Starting your own commercial laundry service is a smart business plan. Everyone has laundry, and there is no getting away from doing it. Having a commercial laundromat is a lucrative business, and you should expect to see revenue relatively quickly once you open your doors. But there are steps that need to happen before you let your first customers in. We’ll walk you through some tips, tricks, and products to help your commercial laundry service get off the ground in those first few months.
At A Glance:
5 Steps to Start Your Commercial Laundromat
How to Make Your Laundromat Stand Out
Five Steps to Get Your Commercial Laundry Business Started
While you may be anxious to get your business up and running as quickly as possible, taking the time to plan and set up your company before the doors open is vital.
1. Be Strategic on Where Your Business Is
Laundry businesses are most lucrative in areas where there are many apartment complexes without in-unit washers and dryers or where individuals don’t have access to their own washing machines. As such, you want to place your business in a strategic area to which these residents can walk or easily drive.
Also, decide if you want your commercial laundry services to be self-service or a place where people can drop off their clothing to be washed and dried. Before you break ground or buy an old building, do your research on the demographic of the area and make sure your services are genuinely needed. You don’t want to get to opening day to find out there’s already a trusty laundromat in the neighborhood.
2. Choose the Right Business Entity
There are numerous types of business entities and choosing the right one for your commercial laundromat is essential. A business entity is simply any organization that is formed to conduct business. To legally be able to sell or provide a service, you need to register your business. There are six main entities, but the main three that are needed for a laundromat are listed below.
Sole Proprietor
A sole proprietor entity is owned by a single person. This is the simplest entity you can choose for your business because it doesn’t require state registration. Filing taxes is easier for individual proprietors, and you can deduct your business losses from your tax returns in most cases. If you plan to start your laundromat on your own, this is the best and only course.
General Partnership
A general partnership has many similarities to a sole proprietor entity, but the main difference is the business is owned by more than one person. For multiple-owner enterprises, a general partnership is the default mode of ownership; there is also no requirement to register a general partnership with the state. If you are going into this business with a friend or family member, a general partnership is your best option. Keep in mind that if you are a sole or general proprietor entity, you will still need to file a DBA (or a “doing business as”) form to operate legally.
Limited Partnership
A limited partnership (LP) is registered with the state, and you must submit formal paperwork. There are two types of partners in an LP: those that control, run, and bear liability for the firm (general partners) and those who just function as investors (limited partners, sometimes known as "silent partners"). If you need investors to help, get your feet off the ground, an LP is perfect for you. Consider that most laundromats aren’t franchises, and this may not be a needed partnership.
3. Develop a Business Plan
A business plan is a comprehensive overview of everything you intend to do with your business. This will include products needed, how many employees will be hired, and the structure of day-to-day routines.
Here are a few questions to ask yourself when drafting your business plan:
- What actions do I need to take before opening my doors?
- What is the demographic of the area I am deciding to open my business in?
- Who are the competitors of my business nearby?
- Who are my target customers?
- What are my projections for when I will start seeing a profit?
4. Acquire Permits and Licensing
Depending on the state where you'll be operating, you'll need different licenses and permissions to manage your laundry service. In addition to more particular licenses, such as a health department license or a water pollution control permit, you may need to get a more generic business license.
Laundry facilities and businesses that provide laundry services are subject to special restrictions in several states and towns. If you want to offer pickup and delivery services as well, you'll need additional permits for your company cars. We suggest you contact a local attorney to make sure everything that is needed is in place.
5. Get the Right Commercial Laundry Equipment
Before buying equipment for your business, make sure you double-check your laundromat’s dimensions. In addition, keep in mind that, aside from rent, washing equipment will most likely be your largest expenditure. Laundry machines typically cost anywhere from $800 and $2,500 on average.
As a result, you should have done some calculations for how much you intend to spend on these early beginning costs while creating your business plan. Now, it's time to figure out how to pay for them. If you need some help starting your business and can’t afford 20 plus laundry machines, check out this equipment financing tool. It will show you what loans you can qualify for and if any funding is available. Check out this equipment financing tool for loans and funding.
Products Needed for Commercial Laundry Services
So, what products are needed to run a successful laundry business?
Commercial Laundry Machines
Of course, you’ll need laundry machines, but the amount of how many you need will vary on the dimensions of your business. These days, many modern commercial laundry machines have eliminated the necessity to carry around loads of coins in your purse. While many people still expect to bring their dollars as cents to a laundromat, you can make the process one step easier. This GE commercial washer features a built-in QR code. This ensures that you, as the owner, will get the correct payments, and your tenants or customers won’t have to carry around wads of cash.
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Commercial Dryers
As you may know, you can’t have a laundromat without dryers. You can easily match your coinless washer with a hassle-free GE commercial dryer. Also, like many modern-day commercial laundry machines, you’ll be able to connect them to your phone. Instead of dealing with clothes that never fully dried (and subsequent negative reviews), customers will be able to receive alerts when your machines aren’t working correctly.
Commercial Laundry Carts
Laundry carts are another necessity for your business, as you don’t want your customers to carry sopping-wet loads of laundry from one machine to another. Laundry carts sport many different styles, so if you want to design your store to be contemporary and modern, look for some carts that feature black wires and brass accents. Make sure you supply your store with different sizes of carts; there are sizes that range from two bushels of laundry to a whopping 40 bushels.
Detergent Dispensers
Customers often come in, ready to do their laundry and to prepare to spend the next few hours with a good book, until they realize they completely forgot detergent. You don’t want to lose that customer as they go home and decide laundry day can happen tomorrow. So, supply your commercial laundries business with the appropriate number of detergent dispensers. We also know we all have our preferred scent and brand of detergent, so make sure you stock up on a few different kinds to appease your customers’ preferences.
Tips on How to Make Your Laundry Mat Stand Out
There are nearly 20,000 laundromats in the United States today, so how do you plan on getting your customers in the door? Here are a few ideas to make your business stand out from the rest.
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Café Laundry Hybrid
Coffee shops have been a rising commodity among the younger generations in recent years. Many people spend their weekends or evenings studying away while sipping on a steamed mocha. So, why not convert your laundromat into a hybrid café? Customers have to spend hours at the laundromat anyway, so why not give them the opportunity to spend their time stress-free with a hot coffee or a warm panini in hand?
Pickup and Delivery
Transform your business into a luxury occasion by providing a pickup and delivery service. Wash and fold services that transport and pick up laundry for busy families and professionals are becoming increasingly popular in the laundry industry. Go above and beyond for your customers in terms of care by alleviating the stress of laundry day. Consider that you will need more people to staff your business if you decide to go this modern route.
Eco-friendly
Sustainability is becoming more mainstream and for good reason. So long as you offer these amenities, you can easily market your laundromat as one that conserves water and uses plastic-free products. If you have the means, you can supply eco-friendly and local resources that will promote other non-competitor businesses as well. Other ideas include setting up a refillable station in your business for customers, bringing their own glass bottles, or being able to buy reusable bags to carry their laundry out.
Check out These Eco-Friendly Commercial Laundry Machines
FAQs
Let’s review a few remaining questions you might have pertaining to how to start your own business.
What is a commercial laundry business?
Commercial laundry business refers to all companies that provide clothing or textile cleaning and management services. This can include laundromats, dry cleaners, and on-demand laundry services.
How profitable is a laundry business?
Laundromats are actually quite profitable compared to many other investment types. On average, US laundromats or commercial laundry services can see a return on investment of between 20 to 35%.
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