales manager, security guards, and laundry attendants to work at Jean’s Clean Laundromat.

Jean’s Clean Laundromat Services

The following will be the services Jean’s Clean Laundromat will provide:

Industry Analysis

The laundromat industry is a $5.4BN market in the United States with over 30,000 laundromats across the country. Laundromats are a good investment for entrepreneurs with many of them seeing an astonishing 95% success rate for the first five years in business. For many people, laundromats are essential aspects of their regular routine.

Although running a laundromat can be a profitable venture, it takes some work to maintain profitability. It’s important for industry operators to manage their laundromats proactively, pay attention to what competitors are doing, and focus on continuous improvement in both service and technology. Industry operators who fail to take these actions may not be able to achieve their desired outcomes.

A trend in the laundromat industry is  the replacement of coin-operated machines with card-operated models. Card-operated machines can bring in greater profits for the laundromat owner because these machines can be set to change prices according to the time of day or be used for single use vending product purchases. Additionally, laundromats are using newer, more eco-efficient machines and technologies that bring in more profits in addition to being better for the environment. Finally, laundromat operators are finding ways to stand out from competitors with unique services in addition to the standard self-serve washers and dryers. Some of these value add services may include wash and fold, pickup and delivery, free wifi, vending machine products, etc.

Customer Analysis

Demographic profile of target market.

Jean’s Clean Laundromat will target men and women in the Manhattan area that need laundry service. Specifically, the laundromat will target busy parents and people who do not have the time or facilities to do their laundry at home. The laundromat will also target tourists or business professionals in the city who need a quick laundry service.

The precise demographics for Manhattan, New York are:

Customer Segmentation

Jean’s Clean Laundromat will primarily target the following customer profiles:

• Busy parents
• Business Professionals
• People who do not have laundry facilities in their homes

Competitive Analysis

Direct and indirect competitors.

Jean’s Clean Laundromat will face competition from other companies with similar business profiles. A description of each competitor company is below.

BMI Laundry Service, Inc.

BMI Laundry Service, Inc. provides wash and fold, dry cleaning, and pickup and delivery services with two locations, in Chelsea and Manhattan. BMI’s promise is to deliver fast service for people on the go. BMI Laundry Service, Inc. has coin-operated machines, vending machines, and free wifi. The self-service laundromat is available seven days a week from 6:00AM-6:00PM, while the laundry service is available by appointment only. Customers can schedule their laundry service using the company’s appointment app.

Wash It, Dry It, LLC

Wash It, Dry It, LLC is a Manhattan-based laundry business that provides self-service card-operated washers and dryers as well as wash and fold services for its customers. Wash It, Dry It, LLC sells its own branded laundry products including detergent, laundry bags, soaps, fabric softeners, and dry cleaning products. The laundromat is open 24/7. Wash and Fold service is available Monday through Friday from 7:00AM-8:00PM.

MC Laundromat

MC Laundromat is a trusted New York laundry business that provides superior service to customers in Manhattan and the surrounding areas. They are able to provide a one-stop shop for anyone in need of laundry services. MC Laundromat is able to provide dry cleaning, spot treatments, wash and fold, and delivery services. MC Laundromat has oversized machines for large laundry loads.

Competitive Advantage

Jean’s Clean Laundromat will be able to offer the following advantages over their competition:

• Jean’s Clean Laundromat offers its customers same day pickup and delivery service seven days per week. Laundry attendants are available 24 hours per day to accommodate more customers’ schedules.

Marketing Plan

Brand & value proposition.

Jean’s Clean Laundromat will offer the unique value proposition to its customers:

• Friendly, efficient laundry attendants available 24/7 that strive to go above and beyond for each customer.
• Jean’s Clean Laundromat offers its customers same day pickup and delivery service seven days per week.

Promotions Strategy

The promotions strategy for Jean’s Clean Laundromat is as follows:

Word of Mouth/Referrals

Jean Smith has built up an extensive list of contacts over the years by providing exceptional service and expertise to her customers. Her network of contacts has committed to spreading the word about her new laundromat to their friends and families.

Print Advertising

Jean’s Clean Laundromat will invest in professionally designed print ads to display in newspapers, magazines, and direct mail circulars.

Jean’s Clean Laundromat’s in-house marketing manager will design and maintain the company’s website. The website will be well organized, informative, and list all their services that Jean’s Clean Laundromat is able to provide. Additionally, the website will include a blog that will provide customers with helpful laundry tips.

Search Engine Optimization (SEO)

The marketing manager will also manage Jean’s Clean Laundromat’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “New York laundry service” or “laundromat near me”, Jean’s Clean Laundromat will be listed at the top of the search results.

Social Media

Jean’s Clean Laundromat will maintain an active presence on various social media platforms including Facebook, Instagram, Twitter, LinkedIn, TikTok, and YouTube, with the marketing manager updating these accounts regularly.

The pricing of Jean’s Clean Laundromat will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for Jean’s Clean Laundromat.

Operation Functions:

• Jean Smith will be the Owner and Manager of the company. She will oversee all staff and manage daily operations. Jean has spent the past year recruiting the following staff:
• Elizabeth Clark – Accountant/Bookkeeper will provide all laundromat accounting, tax payments, and monthly financial reporting.
• Steve Miller – Head of Security will oversee a small team of rotating security guards to ensure the safety of the customers and employees on the premises at all times.
• Anna Rodriguez – Marketing Manager will provide all marketing and advertising campaigns for Jean’s Clean Laundromat.
• Robert Wills – Lead Laundry Attendant will supervise the team of laundry attendants and manage the staff schedule.

Milestones:

Jean’s Clean Laundromat will have the following milestones complete in the next six months.

7/1/2022 – Finalize contract to lease laundromat storefront.

7/15/2022 – Finalize personnel and staff employment contracts for attendants and security guards.

8/1/2022 – Purchase card-operated washing machines and dryers, vending machines, and supplies.

8/15/2022 – Begin word of mouth and online marketing campaigns.

8/22/2022 – Begin moving into Jean’s Clean Laundromat.

9/1/2022 – Jean’s Clean Laundromat opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Jean’s Clean Laundromat are the laundromat fees charged to customers for use of the self-service machines and the fees for the additional laundry services the company will offer. The average price to wash a load of laundry in laundromats across the country ranges from $2.00-$4.00. Jean’s Clean Laundromat will charge $3.00 per load, which is comparable to other laundromats in the area.

The cost drivers will be the overhead costs required in order to staff the laundromat. The expenses will be the payroll cost, rent, utilities, supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of transactions per machine/month: 150
• Average revenue generated per month: $16,000
• Laundromat lease per month: $9,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Laundromat Business Plan FAQs

What is a laundromat business plan.

A laundromat business plan is a plan to start and/or grow your laundromat business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your laundromat business plan using our Laundromat Business Plan Template here .

What are the Main Types of Laundromat Businesses?

There are a number of different kinds of laundromat businesses, some examples include: Self-service, Drop-off, and Card/coin-operated laundromat.

How Do You Get Funding for Your Laundromat Business Plan?

Laundromat businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.  Having a laundry business plan will show investors you are well- prepared and qualified to start your business.

What are the Steps To Start a Laundromat Business?

Starting a laundromat business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Laundromat Business Plan – The first step in starting a business is to create a detailed laundry business plan that outlines all aspects of the venture.  A business plan for a laundromat should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your laundromat business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your laundromat business is in compliance with local laws.

3. Register Your Laundromat Business – Once you have chosen a legal structure, the next step is to register your laundromat business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your laundromat business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Laundromat Equipment & Supplies – In order to start your laundromat business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your laundromat business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful laundromat business:

• How to Start a Laundromat Business

Where can I get a Laundromat Business Plan PDF?

You can download our free example laundromat business plan PDF here . This is a business plan template you can use in PDF format.

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Tips White Papers
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

How To Start a Laundromat: Costs and Pro Tips If you're an entrepreneur looking to start your own laundromat business, then read on for costs, pro tips, and how-to's on the process.

Feb 15, 2019

Entering into the laundry business can be challenging because there are so many factors to consider — you will need to analyze your target demographic, develop a financial plan, and choose a prime location.

To help alleviate some of your stressors, follow along for a guide on everything you need to know about starting your own laundromat.

Why starting a laundromat could be right for you

People everywhere need clean clothes, so starting a laundromat seems foolproof. Laundromats are self-service facilities (generally coin-operated) where patrons have the space and equipment to wash and dry their clothes without the help of a professional.

Related: How to Start a Coin-Operated Laundry

Laundromats and dry cleaners are not the same, as laundromats are self-service, and dry cleaning is maintained by professionals who complete the task of cleaning special-care clothes for their patrons.

The self-service nature of the business might sound attractive because laundromats can be low maintenance to run. However, before entering any new industry, getting a feel for the lay of the land is essential. To do that, you must weigh the pros and cons of your potential endeavor.

Pros of owning a laundromat

Ready for the perks of owning your own laundromat ? They may include:

• Steady revenue stream
• High return on investment (ROI) potential
• Recession-proof business
• Simplicity of operation
• Work hour flexibility
• Zero eCommerce competition
• Potential for multiple locations
• Low management maintenance

Cons of owning a laundromat

When looking at the downside of owning a laundromat, you may find:

• Capital intensive business
• Barrier to entry
• High utility expenses
• Possible costly repairs

How to purchase and open a laundromat

Now that you've considered both sides of the coin, it's time to get into how to start a laundromat business.

1. Initial research

Before you create a business plan, you'll need to complete some initial research to better understand what ballpark you're in. This step can help guide your business plan and its parameters.

There is no real way to give an exact number on cost because there are so many factors. However, a broad range for how much it may cost to open a laundromat is $200,000 to $500,000.

Factors that can influence cost include:

• New business vs. existing business
• Independent or franchise
• Marketing and advertising
• Employee wages

Related: Start a WaveMax Laundry Franchise

2. Business plan

Once you've completed preliminary research, you'll have a better idea of how much this process will cost and the steps needed. Now that you've got some more information, it's time to create a business plan.

Your business plan should include the following:

• Executive summary
• Business description
• Market strategies
• Competitive analysis
• Design and development plan
• Operations and management plan
• Financial factors

Related: How to Write a Business Plan

3. Secure financing

Starting a new business is no cheap feat, so you will likely need some type of financing. There are many avenues to take regarding this topic, but the Small Business Administration (SBA) is the best place to start. The SBA offers countless resources and guides but can also connect entrepreneurs with interested investors and financiers .

The Small Business Administration can help you to:

• Determine the amount of funding you'll need
• Complete the self-funding process
• Connect with venture capital investors
• Fund your business with crowdsources
• Obtain a small business loan
• Use Lender Match to find SBA-guaranteed loans with verified lenders
• Research SBA investment programs

4. Secure location

Ready to scope out real estate? One of the most significant assets a laundromat business can have is its location. You may need to complete market research to determine whether or not it will succeed in that prospective community.

Ask yourself:

• Are there apartment buildings in the area?
• Do those apartment buildings have washer and dryer units?
• Is there real estate within walking distance of the apartment complex?
• Are there competitor businesses in the area?

Other factors to consider about your location are the potential for:

• Optimal lighting
• Layout with adequate space for equipment, seating, and customers
• Welcoming interior design
• Space for interior and exterior signage
• Accessibility for all customers

5. Choose the type of business structure

As you finalize your business plan, you should also consider what type of business entity you want your laundromat to be. Check out the different types below.

Related: Choose Your Business Structure

Limited Liability Company

A Limited Liability Company (LLC) is a flexible business structure that combines a corporation, partnership, and sole proprietorship.

With this structure, the business owner is legally separate from the business, which dictates tax filing, operations, and management. LLCs are generally safer and more easily manageable than other small business entities.

An S corp is a small business entity that files for federal corporate income tax exemption. Because of the structure of this business, the shareholders are responsible for income, loss, and tax return credits.

Sole proprietorship

A sole proprietorship is a common type of business structure that is a common but riskier choice. It is risky because the business owner is not separated from the business and assumes all financial risks.

Licensing and taxes are simple with this choice, but the weight of the business is all on the owner and their personal finances.

Partnership

If you plan to team up with another entrepreneur in this venture, you may consider a partnership. A partnership is two or more people that share ownership, control, profits, and losses of a business.

In a partnership, the business and the person are the same, much like in a sole proprietorship. This means that the company's legal responsibilities fall upon you and your partners.

6. Choose business name, register the business, obtain IDs, licenses, and permits

At this stage of the process, things are beginning to take shape. It's time to name your business and tackle some legal paperwork.

Choose business name

When registering your business, you will likely need to create a name for your new laundromat. Your business should be named something that reflects the nature of your business and aligns with your brand identity.

Register business

After you've chosen your name, you must register your business . There are four different ways you can do so, which include:

• Entity : State-level protection
• Trademark : Federal-level protection
• Doing Business As (DBA ): No legal protection, but some states require
• Domain name : Online presence shown through website and URL

Obtain IDs, licenses, and permits

You must obtain a federal tax ID to legally open a business bank account, employ a team, and apply for licenses and permits.

Federal and state governments have different requirements for licenses and permits based on your industry. It is always best to stay up-to-date with the latest requirements through information from the SBA .

7. Open a bank account

Having a business bank account that is separate from your personal bank account offers you protection in your business life and balance in your personal life.

The benefits of opening a business bank account include the following:

• Protection and professionalism
• Purchasing power (credit limits)
• Special introductory offers, interest rates, and fees

Choosing a bank is personal to each business owner. Make sure you complete your due diligence and create a pros and cons list for at least three different banks and what they can offer.

8. Secure equipment

Equipment costs can depend on buying an existing laundromat or starting from scratch. If you are buying an operating store, you should check on all the laundry machines' condition.

If you are starting fresh, you may need to research commercial laundry equipment like:

• Industrial washing machines: $700 - $3,000+ depending on size, and top-load versus front-load
• Industrial dryers: $900 - $4,000 depending on size, and top-load versus front-load
• Card system (if you are going to offer credit card payments): Wide range , averaging around $15k if you're adding card readers to all of your laundry machines
• Bill-to-coin change machine: $800 - $7,000
• Water heater system: $10,000+
• Laundry detergent
• Fabric softener
• Laundry carts

There are also comfort items to consider to make your patrons comfortable while they wait for their laundry:

• Vending machines
• Office supplies
• TVs and cable

9. Employees

The next step is assembling a team for your new business. Once your business is up and running, it is relatively low maintenance. However, that does not mean that you will want to be the sole employee.

When it comes time to hire employees, it's vital to business operations that you find a team that is reliable, positive, and full of integrity.

A few ways to get the word out about open positions are:

• Utilize multiple job boards (LinkedIn, Craigslist, Indeed, and flyers)
• Include descriptive job postings with transparent wages and role responsibilities
• Require references and letters of recommendation
• Conduct a thorough interview process

Related: 15 Tips for Improving Your Skills Interviewing Job Candidates

At this stage, everything has started to come together. Before you open, create a marketing plan to promote the grand opening event.

Marketing for the opening can help raise awareness and promote engagement. There are many ways you can market that are low-cost and effective.

Cost-effective marketing tools include:

• Social media posts
• Local business networking
• Word-of-mouth
• Flyers and posters
• Local business collaborations (especially with apartment complexes)
• Offer discounts

In addition to a solid marketing plan, you should also create a Google Business profile.

Google Business profiles make it easy to:

• Display your business hours online
• Communicate with customers
• Maintain general updates
• Read customer reviews to stay in-the-know

Finally, when it comes to the actual grand opening, put a fun spin on your event. Allocate a bit of your budget and make it a neighborhood event.

Splurging on simple things like coffee and donuts, a randomizer wheel of prizes, and other fun promotional items can go a long way if it broadens your customer base and spreads the word about your new business.

Related: No Money? No Problem. 30 Low Budget Marketing Ideas for Your Busines

Pro tips for opening a laundromat business

As an entrepreneur, it's essential to stay as on top of your game as possible. While you continue your journey of being a successful laundromat owner, there are a few critical pieces of advice to remember.

Pro tips for small business owners include:

• Conduct regular SWOT analysis — examining and reflecting on your business is never a bad idea.
• Make customer loyalty a priority and stay involved in your community.
• Maintain a watchful eye on your cash flow.
• Stay creative, adaptive, and passionate.

Related: 4 Tips for Small Business Owners as They Navigate an Economic Downtur

Is starting a laundromat right for you?

Laundromats might sound like a lot of work, but so is any business. The greater truth is that laundromats can be an excellent investment for a business owner because they are generally steady and straightforward businesses. While they might require a hefty startup cost, the profit margins can be worth it in the long run.

No matter the weather (literally and metaphorically), people always need to do laundry. No matter the economy, people need clean clothes. And no matter how much trends change, fresh clothing will never be out of style.

Looking for more guidance? Explore Entrepreneur for advice on starting your own business, managing business finances, and more

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

• Lock The Average American Can't Afford a House in 99% of the U.S. — Here's a State-By-State Breakdown of the Mortgage Rates That Tip the Scale
• Richard Branson Shares His Extremely Active Morning Routine : 'I've Got to Look After Myself'
• Lock This Flexible, AI-Powered Side Hustle Lets a Dad of Four Make $32 an Hour , Plus Tips: 'You Can Make a Substantial Amount of Money'
• Tennis Champion Coco Gauff Reveals the Daily Habits That Help Her Win On and Off the Court — Plus a 'No Brainer' Business Move
• Lock 3 Essential Skills I Learned By Growing My Business From the Ground Up
• 50 Cent Once Sued Taco Bell for $4 Million. Here's How the Fast-Food Giant Got on the Rapper's Bad Side .

Most Popular Red Arrow

I started over 300 companies. here are 4 things i learned about scaling a business..

It takes a delicate balance of skill, hard work and instinct to grow a successful business. This serial entrepreneur loves the unique challenge; here are the key lessons she's learned along the way.

'Cannot Stop Crying': Hooters Employees Shocked After Dozens of Restaurants Suddenly Close Without Warning

The chain is the latest fast-casual restaurant to face difficult decisions amid inflation.

'Why Shouldn't They Participate?': AT&T CEO Calls on Big Tech to Help Subsidize Internet Access

AT&T's CEO called out the seven biggest tech companies in the world.

Disney World Is Making a Major Change to Its Popular Genie+ System — Here's What to Know

Resort guests can now book a ride up to a week in advance among other changes.

She Grew Her Side Hustle Sales From $0 to Over $6 Million in Just 6 Months — and an 'Old-School' Mindset Helped Her Do It

Cynthia Sakai, designer and founder of the luxury personal care company evolvetogether, felt compelled to help people during the pandemic.

Tesla Rival Scores $5 Billion Investment From Volkswagen

Rivian and VW plan to fine-tune a "next-generation, software-defined vehicle."

Successfully copied link

Laundromat Business Plan PDF Example

• February 29, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful laundromat business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your laundromat business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a laundromat business plan but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your laundromat business concept into reality. Let’s dive in!

Our laundromat business plan is meticulously crafted to encompass all vital elements essential for a holistic and strategic framework. It delineates the laundromat’s operational processes, marketing approaches, market dynamics, competitive landscape, management structure, and financial outlook.

• Executive Summary : Offers a concise overview of the laundromat business concept, including the market analysis , the expertise of the management team, and strategic financial planning.
• Facility & Location: Describes the laundromat’s infrastructure, including size, layout, and the strategic advantages of its location for customer accessibility and business visibility.
• Services & Pricing: Lists the laundromat services, such as self-service laundry, wash and fold services, and specialized care for delicate items, along with a transparent pricing model.
• Key Stats: Shares insights on the size of the laundry service market, growth trends, and industry-specific statistics.
• Key Trends: Highlights recent trends impacting the laundromat and laundry service industry, such as technological advancements and consumer preferences.
• Key Competitors : Evaluates the main competitors in the vicinity, outlining how the laundromat differentiates itself in terms of services, technology, and customer experience.
• SWOT Analysis : A comprehensive analysis of strengths, weaknesses, opportunities, and threats to navigate the market effectively.
• Marketing Plan : Details the marketing strategies and channels to promote the laundromat services, enhance brand visibility, and engage with the target audience .
• Timeline : Establishes key milestones, from the initial setup phase to operational benchmarks within the first year and beyond.
• Management : Provides information on the laundromat’s management team, highlighting their backgrounds, roles, and contributions to the business’s success.
• Financial Plan: Projects the laundromat’s financial trajectory over the next five years, including revenue streams, profit margins, and key financial metrics to ensure sustainability and growth.

Laundromat Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your laundromat’s business plan, offering a concise overview of your laundromat and its services. It should detail your market positioning, the range of laundry services you provide, its location, size, and an outline of day-to-day operations. 

This section should also explore how your laundromat will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your laundromat’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the laundromat’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your laundromat’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Laundromat, the Business Overview section can be effectively divided into 2 main slides:

Facility & Location

Briefly describe the laundromat’s physical setup, focusing on its functionality, equipment quality, and the comfortable environment it provides for customers.

Mention the laundromat’s location, emphasizing its accessibility and the convenience it offers to clients, such as proximity to residential areas or ease of parking. Highlight why this location is beneficial in attracting your target clientele, considering factors like high-density living areas without in-unit laundry facilities.

Services & Pricing

Detail the range of laundry services offered, from self-service washing and drying to additional services such as dry cleaning, ironing, folding, and possibly pickup and delivery options.

Outline your pricing strategy , ensuring it is competitive yet reflective of the service quality and convenience you provide. Highlight any special offerings, such as discounted rates during off-peak hours, loyalty programs, or monthly memberships that offer unlimited usage or discounts, encouraging repeat business and customer loyalty.

Make sure to cover here _ Facility & Location _Services & Pricing

Market Overview

Industry size & growth.

In the Market Overview of your laundromat business plan, begin by assessing the size of the laundry services industry and its growth potential. This analysis is fundamental for grasping the market’s breadth and identifying opportunities for expansion.

Consider factors such as the number of households without access to in-home laundry facilities and the growing trend of urban living, which could influence demand for laundromat services.

Key market trends

Move on to discuss recent market trends , such as the increasing customer preference for convenience in laundry services, including the adoption of app-based services for scheduling and payment, eco-friendly washing technologies, and the addition of value-added services like dry cleaning, ironing, and folding.

Highlight the shift towards more hygienic and sanitized laundry practices, especially in the context of health and safety concerns. These trends indicate a shift in consumer expectations and the evolving dynamics of the laundry service market.

Key competitors

Next, analyze the competitive landscape, which may range from traditional coin-operated laundromats to full-service laundry businesses offering a variety of ancillary services. Consider how at-home laundry appliances and subscription-based laundry services impact the market.

Highlight what sets your laundromat apart, be it through superior technology, exceptional customer service, or unique offerings like lounge areas, Wi-Fi, and coffee services.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the laundromat, identifying Strengths (such as modern and efficient machines, convenient location, and additional services like folding or dry cleaning), Weaknesses (including potential downtimes due to machine maintenance or strong competition in the area), Opportunities (for instance, a growing demand for laundry services among urban dwellers without home laundry facilities), and Threats (such as economic downturns that might reduce the frequency of laundry service usage).

Marketing Plan

Next, formulate a marketing strategy that details the methods to attract and retain customers through targeted advertising, promotional offers (like ‘first wash free’ for new customers or discounted rates during off-peak hours), an engaging online presence with useful laundry tips and community involvement (perhaps by sponsoring local sports teams or participating in community events).

Finally, establish a comprehensive timeline that outlines key milestones for the laundromat’s launch, marketing initiatives, customer base development, and potential expansion goals, ensuring the business progresses with clear direction and intent. This might include dates for the initial opening, the rollout of new services, community event participation, and periodic evaluations of customer feedback and service offerings.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the laundromat business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the laundromat business toward its financial and operational goals.

For your laundromat business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your laundromat business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your laundromat business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Related Posts

Carpet and Upholstery Cleaning Business Plan PDF Example

• June 17, 2024

Taxi Business Plan PDF Example

Self Storage Business Plan PDF Example

Privacy overview.

What Do You Need to Start a Laundry Business: A Comprehensive Guide for Success

Are you tired of the daily grind and looking to start your own business? Picture this: a bustling laundry business that not only brings in profits but also offers a service that everyone needs. Have you ever thought about the satisfaction of running your own successful venture?

Table of Contents

In this article, you’ll discover the essential steps and key elements required to kickstart your very own laundry business. From setting up your space to attracting customers, we’ve got you covered. Imagine the freedom of being your own boss and the potential for growth in a thriving industry.

Ready to turn your entrepreneurial dreams into reality? Let’s delve into what it takes to establish a successful laundry business and pave the way for your future success.

Key Takeaways

• Conduct thorough research on the laundry industry to understand market trends, competitors, regulatory requirements, technology integration, and customer preferences.
• Develop a comprehensive business plan including market research, business model development, financial planning, legal requirements, location selection, equipment acquisition, and marketing strategy.
• When setting up your laundry business, focus on securing legal compliance, designing a functional business space, sourcing quality equipment and supplies, hiring and training staff, implementing efficient operations, setting competitive prices, marketing your business, and providing excellent customer service.
• Utilize social media platforms, promotions and discounts, partnerships with local businesses, eye-catching flyers and brochures, local networking events, and customer referral programs to effectively market and promote your laundry business.
• Manage day-to-day operations efficiently by streamlining workflow, providing staff training and supervision, implementing effective inventory management, ensuring quality control measures, maintaining equipment properly, and building strong customer relations.

Researching the Laundry Industry

When considering starting a laundry business, it’s essential to conduct thorough research on the industry to ensure you make informed decisions for your venture. Researching the laundry industry can provide valuable insights that can guide your business strategy and help you stay competitive in the market.

Understanding Market Trends To kickstart your laundry business, begin by analyzing current market trends. It’s crucial to research the demand for laundry services in your target area. Look into factors such as the population density, demographics, and the presence of competitors. By understanding market trends, you can tailor your services to meet the specific needs of your potential customers.

Exploring Competitors Take the time to research your competitors in the laundry industry. Identify key players in the market, their service offerings, pricing strategies, and customer reviews. By studying your competitors, you can gain valuable insights into areas where you can differentiate your business and offer unique services to attract customers.

Regulatory Requirements Research the regulatory requirements and licensing procedures for starting a laundry business in your area. Ensure compliance with local regulations related to sanitation, waste disposal, and business permits. Understanding the legal framework will help you establish a legitimate and reputable laundry business.

Technology Integration Stay updated on technological advancements in the laundry industry. Research innovative laundry equipment, software solutions for inventory management, and customer booking systems. Embracing technology can streamline your operations, enhance customer experience, and improve overall efficiency in your business.

Customer Preferences Conduct surveys or focus groups to understand customer preferences and expectations regarding laundry services. Researching customer preferences can help you tailor your service offerings, pricing, and marketing strategies to meet the needs of your target audience effectively.

Researching the laundry industry is a crucial step in laying the foundation for a successful business. By delving into market trends, studying competitors, navigating regulatory requirements, embracing technology, and understanding customer preferences, you can position your laundry business for growth and success in a competitive market.

Business Planning

When considering starting a laundry business, it’s crucial to solidify your business planning to pave the way for a successful venture. Here’s a breakdown of essential steps to kickstart your laundry business:

Market Research:

Begin by conducting thorough market research to understand the local demand for laundry services, analyze your target customer demographics, and assess competitors’ offerings. Gathering this data will help you tailor your services to meet customer needs and differentiate your business.

Business Model Development:

Next, define your business model by determining the types of laundry services you’ll offer—whether it’s self-service laundromats, drop-off services, or specialized cleaning services. Choose a model that aligns with your target market and sets you apart from competitors.

Financial Planning:

Create a detailed financial plan outlining startup costs, equipment expenses, operational costs, and revenue projections. Consider seeking advice from financial experts to ensure your financial projections are realistic and sustainable.

Legal Requirements:

Research and comply with all legal requirements for operating a laundry business in your area. This includes permits, licenses, insurance, and adherence to health and safety regulations. Failing to meet these requirements can result in penalties and jeopardize your business.

Location Selection:

Carefully choose a suitable location for your laundry business based on factors like foot traffic, accessibility, parking availability, and proximity to your target market. The right location can significantly impact your business’s visibility and success.

Equipment Acquisition:

Invest in high-quality laundry equipment tailored to your business model. Whether it’s commercial washers, dryers, steam presses, or folding tables, having reliable equipment is essential for efficient operations and customer satisfaction.

Marketing Strategy:

Develop a comprehensive marketing strategy to promote your laundry business. Utilize both online and offline channels to reach your target audience, such as social media marketing, local advertising, and partnerships with nearby businesses.

By meticulously planning each aspect of your laundry business, you’ll establish a strong foundation for growth and sustainability in the competitive industry. Take the time to strategize and execute your plans diligently to maximize the potential for success.

Setting Up the Laundry Business

When establishing your laundry business, there are key steps to consider to ensure a successful start.

Securing Legal Compliance

Ensure the proper legal structure for your business by registering it with the relevant authorities. Obtain all required permits and licenses to operate legally in your area.

Designing Your Business Space

Create a functional layout for your laundry facility. Allocate areas for washing, drying, folding, and storage. Optimize the flow for both customers and employees.

Sourcing Equipment and Supplies

Purchase high-quality washers, dryers, folding tables, detergents, and other necessary supplies. Invest in energy-efficient machines to reduce operational costs.

Hiring and Training Staff

Recruit skilled and reliable employees for your laundry business. Train them on equipment operation, customer service, and laundry handling procedures to maintain quality standards.

Implementing Efficient Operations

Establish a system for handling customer orders, sorting laundry, managing inventory, and ensuring timely service. Implement technology solutions for booking appointments and tracking orders.

Setting Competitive Prices

Research local market rates and competitors to set competitive prices for your laundry services. Consider offering discounts or loyalty programs to attract and retain customers.

Marketing Your Business

Develop a marketing strategy to promote your laundry business. Utilize social media, local advertising, and partnerships with nearby businesses to increase visibility and attract new customers.

Providing Excellent Customer Service

Focus on providing exceptional customer service to build loyalty and generate positive reviews. Address customer concerns promptly and maintain a clean and welcoming environment in your laundry facility.

By following these steps, you’ll be well-equipped to set up a successful laundry business and pave the way for future growth and profitability.

Marketing and Promotions

When it comes to marketing and promotions for your laundry business, the key is to reach your target audience effectively and showcase what makes your services unique. Here are some actionable strategies to help you promote your business successfully:

Utilize Social Media Platforms

Create engaging posts that highlight your services, promotions, and customer testimonials. Run targeted ads to reach potential customers in your local area. Interact with your audience by responding to comments and messages promptly.

Offer Promotions and Discounts

Introduce first-time customer discounts to attract new clients. Implement loyalty programs to retain existing customers. Organize referral programs to incentivize current customers to spread the word.

Partner with Local Businesses

Collaborate with hotels or Airbnb hosts to offer laundry services to their guests. Offer special discounts to employees of nearby businesses. Participate in community events to increase brand visibility.

Create Eye-Catching Flyers and Brochures

Design visually appealing materials to distribute in your target area. Include clear calls to action encouraging potential customers to try your services. Highlight your unique selling points to stand out from competitors.

Attend Local Networking Events

Build relationships with other business owners who may refer clients to you. Share your business cards and engage in meaningful conversations. Offer special promotions exclusively for event attendees .

Implement Customer Referral Programs

Reward customers who refer friends and family with discounts or free services. Encourage satisfied customers to leave positive reviews online. Show appreciation for customer loyalty with personalized thank you notes or small gifts.

By implementing these marketing and promotional strategies, you can effectively showcase your laundry business to potential customers and build a strong presence in your community.

Managing Operations

When it comes to managing the day-to-day operations of your laundry business, it’s crucial to establish efficient systems and practices that ensure smooth functioning and customer satisfaction. Here are some key aspects to focus on:

Streamlining Workflow

To optimize productivity, consider implementing a systematic workflow that covers receiving, sorting, washing, drying, folding, and packaging of laundry items. By organizing these processes efficiently, you can minimize turnaround times, prevent mix-ups, and deliver consistent quality service.

Staff Training and Supervision

Investing in comprehensive training for your staff on handling different types of fabrics, using equipment properly, maintaining cleanliness, and delivering excellent customer service is essential. Continuous supervision and feedback help maintain operational standards and identify areas for improvement.

Inventory Management

Effective inventory management is vital to ensure you have an adequate supply of detergents, softeners, packaging materials, and other essentials. Regularly monitoring stock levels, identifying fast-moving items, and replenishing supplies in a timely manner can prevent disruptions in service.

Quality Control Measures

Implementing quality control measures such as routine inspections, customer feedback mechanisms, and periodic audits can help uphold service quality standards. Addressing any issues promptly and maintaining consistency in the quality of work are key to building a loyal customer base.

Equipment Maintenance

Regular maintenance of washers, dryers, ironing equipment, and any other machinery is crucial to avoid breakdowns and delays in service. Developing a maintenance schedule, conducting regular checks, and promptly repairing any faults can prolong the lifespan of equipment and ensure uninterrupted operations.

Customer Relations

Building strong relationships with your customers is essential for business success. Implementing effective communication channels, addressing customer queries and complaints promptly, and seeking feedback to understand their preferences can help enhance customer satisfaction and loyalty.

By focusing on these operational aspects, you can establish a well-run laundry business that delivers quality services, maintains efficiency, and fosters strong customer relationships.

Starting a laundry business requires careful planning, attention to detail, and a focus on customer satisfaction. By conducting thorough research, developing a solid business plan, ensuring legal compliance, and implementing efficient operational practices, you can set yourself up for success in this competitive industry. Remember to prioritize staff training, maintain quality control measures, and build strong relationships with your customers to establish a loyal client base. With dedication, hard work, and a commitment to excellence, your laundry business can thrive and grow over time. Good luck on your entrepreneurial journey!

Frequently Asked Questions

1. how important is market research for starting a laundry business.

Market research is crucial for understanding customer needs, identifying competitors, and determining market trends to make informed business decisions.

2. What are the key steps in business planning for a laundry business?

Key steps include market research, business model development, financial planning, legal compliance, location selection, equipment acquisition, and marketing strategy.

3. How can I streamline workflow in my laundry business?

Workflow can be streamlined by optimizing processes, utilizing technology for efficiency, organizing tasks logically, and training staff effectively.

4. Why is customer relationship management essential for a laundry business?

Building strong customer relationships fosters loyalty, leads to repeat business, generates positive word-of-mouth, and sustains long-term success.

5. What measures can I take to ensure quality control in my laundry business?

Implementing quality control measures such as regular inspections, staff training, standardized processes, and using quality products can help maintain high service standards.

Related Posts

How many ounces of laundry detergent per load: expert tips for perfect cleaning, free laundry detergent guide: smart ways to get it without spending a dime, how to use dry laundry detergent like a pro: expert tips and common mistakes to avoid, diy laundry detergent: tips for making clean, natural, and cost-effective solutions, how much liquid bleach to add to laundry: achieve safe and effective stain removal, get cheap laundry detergent: money-saving tips, diy recipes, and smart buying strategies, leave a reply cancel reply.

Save my name, email, and website in this browser for the next time I comment.

Important Pages

• Editorial Policy
• Privacy Policy

Popular articles

• How To Get Chocolate Stains Out
• Can You Iron Non-Iron Shirts?
• Does Laundry Detergent Have Ammonia?
• How To Separate Clothes for Laundry?
• How Long Does it Take For Dust To Settle After Vacuuming

Editor's Picks

• Does Steam Cleaning Remove Stains
• How to Get a Stain Out of a Backpack
• Does Lemon Juice Remove Blood Stains?
• Can You Iron a Wet Shirt
• Can You Use a Straightener as an Iron?
• Steam Cleaning
• Car Cleaning
• Bathroom Cleaning
• Robot Vacuums
• Stain Removal

Type above and press Enter to search. Press Esc to cancel.

We earn commissions if you shop through the links below.  Read more

Back to All Business Ideas

How to Start a Laundromat Business

Written by: Esther Strauss

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 21, 2021 Updated on June 5, 2024

Investment range

$76,550 - $104,100

Revenue potential

$180,000 - $550,000 p.a.

Time to build

1 - 3 months

Profit potential

$60,000 - $110,000 p.a.

Industry trend

Would you be interested in owning a relatively hands-off business that makes you money when you’re not even there? If so, operating a laundromat could be for you!

Of course, this doesn’t mean owning a laundromat requires no work. Getting a successful business up and running requires many steps, and then you’ll have to keep the shop clean, the machines functional, and, most importantly, your customers happy. 

This step-by-step guide provides all the information you’ll need to launch your successful laundromat business, from examining the industry to registering and marketing your new company.

Let’s get started!

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business is Right for You

Before you tackle the world of laundry, you should familiarize yourself with the industry. 

Pros and cons

Every business has their pros and cons, so it’s important to weigh both before starting your business.

• No experience or expertise required
• Constant demand, as clothes will always need cleaning
• Minimal inventory requirements
• Laundromat’s have a near-perfect (95%) success rate
• Generates passive income once operations are running smoothly
• Potentially a 24-hr job
• Utility costs are rising
• Risks of broken equipment

Laundromat industry trends

With an impressive 95% success rate, laundromats boast an average return on investment of nearly 30%, according to industry expert Martin Ray Laundry Systems.(( https://martinray.com/p-33942-key-statistics-laundromat-investors-should-know.html#:~:text=The%20laundromat%20industry%20sees%20about,between%2020%2D35%25%20ROI. ))

Google Trends data backs up the success rate of laundromats, showing consistent demand for laundry services in recent years.((https://trends.google.com/trends/explore?date=today%205-y&geo=US&q=laundry%20services))

Industry size and growth

• Industry size and past growth – Market analyst IBISWorld values the laundromat industry in the US at more than $5 billion.(( https://www.ibisworld.com/industry-statistics/market-size/laundromats-united-states/ )).  
• Growth forecast – Demand for laundromats is expected to increase in areas near colleges and universities as in-person classes resume. Laundromats in densely populated areas with many renters are also expected to perform well.(( https://www.ibisworld.com/united-states/market-research-reports/laundromats-industry/ ))
• Number of businesses – There are more than 18,000 laundromat businesses in the US as of 2022.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/laundromats-united-states/ ))
• Number of people employed – The industry employs more than 47,000 people.(( https://www.ibisworld.com/industry-statistics/employment/laundromats-united-states/ )) 

Trends and challenges

These are some of the latest trends in the laundromat industry:

• Shift toward technologically advanced machines that accept all forms of payment (credit, debit, cash, coins, loyalty cards, and mobile payments) and offer easy-to-use digital interfaces
• Use of apps that enable the laundromat owner to keep a close eye on the business from anywhere

Some challenges remain such as:

• High fixed costs such as utilities and supplies
• Competition from wash-and-fold services

What kind of people work in laundromats?

Laundromat managers maintain the machines, collect the money, purchase supplies, keep the laundromat tidy, and manage the staff. 

• Gender – About 52% of laundromat managers are male, while more than 47% are female.(( https://www.zippia.com/laundromat-manager-jobs/demographics/#gender-statistics ))
• Average level of education – Almost half of laundromat managers in the US are high school graduates, while 30% hold an associate degree.(( https://www.zippia.com/laundromat-manager-jobs/education/ ))
• Average age – Most laundromat managers are over 40 years old.(( https://www.zippia.com/laundromat-manager-jobs/demographics/#age-statistics ))

How much does it cost to start a laundromat business?

You could start a laundry business for as little as $100,000, or as much as $1 million or more. The average laundromat owner lays out about $200,000 to get started. 

On the lower end, this is what your startup costs would look like, excluding the purchase amount or rental of your shop, which would depend on the location, size, and condition:

How much can you earn from a laundromat business?

A laundromat can generate $100-$1,500 in daily revenue, with an average of around $500. Best of all, a laundromat stays open every day of the week, so your $500 a day will result in more than $180,000 in annual revenue. After accounting for expenses, you might end up with a margin of 33% and take home a tidy $60,000 in profit. 

As you gain more customers, you could add more washers and dryers, hire staff, and  increase your daily income to $1,500. This means an annual revenue of nearly $550,000 and, with a smaller profit margin of 20%, a profit of about $110,000.

What barriers to entry are there?

It’s good to be aware of any potential barriers to entry so that you don’t have any surprises when you start your laundromat. 

Here are some of them: 

• High utility costs or sewer connection fees in your area
• Laundry machines are expensive
• Many residential areas have serious competition in laundry

Related Business Ideas

How to Start a Laundry Business

How to Start a Dry Cleaning Business

How to Start a Pressure Washing Business

Step 2: hone your idea.

Now that you have a bird’s-eye view of the laundromat industry, let’s start crafting your actual business idea.  

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

It’s important to scope out your competition to see what they offer — and what they do not. Maybe they have outdated machines, charge too much, or have no drop-off service. 

Look to improve on your competition’s weaknesses by offering a better laundry service and a more comfortable customer experience.

What? Determine your services

It’s a good idea to aim for a full-service laundromat if you’re looking to immediately attract many customers and increase your revenue fast. Besides the coin laundries and dryers, you can also offer self-service dry cleaning. 

You can also encourage customers to just drop off their laundry and have your staff wash and fold for an additional fee. You might also want to consider offering commercial laundry services for restaurants and hotels. Some laundromats have expanded their services to include a coffee shop, video games, and other activities that will keep customers busy. 

How much should you charge for laundromat services?

Your best bet is to look at what laundromats in your area are charging and use that as your baseline. Then you should work out whether this price range will give you enough profit to make your time worthwhile. 

Generally it costs $1.50 to $4.00 for U.S. customers to wash a load of laundry, with the national average at $2.00.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

There are a couple of options for your target market. Traditionally, low-income renters, such as university students, are the primary users of laundromats. So you might open your laundromat in a university town or near student dorms. You might also focus on people in urban areas with no washing machines in their apartment or building. 

Where? Choose your laundromat location

Since a laundromat is a physical service business that attracts customers who live nearby, you’ll need to find a location in a high-traffic, mainly residential area.

Consider accessibility and convenience, ensuring that the location is easily reachable by foot or public transportation, and has ample parking.

By strategically choosing the right location, you can establish a profitable and successful laundromat business that caters to a diverse range of customers and stands out from competitors. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Even if you find the perfect location, you might not succeed if there is an existing laundromat next door! So keep your eyes out for competitors. 

Step 3: Brainstorm a Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “laundromat” or “laundry”, boosts SEO
• Name should allow for expansion, for ex: “Wash World Laundromat” over “Industrial Laundry Solutions”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a business plan:

• Executive Summary : A brief summary of the entire business plan, highlighting key points and objectives.
• Business Overview : An introduction to your laundromat, including its name, location, and a concise description of what it does.
• Product and Services : A list of the laundry services you offer, such as self-service machines, dry cleaning, or special features like eco-friendly detergents.
• Market Analysis : An examination of the local market, including demographics, customer needs, and potential demand for laundry services.
• Competitive Analysis : An assessment of your competitors in the area, highlighting their strengths and weaknesses.
• Sales and Marketing : Strategies for promoting your laundromat, including advertising, pricing, and customer acquisition plans.
• Management Team : An overview of the key individuals involved in running the business, including their qualifications and roles.
• Operations Plan : Details on the day-to-day operations of the laundromat, including hours of operation, staffing, and equipment.
• Financial Plan : Projections of your laundromat’s finances, including startup costs, revenue forecasts, and break-even analysis.
• Appendix : Additional information that supports the business plan, such as market research data, legal documents, and any other relevant materials.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to laundromats. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your laundromat will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a laundromat business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Licenses/Permits

Starting a laundromat business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your laundromat business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as CleanCloud , DragonPOS , and Geelus to manage your laundromat, enhance customer experience, and strengthen customer loyalty. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Professional Branding — Establish a clean, reliable, and easy-to-use image with a recognizable logo, clear signage, and a well-maintained facility.
• Website Optimization — Develop a website that showcases your location, services, and special features like free Wi-Fi or extended hours, optimized for local searches related to laundry services.
• Local SEO  — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Direct Outreach — Network with local businesses, community centers, and residential complexes to introduce your laundromat and offer opening discounts or loyalty programs.
• Social Media Engagement — Use platforms like Facebook and Instagram to post updates, share customer testimonials, and engage with local community groups.
• Content Marketing — Run a laundry tips blog to offer advice on fabric care and efficient laundry practices, positioning your business as a helpful resource.
• Email Newsletters — Send out updates about new services, changes in operation hours, and special promotions to keep your customers informed.
• Video Content — Produce video tours of your facility and customer testimonials to showcase your unique offerings and build trust.
• Local Collaborations — Partner with nearby businesses for cross-promotion, such as offering discounts to customers from adjacent shops.
• Student Discounts — Target local college and university students with special discounts to tap into the student market.
• Customer Loyalty Programs — Implement a loyalty rewards program that offers benefits like every tenth wash free or discounts on drying services.
• Targeted Local Advertising — Employ local advertising through newspapers, community bulletin boards, and online platforms to reach your demographic.

Focus on USPs

Unique selling propositions, or USPs, are the unique characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your laundromat meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Some signature USPs for your laundry business could be:

• Add a small shop or vending machines with snacks, drinks, detergents
• Arcade games, free wifi, and a child’s play area would provide added entertainment 
• Open a small cafe, bar, or pizza place within the laundromat, embracing the global industry trend 
• Install the most advanced, energy efficient equipment 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a laundromat business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in a laundromat for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in laundromats. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

Initially, if you’re willing to work long hours at your laundromat, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a laundry business would include:

• Maintenance — take care of machines, clean the shop, etc. 
• Marketing Lead — SEO optimization, social media strategies 
• General Manager — oversees operations at several laundromats

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glass d oor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Laundromat Business – Start Making Money!

For a laundromat to succeed, location is extremely important. If your laundromat is easily accessible, it can provide you with a stable source of income. There’s no time for complacency, though. It’s wise to always strive to improve your services and inspire your customers to keep coming back. Perhaps you can add a coffee shop, provide a lounge or reading area for your customers, or offer a workspace with internet.

You now know all the steps needed to get your laundromat up and running. Now it’s all about getting to work and making money! Best of luck on your entrepreneurial journey!

• Laundromat Business FAQs

Laundromats boast around a 90% success rate , and it is a mature market meaning that they have been around for a long time. According to Laundry Solutions, laundromat owners report an average net profit of $5,000 to $7,000 per month . So we’d say that opening a laundromat is profitable!

While numbers will vary depending on your location and the size of your store, laundromat owners report an average net profit of $5,000 to $7,000 per month . So there is an opportunity to make some decent profits.

While there has been a 20% decrease in the number of laundromats since 2005, the industry isn’t dying by any means. The laundromat industry still generates around $5 billion in gross revenue each year .

Operating a laundromat can be a relatively straightforward business, but it does require careful management and attention to detail. While the day-to-day operations of a laundromat may not be overly complex, there are still important considerations such as maintaining and repairing equipment, managing cash flow, ensuring cleanliness and customer satisfaction, and staying updated with industry trends. 

Utilize both online and offline marketing channels to promote your laundromat. This can include creating a professional website, utilizing social media platforms, distributing flyers or brochures in the local community, or partnering with nearby businesses to cross-promote services.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Decide if the Business is Right for You
• Hone Your Idea
• Brainstorm a Business Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Laundromat Business - Start Making Money!

Subscribe to Our Newsletter

Featured resources.

17 Business Ideas that Help the Community

Esther Strauss

Published on July 29, 2022

Just about everybody wants to live in a warm, welcoming close-knit community, and you can help build one by starting a business that helps peopleliv ...

18 Cleaning Business Ideas

Carolyn Young

Published on July 14, 2022

Demand for cleaning services in both homes and offices surged in the last two years because of the COVID-19 pandemic. It is expected to remain higha ...

17 Clothing Business Ideas

Published on July 12, 2022

Are you updated with the latest fashion trends? If so, then starting a clothing business would be a perfect career choice for you. You may open abou ...

No thanks, I don't want to stay up to date on industry trends and news.

Colored Entrepreneur

How to Start and Grow a Thriving Laundromat Business

Laundromats are low-overhead, high-return businesses that can provide a reliable source of income. In fact, the laundromat industry has been booming in recent years, thanks to the increasing number of renters and people living in smaller spaces with no access to laundry facilities.

But starting a laundromat can seem daunting. Where do you start? How do you find the right location? What kind of equipment do you need? Don’t worry – we’ve got you covered.

We’ll explore the key steps you need to take to start a successful laundromat, from conducting market research and creating a business plan to selecting the right equipment and managing your finances.

Hand-Picked Content: 10 Remunerative Passive Income Side Hustles: A Detailed Guide

Grab a pen and paper, and get ready to learn how to start a laundromat – the profitable and reliable business you’ve been looking for.

A Step-by-Step Guide to Starting a Laundromat

Knowing the market: researching the laundromat industry.

Before you start your laundromat business, it’s important to do your research to ensure that there is demand & identify potential gaps in the market.

Here are some key steps you can take to research the industry:

Market Analysis

According to research , after the COVID-19 pandemic, the global market for dry-cleaning and laundry services is expected to reach a projected size of US$94 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.3% over the analysis period of 2022-2030. This is compared to an estimated size of US$67.3 billion in 2022 before the pandemic’s impact on the industry.

However, to determine the demand for laundromats in your area, you’ll need to conduct a market analysis. This involves researching the demographics of your local area, including population size, income levels, and housing types.

To get started, use online resources such as the U.S. Census Bureau & the Small Business Administration to gather data on your local area. Conduct surveys to understand what potential customers are looking for in a laundromat.

Competitive Analysis

Once you’ve gathered information on the local market, it’s important to identify existing laundromats and assess their strengths & weaknesses.

When conducting a competitive analysis, consider factors such as pricing, services offered, hours of operation, and customer reviews. You can also visit existing laundromats to get a firsthand sense of what they offer and how they operate.

By conducting an analysis, you’ll be better prepared to start your laundromat & position it for success in the local market.

The Blueprint for Your Laundromat Business

Once you’ve conducted your market and competitive analysis, it’s time to develop a comprehensive business plan for your laundromat. A business plan is an important way to secure funding & setting goals for your business.

Here are some key components of a laundromat business plan:

The location of your laundromat is a crucial factor in determining its success. In your business plan, you should identify potential locations and assess their pros & cons.

Consider factors such as traffic, parking availability, accessibility, and proximity to your target market.

The equipment you choose for your laundromat is another key consideration. In the business plan, you should identify the types of washers & dryers you’ll need, as well as any additional equipment, such as vending machines or laundry carts.

To attract customers to your laundromat, you’ll need to develop a marketing plan. This might include strategies such as targeted online advertising, social media campaigns, and direct mail promotions. Outline your goals and budget, as well as the specific strategy you’ll use to reach your target market.

Finding Your Laundromat’s Ideal Location

Once you’ve developed your business plan, it’s time to start looking for the right location for your laundromat.

Here are some factors to consider when choosing a location:

Foot Traffic

Look for locations with high foot traffic, such as near shopping centers, supermarkets, and apartment buildings. The more people that pass by your laundromat, the more likely you are to attract customers.

Parking is an important consideration for customers who need to transport their laundry to and from your laundromat. Look for locations with ample parking that is convenient for your customers.

Accessibility

Your laundromat should be easily accessible for all customers, including those with disabilities. Look for locations that have wheelchair ramps and are located near public transportation.

Negotiating a Lease

Once you’ve found a potential location for your laundromat, it’s time to negotiate a lease.

Tips for getting the best deal:

• Ask for a long-term lease to give your business stability.
• Negotiate for a lower rent if possible, or consider offering to pay a higher rent in exchange for other concessions.
• Clarify the terms of the lease, including any maintenance responsibilities and renewal options.

Choose the Right Equipment and Supplies to Boost Your Laundromat’s Bottom Line

Choosing the right equipment and supplies is critical to the success of your laundromat.

Factors to consider when selecting equipment:

Washers & Dryers

Choose the right mix of machines based on the size of your laundromat and the needs of your target market. You may also want to offer machines that cater to specific markets, such as larger-capacity washers for families or machines with shorter cycle times for busy professionals.

Vending Machines

Vending machines can provide an additional revenue stream for your laundromat. Consider offering snacks, drinks, and laundry supplies. Make sure to choose machines that are reliable and easy to maintain.

New vs Used Equipment

New equipment comes with a higher price tag but can offer better energy efficiency and reliability. Used equipment can be a more affordable option, but make sure to thoroughly inspect and test any machines before purchasing.

In addition to vending machine products, you’ll also need to source supplies such as change machines, laundry bags, and cleaning supplies. Look for suppliers that offer competitive pricing and reliable delivery.

Building Your Customer Base Through Marketing & Advertising

Marketing and advertising are essential for attracting and retaining customers to your laundromat. Here are some strategies to consider:

Develop a brand and logo for your laundromat that reflects your unique selling proposition. Make sure your branding is consistent across all your marketing channels.

Website & Social Media

Create a website and social media accounts to showcase your laundromat and attract customers. Your website should include info such as location, contact number, & services offered.

Use social media to promote special offers and events and engage with your customers online.

Targeted Advertising

Consider targeted online advertising through platforms such as Google AdWords and Facebook Ads to reach your target market. 

You can also distribute flyers in the local area and advertise in local newspapers or magazines.

Community Events

Participate in local community events such as fairs & festivals to promote your laundromat and build relationships with potential customers.

How to Manage Your Laundromat’s Financials

Managing your finances is crucial for the success of your laundromat.

Tips to help you plan and manage your finances:

Start by understanding the costs associated with starting and running your laundromat. These may include rent, utilities, equipment maintenance, and staffing. Do your research to ensure that your budget is realistic and takes into account all the necessary expenses.

Budget & Financial Projections

Create a budget that outlines your expected expenses and revenue. This will help you track your cash flow and ensure that you have enough money to cover your expenses. Use financial projections to estimate your revenue and expenses over time.

Managing Cash Flow

Cash flow is critical for the success of your laundromat. Implement strategies to minimize expenses, such as buying in bulk and negotiating better deals with suppliers. Also, make sure to manage your accounts receivable and payable carefully to ensure that you have enough cash on hand to cover your expenses.

Hiring Key Players for Your Laundromat’s Success

When starting a self-service laundromat, you may not need to hire many employees, but it’s important to have the right staff in place to ensure that your business runs smoothly.

Here are some employees you may need to consider hiring for a self-service laundromat:

An attendant or technician can be responsible for overseeing the day-to-day operations of your laundromat. They can help customers with any issues they may encounter, such as broken machines or lost items, and ensure that the machines are working okay.

Maintenance Person

A maintenance person will be responsible for maintaining & ensuring that Machines are working properly.

They can also troubleshoot any technical issues & perform routine maintenance tasks, such as cleaning lint traps and replacing worn-out parts.

Marketing/Advertising Person

A marketing/advertising person can be responsible for creating and executing marketing and advertising strategies to promote your business. They may create flyers, social media posts, and other advertising materials to attract customers.

When hiring employees for your laundromat, it’s important to 

• Develop clear job descriptions for each position when hiring employees for your laundromat.
• Conduct thorough interviews to find the right candidates for each job.
• Manage and train your staff effectively once you’ve hired them.
• Develop training programs that provide clear guidelines and expectations for job performance.
• Provide ongoing feedback and support to help your employees succeed.

Launch Your Own Laundromat Business Today!

Now it’s time to roll up your sleeves & get to work on starting your own profitable & fulfilling business.

Keep in mind that starting a laundromat can be a great way to make money, but it’s not easy & will require plenty of effort and determination.

But with the right location, equipment, marketing tactics, budgeting, and team in place, you can make it happen! So, let’s get to it and start your laundromat journey today.

Usama Ahmed

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Post Comment

Related Posts

Is Consumer Non-durables a Good Career Path?

Top 10 Entrepreneur Movies to Enhance Inspiration

The Rise of Xiaomi | A True Rags to Riches Tale – An Impulse to Candid Entrepreneurs

What Companies Are in the Consumer Services Field?

Begin typing your search term above and press enter to search. Press ESC to cancel.

Item added to your cart

Here's how you establish a profitable laundromat business.

Launching a laundromat can be an excellent opportunity for entrepreneurs looking to invest in a high-demand service industry.

Whether you're a seasoned business owner seeking a new venture or a first-time entrepreneur drawn to the steady income potential of self-service laundry facilities, starting a laundromat requires strategic planning and commitment.

In this blog post, we'll navigate you through the crucial steps of opening a laundromat, from the initial business model to the ribbon-cutting ceremony.

How you should prepare to establish a laundromat business

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a laundromat because it will influence the services you offer, the design and layout of your space, and the clientele you attract.

Your concept will be the guiding principle for all subsequent decisions, such as the location, interior design, equipment, pricing, and marketing strategy. A well-defined concept can help your laundromat stand out in a competitive market and draw in the right customers.

Essentially, selecting a concept is like deciding on the theme of your laundromat's story before you start setting up the space and crafting the customer experience.

To assist you in making an informed choice, we have compiled a summary of the most popular laundromat concepts in the table below.

Pick an audience

When opening a laundromat, it's crucial to consider the specific needs and preferences of your target audience. This will guide you in choosing the right services, equipment, and location for your business.

For instance, if you're aiming to serve college students, you might want to locate your laundromat near a university campus and offer affordable wash-and-fold services. You could also provide amenities like free Wi-Fi and study areas to cater to their lifestyle.

On the other hand, if your target market is busy professionals, you might focus on offering high-end machines that can clean clothes faster and more efficiently. You could also provide a delivery service for added convenience, and position your laundromat in a business district or upscale residential area.

Understanding your audience is essential because it affects every aspect of your laundromat - from the types of machines and services you offer to the design of your space and its location. It's similar to choosing a present; you think about what the recipient would appreciate before making a selection.

Additionally, knowing your target customers allows you to communicate with them more effectively. If you're aware of who you're catering to, you can tailor your marketing efforts to reach them where they are most likely to engage, such as on social media platforms popular with students or professional networking sites for working adults.

In our business plan for a laundromat , we have outlined different customer segments that could be relevant for your business.

To help you visualize the potential audiences for your laundromat, we've compiled a few typical examples below.

Get familiar with the industry trends

When considering opening a laundromat, it's crucial to stay informed about the emerging trends in the industry and integrate them into your business model.

Staying on top of trends can help you capture the interest of potential customers who are looking for the latest conveniences and services. By offering trending features or services, your laundromat can distinguish itself from competitors who may be more traditional in their approach.

For instance, we regularly update our business plan for a laundromat to include new emerging trends. We believe this will assist you in creating a more successful laundromat business.

One significant trend is the integration of technology, such as mobile apps for payment and machine availability status, which caters to tech-savvy consumers.

Additionally, there's a growing interest in eco-friendly operations, including the use of high-efficiency machines and biodegradable detergents, which appeal to environmentally conscious customers.

Moreover, offering additional services like wash-and-fold, dry-cleaning, and alterations can provide a one-stop solution for busy individuals.

In today's connected world, providing free Wi-Fi and comfortable seating areas can turn a laundromat into a social hub, enhancing the customer experience.

We have compiled more trends in the table below.

However, there are also some declining trends.

As consumers become more environmentally and health-conscious, there's a decline in the popularity of laundromats using outdated, energy-intensive machines and harsh chemical detergents.

Also, the traditional coin-operated machines are becoming less appealing compared to cashless and digital payment options that offer more convenience and security.

Finally, with a growing preference for multi-functional spaces, laundromats that do not provide additional amenities or services may find it challenging to attract and retain customers.

Choosing the right location

Selecting the optimal location for your laundromat is a key factor in determining its success, and it requires careful consideration of several important factors.

Understanding the local demographics is the first step. A laundromat thrives in areas with a high concentration of renters who may not have access to in-home laundry facilities. Consider the average income level as well; areas with lower to middle-income families or individuals can be ideal as they are more likely to utilize public laundry services.

Visibility and accessibility are crucial. A laundromat should be easy to find and reach on foot, by car, or via public transportation. Locations with high foot traffic, such as near apartment complexes or within busy shopping areas, are typically advantageous.

Convenience is also about parking availability or proximity to where your potential customers reside. A laundromat within walking distance from a large apartment complex or in a neighborhood with limited in-home laundry options can be particularly successful.

Competition should be assessed carefully. While it's not advisable to be too close to another laundromat, a lack of laundry services in the area could indicate a strong need for one. Conversely, too many laundromats in one area could saturate the market.

Rent costs are a significant factor. Prime locations with high visibility often come with higher rents, so you should weigh the potential customer base against the lease expenses. A balance must be struck between a good location and a sustainable rent.

Negotiating favorable lease terms can have a substantial impact on your laundromat's financial health. This might include securing a lease with renewal options, negotiating a cap on rent increases, or obtaining a period of reduced rent at the beginning to assist with initial costs.

Consider the growth potential of the neighborhood. Is the area developing, with new housing that could increase your customer base? The option to expand your laundromat in the future without relocating can be a significant advantage as your business grows.

Market research and demographic analysis tools can be invaluable in identifying the best locations for your laundromat. These tools can help pinpoint areas with a high demand for laundry services.

The choice between a city center and a residential area depends on your target market. City centers may offer more foot traffic but typically have higher rents and more competition. Residential areas might provide a steady customer base with potentially lower rent but may require additional marketing efforts to become well-known.

Being situated near universities, dormitories, or budget hotels can also provide a consistent stream of customers who need regular laundry services.

Understanding local zoning laws, health regulations, and other legal requirements is essential to ensure that your chosen location is suitable for a laundromat. Ensuring compliance from the outset can prevent costly adjustments and delays.

Finally, evaluating the long-term potential of a location is crucial. Consider any future developments in the area that could impact your business, either positively by bringing in more customers or negatively by increasing competition or rent.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a laundromat can vary significantly, ranging from $50,000 to $100,000 for a modest operation to $200,000 to $500,000 for a larger, more modern facility with state-of-the-art machines and amenities.

If you want to know the exact budget you will need for your own laundromat and also get a full detailed list of expenses, you can use the financial plan we have made, tailored to laundromats . This excel file is designed to be user-friendly and will provide you with an instant and comprehensive analysis of your future project.

The budget can vary the most due to the location of the laundromat. High-traffic areas in urban neighborhoods or near apartment complexes tend to have higher rental costs, which can significantly impact startup expenses.

The size of the laundromat is also a key factor in determining the initial investment. A larger space not only increases rent but also requires more machines and potentially more staff, leading to higher operational costs.

The quality and number of machines are other significant factors. High-quality, energy-efficient machines are costly but can save money in the long run through lower utility costs and less frequent repairs. On the other hand, starting with fewer or used machines can reduce initial costs but may lead to higher maintenance or replacement costs over time.

If the available capital is limited, it's still possible to open a laundromat, but careful planning and prioritization are essential. The very minimum budget could be around $50,000 to $75,000 if you choose a less expensive location, start with a smaller number of machines, buy used equipment, and handle much of the management and maintenance yourself. This approach requires a hands-on strategy and a focus on efficient operations to reduce complexity and costs.

To make the most of a limited budget, consider the following tips.

Identify all your expenses

The expenses when starting a laundromat include equipment purchases, leasing or buying a location, utilities setup, licensing and permits, insurance, marketing and advertising, technology and software, staff training, and a reserve for unexpected expenses.

Essential equipment for a laundromat includes commercial washers and dryers, change machines, laundry carts, and seating for customers. Costs can vary widely based on whether you buy new or used equipment. On average, you might spend between $50,000 to $200,000. High-end or new equipment will be at the upper end of this range, while you can save by purchasing used equipment. Washers and dryers are the most important, as they are the core of your service offering.

Leasing or buying a location is a significant expense. Monthly rent can range from $1,500 to $5,000, depending on the size and location of the premises. Purchasing property will require a substantial upfront investment that can vary greatly based on the real estate market.

Utilities setup for water, gas, and electricity is crucial for a laundromat. Initial setup fees and deposits can range from $500 to $3,000, with ongoing monthly costs depending on usage.

Licenses and permits are critical for legal operation. Costs vary by location but typically range from a few hundred to a few thousand dollars. This includes business licenses, health department permits, and possibly environmental permits due to the use of water and chemicals.

Insurance is non-negotiable to protect your business against liability, property damage, and other potential risks. Essential policies include general liability, property insurance, and workers' compensation if you have employees. Annual premiums can range from $3,000 to $10,000 or more, depending on your coverage levels and laundromat size.

Allocating funds for marketing and advertising is crucial for attracting customers. Initially, you might spend between $500 to $3,000 on marketing efforts, including social media advertising, traditional advertising, and creating a website. The amount can vary based on your strategy and the competitiveness of your market.

Investing in technology and software for point-of-sale systems, inventory management, and security systems is important. Costs can range from $2,000 to $15,000, depending on the sophistication of the systems you choose. Subscription-based services may have ongoing monthly fees.

There are also training costs for staff and professional development. Setting aside $300 to $1,500 for initial training and ongoing professional development can help ensure high-quality service. This also includes any costs for obtaining or maintaining personal certifications.

Finally, setting aside a reserve for unexpected expenses or emergencies is crucial. A good rule of thumb is to have at least three to six months' worth of operating expenses saved. This can cover unforeseen repairs, equipment failures, or shortfalls in cash flow.

Here is a summary table to make it easier to digest. For a full breakdown of expenses, please check our financial plan for laundromats .

Business plan and financing

Make a solid business plan.

You may have heard it time and again, but it bears repeating: crafting a business plan when opening a laundromat is indispensable.

Why is this the case? A business plan acts as a strategic guide for your venture, detailing your objectives, the methods you'll employ to achieve them, and the potential obstacles you may encounter. A meticulously prepared business plan not only keeps you organized and on track but is also crucial when seeking financial backing from investors or banks, as it showcases the feasibility and prospective profitability of your laundromat.

The essential elements of a laundromat business plan include market research, financial projections, and operational strategies, among others. Market research is vital to understand your target demographic, their laundry habits, and the competitive environment. This involves examining trends in the laundry service industry, pinpointing your primary competitors, and determining a unique value proposition that distinguishes your laundromat from others.

Financial planning is another pivotal component. This section should detail your anticipated income, the cost of laundry equipment and maintenance, employee wages, and other operational costs. It should also encompass forecasts for profit and loss, cash flow statements, and a break-even analysis. Financial planning offers you and potential financiers a transparent view of your laundromat's fiscal status and growth prospects. You will find all of this in our financial plan for a laundromat .

While a laundromat business plan shares commonalities with other business plans, the focus on specific areas may vary.

For instance, a laundromat will emphasize the importance of location (proximity to high-density residential areas is beneficial), equipment efficiency and reliability (to ensure minimal downtime and maintenance), and customer convenience features (like card payment systems or mobile app integration). Additionally, showing adherence to any regulatory standards specific to laundry businesses is crucial.

To succeed and create an effective laundromat business plan, it's crucial to conduct in-depth research and maintain realistic expectations regarding your financial estimates and operational capabilities. Engage with potential clients to grasp their needs, preferences, and what they are willing to spend on laundry services. Also, consider how scalable your business model is and the ways you might grow or modify your services down the line.

In the context of a laundromat, special attention should be given to establishing a strong brand identity and marketing approach that appeals to your intended audience. Emphasizing the convenience, efficiency, or eco-friendliness of your services can set your laundromat apart in a competitive market.

Success depends not only on the quality of your laundry services but also on meticulous planning, understanding your market, prudent financial management, and the effective execution of your operational plan.

Keep in mind, a business plan is not a static document but a dynamic one that should be revisited and revised as your laundromat expands and adapts.

Get financed

Thinking of starting your own laundromat but don't have the capital to do it alone? There's no need to worry, as there are multiple financing options available to help you get started.

Financing for a laundromat can come from various sources, including raising capital from investors, securing loans from banks or financial institutions, and obtaining grants or subsidies.

Each financing method comes with its own set of benefits and things to consider.

Raising capital means finding investors who will provide funds in exchange for a share of your laundromat business. This is beneficial because it doesn't require immediate repayment like a loan does.

However, it also means you'll be giving up a portion of your business ownership and may have to compromise on some business decisions.

For a laundromat, this could be a good option if you're looking to scale quickly or need a substantial amount of money upfront for state-of-the-art laundry machines or a location in a high-traffic area. To attract investors, you'll need a solid business plan that shows potential for growth and profit, as well as a deep understanding of the laundromat industry.

Another option is to take out a business loan.

This route allows you to maintain full ownership of your laundromat but requires you to pay back the borrowed amount with interest. Loans can be used for a variety of purposes, such as buying machines, covering the initial costs of operation, or financing renovations.

Banks usually ask for a down payment or collateral, which can range from 15% to 25% of the loan amount. you should consider how much of your budget will come from loans to avoid overwhelming your new business with debt. Ideally, your laundromat's projected cash flow should be enough to handle loan repayments while still allowing for operational costs and growth.

Grants and subsidies are another avenue, though they are less common.

These funds are typically provided by government agencies or non-profit organizations to support small businesses, particularly in areas or industries that are underserved. Grants and subsidies don't need to be repaid, but they often have specific requirements and are highly competitive.

For a laundromat, grants may not be the most reliable primary source of funding but can be used to complement other financing methods for certain projects or needs.

To successfully secure financing from lenders or investors for your laundromat, you must prove that your business concept is viable and profitable.

This means creating a comprehensive business plan that includes market research, a clear target audience, detailed financial projections, and an effective marketing strategy. Your business plan should also emphasize what makes your laundromat stand out, such as innovative services, a strong brand, or a strategic location.

Lenders and investors will assess your laundromat based on several factors, including your creditworthiness, business experience, available collateral, and the strength of your business plan.

They will examine the financial projections of your laundromat to determine if you can generate sufficient revenue to cover operating costs, repay debts, and turn a profit. A thorough understanding of the laundromat market, including trends, customer needs, and competitive analysis, will also strengthen your case.

Below is a summary table of the various financing options mentioned for opening a laundromat, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Opening and operating a laundromat involves meticulous planning and compliance with various regulations and requirements to ensure the safety, health, and convenience of your customers, as well as to safeguard your business.

The specific permits, licenses, health department regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need will differ based on your location, but there are common standards that are applicable in many areas.

First, you'll need to secure the necessary business permits and licenses.

This often includes a general business license from your city or county, and a sales tax permit if your state imposes sales tax. Depending on the services offered, such as dry cleaning or alterations, additional permits may be necessary. For example, if you use certain chemicals for spot treatments or dry cleaning, you might need an environmental permit.

It's imperative to consult with your local government to understand the specific requirements for your area.

Regarding health department regulations, laundromats must adhere to sanitation and safety standards to prevent the spread of diseases and pests.

This includes maintaining clean and sanitary washing machines and dryers, ensuring proper disposal of waste, and regular maintenance of water and sewage connections. Health department inspections may be conducted to ensure compliance with these regulations. The frequency of inspections can vary, but they typically occur at least once a year or more often if there are complaints or previous issues. Some jurisdictions may also require a pre-operational inspection before the laundromat can open.

Non-compliance with health department regulations can lead to penalties ranging from fines to temporary closure of the business until violations are rectified.

In extreme cases, non-compliance can result in permanent closure or legal action. It's crucial to take these regulations seriously and ensure your laundromat complies with all health and safety standards.

Insurance is another essential component of protecting your laundromat business. At the very least, you'll need general liability insurance to cover accidents or injuries that occur on your premises.

Property insurance is also vital to protect your laundromat's equipment and facilities from damage or theft. If you employ staff, workers' compensation insurance will likely be mandatory by law to cover injuries or illnesses that they may sustain while working.

Additionally, you might consider equipment breakdown insurance, which can help cover the costs of repairing or replacing washers and dryers if they malfunction. Business interruption insurance could also be beneficial, as it can help cover lost income if your laundromat has to close temporarily due to covered events like fires or natural disasters.

Business Structure

The three common structures for opening a laundromat are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your laundromat.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many businesses looking to scale.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your laundromat.

We’ll make it easier for you, here is a summary table.

Getting started to establish a laundromat business

Offer development, design and lay out.

Designing and laying out your laundromat for operational efficiency and an enhanced customer experience requires careful planning and strategic thinking.

Let's explore how you can achieve this, focusing on customer flow, balancing equipment needs with budget, and ensuring health and safety.

Firstly, envisioning customer flow is paramount.

Your laundromat's design should guide customers naturally from the entrance to the washing machines, past the service counter, to the payment area, and finally to the folding tables or waiting area. This flow should be intuitive, reducing bottlenecks and ensuring a smooth transition from one point to the next. Place your most efficient and larger-capacity machines at the front to immediately catch customers' attention and meet the needs of those with bigger loads.

This setup not only makes the best use of your equipment but also encourages customers to utilize more machines during peak hours.

Regarding the design to facilitate this flow, consider the layout's openness and accessibility.

Wide aisles, clear signage, and a logical arrangement of the space encourage easy movement and comfort. The service counter should be clearly marked and separate from the payment area to avoid confusion and congestion. If your laundromat also has a waiting area, ensure it's comfortably distanced from the machines to maintain a relaxed atmosphere for those waiting.

Balancing the need for high-quality equipment with budget constraints is a challenge many face.

Start by prioritizing essential equipment that directly impacts the efficiency of your service, such as high-capacity washers and dryers. These are worth investing in because they are the backbone of your laundromat's operations. For other items, consider buying gently used or refurbished equipment from reputable suppliers to save money without significantly compromising quality.

Additionally, plan for equipment that offers versatility and efficiency, like washers with different cycle options or dryers with moisture-sensing technology, to get the most value for your investment.

Health and safety in the laundromat layout are non-negotiable. Your design must incorporate zones designated for different tasks to maintain cleanliness. For example, separate areas for washing, drying, folding, and ironing ensure that each step of the process is contained and controlled. Install handwashing stations at key points, especially near the service counter and folding tables, to encourage regular hand hygiene among customers.

Specific protocols for machine cleaning, maintenance, and operation are crucial for safety and compliance. Implement a system that ensures all machines are cleaned regularly and maintained in good working order, with clear instructions provided for customers on proper usage.

Train your staff thoroughly in maintenance and customer service practices, emphasizing the importance of cleanliness, machine operation assistance, and customer engagement.

Regularly review and update these protocols to comply with local health regulations and best practices.

Craft your offer

Your services and amenities will be the reason why your laundromat is successful (or why it is failing).

To start, identify the preferences and needs of your target market through direct engagement, such as surveys and social media interactions, and indirect research, like observing trends in your area and reviewing what successful competitors are doing.

Once you have a clear picture of your target market's preferences, you can begin to tailor your services to not only meet their laundry needs but also provide a superior experience.

Incorporating eco-friendly and high-efficiency machines into your laundromat is a fantastic way to enhance appeal and sustainability.

This approach not only conserves water and energy, which is better for the environment, but also ensures that your services are cost-effective and of high quality. Make connections with equipment suppliers to understand which machines are the most reliable and efficient. This knowledge allows you to offer a range of services, from basic washing and drying to premium options like extra-large capacity machines or gentle wash cycles for delicate items. Offering a variety of services can attract customers with different needs, from families with large laundry loads to individuals with special garment care requirements.

To ensure your laundromat stands out in a competitive market, focus on convenience and customer experience.

This can be achieved by offering additional services that are hard to find elsewhere, such as 24/7 access, free Wi-Fi, a comfortable seating area, or a loyalty program. Providing amenities like a children's play area or a coffee station can also add a unique appeal and make the chore of doing laundry more enjoyable.

Ensuring consistency and quality in your laundromat involves establishing rigorous maintenance schedules and processes.

This can include regular servicing of machines, ensuring cleanliness and hygiene in the facility, and providing clear instructions for machine use. Consistency is key to building trust with your customers, as they will know exactly what to expect each time they visit your laundromat. Invest in durable machines and maintenance, and don’t shy away from upgrading your equipment as needed to maintain your standards.

Also, utilizing customer feedback is essential for continuous improvement and refinement of your laundromat services. Create channels for feedback, such as comment cards, online surveys, and social media engagement, to understand what your customers appreciate and where there might be room for improvement.

Be open to constructive criticism and willing to make changes based on customer input. This not only helps in refining your services but also shows your customers that you value their opinions, fostering loyalty and repeat business.

Determinate the right pricing

When opening a laundromat, it's crucial to establish a pricing strategy that balances profitability with customer satisfaction. Here's a methodical approach to setting your prices.

Firstly, you must understand your operational costs, which include utilities, maintenance, lease or mortgage, equipment, supplies, and labor. Knowing these costs is the foundation of your pricing strategy, ensuring that your prices not only cover your expenses but also contribute to your profit margin.

Once you have a grasp on your costs, research the local market to see what other laundromats are charging. This will give you a competitive baseline. You don't necessarily need to have the lowest prices, but you should know where you stand in the market.

Understanding your customers' price sensitivity is also key. Gather feedback, conduct surveys, or experiment with different pricing levels to see how your customers react. This will help you find the sweet spot where customers feel they are getting good value without feeling overcharged.

Psychological pricing strategies can be effective in a laundromat setting as well. For example, setting the price for a wash cycle at $2.95 instead of $3 can make a difference in customer perception, even though the actual savings is minimal.

However, you should use this strategy wisely to avoid undermining the perceived value of your service.

The perceived value is crucial in the laundromat business. Enhancing this perception can be achieved through maintaining clean and well-functioning machines, offering excellent customer service, and providing a comfortable and secure environment. These factors can justify higher prices because customers perceive they are getting more value for their money.

Consider implementing time-based pricing strategies, such as offering discounted rates during off-peak hours to increase machine usage and customer flow during typically slow periods.

For new services, such as dry cleaning or wash-and-fold, introductory pricing can attract customers to try them out. Once these services gain popularity, you can adjust the prices based on demand and cost considerations.

If you offer additional services like online booking for machines or delivery for wash-and-fold, consider the different costs and customer expectations. You might absorb additional costs into the service price or charge them separately. Online-exclusive deals can also incentivize customers to use these services.

Lastly, be cautious with discounting. While promotions can attract customers and increase machine usage, too much discounting can lead to a perception of lower quality. Use discounts strategically, such as for loyalty programs or during specific hours, without making them a regular expectation.

Manage relationships with your suppliers

Poor relationships with suppliers could significantly disrupt your laundromat operations in no time.

On the contrary, building strong ties with suppliers will ensure the steady availability of high-quality laundry supplies, such as detergents, fabric softeners, and cleaning agents.

Regular communication, timely payments, and expressing appreciation for their products and services can foster loyalty and reliability. Be transparent about your expectations and needs, and whenever possible, visit their production facilities. This deepens your understanding of their processes and challenges, enabling you to work together more effectively.

Additionally, consider long-term contracts for key supplies to secure better prices and guarantee supply, but also maintain a network of backup suppliers to mitigate risks of shortages.

For managing consumable goods, inventory management techniques such as First-In, First-Out (FIFO) are essential. This approach ensures that older stock is used before newer deliveries, reducing the risk of expired products. Regularly monitor inventory levels to adjust orders according to demand, avoiding overstocking and minimizing waste. Implementing a just-in-time (JIT) inventory system can also be effective, where supplies are ordered and received as needed for daily operations, though this requires precise demand forecasting.

Technology can significantly improve inventory management and reduce waste in a laundromat.

Implementing an inventory management system that integrates with point-of-sale (POS) systems allows for real-time tracking of supply levels and usage data. This technology can help predict demand more accurately, streamline ordering processes, and identify trends that can inform service development and promotional strategies.

Additionally, digital tools can facilitate better communication with suppliers, enabling more efficient order adjustments and collaboration.

Scaling laundromat operations presents challenges such as maintaining service consistency, managing increased costs, and ensuring quality control. Address these challenges by standardizing cleaning procedures, training staff thoroughly, and investing in equipment that can increase efficiency without compromising service quality.

Scaling up also means more supplies, so negotiate pricing with suppliers for bulk purchases without sacrificing supply quality. Quality control becomes even more critical as operations increase, requiring strict adherence to standards and more frequent equipment maintenance checks.

Implementing effective cost control measures involves scrutinizing every aspect of sourcing and using laundromat supplies. Regularly review and negotiate with suppliers to ensure you're getting the best prices without compromising quality.

Also, consider eco-friendly supplies that may offer cost savings or appeal to environmentally conscious customers. Utilize technology to track and analyze costs, waste, and inventory levels to identify areas for improvement. Reducing waste not only cuts costs but also aligns with sustainable practices, enhancing your laundromat's appeal to a growing segment of the market.

Hire the right people

When opening a laundromat, you should consider the staffing needs carefully. Initially, you may not need a large team, but there are key roles that must be filled to ensure smooth operations.

At the core, your laundromat will require attendants to manage the day-to-day operations, maintenance staff to keep the machines in working order, and potentially a manager to oversee the entire operation.

Laundry attendants are essential for maintaining a clean and customer-friendly environment. They assist customers, handle any issues with the machines, and ensure that the laundromat is tidy and welcoming.

Maintenance staff are crucial for the technical upkeep of the laundry machines. They perform regular checks, troubleshoot problems, and conduct repairs to minimize downtime and maintain efficiency.

A manager or owner-operator is important for the overall management of the laundromat. This person would handle administrative tasks, staff scheduling, supply ordering, and ensure compliance with any relevant regulations.

As your laundromat grows, you might consider hiring additional staff, such as a dedicated customer service representative or a bookkeeper. Outsourcing can also be a strategic option for roles like accounting and marketing, allowing you to focus on the core aspects of your business.

When hiring, prioritize candidates with relevant experience, strong customer service skills, and a willingness to learn. For attendants, look for individuals with prior retail or service industry experience. Maintenance staff should have a background in appliance repair or a related field. For managerial roles, seek out those with experience in business management and a track record of leadership.

To ensure a good fit with your laundromat's culture and demands, consider practical assessments during the hiring process, such as role-playing customer service scenarios for attendants or technical assessments for maintenance staff.

Look for candidates who are reliable, customer-focused, and adaptable to the dynamic nature of the service industry.

Finding the right candidates can be a challenge. Utilize job boards, local community centers, and social media platforms to reach potential hires. Networking within service industry groups and attending job fairs can also be effective strategies. Offering part-time positions or flexible hours can attract a wider pool of applicants.

Here is a summary table of the different job positions for your laundromat, and the average gross salary in USD.

Running the operations of your laundromat business

Daily operations.

Running a laundromat efficiently is key to maintaining a steady flow of customers and ensuring profitability. By adopting smart operational practices, you can keep your laundromat running smoothly.

Firstly, investing in a modern Point of Sale (POS) system tailored for laundromats can greatly enhance your business operations.

Choose a POS system that combines sales tracking, inventory management for your vending machines, and customer relationship management. This will allow you to monitor sales as they happen, keep your vending machines well-stocked, and maintain a record of your customers' habits and preferences.

Many advanced POS systems also include features for managing laundry card systems or mobile payments, which can provide additional convenience for your customers and streamline your payment processes.

For inventory management, you'll need a system that can track the stock of detergents, fabric softeners, and other items you sell. The best systems will alert you when supplies are running low and generate reports on sales trends, helping you to order the right amount of stock at the right time.

Some systems may also support the tracking of machine usage and maintenance schedules, which is crucial for keeping your equipment in top condition and avoiding downtime.

As with any business, maintaining good relationships with your suppliers is vital. Ensure you have clear communication about delivery schedules, product quality, and payment terms. A strong relationship can lead to better prices and dependable service. It's also smart to have connections with multiple suppliers to guarantee you can always meet your stock needs.

Creating a positive workplace culture is essential for keeping your staff motivated and efficient. Offer regular training, set clear goals and expectations, and provide constructive feedback. Acknowledge and reward excellent performance to maintain high morale. Fair and considerate work schedules are also important for supporting your employees' work-life balance.

Providing a positive customer experience in your laundromat involves maintaining clean and well-functioning machines, offering a comfortable waiting area, and ensuring excellent customer service.

Train your staff to be helpful, courteous, and prompt. Encourage them to recognize regular customers and assist them proactively, making their visits convenient and pleasant.

Keeping your laundromat clean, with clear instructions for machine use and a layout that is easy to navigate, also contributes to a better customer experience.

Good customer service policies for a laundromat might include a satisfaction guarantee, clear policies on machine issues, and a system for receiving and responding to customer feedback.

Make feedback channels accessible, whether in-person, through your website, or on social media platforms. Address feedback quickly and positively, showing customers that their opinions are valued and that you are dedicated to enhancing their experience.

When dealing with customer complaints, listen carefully before responding. Apologize if necessary and offer a solution, such as a refund for lost machine time or additional services at no cost.

Use negative feedback as a chance to improve your laundromat's operations or customer service. Turning a poor experience into a positive one can often result in a loyal customer.

Revenues and Margins

Know how much you can make.

Understanding the financial workings of a laundromat is crucial for any current or aspiring owner.

We have an in-depth article on the profitability of laundromats that provides extensive details. Below, we'll summarize some key points.

One important metric for laundromats is the average transaction size, which is the average amount a customer spends per visit.

The average transaction size can vary greatly depending on the laundromat's pricing, services offered, and customer demographics. For self-service laundromats, the average transaction might range from $2 to $5 per load, with customers possibly running multiple loads per visit.

Full-service laundromats, offering wash-and-fold or dry-cleaning services, may see higher transaction sizes, perhaps $15 to $50 per visit, depending on the volume and types of garments being serviced.

Revenue for laundromats can also vary widely. A small, self-service laundromat in a modest neighborhood might see monthly revenues of $1,500 to $5,000 , translating to annual revenues of $18,000 to $60,000 .

Larger laundromats or those offering full-service options in urban areas could have monthly revenues ranging from $10,000 to $30,000 , leading to annual revenues between $120,000 and $360,000 .

Startup laundromats may experience lower revenues initially as they work to attract and retain a customer base. It's realistic to expect monthly revenues under $3,000 in the early stages.

Well-established laundromats with a loyal customer base and additional services can achieve higher and more stable revenues over time.

Laundromats with additional amenities, such as snack bars or entertainment options, might see increased revenue due to the added value for customers waiting for their laundry.

Laundromats don't just earn money from washing and drying clothes. There are multiple revenue streams available to maximize profits.

If you're looking for inspiration, here's a table that outlines various ways a laundromat can generate income.

Understand your margins

As with any business, understanding the difference between revenue and profit is crucial for laundromats. Before we can determine the actual earnings, we need to consider the expenses and margins of a laundromat.

Let's delve into the gross and net margins, which are key indicators of a laundromat's profitability.

To calculate your own margins and get a precise figure for your potential profit, you can adjust the assumptions in our financial model designed for laundromats .

The typical range of gross margins for laundromats can vary, often ranging from 55% to 75%.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which for laundromats includes the direct costs such as detergents, utilities, and machine maintenance, from the revenue generated from laundry services. This figure is then divided by the revenue and multiplied by 100 to get a percentage.

Net margins consider not only COGS but also all other expenses a laundromat incurs, such as rent, equipment leasing, administrative expenses, and taxes. This figure is obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete view of a laundromat's profitability and are typically lower than gross margins, with industry averages often ranging from 20% to 30%, reflecting the profitability after all costs are accounted for.

Different types of laundromats—self-service, full-service, and specialized—can have varying profit margins due to differences in their business models, scale of operations, and target markets. Here is a table to illustrate this.

Margins in a laundromat are influenced by factors such as service mix, pricing strategy, and scale of operations.

A diverse service mix can attract a wider customer base but may also increase operational complexity and costs.

Pricing strategy is critical; prices must be competitive yet sufficient to cover costs and yield a profit. Scale of operations can impact cost efficiencies, with larger laundromats often benefiting from lower per-unit costs due to volume.

Ongoing expenses that affect laundromat margins include utility costs, equipment maintenance, labor, rent, and supplies. Utility costs, especially water and electricity, can be significant and fluctuate based on usage and rates. Labor costs are a major expense for full-service laundromats. Rent can vary greatly depending on location, and the cost of supplies like detergents and fabric softeners can also impact gross margins.

Laundromats that focus on niche markets, such as offering organic or hypoallergenic cleaning options, may experience different margin dynamics compared to those with a more traditional service range.

While niche laundromats can command higher prices, they also face higher operational costs and potentially limited market size, which can affect overall margins.

External factors such as economic conditions, local competition, and customer preferences also play a significant role in laundromat margins. Economic downturns can lead to reduced spending on non-essential services, while a strong local market can increase demand and profitability.

To maintain healthy margins amidst rising utility and supply costs, laundromats can employ efficient cost management, strategic pricing, optimizing operations for energy and water efficiency, and investing in modern, high-efficiency machines.

Regular monitoring and analysis of financial performance, including gross and net margins, is essential for ensuring the financial health and sustainability of a laundromat. Fortunately, all of this can be managed with our financial model specifically for laundromats .

Implement a strong marketing strategy

Marketing doesn't need to be as complex as some experts make it seem. We understand you'll be preoccupied with managing your laundromat and might not have ample time for extensive promotion. Therefore, we'll keep our advice straightforward and practical, similar to the marketing strategy we've detailed in our business plan for a laundromat .

Creating a brand for your laundromat is not just beneficial; it's essential.

Your brand is the way customers recognize and remember your service. It's not only about your signage or the color scheme of your machines, but also the convenience and reliability you offer. Your brand should reflect the efficiency of your services, the cleanliness of your facility, and the values you uphold, such as eco-friendliness or community support. This helps your laundromat to stand out in a competitive market and cultivates a dedicated customer base.

For your marketing plan, begin by identifying your target audience. Who are the people most likely to use your services? What do they prioritize? Is it quick service, cost-effectiveness, eco-friendly washing options, or 24/7 availability? Knowing your audience will inform your branding and promotional efforts.

When it comes to promotion, social media and online marketing can be very effective for laundromats. Platforms like Instagram and Facebook are ideal for sharing updates about your services, special offers, and customer testimonials.

Post content that highlights the convenience and features of your laundromat, such as your state-of-the-art machines, your spacious and comfortable facilities, or your environmentally friendly washing options.

Encouraging customer reviews and sharing them online can help build trust and persuade others to use your services. Educational content on the best laundry practices can also engage your audience, providing them with useful information and positioning your laundromat as a helpful resource.

Content strategies that resonate with laundromat customers include tips on how to handle laundry efficiently, the benefits of using professional laundry services, and showcasing any unique services you offer, like pick-up and delivery or alterations. Collaborating with local housing complexes or businesses can also increase your visibility.

However, not all strategies may be suitable for your laundromat. For instance, if your target audience is primarily college students, high-end fabric care tutorials might not be as relevant. Similarly, if your laundromat is in a residential area, partnering with local businesses might be more beneficial than targeting tourists.

Even with a modest budget, there are clever tactics you can employ to attract new patrons.

First, consider offering first-time customer discounts or bundle deals to encourage people to try your services. This can lead to increased patronage and word-of-mouth referrals.

You can also host community events or workshops on laundry care at your laundromat to engage with the community and draw in potential customers.

Partnering with nearby businesses, such as gyms or salons that might require regular laundry services, can extend your reach.

Implementing a loyalty program can motivate repeat visits. Simple stamp cards or a digital points system can prove quite successful.

Lastly, never underestimate the power of word-of-mouth marketing. Inspire your satisfied customers to recommend your laundromat by offering them incentives for bringing in new clients.

Grow and expand

We want you to thrive with your laundromat. We trust that the guidance provided here will help you on your path to growth and success.

Imagine your laundromat is already a hit in the neighborhood, with efficient operations and a steady flow of customers. Now, it's time to consider how you can scale and expand your business.

There's always potential for greater success, and we're here to show you the steps to get there.

Also, please note that we have a 3-year development plan specifically designed for a laundromat in our business plan template .

Successful laundromat owners often possess qualities such as attention to detail, customer service excellence, and the ability to adapt to changing market conditions. These traits are essential as they work to grow their business.

Before adding new services to your laundromat, consider the market demand, how these services complement your existing offerings, and the impact on your operations.

Conducting market research is critical. By understanding customer needs, industry trends, and the performance of similar services in the market, you can make informed decisions that fit your laundromat's capabilities and customer expectations.

To evaluate the success of your current operations, examine sales trends, customer feedback, and operational efficiency. If your laundromat consistently hits sales targets, receives positive reviews, and operates smoothly, it might be time to think about expansion.

Opening additional locations should be based on clear evidence of demand, a deep understanding of the target market, and the financial stability of your existing operation.

Franchising can be a way to grow with less capital risk, tapping into the entrepreneurial drive of franchisees. However, it requires a strong brand, effective operational systems, and the capacity to support franchisees. Opening company-owned branches gives you more control but demands more capital and hands-on management. Each approach has its pros and cons, and the choice depends on your business objectives, resources, and growth preferences.

Utilizing digital channels, such as online booking systems and customer relationship management platforms, can significantly increase a laundromat's visibility and customer convenience. An online presence allows you to reach customers outside your immediate area and adapt to the growing need for accessible services.

This strategy involves understanding digital marketing, managing logistics for pick-up and delivery services, and ensuring service quality.

Branding is key as it sets your laundromat apart in a competitive market. A strong, consistent brand identity across all locations and platforms can build customer loyalty and attract new patrons. Enhance your brand by ensuring every interaction reflects your laundromat's values and commitment to quality.

Ensuring consistency across multiple locations is a challenge but is vital for success. This can be achieved through comprehensive operational manuals, staff training, and quality control measures.

Regular visits and audits, along with promoting a strong, unified culture, help ensure each location maintains the standards that made your original laundromat successful.

Financial indicators that you're ready for expansion include consistent profitability, robust cash flow, and meeting or surpassing sales forecasts over a considerable time.

Having a scalable business model and the operational capacity to support growth are also essential.

Forming partnerships with local businesses and participating in community events can introduce your laundromat to new customers and markets. These opportunities allow for innovative collaboration, community involvement, and increased brand exposure, all contributing to your laundromat's growth.

Scaling your operations to meet higher demand may involve logistical considerations such as upgrading equipment, optimizing inventory management, and potentially expanding your facility. It's crucial that your supply chain can handle the increased workload without compromising service quality.

Finally, it's important that your expansion efforts remain aligned with your laundromat's core values and long-term objectives. Growth should not come at the cost of what made your laundromat a community staple.

Regularly revisiting your business plan and values can help ensure that your expansion strategies are in harmony with your vision and mission, preserving the essence of your laundromat as it grows.

• Choosing a selection results in a full page refresh.
• Opens in a new window.

‘Black Women Are A Good Investment’: Inside Goldman Sachs’ $10 Billion Economic Plan

The wall street giant says it sprinkled nearly $3 billion in capital to expand the black business community..

“Y our network determines your net worth.”

The opening words inspired the 300-plus people at Goldman Sachs headquarters in New York on June 18. It was a part of the video shown to the investment bank’s fifth graduation class of the Black in Business which is apart of the One Million Black Women initiative, a $10 billion investment Goldman Sachs says is aimed at driving economic opportunity for one million individuals by 2030. In the crowd were lawyers, accountants and even a NASA statistician—all future entrepreneurs ready to receive their stamp of approval from the financial titan.

“Our thesis is that Black women are a good investment,” Asahi Pompey, president of the Goldman Sachs Foundation, tells Forbes .

Pompey discussed Goldman Sachs’ One Million Black Woman initiative as part of “ Journey to ForbesBLK Summit,” an editorial series leading up to the second annual ForbesBLK business conference in Atlanta on June 23-25. There, ForbesBLK plans to amplify entrepreneurs and organizations who take distinctive approaches to leadership, business and economic problem-solving.

Goldman Sachs says it has deployed nearly $3 billion in capital for One Million Black Women since its 2021 launch. Its “Black in Business” education course, designed to help sole proprietors scale into employers, has credentialed 750 Black women, including the 146 individuals in its fifth cohort on June 18. Black in Business is a free program and serves as the foundation of One Million Black Women because it may help close the wealth gap and grow the U.S. economy by adding jobs in the Black community. Goldman Sachs works with New York University’s Stern School of Business to curate a 10-week virtual business course covering topics including consumer acquisition costs, marketing strategies and staffing.

“Our big task is to move solopreneurs to bonafide entrepreneurs who have employees and others who are helping to achieve their business goals,” Pompey says.

The investment bank says businesses have made $22.4 million in revenue since it created Black in Business. Goldman Sachs CEO David Solomon told attendees that 65% of graduates reported an increase in revenue after six months, and 50% added employees.

Hyacinth Tucker, 49, founder and CEO of The Laundry Basket, described the Goldman Sachs program as challenging but also “impactful.” A former Allstate insurance agent, Tucker applied for Black in Business in 2023 to assist in scaling her Maryland-based laundry service. The course improved Tucker’s accounting skillset as she manages new contracts, including one with the U.S. Department of Defense.

“It changed me,” Tucker tells Forbes . “But you have to be accountable. You have to submit the homework, (financial) work, and everything that comes with it.”

Sandra Jean, CEO of the law firm Jean Consulting Group , completed the program in March 2023. A former National Labor Relations Board attorney, she opened her Atlanta-based firm in February 2022 and recalls making less than $2,600 monthly. “I didn’t know how to price myself,” the 53-year-old Jean says. “Who was my target audience? All these things I never thought of, being an employee.”

Jean Consulting Group’s revenue increased nearly 500% over the last year, Jean estimates. The jump allowed her to pay off a mortgage and plan for the future.

“I can see myself leaving a wealth legacy for my children,” Jean says.

Executive Decision: Goldman Sachs CEO David Solomon joined the firm's fifth Black in Business graduation ceremony honoring women-led firms.

‘It’s A Proven Model’

Goldman Sachs created One Million Black Women after its March 2021 report, Black Womenomics . It found that the wealth of a median single Black woman was 92% less than that of a single White man. To help resolve this imbalance, Goldman Sachs replicated its 10,000 Small Businesses program for Black in Business. In 2008, the investment bank established the 10,000 Small Businesses program to teach enterprises business economics and scaling. It’s since impacted more than 14,000 businesses in urban and rural communities.

“It’s a proven model,” Pompey says.

Goldman Sachs estimates closing the earnings gap for Black women would add 1.7 million U.S. jobs and $450 billion to the national economy.

Pompey works closely with Goldman Sachs’ urban investment team to direct funds to venture firms, such as Atlanta-based Collab Capital, that put money into Black-owned startups. Goldman Sachs also steers funds to public-private partnerships, including New York City’s $75 million small business opportunity fund.

Goldman Sachs also says it deployed $39 million in grants to institutions, such as Morehouse College’s School of Medicine, to focus on maternal healthcare. Atlanta’s The King Center program to mentor girls interested in economic advancement were among those also receiving grant money. Goldman Sachs says it plans to spend $100 million in philanthropic funds.

Pompey says the initiatives serve as a “one-two punch” to combat the opportunity gap. And in September, Goldman Sachs will increase its graduating class to 300 from 150 individuals. Pompey says that before graduates get their Goldman Sachs degree, they’re required to present at least one growth idea for their business.

“The secret sauce,” Pompey says, is that Goldman Sachs tracks the progress of all businesses until 2030. That data, she says, “will show where they started as a solopreneur and how that business grew.”

Tucker, a keynote speaker at the graduation, wants to expand her business to Canada and has plans to start franchising. “Watch out Wall Street. We’re coming for you,” Tuckers says, closing the speech to an applauding crowd that included Goldman Sachs’ Solomon and Valerie Jarrett, CEO of the Obama Foundation.

Reflecting on her own entrepreneurial journey, Jean says she hopes the networking and course work provided by the program can break a negative trend of 90% of Black businesses failing after three years.

“We need knowledge,” Jean says. “We have the volition, but we’re operating in a vacuum. We don’t know what we don’t know.”

MORE FROM FORBES

• Editorial Standards
• Reprints & Permissions

Join The Conversation

One Community. Many Voices. Create a free account to share your thoughts. 

Forbes Community Guidelines

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.

In order to do so, please follow the posting rules in our site's  Terms of Service.   We've summarized some of those key rules below. Simply put, keep it civil.

Your post will be rejected if we notice that it seems to contain:

• False or intentionally out-of-context or misleading information
• Insults, profanity, incoherent, obscene or inflammatory language or threats of any kind
• Attacks on the identity of other commenters or the article's author
• Content that otherwise violates our site's  terms.

User accounts will be blocked if we notice or believe that users are engaged in:

• Continuous attempts to re-post comments that have been previously moderated/rejected
• Racist, sexist, homophobic or other discriminatory comments
• Attempts or tactics that put the site security at risk
• Actions that otherwise violate our site's  terms.

So, how can you be a power user?

• Stay on topic and share your insights
• Feel free to be clear and thoughtful to get your point across
• ‘Like’ or ‘Dislike’ to show your point of view.
• Protect your community.
• Use the report tool to alert us when someone breaks the rules.

Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's  Terms of Service.

UniCredit CEO says digital euro "very good" plan if banks fully involved

• Medium Text

Sign up here.

Reporting by Valentina Za, editing by Cristina Carlevaro and Keith Weir

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Markets Chevron

Dollar hits 38-year high vs yen; US stocks rise

The U.S. dollar on Wednesday hit its highest level against the Japanese yen in nearly 38 years, and investor speculation was high that authorities in Japan could intervene to strengthen the country's currency, while major U.S. stock indexes climbed.

Advertisement

Supported by

Fact-Checking Biden’s and Trump’s Claims About the Economy

We fact-checked claims about inflation, jobs and tax policy from both presidential candidates.

• Share full article

By Linda Qiu

Reporting from Washington

Consumer sentiment about the state of the economy could be pivotal in shaping the 2024 presidential election.

President Biden is still grappling with how to address one of his biggest weaknesses : inflation, which has recently cooled but soared in his first years in office. Former President Donald J. Trump’s frequent economic boasts are undermined by the mass job losses and supply chain disruptions wrought by the pandemic.

Here’s a fact check of some of their more recent claims about the economy.

Both candidates misrepresented inflation.

What Was Said

“They had inflation of — the real number, if you really get into the real number, it’s probably 40 percent or 50 percent when you add things up, when you don’t just put in the numbers that they want to hear.” — Mr. Trump at a campaign event in Detroit in June

“I think it could be as high as 50 percent if you add everything in, when you start adding energy prices in, when you start adding interest rates.” — Mr. Trump in a June interview on Fox News

This is misleading. Karoline Leavitt, a spokeswoman for the Trump campaign, cited a 41 percent increase in energy prices since January 2021, and prices for specific energy costs like gasoline rising more than 50 percent during that time.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .