How to Start a Laundry Business | Requirements and Factors to Consider

Starting your own business is an exciting prospect. It can be challenging to think of everything that might go wrong and how you will respond if incidents like these occur when you are starting. Fortunately, many people start small businesses with minimal assets, meaning that they don't have much to lose if something goes wrong. If you want to create your own business, one popular option is laundry. However, it's essential to learn how to start a laundry business before beginning.

Ensure you have a prime location before opening your business. Homes attract people in need of clean laundry, so you can increase your profits by renting or buying a home in a well-populated area instead of trying to set up shop in an unknown part of town.

What Is Laundry Business?

Laundry is a facility that washes and dry-cleans fabrics through water, soaps, chemicals, and steam. The laundering process provides a deeper clean than manual washing and rinsing, and it reduces insect infestations by exterminating tiny organisms, such as mites.

The laundry business is a business that deals in laundry and takes care of dry-cleaning clothes. Focusing on high-quality garments will allow you to charge more for your services. Dirty clothes have little value, so your customers want to bring in their best clothes for you to clean.

Woman in front of a washer

Why Start a Laundry Business?

The laundry industry is vast, with the average home doing about three to six loads of laundry per week. That's around 2 billion pounds of lint produced every year from washing machines alone. Many people own a home, and a laundry business can be highly lucrative.

How to Start a Laundry Business- Factors to Consider

Unlike an existing laundry business, starting your own laundry business, there are many factors you must consider. You will need the space, equipment, and other necessities before you make a move.

Business Plan

Laundry services cost money, so you must decide how much to charge. How many machines will you require? What will the costs of utilities be per year? You also need to have a target market and open a business bank account. 

Business Plan starting line


Business expenses must be separated from personal expenses. If you are looking to hire employees, you must check that your state allows such hires.

Consider the business model, laundry equipment, wages, utility costs, marketing strategy, and more in your business plan.

For small business owners, laundry equipment can be expensive to purchase upfront. Consider renting or leasing your machines to ease access and lower long-term costs. Once the business is up and running, it's vital that your employees know what they're doing and that the possible problem is dealt with correctly.

Location

Before doing anything else, considering where your business will be located should be at the top of your list. You might think that the best place to start your business is somewhere with plenty of footfall, like on a busy street or where there are college students. It isn't always necessary. Many laundries do best in industrial estates or other areas where people are more likely to need their services frequently. It's also vital that you pick a good location for your building. Location is more important than you might think (see also Bad & Breakfast business guide). And here are a few things to consider when choosing where your installation will go:

  • Accessibility of the location
  • The amount of available parking at the location
  • Neighborhood environment and safety

What Type of Clothes Will You Clean?

Before choosing what type of clothes you will clean, decide whether you want to specialize in a specific kind of clothing. For example, if you plan on running your business from home, you can choose to only clean large pieces of clothing that need special treatment. It could include coveralls and firefighters uniforms - on a separate note, see also 'How to Start a Clothing Business' post.

Woman putting clothes in a washer

How Will You Market Your Laundry Business?

Marketing a laundry business is different from selling a restaurant or a bakery (see also 'How to Start a Bakery'). It's because people think of laundromats as purely functional, so it's important to remind them that you offer more than just clean clothing. People will be more likely to visit your business if you add things like free WiFi or a place for children to play while their parents wash laundry.

What Will the Price of Your Services Be?

Rates will vary depending on what you're offering, where you are located, and many other factors. However, your prices must be competitive with other laundries in your area. You can ask around at other laundromats to determine what they are charging per load.

Acquiring Permits and Licenses

Before opening your doors, ensure that you have all the necessary permits and licenses. You will need different ones depending on where in the world you are located. You may visit your city clerk's office or local business association for more information on what you'll need.

Permit folder


How Profitable Is a Laundry Business?

The profit you make from a laundromat will vary widely depending on the type of business and the area you're in. For example, laundry machines that owners have installed tend to be more profitable than those placed in public laundromats. You can ask around at other laundromats to determine how much they earn per load. You should also check to see how much it costs for you to wash each bag, which will give you an idea of whether your rates are competitive.

Is Owning a Laundry Business Worth It?

The main benefit of owning a laundromat is that you get to set your hours and choose how much money you want to make. It can be great if you need flexible working hours or are retired.

Laundry businesses can be advantageous because you get to help people clean their clothes in a clean, safe environment. Some people don't have the time or space in their homes to run a washer and dryer, so they will happily pay others to do it for them.

Many people love the flexibility of owning a laundromat, which can be great if you don't like having an office job. However, the downside is that you need to work most weekends and evenings when customers are using your equipment.

What Are Some Risks of Owning a Laundry Business?

One of the most significant risks is that you could lose money if not enough customers use your laundromat. It means that to have a successful business, you must find out what competitors are charging per load and try to keep your prices competitive. You'll also need to work hard at marketing your business.

Another risk is that you may go through equipment fast, especially if you have a laundromat with commercial-sized machines. You may need to buy new equipment more often than smaller household machines.

What Do I Need to Set Up a Laundry Business?

There are a few things you'll need to set up your laundry business. You can buy or rent the following items:

Laundry machines are the most critical equipment, but you have many choices here depending on how much space you have and how much money you want to spend. Expect to pay thousands of dollars for high-end equipment and commercial-sized vending machines. For smaller machines, you can buy or rent these for less than $100.

Bulk soap - You'll need to make sure you have enough laundry detergent for each load of wash, especially if you get busy and don't want to run out too quickly. You can purchase it in bulk or make your own. Another option is to allow your customers to buy their detergent and add it to the machine themselves.

Laundry carts - You'll need somewhere for customers to leave their clothes after they've washed them so that you can buy or rent a cart.

Clothing racks - If you're a small laundromat with just a few machines, you can consider buying one or two clothing racks to hang customers' clothes out to dry after they complete the wash cycle. As such, it makes it easy for them to go home and put their clothes away straightaway.

Ironing boards and irons - You may want to provide an ironing service when customers aren't using your machines, so consider buying or renting a decent iron and ironing board to offer the laundry service.

Laundry bags - Many people like the convenience of having a plastic bag to carry their wet clothes. You can buy these bags or provide empty bin liners that customers can fill themselves.

As already mentioned , creating a LLC protects your business, your personal assets (limited liability), increases your tax options and benefits and your business’s credibility. For more information or advice on how to create LLCs, you may ask for advice from these trusted formations services and registered agents services.

Trusted Business Formation Services

Nolo

Nolo is a renown online service that is a force in the industry and provides legal help and legal document requirements from all over the country. And because Nolo has a massive library of legal forms, you can customize other relevant documents needed in writing a Sales Contract, firing your current attorney, or lease paperwork. 

Rocket Lawyer

The amount of work Rocket Lawyer puts into their customer satisfaction is incredible. Their expertise and user-friendly interface will win you over. With exceptional customer service, this is the type of company you hope to do business with. There are two ways to get support – through their website of their neat app.

ZenBusiness

Compared to other services, ZenBusiness gives you more value for your money. They make the entire process straightforward and are not looking to charge you additional services. Also, their ZenBusiness Pay-It-Forward program for women and minority-owned businesses is fantastic.

IncFile

Apart from competitive and admirable plans that offer options that you’d be hard-pressed to find anywhere else, IncFile offer their services for free with their starting package which is nothing short of amazing. Incfile is one of the most affordable online services, extremely reliable, and they bring to the table great deal of features that are needed when starting a business.

Conclusion

Owning a laundry business can be rewarding because you get to help people every day. You must have enough machines for customers, so they don't have to wait too long or worry about your equipment breaking down.

You must also invest in high-quality detergent and keep your prices competitive to avoid losing money. However, if you follow this guide, you should set up your business in no time.

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