How to Start a Laundry Business?
How to Start a Laundry Business?
5 min reading
Summary: The article discusses the steps involved in starting a successful laundry business, including conducting market research, attending a laundry training program, preparing a business plan, amount of initial capital needed, choosing a location, and etc.
Starting a professional laundry business can be a lucrative venture if done correctly. With more and more people owning expensive garments, the demand for professional laundry services has been increasing concurrently in recent years.
In addition to that, there is a generational gap within the industry as younger people tend not to inherit or start the business. The reasons could be time-consuming operational work, perception of being a “lower status” industry, lack of interest in traditional business, etc. Therefore, the future of the laundry business looks promising.
In this article, we will discuss the steps involved in starting a laundry business, the initial capital required, and the time and effort needed to manage the business.
Research the Market
Attend Laundry Training Program
Prepare a Business Plan
Initial Capital Requirement
Buy Laundry Equipment
Recruit Operational Staff
Execute the Marketing Plan
Ongoing Time and Effort
1. Research the Market
Before starting any business, doing complete market research to determine the business viability is crucial. The scope should cover who is your target market, what is your desired location, analyzing your competitor in the area, estimating the startup costs, and financial projections to ensure that you can compete while making a profit. By conducting thorough market research, you will gain valuable insights into the business and make informed decisions to start or grow the shop.
2. Attend Laundry Training Program
Joining a laundry training program provides numerous benefits that can help you to start and manage the business better. The courses may be conducted in an online or physical class format. In order to maximize your learning, it is best to have a face-to-face class with an instructor with real-life years of laundry experience. The training should allow you to learn the best practices to run a laundry business, develop practical cleaning skills and techniques, gain industry-specific knowledge and expertise, and access industry resources and networks. As such, it can increase your chance of success as a laundry business owner.
3. Prepare a Business Plan (optional)
After conducting market research, create a business plan based on your finding. If you are planning to apply for an investment or loan, such a business plan is needed during the application. Apart from financing requirements, a business plan can give you better clarity on your business concepts, identify risks and provide a framework for decision-making.
4. Initial Capital Requirement
Starting a laundry business requires significant capital to purchase equipment, shop rental, and other expenses. The final amount depends on the type and size of your laundry business. A laundry collection point can cost RM50,000, while a larger one with a laundry operation is around RM150,000, and the one with an additional dry cleaning operation will cost up to RM550,000.
5. Choose a Location
The location of your laundry shop is crucial to the success of your business. You may need to choose a place that appeals to your target customer segment. You also have to consider whether the location is easily accessible and visible with high traffic flow and the level of competition in the area.
6. Buy Laundry Equipment
Investing in the right equipment can improve your business productivity, efficiency, and cleaning quality. Depending on your budget and business size, the number and size of the machines will vary. A collection point business may not require any machines and dryers. But, a comparably big operation may require investment in equipment such as commercial washers & dryers, spotting machines, dry cleaning machines, etc. Some may choose to buy second-hand equipment because it is more affordable. However, the performance of the equipment is not always guaranteed. It requires individual experience and expertise to know whether the used machines are still functioning well.
7. Recruit Operational Staff
The priority is to hire a worker with experience in the professional laundry industry. Depending on the laundry business they worked in the past, candidates who work in a commercial laundry business may not have developed the specialized laundry skill and techniques. It is because the nature of work is more operational than technical. On the other hand, a candidate with a laundry & dry cleaning background is better. They might have learned how to identify the fabric, apply the correct cleaning method, stain removal methods, etc. Thus, you save extra resources to train the staff to perform their duties effectively.
8. Execute the Marketing Plan
Once your business starts to operate, you should begin promoting your laundry services to potential customers. Firstly, setting up a Google My Business profile to improve online visibility is vital. It can help your business to appear in the local search. In addition, you can consider giving an opening promotion for a fixed period to encourage new customers to try your services. If you target a nearby residential community, you can distribute flyers into their PO box to promote.
9. Ongoing Time and Effort
While the specific time and effort will be different based on the size and complexity of your business, managing the day-to-day operation consumes the most resources. The main tasks include serving and providing consultation to daily customer enquiries, sorting and marking the garment, cleaning and drying, ironing or folding the clothes, and checking the cleaning quality. Then, spend some time managing the inventory (hangers, plastic bags, detergent), overseeing equipment repair & maintenance, hiring & training, doing the payroll, and bookkeeping.
In conclusion, starting a laundry business requires thorough market research, a training program, and significant initial capital. Once you start the business, execute your marketing plan to attract new customers. Do know that you will spend most of your time and effort in the day-to-day business operation. While the laundry business can be profitable, success depends on some factors, like location, competition, demand for laundry services, and cleaning quality.
Leave A Comment