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Dry Cleaning Home Delivery Business Plan
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Columbia Cleaners
Strategy and implementation summary.
The following areas will be monitored to evaluate the business performance:
- Monthly and annual sales
- Monthly and annual profit
- Repeat business
- Customer satisfaction
The business success will depend on quality and convenience of the service, customer opinions, and competitor response.
The business provides a new door-to-door dry cleaning, laundry, and alteration service in Hillsboro that will surely attract customer attention. Working customers may find this service is convenient for them and want to try it. If they are satisfied with the service quality they will likely become repeat customers. When the patronage happens continuously, they become loyal customers of the service. These customers will recommend Columbia Cleaners to their friends and coworkers. As more and more customers use this service, Columbia Cleaners’ image is enhanced and we will gain more and more market share.
If we attain monthly and annual sales at least as forecasted, total costs and expenses, including any unanticipated charges, will not exceed our estimates and therefore the monthly and annual profit will be satisfactorily achieved.
Difficulties and Risks
Columbia Cleaners is a start-up and as such has less experience and begins with no market share at all. Assertive, effective initial marketing efforts will be necessary to gain a customer base. If existing competitors see us as a major threat and they resort to overtly aggressive and debilitating actions it will be very difficult for us to become an established player in the marketplace. Risks caused by competitors are possible, therefore the business has to monitor and evaluate its performance frequently, and collect customer evaluations and suggestions in order to continually improve.
Worst Case Risks
The worst case scenario would be that the business cannot support itself on an ongoing basis. The costs of doing business may be under-estimated, or sales and profit may be less than expected, making the business difficult in finance. Moreover, in case of social economic recession, political changes, or inflation, the business may perform even worse than has been forecasted.
5.1 Competitive Edge
As the U.S. economy recovers and quality of life is increases, people tend to spend more time and money in leisure activities rather than doing their house work. They prefer that someone else does the cleaning work for them. Hillsboro has a population of 70,000 served by seven dry cleaning and laundry shops. These existing shops wait for customers to bring their garments in and pick them up later. Customers have to drive cars to town, find parking places, carry their clothes or large items, such as curtains, blankets, etc. to the shop, and wait to be served. Then they must repeat this boring process when they come to collect their items. Moreover, these shops are only open from 9am – 6pm, and close on Sunday, which are almost the same working hours of offices; most inconvenient for customers especially those with full-time jobs.
By understanding and addressing this need, our new dry cleaning, laundry and alteration service will be established, providing door to door service free of delivery charge. We make our customers’ lives simpler by saving them time, and eliminating waiting in queues, parking problems, forgetting to collect clothes, missing meals, and going home late.
The following is the SWOT analysis for Columbia Cleaners:
- We offer a relatively new, door-to-door service for dry cleaning, and laundry, providing another choice for customers.
- We provide quick and convenient service in order to save customer’s time.
Weaknesses:
- Competition from already established competitors in Hillsboro.
- Starting at no market share at all.
- Less experience than competitors.
Opportunities:
- Expenditures on clothing is increasing, including expensive clothes; therefore the demand for taking care of clothes also increases.
- There are more and more women – who traditionally have done the laundry and cleaning work in the family – going to work outside the home. The target market of this business is working class and professional class customers, both men and women.
- Average income of Hillsboro citizens is increasing.
- People tend to spend more time on leisure activities rather than doing the house work.
- Participation within a steadily growing service. The forecast of the dry cleaning and laundry service goes steadily up through 2010.
- There is a high likelihood of repeat business.
- The ability to decrease the fixed costs as the sales volume increases.
- If the business is successful, there will be new competitors who supply the same kind of service.
- New technology changes may bring out new family washing machines for dry cleaning.
5.2 Marketing Strategy
Place: Dealing directly with customers, conveniently in the customers’ houses in Hillsboro. We are choosing to not rent a shop in the town center, thereby reducing costs. Columbia Cleaners will receive clothes from and return them to customers’ houses. Requests for urgent situation pickups and deliveries will be accommodated, and a nominal fee charged.
Product: Free home pickup and delivery service, coming to customers’ houses between 6 pm – 9 pm three times per week. We provide convenience and high quality dry cleaning, laundry, and alteration services.
Price: Normally, new businesses set their initial prices lower than their competitors. In our situation however, the business has higher costs for our delivery service and promotions to increase customers’ awareness and establish our brand name. We will set our prices to match those of our competitors. The pricing scheme is based on a per service price. Moreover, the business targets working and professional customers who often pay less attention to price than the quality and convenience of service. Kelvin Clancy (in Kotler, 2003) shows that only between 15 and 35 percent of buyers are price sensitive. People with higher incomes are willing to pay more for features, customer service, quality, and convenience.
- Advertise our new service in the local press, the Internet, public areas such as buses and train stations, shopping centers and supermarkets etc., and drop advertising material into families’ mailboxes.
- Offer 10% discount as an incentive for customers who sign one-year contracts.
- Issue coupons with lower price for loyal customers.
5.3 Sales Strategy
We will start off my matching our main competitor’s prices and we will be closely monitoring our financials to make sure that we develop a sustainable business without heavily discounting our services to win customers. All sales inquiries will be initially handled by the business owner. We will also train all our employees, especially those facing the customers, in customer service to make sure that our customers are fully satisfied, as such customers will not only stay longer with us but will also refer other customers to us. We will offer limited discounts to our customers with large recurring orders and also provide incentives for new customer referrals.
5.3.1 Sales Forecast
The sales forecast gradually increases over the year 2005 and comprises total sales of $324,700. However, in the last three months, October, November and December the sales remain almost level due to possible seasonal factors. Yearly forecasts are summarized in the table below.
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Dry Cleaning Business Plan Template
Written by Dave Lavinsky
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their dry cleaning 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 dry cleaning business plan template step-by-step so you can create your plan today.
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What Is a Business Plan?
A business plan provides a snapshot of your dry cleaning business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a dry cleaning business, or grow your existing dry cleaning business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your dry cleaning business in order to improve your chances of success. Your dry cleaning business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Dry Cleaning Businesses
With regards to funding, the main sources of funding for a dry cleaning business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your 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 also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for dry cleaning businesses.
If you want to start a dry cleaning business or expand your current one, you need a business plan. Below are links to each section of your dry cleaning business plan template:
Executive Summary
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dry cleaning business you are operating and the status. For example, are you a startup, do you have a dry cleaning business that you would like to grow, or are you operating dry cleaning businesses in multiple markets?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the dry cleaning industry. Discuss the type of dry cleaning business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
Company Analysis
In your company analysis, you will detail the type of dry cleaning business you are operating.
For example, you might operate one of the following types of dry cleaning businesses:
- Multi-service Dry Cleaning : this type of dry cleaning business offers dry cleaning services, alterations, and repair and maintenance to its customers garments. Turnaround time is usually 3-4 days.
- Express Dry Cleaning: this type of dry cleaning business offers to have customers garments ready within 24 hours.
- Hotel Dry Cleaning: this type of dry cleaning is located near or at a hotel and primarily services the hotel’s guests. They will also provide alterations and repairs within a short timeframe.
In addition to explaining the type of dry cleaning business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of clients served, etc.
- Your legal 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 dry cleaning industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the dry cleaning 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.
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 dry cleaning business plan:
- How big is the dry cleaning 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 growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your dry cleaning 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 dry cleaning business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: general public, hotels, businesses requiring uniforms, and anyone requiring garments dry cleaned or altered for a formal event.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of dry cleaning business you operate. Clearly, collectors would respond to different marketing promotions than travelers, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.
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.
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Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other dry cleaning businesses.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes alteration businesses and laundromats. You need to mention such competition as well.
With regards to direct competition, you want to describe the other dry cleaning businesses with which you compete. Most likely, your direct competitors will be dry cleaning businesses located very 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 customers do they serve?
- What type of dry cleaning do they offer?
- 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 ask your competitors’ customers 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 dry cleaning services in a faster time frame?
- Will you provide dry cleaning services that your competitors don’t offer?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a dry cleaning business plan, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of dry cleaning company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to dry cleaning, will you provide alterations, repair, general laundry, and any other services?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your dry cleaning company. Document your location and mention how the location will impact your success. For example, is your dry cleaning business located in a busy retail district, a hotel, or office building, etc. Discuss how your location might be the ideal location for your customers.
Promotions : The final part of your dry cleaning marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Billboards and bus benches
- Social media marketing
Operations Plan
While the earlier sections of your 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 dry cleaning business, including customer order intake, performing dry cleaning duties, cash register reconciling, dry cleaning product ordering, customer interaction, and payroll and staff scheduling.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to gain your XXth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your dry cleaning business to a new city or location.
Management Team
To demonstrate your dry cleaning business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing dry cleaning businesses. 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 like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a dry cleaning business or a proven small business entrepreneur.
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 start with offering one type of dry cleaning service and expand to offer more services ? And will sales 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 Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your dry cleaning business, this 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 $50,000, 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. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a dry cleaning business:
- Cost of dry cleaning equipment and supplies
- Cost of dry cleaning products
- 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 dry cleaning location lease or list of dry cleaning services you plan to offer.
Putting together a business plan for your dry cleaning 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 dry cleaning industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful dry cleaning business.
Dry Cleaning Business Plan FAQs
What is the easiest way to complete my dry cleaning business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Dry Cleaning Business Plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of dry cleaning business you are operating and the status; for example, are you a startup, do you have a dry cleaning business that you would like to grow, or are you operating a chain of dry cleaning businesses?
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Other Helpful Business Plan Articles & Templates
- Business Plans Handbook
- Business Plans - Volume 03
- Dry Cleaner Business Plan
Dry Cleaner
BUSINESS PLAN
A.Z. VENTURES, INC. DBA EXPERT CLEANING
1000 Major Blvd. Albuquerque, NM 81234
This business plan is for an expanding dry cleaning business. The business has been franchised in numerous locations. The owners feel that there is room for even more expansion, as the plan indicates. The risk analysis section of the plan contains an interesting discussion of the environmental issues faced by the dry cleaning industry.
EXECUTIVE SUMMARY
Company history, marketing plan, management team, financial plan, risk analysis, introduction.
A.Z. Ventures, Inc., dba Expert Cleaning, a New Mexico corporation, has been in business since 1986 and was incorporated in November, 1988. The sole purpose of the business at that time was to operate a full-service dry cleaning plant, with quality and customer service playing key roles in the plan of success. This proved to be a successful formula as within two years the business grew into the # 1 Expert Cleaning franchise location in the country. In 1988, a second full-service plant was opened. Expansion continued in 1992 as A.Z. Ventures purchased the rights to the state of New Mexico from the Expert Cleaning Franchise Company. The contract gives A.Z. Ventures the right to further develop the market through franchise sales. In June of 1992, the business expanded once again when Felgen's Shop 'n Save offered A.Z. Ventures the contract to develop satellite locations within Albuquerque metro area Felgen's Shop 'n Save stores. These sites are excellent as they provide high foot traffic and visibility in one of the area's largest supermarket chains. Expert Cleaning is dynamic, on-the-move, growing, and in position to become a market leader in retail dry cleaning the Albuquerque metro area within the next decade.
Expansion Continues in 1996
Three years of networking with shopping center developers and real estate brokers is paying large dividends. Expert Cleaning has been offered a lease at perhaps the most sought-after retail development to be built in Albuquerque this year. The company's 1996 expansion is based upon a location at the NW corner of Major & Campbell. The demographics and trade area for this site are nothing short of spectacular. The aforementioned location is scheduled to be opened in the second quarter of 1996.
Experienced Management Team
LeRoy and Monica Arnold are the co-founders and owners of the company (A.Z. Ventures, Inc.), as well as the Master Franchisers for the state of New Mexico. Furthermore, their son, Alan A. Arnold, joined the management of the company subsequent to graduation from the University of New Mexico in 1993. Over the past eight years, management has nurtured and expanded the business by focusing on high-quality dry cleaning and superior customer service. Furthermore, management has created an enjoyable and challenging workplace for their employees, which has greatly assisted in minimizing employee turnover and training expenses. Currently, the company is training and nurturing several individuals for positions as managers and supervisors at the new location.
Brand Name Creates Advantages
The company enjoys several sustainable advantages through the use of the Expert Cleaning brand name. Within the past ten years, franchises have become dominant players in all types of retail industries. A well-known brand name, such as Expert Cleaning, creates a high level of trust among the public. This not only helps bring more customers into the store, but the company's outstanding reputation "opens doors" with shopping center and land developers. Currently, the company is the only national dry cleaning franchise in New Mexico and is being considered for several sites based solely on the brand name and reputation of Expert Cleaning in New Mexico.
Capital Requirements
Management is seeking debt financing to fund the company's expansion. The total cost of the expansion has been calculated at approximately $ 166,000. It is important to note that a large portion of the funds needed will be used to purchase equipment. Consequently, financing can be secured with these assets. The planned locations are scheduled to be built and opened in the 2nd quarter of 1996. From past experience, management realizes that construction delays are reasonably possible, thus slowing expansion and the timing for financing.
The Bottom Line
The company has conservatively projected sales of $930,000 for 1996. Despite large expansion costs, the company anticipates a net profit of approximately $140,000. Projected sales revenue of $1.1 million in 1997 will result in $180,000 of net profit.
The Parent Company
Expert Cleaning and Expert Cleaning Franchise Company were incorporated in Florida in 1977. In 1988, American Partners, Inc. (API), a Nevada corporation and wholly-owned subsidiary of American Partners Cleaners (a corporation organized under the laws of the United Kingdom), acquired both divisions of the company. Currently, Expert Cleaning internally operates 105 locations in the Los Angeles metro area and Expert Cleaning Franchise Company has 250 operating franchisees in states including New Mexico, California, Florida, Maryland, New York, Ohio, Pennsylvania, Texas, Virginia, Washington, Wisconsin, and Massachusetts. Furthermore, Expert Cleaning Franchise Company has embarked on a program to expand Expert Cleaning internationally, beginning with Mexico and South America. Currently, plants operate in Mexico, Puerto Rico, and other Latin American countries.
The #1 Expert Cleaning Location in the Country
A.Z. Ventures, dba Expert Cleaning, opened its first location in Albuquerque in late 1986. A carefully prepared demographic, customer, and competitor study highlighted the need for a high-quality, competitively-priced dry cleaning establishment in this area. The results of the research were quickly confirmed as the store made an immediate impact. Within one year, Expert Cleaning was the market share leader of the four dry cleaners on the corner of Major Blvd. and Ottawa. First-year sales of $260,000 increased 20% in each of the next two years, finally reaching $500,000. Since that time sales revenues have increased approximately 5% each year. These outstanding results propelled A.Z. Ventures's location to the top of the Expert Cleaning franchise system.
Master Franchise Agreement Adds a New Dimension
In 1992, Expert Cleaning Franchise Company introduced the Master Franchise Program. Moving away from company-employed franchise sales agents, specific territories and regions were made available for sale to private interests. Because of the outstanding success of A.Z. Ventures in New Mexico, the first Master Franchise in the United States was offered to A.Z. Ventures. As a part of this agreement, A.Z. Ventures shares both one-half of the $25,000 franchise fee and one-half of the commission on equipment (exact amount varies) with the Expert Cleaning Franchise Company. Furthermore, A.Z. Ventures is entitled to one-half of the monthly royalty paid by franchisees to the Expert Cleaning Franchise Company. The Master Franchise Agreement qualifies A.Z. Ventures for distributor status and entitles the company to substantial price discounts (30% off list price) for all equipment purchased. The distributor discount provides a cost savings of $32,500 from the current equipment list price of $ 125,000.
The Master Franchise Agreement was signed in 1992, and since that time A.Z. Ventures has been actively seeking locations which exceed the demographic requirements of the Expert Cleaning Franchise Company. Briefly, the minimum demographic requirements are: a median household income of $42,000 within a one-mile radius, 2,000 households within a one-mile radius, and a traffic count of 30,000 per day in the intersection of the store. Locations under consideration include in-line spaces in strip centers, preferably anchored by a grocery store. In addition, stand-alone buildings, either on a pad in the parking lot of a shopping center or on a separate piece of land, are acceptable. The business is location-driven, and the above-mentioned criteria are strictly followed when selecting potential locations.
A.Z. Ventures has established relationships with several commercial real estate agents in the Albuquerque metro area, as well as Santa Fe. These individuals work closely with real estate developers and keep A.Z. Ventures apprised of future development and construction plans. Although there are several expanding dry cleaners in the Albuquerque metro area, real estate agents and developers are eager to speak with A.Z. Ventures about future sites for the following reasons:
First, Expert Cleaning is the only national brand-name dry cleaner in New Mexico. The idea of a "brand name" in dry cleaning is an attractive prospect to developers, especially because the industry is composed mainly of one-location "mom & pop" operations. National brand names attract more people to the shopping center and ensure the developing company successful tenants.
Second, Expert Cleaning offers a $10 million environmental insurance package that protects the landlord from any environmental concerns. Within the past few years, landlords have become very sensitive to environmental liability issues, and in some cases have refused to allow dry cleaners to rent space in shopping centers. In an effort to curb these apprehensions, the environmental package was created. Beyond the liability concerns, the package details the safety features and test results of the equipment to be used within an Expert Cleaning store. The developers who have been introduced to the environmental package are very impressed with the proactive policy that Expert Cleaning is taking. Moreover, it is a noteworthy competitive advantage as no other companies in this industry have developed a comprehensive environmental policy.
Duties of the Master Franchiser
Locating qualified franchisees is chief among A.Z. Ventures's responsibilities. Leads are accumulated through the use of advertisements that run each Sunday in the business opportunity section of the classified advertisements. Additionally, A.Z. Ventures hosts a booth at franchise shows in Albuquerque and Santa Fe. Furthermore, avenues such as contacting out-placement and personnel offices for large corporations are being explored.
Financial qualification is among the early topics discussed with the potential franchisee. The size of the investment (about $225,000, depending on equipment) is clearly presented to the franchise candidate. If the individual is financially capable of making such an investment and remains interested in the dry-cleaning business, the information process continues and the potential franchisee is disclosed and receives the Expert Cleaning Uniform Franchise Offering Circular (UFOC).
A.Z. Ventures's company-owned locations have become successful due mainly to the high level of quality and customer service. To be successful in these two areas, it is crucial to understand and be able to relate to the customers needs and wants. In order to keep Expert Cleaning positioned as a company dedicated to quality and customer service it is important that every Expert Cleaning franchisee is committed to surpassing the customer's expectations. Therefore, the candidate's attitude, values, and enthusiasm are carefully evaluated.
Felgen's Shop 'n Save Offers Convenient Locations
In early 1992, Felgen's Shop 'n Save, Inc., one of the largest supermarket chains in the Albuquerque metro area, contacted A.Z. Ventures in regards to opening Expert Cleaning outlets in specific Felgen's Shop 'n Save locations. In an effort to draw more customers and increase its share of the grocery market, Felgen's Shop 'n Save undertook a campaign to remodel its stores. Bank of America, along with national franchisers such as Taco Bell and Kentucky Fried Chicken, and Expert Cleaning were invited to join the Felgen's Shop 'n Save team.
The Felgen's opportunity provides a challenging and exciting opportunity for A.Z. Ventures dba Expert Cleaning to expand within the Albuquerque area. In recent years, new sites are rarely developed and always accompanied by "bidding wars" and fierce competition among local dry cleaners. The Felgen's Shop 'n Save contract enables A.Z. Ventures to open locations in hight-raffic environments shielded from the aforementioned competition. Moreover, these sites are considered to be of the highest convenience, presenting A.Z. Ventures with a notable competitive advantage in an industry where "convenience is king." Felgen's Shop 'n Save has provided highly visible store placements near the front doors of the supermarkets. Signage (neon) has been made available on the front facade of the building and within the store. Additionally, in-store advertising is available via advertisements and coupons placed in several aisle locations within the supermarket.
The company's operations strategy is designed to efficiently turn out quality garments that exceed the customer's expectations. The Expert Cleaning Operating System (EC-OS), a proven and tested system, outlines operational procedures and processes and serves as the backbone of the operation. The EC-OS will be fully applied to all franchised locations as well as stores opened internally through the company.
A.Z. Ventures consists of two divisions: internally operated plants, and Master Franchiser responsibilities. The operations responsibilities of the Master Franchiser are split into two sections: franchise sales and franchisee support. Procedures for each of these areas have been established and utilized by the Expert Cleaning Franchising Company. Briefly, franchise sales include such areas as lead generation, candidate qualification, real estate, lease negotiations, and demographic analysis. Additionally, as the Master Franchiser, A.Z. Ventures will act as a liaison in regards to financing issues, equipment procurement, and installation.
The company is willing to assist its franchisees in any way possible as operational and financial success of the franchise system directly affects the success of the company. After a franchise location is opened, A.Z. Ventures will offer ongoing operational support, beginning with the grand opening "festivities." Monica Arnold, Vice President of Operations and Training, will assist the new franchisee with operations for the first two weeks. Although all franchisees spend three weeks in a comprehensive training program (required and provided by the Expert Cleaning Franchising Company), the expertise of a knowledgeable trainer is crucial in the start-up phase. Furthermore, A.Z. Ventures will provide ongoing training that is either requested or necessary, and will remain available to assist with issues involving production and equipment maintenance.
Equipment is State-of-the-Art
Equipment used in an Expert Cleaning production plant is strictly automated and state-of-the art. In order to maximize production throughput and efficiency, utilization of equipment on the "cutting edge" is specified. Furthermore, all equipment is environmentally safe and exceeds Environmental Protection Agency and OSHA requirements.
The equipment layout in each production plant varies depending on the size and shape of the space. Facilities of 1800-2000 sq. ft. allow adequate space to properly place and operate equipment. Efficiency and convenience are key issues in this process. Currently, this duty is subcontracted to a knowledgeable and experienced individual in the industry. Eventually, however, floor plan layouts for franchised plants, as well as A.Z. Ventures plants, will be handled internally by the company. Floor plans for satellite locations are easily constructed due to the absence of equipment. The Felgen's Shop 'n Save satellite locations are approximately 600 sq. ft. and consist of counters, a finishing station (bagging station), and stationary storage railings.
Equipment is the largest expenditure involved with opening a plant location. With the discount of 30% off list price that A.Z. Ventures receives, equipment for a full-service plant will cost approximately $100,000. The dry-cleaning machine is the most important and also the most expensive single item of equipment, costing $27,500. The particular machine to be used by the company is a 50 lb. Columbia 1050 Dry-to-Dry, with spin disc filters. This machine is highly efficient and minimizes waste. Other important equipment includes shirt pressing equipment, a boiler, and standard utility presses.
The company performs preventative equipment maintenance on aregular basis. However, this does not prevent all equipment breakdowns. Most often, the malfunction is caused by a relatively inexpensive component. When this happens, one of several equipment mechanics in the Albuquerque metro area will be called to fix the machine. Maintenance expenses average approximately $250 per month, per plant. The equipment is very durable and the initial equipment purchased in 1986 is still in operation. The manufacturer's estimated useful life for equipment ranges between 12-15 years.
In a competitive environment like the dry-cleaning industry, a well structured marketing strategy is crucial to long-term success. Simply stated, the Expert Cleaning marketing plan centers around a complete understanding of the customer. Store location, service alternatives, advertising, and pricing are designed to attract and meet the needs of the Expert Cleaning target market.
Target Market
The target market is composed of several important facets. In general terms, the customer can be classified as an upwardly mobile, "white collar" individual with a dual household income. The customer is price-conscious but strongly values quality and is willing to pay for it, within reason. Furthermore, convenience plays a chief role in the target customer's decision process.
The company allocates valuable resources towards the selection of locations and works closely with real estate agents and developers to determine potential sites. Several important factors compose the location "formula." Among them are such elements as: income level, traffic counts in the intersection, real estate prices, average age of residents, an evaluation of other types of businesses in close proximity to the location, housing construction, and nearby dry-cleaning competition.
A minimum median household income of $42,000 is required for residences within a 1 -mile radius of the location. Furthermore, income trends from the past three years are evaluated to ascertain future levels. The daily traffic count in the intersection or street is also an important issue. In some instances heavy traffic can be a deterrent to a successful location. Because of this, traffic patterns and ease of access are viewed and charted.
Brand Name & Advertising Create Customer Loyalty
Expert Cleaning is positioned within the market as a quality and competitively-priced dry cleaner. In addition to excellent service and quality, the strength of a national brand name has greatly assisted in drawing customers to the locations. The public has grown very accustomed to dealing with national franchises in all areas of retail business. Franchises are dominating the retail scene because people know and trust that they will receive a similar experience each time. This is very important from the company's standpoint. Customers have spent a lot of time and money selecting their clothes and expect their "investment" to be returned in perfect condition. The company strives to not only meet the customer's expectations, but surpass them.
Advertising is one of the dominant and perennial strengths of Expert Cleaning The company has won several national advertising awards based on artwork and themes used in advertising campaigns. The creativity involved effectively positions, distinguishes, and separates the company from competing dry cleaners. Direct mail (utilizing zip codes) is the most effective medium to reach the designated target market. Several times during the year, advertisements and coupons will be sent to residences within a three-mile radius of each retail location. Approximately two percent of sales is devoted to advertising each year. Furthermore, other creative types of advertising will be considered on a city-wide basis as more locations are opened.
Competitor Evaluation
Competition is a strong force in the dry-cleaning industry and is considered location-specific. In a general sense, each dry cleaner in the Albuquerque metro area is a competitor, but direct competition is considered to be only those operations in close proximity to a given location. In addition to the many "mom & pop" operations, several non-franchised chains exist in the market. Marshall's, Presto-Clean, Southwest, Janet's, and Finer are among the most noteworthy. Within the next three years of expansion, competitive encounters with all of the aforementioned may occur. In light of this, these operations have been scouted and evaluated in regards to competitive criteria. The company is confident that its formula of high quality and competitive prices will spell success against any competitor.
The founders of A.Z. Ventures, LeRoy and Monica Arnold, have and continue to nurture and support this growing business. With a mutual understanding of the multiple facets of a serviceoriented operation, LeRoy and Monica have used their strengths to make A.Z. Ventures a success. The energy, excitement, and experience of the team increased in January 1994, when their son, Alan A. Arnold, graduated from the University of New Mexico and joined the business. The roles of each of these individuals within A.Z. Ventures will be clearly distinguished and defined.
Key Managers Provide Experience and Dedication
LeRoy Arnold is the president and co-founder of A.Z. Ventures. Born and raised in Marine City, Michigan, Mr. Arnold pursued and completed a Bachelor of Science Degree in Accounting from Wayne State University in Detroit. For the next four years, LeRoy honed his financial skills working as a Senior Staff Accountant for two CPA firms. In 1971, Mr. Arnold joined the Air Force and was assigned to the Air Force Academy in Colorado Springs. He attained the rank of Staff Sergeant (E-5), the highest grade possible in four years. In 1975, LeRoy joined a Fortune 500 company as Chief Accountant for its automotive subsidiary. Over the next thirteen years, LeRoy diligently served the company in a variety of roles and steadily climbed the corporate ladder. In 1985 his hard work paid off as he was promoted to Controller of the Western Division. Growing weary of corporate life after several relocations, he made the decision to become self-employed. After a year of researching small business alternatives, Monica and he decided that Expert Cleaning was their future.
Over the past eight years, Mr. Arnold has used his accounting background to oversee the financial, expansion, and strategic planning responsibilities for A.Z. Ventures. Furthermore, management skills and techniques previously acquired have been useful in organizing and leading employees.
In 1992, when A.Z. Ventures became the Master Franchiser for the state of New Mexico, LeRoy quickly began the franchise sales effort. Creating and maintaining relationships with commercial real estate agents, advertising, candidate presentations, and close communication with Expert Cleaning Franchise Company in Los Angeles are among a few of his current responsibilities.
Monica Arnold, co-founder of A.Z. Ventures, was also born in Marine City, Michigan, and is a graduate of Holy Cross High School. Immediately after graduation she attended Wayne County Community College with emphasis on retail management. During the last two years of high school and while attending college, Mrs. Arnold broadened her retail experience by working for J.L. Hudson's, a major Detroit-area department store, and National Bank of Detroit. The Arnolds had their first child in 1971 and Monica geared her efforts to raising the family. Three children later, she returned to the workforce in a position with the McDonald's Corporation. As a store manager, Monica was able to sharpen her customer service and personnel and operations management skills.
Monica currently serves A.Z. Ventures as the Vice President of Operations and Training. In addition to the experience gained from everyday involvement, she has expanded her expertise in these areas by completing several seminars offered by the International Fabricare Institute. With a thorough understanding of the dry-cleaning industry, Monica has tailored her management style to fully utilize the skills of A.Z. Ventures employees. She creates a positive and enjoyable workplace which emphasizes mutual respect and customer satisfaction. Using her experience from previous employers in service-oriented industries, Monica deals with patrons very effectively. Always striving to exceed the customer's expectations, Mrs. Arnold leads by example. By employing an even blend of patience and firmness, employees are effectively trained and re-trained. The low turnover rate enjoyed by A.Z. Ventures is partially attributed to the impressive and complete training program. Presently, Monica holds a position on the Expert Cleaning Presidents Council, and is a board member of the New Mexico Drycleaners and Laundry Association.
Currently, both Mr. and Mrs. Arnold are overextended in their job responsibilities. An expanding business requires attention to both the growing areas as well as to the original entity. Reluctant to take attention away from the profit center of the current operation, expansion areas such as franchise sales have not been fully developed. In light of this, the Arnolds welcomed the addition of their son to the management team.
Alan A. Arnold graduated with Bachelor of Science Degrees in Entrepreneurship and Accounting from the University of New Mexico in December, 1993. Admitted to the graduate level Entrepreneurship Program as an undergraduate, Mr. Arnold excelled. While within the program, he and a partner authored a business plan which was used to successfully attract over $200,000 in start-up financing. Additionally, Mr. Arnold was a finalist in the business plan competition at the University of New Mexico and invited to participate in the prestigious International Business Plans Challenge. This was the first time in the twelve-year history of the contest that an undergraduate student earned the chance to participate. Furthermore, Alan was invited to join an international business consulting team traveling to developing countries. In addition to leading a two-day business seminar, Mr. Arnold assisted three companies in adapting their business strategies to be competitive within a free market economy.
Over the course of the past six years, Mr. A. A. Arnold has actively participated in the operations of A.Z. Ventures. Involved in such areas as personnel management, quality control, and customer satisfaction, he has gained a considerable amount of experience. Mr. A.A. Arnold has worked on both daily operations and franchise sales over the past year. Management of at least one of the production centers and multiple satellite locations falls under his responsibility. Furthermore, Alan has joined LeRoy on the A.Z. Ventures franchise sales team, taking over such duties as lead investigations, candidate qualification, and sales presentations. LeRoy handles franchise real estate, franchisee financing issues, equipment, and most importantly, "closing the deal." Furthermore, as president, he is accountable for marketing, advertising, legal, and financial issues. Monica continues her operational and training duties on an expanded basis to include franchise locations.
Employee Training and Retention are Keys to Future Success
In order to remain cost effective, the organizational structure of the company will remain streamlined and lean. In addition to the key personnel aforementioned, each plant will be under the direct supervision of a plant manager responsible for production (employees, throughput, quality control) and retail operations at the location. In addition, each plant will have an afternoon (nonproduction) supervisor. Accountable to the plant manager, this individual will be responsible for supervising employees, customer relations, and all closing duties (generating computerized reports, cash drawers, bank transmissions, and general clean-up).
Currently, the company is cultivating several individuals for management and supervisory positions. Plant managers will lead employees by example. In light of this, training strongly emphasizes the importance of becoming sufficient in all facets of the operation. Furthermore, ongoing training and education is strongly advocated by management. The plant manager (along with key production employees) will be required to attend quarterly trade seminars.
Attracting and retaining qualified and talented employees is chief among the company's responsibilities and objectives. In order to accomplish this, management is in the process of establishing employee incentive programs. In addition to monetary compensation (above the industry average), health insurance (not commonly offered), paid holidays, paid vacation (one week), and a bonus plan based upon a combination of sales and net income will be offered.
The company's ability to retain production employees has been a key factor in its success. Beyond financial compensation, job enrichment and multi-tasking create and sustain morale and interest. Employees are required to train and become sufficient in several production areas within the plant. This removes the monotony of performing the same task each day and provides a high level of personnel flexibility for daily operations. Moreover, training expense is minimized and consistency, in regards to quality and performance, is achieved.
In closing, the management team is healthy, energetic, and determined to make this company flourish. Profitable companies do not achieve their success without successful people; Expert Cleaning is no different.
The projected financial statements will attempt to provide an informative and clear view of the projected financial status of the company for the next three years. It is important to note that all financial models are based on conservative estimates and assumptions.
Management is interested in seeking debt financing to fund the proposed expansion. Currently management's personal resources, as well as the company's retained earnings, are being completely utilized to fund this growth strategy. As aforementioned, equipment purchases comprise a large proportion of the costs of the expansion. Hence, debt financing can be secured with these assets. Maintaining equity and the controlling interest of the company are important considerations of management.
The projected financial statements are derived through the use of actual expense amounts and cost percentages from previous years of operation. An allowance for inflation and an increase in costs is included in these figures.
The stream of sales revenues in the Projected Statement of Profit and Loss is considered by management to be very conservative. The estimates for projected revenues are based upon the performance of locations recently opened by the company and franchisees.
Similar to the satellite locations, revenue projections for plant locations are based upon a combination of past sales performance of the company and national averages. According to the International Fabricare Institute, the largest dry-cleaning association in the world, the average revenue for 30,000 dry cleaning operations in the United States is $191,000. Expert Cleaning company-operated stores across the country average sales revenues of $309,000. Expert Cleaning plants in New Mexico exceed both of the aforementioned, with average yearly revenues of $325,000. Management has estimated first-year sales revenues for the two new plants to be approximately $300,000. Second-year and third-year revenues are forecasted to be $350,000 and $385,000 respectively.
Exit Strategy
The nature, demand, and longevity of the dry-cleaning industry, coupled with the expertise of the company and a qualified management team, will minimize risk and bring financial success to the endeavor. In the case that a chain of unforeseeable events should force the company to cease ongoing operations, the assets will be liquidated and distributed in the normal order of priority.
Management is confident that the tools necessary to build a foundation for short- and long-term success with this business are present. This business plan is built around several assumptions (such as interest rates) which have been adequately noted and explained. Despite this, there are several inherent risks associated with dry cleaning operations, as well as franchising, that are addressed below.
Financial Rationale
USE OF FUNDS
Environmental Issues
In the past few years environmental issues have become a serious concern. Increased legislation and social concern have led to new requirements and practices that must be followed. The drycleaning industry is not an exception. Fortunately, however, the company is in an excellent position to deal with these issues. Equipment purchased for new locations is state-of-the-art and exceeds the minimum requirements of the Environmental Protection Agency. An example of this is the spill tank that sits underneath the dry-cleaning machine. If solvent (perchloroetheylene) is accidentally released from the process, the spill pan will catch and contain it. After the leak is repaired, the solvent can be automatically pumped back into the operational tanks. Furthermore, other add-on components that minimize risk are regularly used.
Environmental issues have also affected the expansion and franchising. Fearing a potentially dangerous and costly accident, developers and landlords are apprehensive about allowing a drycleaning plant to operate on their property. Recognizing this as an impediment to future expansion, Expert Cleaning established a $10 million environmental insurance policy. This holds the developer and land owner harmless in the event of a mishap. The policy has been very effective and distinguishes Expert Cleaning from local dry-cleaning chains which cannot afford to offer a policy of this magnitude.
The preparation of this business plan serves several purposes for the company. In addition to adding a high level of internal organization and planning to management's efforts, the document is designed to attract financing to support upcoming expansion.
The location that A.Z. Ventures is proposing to open is at the NW corner of Major Blvd. and Campbell Blvd. Management has been working to obtain this excellent site for over a year. The most important aspect of our business is location, and the demographics of this site are in the top echelon of new sites in the Albuquerque metro area. The new store will undoubtedly prove to be a great performer for A.Z. Ventures, Inc.
The contract with Felgen's Shop 'n Save allows the company to operate highly convenient and extremely busy locations, an environment which is integral to success in the dry-cleaning industry. Furthermore, this contract has opened new doors and led to the cultivation of business relationships with members of the real estate and development communities in Albuquerque. Incidentally, several of the prospective plant sites currently under management's consideration are products of aforementioned relationships. A.Z. Ventures has no immediate plans to open Felgen's Shop 'n Save satellite stores in 1995 due to the upcoming renovations of several of the potential Felgen's stores. However, it is possible that a Felgen's satellite location could be sold to a franchisee.
The company possesses several strengths which will play an instrumental role in its upcoming ventures. Assets, such as a tested and proven concept, the Expert Cleaning brand name, its operating system, and award-winning marketing program will assist in making Expert Cleaning the market leader in retail dry-cleaning in the Albuquerque metro area. In conclusion, an investment in A.Z. Ventures, Inc., is an investment in qualified and determined individuals—a dedicated team that is striving and working together to achieve the stated goals and objectives of the company.
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Home » Business ideas » Service Industry » Laundry Business
How to Write a Dry Cleaning Home Delivery Business Plan [Sample Template]
Do you want to start a dry cleaning business and need to write a plan? If YES, here is a sample home delivery dry cleaning business plan template & feasibility report. If you are interested in starting your own dry cleaning home delivery business in the United States, it will be a wise decision to first and foremost conduct detailed cost analysis before investing your time and money into the business.
Starting a dry cleaning home delivery business requires that you purchase or lease equipment that are needed to run the business. Beyond the skill set you will be bringing to the table; equipment is also instrumental to the starting and running this business.
So, part of what you need to know before starting your dry cleaning home delivery business is the equipment that are used in a standard dry cleaning shop. Below is a sample dry cleaning home delivery business plan template that will help you write yours with little or no stress.
A Dry Cleaning Home Delivery Business Plan Template
1. industry overview.
Dry cleaning home delivery business is part of the Dry Cleaners industry and players in this industry provide dry cleaning and laundering services. They cater to household consumers and commercial clients such as hotels and restaurants. Operators may also provide drop-off and pick-up sites for customers.
In addition, establishments may also offer specialty cleaning services for garments and textiles such as fur, leather, suede, wedding gowns, draperies and pillows. Please note that the Dry Cleaners industry does not include coin-operated laundromats, nor does it include companies that generate most of their revenue from linen and uniform rentals.
If you are conversant with this industry, you will agree that increased disposable income has led to rising competition from both household laundry machines and drop-off and pickup laundry and dry-cleaning services. As a result, industry revenue has decreased at an annualized rate of 0.4 percent to $5.2 billion over the five years to 2019, including a decline of 0.3 percent in 2019 alone.
A recent research conducted by IBISWorld shows that the Dry Cleaners industry has a medium level of capital intensity. Declining demand for professional dry cleaning services, unfavorable shifts in consumer preferences and increasing competition from coin-operated laundromats, household washing machines and other substitute products have led to the industry’s decline over the past decade.
Consequently, industry revenue is expected to decrease at an annualized rate of 1.0 percent to $9.1 billion over the five years to 2019, including a projected decline of 1.8 percent in 2019 alone. The Dry Cleaners industry is a thriving sector of the economy of the united states and it generates over billion annually from about 35,253 registered and licensed dry cleaning services.
The industry is responsible for the employment of over 138,957 people. Experts project the industry to depreciate at -1.0 percent annual rate between 2014 and 2019. No company can boast of having the lion share of the available market in the industry in the United States of America.
The market for dry cleaning services is driven by urbanization and increase in consumer spending – in essence, as the general economy of a country grows, more people will become busier hence the need to patronize dry cleaning home delivery companies on a regular basis.
Dry cleaning home delivery businesses in the United States and all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market (the middle and upper class of the society, busy corporate executives and business people).
2. Executive Summary
Sam Edwards® Dry Cleaners Services, LLC is standard dry cleaning home delivery services company that will be located in the heart of Mount Pleasant, South Carolina but hopes to establish our outlets in key cities all across the United States. We are strategically positioned in one of the cities with a large number of middle and upper class plus busy corporate executives and business people.
Sam Edwards® Dry Cleaners Services, LLC will provide dry cleaning and laundering services and of course we will also provide drop-off and pick-up for customers. In addition, we will offer specialty cleaning services for garments and textiles such as fur, leather, suede, wedding gowns, draperies and pillows.
Although our intention of starting a dry cleaning home delivery services business in Mount Pleasant – South Carolina is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services. We are open to the use of latest technology in the dry cleaners services industry. No doubt our excellent customer service and the range of services we offer will position us to always welcome repeated customers.
Sam Edwards® Dry Cleaners Services, LLC is owned by Sam Edwards and his immediate family members. Sam Edwards is a business man par excellence and he has the required business acumen to help build Sam Edwards® Dry Cleaners Services, LLC to favorable compete with leading dry cleaning companies and franchises in Mount Pleasant.
3. Our Products and Services
Sam Edwards® Dry Cleaners Services, LLC is a complete dry cleaning home delivery company that offers a wide range of services that revolves around dry cleaning home delivery services. We intend giving our customers reasons to always come back which is why we have customized our services.
These are the services that will be made available to our customers;
- Commercial full-service laundry
- Retail dry cleaning and laundry services
- Commercial dry cleaning services
- Drop off and pick up services
4. Our Mission and Vision Statement
- Our Vision is to become the ‘go to dry cleaning home delivery services in the whole of Mount Pleasant and every location where we intend opening our outlet.
- Our mission is to develop a highly successful, profitable and all-round dry cleaning home delivery business which provides quality services and timely pickups and drop offs in our community and to become a standard for an ideal dry cleaning home delivery company in Mount Pleasant.
Our Business Structure
Dry cleaning home delivery services business generally is seen to be a small – scale business venture, but that does not stop us from putting standard structures in place that will help us achieve all our business goals and objectives. We know that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our dry cleaning home delivery services company on the right business foundation.
As a matter of fact, we are set to build a dry cleaning home delivery business that will be a standard in the industry in Mount Pleasant. We want to build a business of dedicated workforce who will ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why we will be putting structures and processes in place that will help us deliver excellent services.
With the wide range of our service offerings and the plan to open our dry cleaning outlets all across key cities in The United States of America and to sell franchise, we are only expected to employ more than it is required to run a conventional dry cleaning home delivery service business.
Sam Edwards® Dry Cleaners Services, LLC will employ professionals and skilled people to occupy the following position;
- Manager (Owner)
Accountant/Cashier
Laundry Supervisor
- Dry Cleaners
- Delivery Officers/Van Drivers
- Customer Services Officer/Front Desk Officer
5. Job Roles and Responsibilities
Manager (Owner):
- Responsible for providing direction for the business
- Creating, communicating, and implementing 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 and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Oversee the smooth running of the daily activities of organization.
- Collect payment for services rendered served and balance all receipts.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
- Manages overall daily operations of the laundry department
- Ensure quality controls are in place for all laundry processes, rejecting any exceptions
- Maintain cleanliness of the laundry area
- Train, develop, and appraise the laundry team
- Ensure linen and supplies are ordered and controlled in line with business requirements
- Carry out stock takes
- Ensure par stocks are maintained
- Take receipt of stock and ensure safe storage
- Manage customer service issues quickly and effectively
- Oversee the issuing of linen via a requisition system
- Ensure that all workers adhere to all Health and Safety Regulations
Laundry Attendant
- Sorting, washing, drying, pressing, and folding clothing and other textile items.
- Removing stains from items using the appropriate procedures.
- Tracking which items belong to whom.
- Keeping an updated inventory of laundry detergents
- Tracking maintenance and repairs on laundering equipment.
- Ensuring that the facility remains clean at all times.
- Anticipating and responding to customers’ queries, concerns, and complaints.
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ services, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries.
Distribution Truck Drivers
- Assists in loading and unloading of clothes meant for delivery and for pickups
- Maintains a logbook of their driving activities to ensure compliance with federal regulations
- Keeps a record of vehicle inspections and make sure the van is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a pickups and delivery schedule.
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Reports defects, accidents or violations
6. SWOT Analysis
A dry cleaning home delivery services business can easily generate sales with little stress as long as they are well positioned. We are building a standard dry cleaning home delivery services business with variety of services which is why we have decided to subject our business idea to SWOT Analysis.
Ordinarily we can successfully run a normal dry cleaning home delivery business without going through the required protocol of setting up a new business, but because of the nature of business we want to establish, we don’t have any option other than to follow due process.
We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strengths, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
We hired the services of a business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Sam Edwards® Dry Cleaners Services, LLC;
Sam Edwards® Dry Cleaners Services, LLC is centrally located in a densely populated area in Mount Pleasant; our location is in fact one of our major strengths. We are also one of the very few dry cleaning companies in the whole of Mount Pleasant, South Carolina that is well equipped to carry out a wide range of services.
Another strength that counts for us is the power of our team; our workforce and management. We have a team that are considered experts in the dry cleaners services industry, a team of hardworking and dedicated individuals.
Sam Edwards® Dry Cleaners Services, LLC is a new business which is owned by an individual, and we may not have the financial muscle to sustain the kind of publicity we want to give our business. So also, we might not have the support structure that is made available to established dry cleaning franchise operators.
- Opportunities:
When per capita disposable income falls, consumers react by decreasing their household expenditures, including spending on discretionary services such as dry cleaning. Instead, consumers opt for less expensive substitutes, such as home washing or coin-operated laundromats.
The opposite holds true when per capita disposable income rises. Per capita disposable income is expected to increase in the coming years, presenting a potential opportunity for the industry. We are centrally located in one of the busiest areas in Mount Pleasant, South Carolina with loads of middle and upper – class households and we are open to all the available opportunities that the city has to offer.
Dry cleaners compete with self-serve or coin-operated laundromats, which offer laundry services that are generally less expensive than those offered by dry cleaners. During the past decade, persistent competition from laundromats has considerably reduced demand for dry cleaning services, thereby hurting industry revenue.
External competition is expected to increase in 2019, posing a threat for the industry. Per capita disposable income is inversely related to demand for dry cleaning services.
As per capita disposable income increases, more expensive laundry alternatives become available to consumers. With growing incomes, consumers can afford to purchase laundry machines. Per capita disposable income is forecast to grow going forward, posing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
Declining demand for professional laundry services, unfavorable shifts in consumer preferences and increasing competition from coin-operated laundromats and household washing machines have led to this industry’s decline in the past decade.
Another obvious trend in the dry cleaners services industry is that most dry cleaning companies in the bid to survive the recent global economic meltdown included additional services to their core service offerings.
Some dry cleaning services companies include washing of rugs, selling of laundry machines and similar laundry equipment within the same premises if they have enough space. It is much easier for dry cleaning service companies to increase their revenues by diversifying as against increasing the scope of their market.
8. Our Target Market
Before choosing a location for our dry cleaning home delivery services business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically, those who will benefit from our service offering are college students, corporate executives and business people and they cut across different sectors of the economy.
Our target customers can be classified into three major groups (household, business owners/corporate clients and sports club). These are the category of people that we intend marketing our services to;
- Corporate Executives
- Business People
- College students
- Household (Middle and Upper Class)
- Sport clubs
- Churches and organizations that make use of robes
- Costume, wedding gowns, tuxedo and cloths rental businesses
Our Competitive Advantage
The fact that dry cleaning home delivery business is easy to set up and does not require formal training to achieve means that anybody can set up the business if they have the required startup capital. It means that the possibility of a competitive business springing up in our chosen location is high.
We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Mount Pleasant – South Carolina. Our competitive advantage is our ability to quickly adopt new technology, ability to accommodate environmental requirements, robust pickup and distribution network and of course proximity to key markets.
We can confidently say that the location of our dry cleaning facility will count as a positive for us amongst any competitor that might start this business in same location where ours is located. For the time being, Sam Edwards® Dry Cleaners Services, LLC has no real competitors that can compete with the quality of services we offer. Our customer service will be customized to meet the needs of our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for Sam Edwards® Dry Cleaners Services, LLC is going to be driven by easy to operate laundry machines, excellent customers’ service and quality service delivery (including timely and efficient pickups and drop offs).
We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially dry cleaning home delivery services.
In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales and loyalty from them;
- Introduce our dry cleaning home delivery services business by sending introductory letters alongside our brochure to corporate organizations, college students, households, sports clubs and key stake holders in and around Mount Pleasant – South Carolina.
- Advertise our dry cleaning home delivery services business on community newsletters, local TV and radio stations
- Promote our business online via our official website and all available social media platforms
- Continuously Improving the performance of our brand
- Hire the services of experts to make our brand the first choice for residents of Mount Pleasant – South Carolina
- Making our first impression count positively
- Make use of attractive hand bills to create awareness and also to give direction to our laundry services facility
- 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
- Enter into business partnership with sports clubs and related businesses or organizations to handle all their laundry services
Sources of Income
Sam Edwards® Dry Cleaners Services, LLC is established with the aim of maximizing profits in the dry cleaners services industry and we are going to ensure that we do all it takes to attract both clients on a regular basis. Sam Edwards® Dry Cleaners Services, LLC will generate income from the following service offerings;
10. Sales Forecast
One thing is certain, there would always be corporate organization, households and individual clients who would need the services of a dry cleaning delivery business.
We are well positioned to take on the available market in Mount Pleasant, South Carolina and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our business and our clientele base.
We have been able to examine the dry cleaners services industry, and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Sam Edwards® Dry Cleaners Services, LLC, it is based on the location of our business and of course the wide range of services that we will be offering;
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $480,000
- Third Fiscal Year (FY3): $850,000
N.B : This projection was done based on what is obtainable in the residential cleaning industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
Sam Edwards® Dry Cleaners Services, LLC is set to create a standard dry cleaning home delivery company in Mount Pleasant and throughout South Carolina which is why we will adopt and apply best practices to promote our business.
Good enough there is no hard and fast rule on how to advertise or promote a dry cleaning home delivery business. Here are the platforms we intend leveraging on to promote Sam Edwards® Dry Cleaners Services, LLC;
- Encourage our loyal customers to help us use Word of Mouth advertisement (referrals)
- Advertise our dry cleaning home delivery services business in relevant magazines, local newspaper, local TV and radio stations
- Promote our business online via our official website
- List our 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 all across Mount Pleasant
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas
- Ensure that all our staff members wear our customized clothes, and all our official cars and trucks are customized and well branded.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than our competitors are offering in Mount Pleasant – South Carolina. Be that as it may, we 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.
- Payment Options
The payment policy adopted by Sam Edwards® Dry Cleaners Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Sam Edwards® Dry Cleaners Services, LLC will make available to her clients;
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payments for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
If is a fact that it is possible to start a dry cleaning business for under $2,000, but it also important to point out that there are some high-end, industry-specific equipment that can cost as much as $40,000 or more. As a matter of fact, some start-up dry cleaning businesses require as much as $500,000 in capital just to get the business off the ground.
We have been able to pull cash that will be enough for us to successfully launch a standard dry cleaning home delivery company in Mount Pleasant – South Carolina. These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in Mount Pleasant – South Carolina – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The cost for hiring Business Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing facility for the laundry – $70,000.
- The cost for facility remodeling – $10,000.
- Other start-up expenses including stationery, Phone and utility deposits – $15,000
- The cost for start-up inventory (cleaning chemical supplies, starch, detergents and soaps) – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of laundry machines and equipment (Industrial Washing Machine, Industrial blower or dryer, Hand dryer, industrial pressing iron, pressing table, Cloth racks and hangers, Laundry sterilizing machine, Water heater, Laundry basket, store room, and large containers) – $25,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
- The cost for the purchase of delivery vans: $25,000
- The cost of launching our official website: $600
- Miscellaneous: $5,000
We would need an estimate of two hundred and fifty thousand dollars ($250,000) to successfully set up our dry cleaning home delivery company in Mount Pleasant – South Carolina.
Generating Funds/Startup Capital for Sam Edwards® Dry Cleaners Services, LLC
Sam Edwards® Dry Cleaners Services, LLC is owned and financed by Sam Edwards and his immediate family members. They do not intend to welcome any external business partners which is why he decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Sam Edwards® Dry Cleaners Services, LLC is to ensure that we continue to make available 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.
From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Sam Edwards® Dry Cleaners Services, LLC will adopt the use of payment machines and accounting software to run the business.
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 service offerings once the need arises.
Sam Edwards® Dry Cleaners Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
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: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of laundry services 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
- Printing of Packaging and Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the need laundry services supplies, tools and equipment: In progress
- Purchase of van: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Purchase of delivery vans: Completed
- Establishing business relationship with laundry equipment manufacturers, suppliers of washing chemicals and other key stakeholders within and outside of Mount Pleasant – South Carolina: In Progress
More on B2C Sector
Laundromat & dry cleaners business plan template
Download this laundromat dry cleaners business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.
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Our laundromat business plan template gives you the structure to write a professional plan.
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Modelled on a complete business plan of a laundromat in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.
Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.
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There are 3 ways to use this template:
- Edit it online: you can adapt this template to your business idea by changing the text or the financial forecast directly in our business planning software
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Laundromat and dry cleaners business plan template content
This template includes a complete laundromat and dry cleaners business plan example, with a financial forecast and the following sections:
- Executive summary: the executive summary gives the reader a clear and concise overview of your business idea
- Company: this section lays out the structure of your business, including its location, management team and legal form
- Products and services: here, you'll give an overview of the services or products offered by the company
- Market analysis: the market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
- Strategy: this section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
- Operations: this step lays out the company's operational organisation, including the recruitment plan
- Financial plan: the financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
- Appendices: this part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
7 day free trial. No credit card required. Laundromat and dry cleaners business plan template available with paid plans only.
Executive summary of the laundromat's business plan
The executive summary gives the reader a clear and concise overview of your business idea.
Our dry cleaners and laundromat business plan example's executive summary is formed of the following subsections:
- Business overview: in this subsection, we outline who the laundromat founders are, what legal form they've chosen for the business, and the rationale behind the choice of their location
- Market overview: in this subsection, we summarize the conclusions of the market analysis performed by the laundromat's owners and explain which age group or demographics (students, office workers etc.) they aim to target
- Financial highlights: in this subsection, we give an overview of the forecasted financial performance of the laundromat over the first 3 years of operation
- Our ask: in this subsection, we outline the amount of financing required to start the laundromat and how it's going to be funded (the founders are seeking a bank loan to start their laundromat)
Company overview included in our laundromat business plan sample
This section lays out the structure of your business, including its location, management team and legal form.
Our laundromat business plan template's company section is formed of the following subsections:
- Structure & Ownership: in this subsection, we outline who the laundromat shareholders are and what legal form they've chosen for the business
- Location: in this subsection, we present the area surrounding the location chosen for the business and the layout and main features of the premises
- Management Team: in this subsection, we give an overview of the background of each of the laundromat's founders and explain how they met and why they decided to start a company together
Products and services offered by the laundromat and dry cleaners
In this section, you'll present a list of the services offered by your laundromat (washing, drying etc.) and dry cleaning business.
In our laundromat business plan template products and services section, we cover:
- Dry cleaning services: a selection of services including dry cleaning, ironing, laundry, stain removal and washing sensitive materials
- Self-service laundry: using either an eco-friendly detergent or otherwise when washing clothes
Market analysis for the opening of the laundromat and dry cleaners
The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
Our laundromat business plan example's market analysis section is formed of the following subsections:
- Demographics and Segmentation: in this subsection, we explore the market in depth. We look at the supply and demand sides both at the national and local level, analyse the hot trends perceived by the founders, and the key statistics that will help the founders build their positioning
- Target market: in this subsection, our founders explain who their ideal customers are (students, office workers etc.) and why they chose to target them
- Competition: in this subsection, we take a look at the direct (laundromats and dry cleaners nearby) and indirect (other ways of washing and drying clothes) local competition to ensure we have a differentiated positioning and that the market is large enough to accommodate the arrival of new laundromat and dry cleaning business
- Regulation: in this subsection, we give an overview of the main regulation applicable to our dry cleaning and laundromat business
7 day free trial. No credit card required. Laundromat and dry cleaning business plan template available with paid plans only.
Setting the strategy for our dry cleaning business
This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way.
Our laundromat business plan template strategy section is formed of the following subsections:
- Pricing: in this subsection, we explain how we set the prices of our main categories of services (dry cleaning, self-service laundry) and the rationale behind our choice
- Marketing plan: in this subsection, we explain what action we'll put in place to build awareness and loyalty among our target market
- Milestones: in this subsection, we give an overview of the main goals we set for ourselves for the next 3 years
- Risks and Mittigants: in this subsection, we perform an assessment of the medium and long-term risks that could jeopardize the financial viability of our laundromat and outline how we intend to mitigate them
Operations section of the dry cleaners and laundromat business plan template
This part lays out the company's operational organisation, including the recruitment plan.
Our laundromat business plan example's operations section is formed of the following subsections:
- Personnel plan: in this subsection, we explain what our opening hours will be and explain the responsibilities of each of our dry cleaner and laundromat's staff member
- Key assets and IP: in this subsection, we list the assets and intellectual property rights which are critical to our business operations and explain how we will secure and protect each of these
- Suppliers: in this subsection, we give an overview of the main suppliers we will use our what commercial terms have been negotiated with them
Financial plan included in our dry cleaner and laundromat business plan template
This section presents the expected financial performance of the laundromat and dry cleaning business over the next 3 years.
Our laundromat and dry cleaners business plan example's financial plan is formed of the following subsections:
- Start-up funding: in this subsection, we list the cost of each item required to launch the dry cleaning business
- Important assumptions: in this subsection, we explain the methodology and the main assumptions used to build the laundromat's financial forecast
- Sales forecast: in this subsection, we detail the expected revenues and growth rate for our laundromat and dry cleaning business in the coming years
- Cost structure: in this subsection, we list all the expenses required for our laundromat and dry cleaning business to operate smoothly
- Projected Profit & Loss statement: in this subsection, we analyse our forecasted P&L and comment on the expected profitability of our laundromat and dry cleaner over the next 3 years
- Projected cash flow statement: in this subsection, we analyse the expected cash generation of the laundromat and dry cleaning business
- Projected balance sheet: in this section we give an analysis of the liquidity and solvability implied from our balance sheet
Appendices of the dry cleaning and laundromat business plan template
This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).
Our laundromat and dry cleaners business plan template's appendices include:
- A Maturity profile chart showing the principal repayments of their loans over the next 3 years
- A monthly cash flow forecast: showing how much cash is being generated or consumed each month over the first 3 years of operations
Laundromat and dry cleaner business plan template sample
Executive summary, business overview.
Lav'Eco will be a self-service laundromat, located in the heart of Caen, close to the main University.
We will provide both washing machines and dryers.
Our machines will be controlled by an electronic system allowing customers to use them without any assistance.
We will also offer: laundry services, dry cleaning, ironing and leather cleaning.
Our laundromat will use only eco-friendly and biodegradable products, to respect the environment whilst also committing to a more traditional method of washing.
Our launderette will be transparent about the brands and products that are used to clean the clothes.
Lav'Eco will be a limited company managed by Marianne D. and Alexandre C. with a share capital of €10,000. The two managers have complementary experience.
Marianne D. worked as a dry cleaner for 8 years for a company in the Caen region before deciding to set up her own business.
Alexandre C. was the manager of a supermarket for 10 years before retraining and setting up his business with Marianne.
The two managers met whilst hiking and have known each other for over a decade.
Market Overview
French Market
The French and their use of washing machines
According to INSEE, 96.2% of households owned a washing machine in 2017. 81.9% of 16-24 year-olds had a washing machine at home compared to 96.9% of 40-59 year-olds.
According to a report by Les Pieds Dans la Toile, the French wash an average of 165 clothes per year and use 60 litres of water for each wash.
The French take water scarcity seriously and look to reduce consumption where possible.
CBNews indicates that the French are adept at "consuming better" at all levels - 79% of households mention that they are looking for better practices to reduce unnecessary water consumption.
Laundromats and dry cleaners in France
Washing clothes involves the use of personal equipment as well as a regular or occasional visit to a launderette or dry cleaner.
This visit is justified for various reasons: not enough space or financial means to buy a washing machine, the need to dry clean certain clothes, tough stains or too much household laundry to wash at home, etc.
The overall market is divided into two categories:
- Dry cleaners that offer dry cleaning, wrinkle removal, dyeing, stain removal, degreasing or even garment repair in some cases
- Self-service launderettes who provide access to washing machines and dryers
INSEE estimated that the laundry and dry cleaners market had a combined turnover of €711 million in 2016.
Local Market
According to INSEE, the city of Caen had a total of 105,403 inhabitants in 2016.
There were 15 laundries and 17 dry cleaners spread throughout the city of Caen and in different districts, equivalent to a ratio of one laundry for every 3,293 inhabitants.
Among these inhabitants, 29,308 students were counted by UNICAEN. Students are the main target of the launderette market, as they are usually in Caen during term times.
Students do not necessarily have enough space or means to invest in a washing machine. Furthermore, renting an unfurnished apartment may mean that the washing machine is often not included.
They then have to go to the nearest laundromat to do their laundry or wash their clothes during weekends if they return home.
According to the Journal du Net, figures for 2016 show that the city had a total of 6,931 businesses.
Office workers and public bodies often use the services of dry cleaners, especially for suits and costumes, representing an opportunity in the local market.
The main employers of administrative staff in Caen include the Prefecture, the CAF du Calvados, Véolia, the Town Hall and the General Council.
Several company concierge services are also present in Caen. These services often offer dry cleaning services that they subcontract to local companies, and can thus enable dry cleaners like ours to expand their customer base beyond their catchment area.
Financial Highlights
We expect to be profitable from our second year of operation with sales of €130,075 and an EBITDA of €5,780 (with a 4.44% margin) for year 2.
We expect to be able to continue to grow our business to reach €137,920 in sales and €11,177 in EBITDA (with a 8.100% margin) by year 3.
We expect positive cash flow generation over the entire plan despite the loss-making situation in year 1. The cash flow generated by the company will be sufficient to cover loan repayments while maintaining sufficient headroom to deal with unforeseen events.
The opening of our laundromat will require an investment of €55,000.
The partners have planned to contribute €35,000 (63% of the total), with a share capital contribution of €10,000 and a director loan of €25,000.
We would like to obtain a loan of €20,000 to finance the remaining amount.
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Laundromat Dry Cleaners Business Plan Template FAQ
A laundromat business plan is a written document that sets out the commercial, operational and financial objectives of the company over the next 3 to 5 years.
It consists of two main parts:
- A written part that presents, in detail, your laundromat business, the team, your strategy, and your medium-term objectives.
- A financial forecast that highlights the expected profitability of the laundromat and the initial funding requirements.
The lack of business planning is one of the main reasons why more than 50% of startups fail within 5 years. If you're starting a laundromat or dry cleaning business, writing a business plan is a must-have in order to reduce the risk of failure of your project.
Business plans are also required by most lenders and investors in order to secure financing, therefore a business plan is also highly recommended if you're seeking a loan or equity investment for your laundromat or dry cleaning company.
Writing a laundromat or dry cleaner business plan without The Business Plan Shop can be both error-prone and time-consuming - whether you're new to entrepreneurship or experienced:
- You'll need to research the structure of a business plan, what to include in each section, and what key elements investors and lenders expect to see
- You may encounter writer's block (especially if it's the first time you're writing a business plan for your laundromat)
- You'll need to create a financial forecast on a spreadsheet which requires a solid understanding of accounting and financial modelling in order to be done without error
- You'll need to spend hours formatting financial data on Excel or Sheets before it's ready to integrate into your business plan
- Any updates to your dry cleaning business plan or financial forecast will need to be done manually
Luckily for you, The Business Plan Shop's online platform and laundromat and dry cleaning business plan template guide you through every stage of writing a business plan, so that you can spend more time managing and growing your business instead.
Our editor follows a best-in-class structure for professional business plans. Each section and subsection includes examples and instructions to help you, while our business plan templates provide further inspiration if you're stuck.
Our financial forecasting software helps you create a forecast and integrate it into your business plan with ease. Anytime you update your data, your business plan automatically updates.
And with our forecasting software all the calculations are done for you, without errors.
The budget to start and run a laundromat and dry cleaner will depend on the exact concept and location.
A small local laundromat offering simple washing facilities requires a limited investment. A bigger place, offering eco-friendly detergents, a possible social area and a selection of other services including dry cleaning and tough stain removal will require a larger upfront investment and more staff to operate.
As an example, in our laundromat business plan template the total initial funding requirement amounted to €55,000, with the founders contributing €35,000.
In order to assess the exact budget for your laundromat idea, you need to do a financial forecast using a financial projection tool such as the one we offer .
The package we offer at The Business Plan Shop goes way beyond a simple blank template you need to fill. With our platform you get:
- Access to one of the best business plan software on the market
- Access to our laundromat and dry cleaners business plan template which contains a complete example of a written business plan and financial forecast to start the business
- Access to our entire business plan templates library - giving you dozens of examples to take inspiration from
- Access to our financial planning and analysis platform so that you can track the actual performance of your business against what you had planned in your business plan and re-plan easily
But you shouldn't take our word for it: try our solution for free and make your own opinion!
The free trial enables you to try the software for free during 7 days in order to verify that it meets your requirements before buying.
Some features are limited during the free trial, the main limits are:
- You can only create one business plan
- The financials of the first year are visible, but data for other years are hidden
- You can export your plan in PDF but not in Word or CSV
- No access to our business plan templates
You can create your account and start your free trial here .
Access to our template is included with all our paid subscriptions.
Please visit our pricing page to learn about this in more detail.
Other business plan templates and resources to discover
How to Start a Laundry and Dry Cleaning Business
Most of these businesses require the customer to drop off their laundry, although some companies will pick up laundry from the customers’ homes. A full-service laundry and dry cleaning service charges a fee per item for dry cleaning and a fee per pound for standard laundering. This type of business takes some of the responsibility off of the customers who may have busy schedules.
Ready to form your LLC? Check out the Top LLC Formation Services .
Learn how to start your own Laundry and Dry Cleaning Business and whether it is the right fit for you.
Start a laundry and dry cleaning business by following these 10 steps:
- Plan your Laundry and Dry Cleaning Business
- Form your Laundry and Dry Cleaning Business into a Legal Entity
- Register your Laundry and Dry Cleaning Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Laundry and Dry Cleaning Business
- Get the Necessary Permits & Licenses for your Laundry and Dry Cleaning Business
- Get Laundry and Dry Cleaning Business Insurance
- Define your Laundry and Dry Cleaning Business Brand
- Create your Laundry and Dry Cleaning Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your laundry and dry cleaning business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas .
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
How much can you charge customers?
What will you name your business.
Luckily we have done a lot of this research for you.
What are the costs involved in opening a laundry and dry cleaning business?
Unless your business is a work-from-home operation, you will need to pay the deposit for the lease and the first month’s rent for the storefront. In a high-traffic area, expect to pay $3 to $10 per square foot per month for the retail space. You will need to have signage on the front of the store that makes it very visible to those that drive by the store. You will need to have laundry and dry cleaning equipment and a cash register. You will need to have cleaning supplies, coat hangers, and plastic bags. You will need to have a mechanical clothes rack that rotates the finished clothing to keep it in order and ready for customer pick up. Most of these businesses start with about $50,000 worth of equipment, which can be leased and about $2,000 in supplies.
What are the ongoing expenses for a laundry and dry cleaning business?
The ongoing expenses include rent, equipment lease payments, insurance, utilities, supplies, and marketing costs (printing and delivery expenses for promotional flyers).
Who is the target market?
This is essentially a retail business, with repeat customers coming from the local area. This business sometimes offers subscription services to customers which can lead to increased profits. Regular customers help create a reliable customer base.
Full-service launderers must consider possible allergic reactions in customers and take steps to prevent these from occurring. This is an important consideration as customers will not be choosing the products that will be used in the laundering process.
Many people are concerned by the chemicals used by traditional dry cleaners. Many consumers are also concerned by the environmental impact of this type of business. A business using less harsh chemicals and more organic cleaning methods while reducing its carbon footprint may be preferred such as the example of eco laundry company.
How does a laundry and dry cleaning business make money?
Items for dry cleaning are charged per piece. Regular laundry is charged per pound. Additional charges may apply for special services, such as severe stain removal or making repairs, such as fixing tears or replacing missing buttons.
In a major metropolitan area, the competition for laundry and dry cleaning services may be very intense. Because of this, many stores offer dry cleaning services for shirts and blouses at $1 per piece in order to attract customers. Premium prices are charged for same-day service.
The price per pound of regular laundry ranges from $0.99 to $1.99 depending on whether the items need folding or pressing. Dry cleaning of items starts at $1 per item for shirts or blouses, $5 for pants, $10 for suits, and goes up to $29 for a comforter.
How much profit can a laundry and dry cleaning business make?
This business, when it serves an active customer base, is very profitable. Revenues easily exceed $200 per day and costs are less than half of that. A small shop can make at least $30,000 in profit per year after paying all expenses. Many entrepreneurs have become very wealthy owning and operating multiple storefronts in this business.
How can you make your business more profitable?
Ways to make this business more profitable include offering pick-up and delivery service for an additional fee to help individuals with a busy schedule, offering clothing alterations/tailoring service, and shoe repair/polishing. Opening multiple locations, once finances and demand permit, will also lead to increased profits.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Laundry and Dry Cleaning Business Name Generator
If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name , we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability .
It's very important to secure your domain name before someone else does.
Find a Domain Now
Powered by godaddy.com, step 2: form a legal entity.
The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your laundry and dry cleaning business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended : Read our best net 30 vendors , guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate laundry and dry cleaning business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .
In addition, certain local licensing or regulatory requirements may apply. For more information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Labor safety requirements
It is important to comply with all relevant Occupational Safety and Health Administration requirements: Here is a link to OSHA’s laundry specific regulations .
Certificate of Occupancy
A laundry and dry cleaning business is generally run out of a storefront location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO) . A CO confirms that all building codes, zoning laws and government regulations have been met.
If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a laundry and dry cleaning business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your laundry and dry cleaning business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance .
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
Recommended: Learn what business insurance for your Laundry and Dry Cleaning Business will cost.
Business Insurance for Laundry and Dry Cleaning Business
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a laundry and dry cleaning business
The best way to promote this business is to use hand delivered flyers that offer a discount coupon and put them under the doors of homes and apartments in the nearby neighborhood.
How to keep customers coming back
The most common form of advertising is to have a big neon sign in the window saying shirts cleaned for $1. Being very friendly to the customers when they walk in encourages them to come back. Calling them when their clothes are ready adds an extra touch of good customer service.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business .
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides , the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .
Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Laundry and Dry Cleaning Business in your State
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- West Virginia
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Is this Business Right For You?
To do well in this business you will have to enjoy cleaning clothes and making them nice for others. It is important to pay attention to the details, not lose track of the customers’ items and make sure the results of the washing, cleaning, pressing and/or folding are excellent.
You will need to work with many different chemicals, some of which are known to be quite toxic. You will have to be comfortable with handling dirty laundry. Some might be very smelly and even disgusting before it is cleaned. Wearing gloves and protective equipment will be an important thing to do to protect your health.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
Entrepreneurship Quiz
What happens during a typical day at a laundry and dry cleaning business?
This business is all about being on schedule. Opening the store on time, keeping public and employee areas clean, and making sure that orders are fulfilled in a timely manner are all activities you can expect on a daily basis.
If the store processes the laundry and/or dry cleaning on site, you will also need to make sure the equipment is operating properly, and load up the washers and dry cleaning machines with additional clothes that need cleaning to keep making good progress for all of the customers’ orders.
What are some skills and experiences that will help you build a successful laundry and dry cleaning business?
You will need to be friendly with the walk-in customers and very careful with their items. Attention to detail is important and you will need to notice things like stains or damage to the clothing to point them out to the customers when they drop off the clothing for laundry or dry cleaning.
There is always a tight schedule of work necessary to get everything ready on time. Customers can be very unforgiving if they come back to the store when their clothes are supposed to be ready and they are not available on time for pick up.
Perhaps the most crucial skill is the ability to remove stains. Here is a list of common stains and the best way of getting them out of clothing.
What is the growth potential for a laundry and dry cleaning business?
There is a business model that uses the retail space as only drop off and pick up location, while all the washing and cleaning is done at another location. it is possible to have many retail locations that are supported by an industrial location where all the cleaning of the clothes occurs.
There are also franchise opportunities in this industry. It is possible to start with a single store and then expand to own many more.
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For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.
Take the Next Step
Find a business mentor.
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
How and when to build a team
Most of these businesses are family run and operated by just a few people. The time to build up a team comes after the success of operating one store and opening another one. Workers are often paid minimum wage.
Get more ideas with our Business Ideas Generator .
Check out our How to Start a Business page.
Sign up at the Business Center to access useful tools for your business.
Useful Links
Industry opportunities.
- National Cleaners Association website
- Tide Cleaners franchise opportunity
- Comet Cleaners franchise opportunity
Real World Examples
- California-based full service laundromat chain
- Ann-Arbor based self-service/full-service laundromat
Further Reading
- Blog detailing how to start a drop-off wash-and-fold laundry business in-store
- Blog detailing how to start an at-home drop-off wash-and-fold laundry business
- Book detailing how to start and manage a dry cleaning business
- Find more Business Ideas perfect for Small Towns!
Related Business Ideas
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Carpet and Upholstery Cleaning Business
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Cleaning Business
Cloth Diaper Service
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Laundry and Dry Cleaning Business
Have a Question? Leave a Comment!
How to Write a Simple Dry Cleaner Drop-off Business Plan
- Small Business
- Business Planning & Strategy
- Write a Business Plan
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What Do I Need to Open a Clothing Alteration Business?
How to open a box lunch delivery service, how to open a yogurt shop.
- How to Write a Business Plan for a Gas Station
- Marketing Strategies to Establish a Frozen Yogurt Business
A dry cleaning drop-off business offers a convenience to local residents and busy professionals without burdening you with the cleaning process itself. The key to developing a successful business means you must find ways to let people know you offer drop-off services and point out how you save them time and effort. Creating a business plan helps you arrive at those answers, while also giving you a guide on how to manage your business once you open the doors.
Market Analysis
Look at the market to determine the potential business opportunity. Your market should either work or live within a few miles of your store, or your location should be near a major traffic area that people must use to commute. Determine what type of people you’ll attract to your business, middle to upper class residents, hotel guests or business professionals. Your target market may also consist of concierges and personal assistants who manage their client’s dry cleaning needs.
Identifying Competitors
Even though you won’t provide dry cleaning itself, businesses that handle cleaning are your competitors. Laundry facilities with drop-off services are also competing with you. Find out how many customers these businesses attract on a daily and weekly basis, what they charge, their opening hours and their marketing tactics. This information will help you find a competitive niche that makes your drop-off business the obvious choice to your target market.
What’s Needed
Create a relationship with a local dry cleaning facility so you can set your own prices. You’ll need a store front with easy parking or a drive-up window. The inside of the store needs a large hanging area or a conveyer belt to hold all of the clothes that are returned clean. The space should include room to check and re-bag items returned from the cleaners. You’ll need to create a tagging system so you can match up the customer’s half of the ticket with the clean clothing. You’ll also need a cash register and a credit card system if you plan to accept payment other than cash.
Day-to-day Operation
Explain how you plan to operate on a day-to-day basis, and include your hours of service, making them convenient for busy professionals, such as staying open late into the evening and opening early in the morning. If you plan to hire employees, discuss the qualifications you’ll need. Explain your own background as the owner, and detail any past experience you have in opening a personal service or working with a dry cleaning company.
Attracting customers requires a mix of online and offline marketing, including setting up a website and social media pages so you can let people know you provide drop-off service. The business will need signage both on the front of the store and on sandwich boards placed on the sidewalk to make people aware of your services. Include a plan for advertising in local print publications, and plan on running promotions, such as bring drop off four items, get one item cleaned for free, to drum up interest.
- Planet Laundry: Is Drop-Off Drycleaning Right for You?
- Planet Laundry: Is Drop-Off Drycleaning Right For Your Business?
- BPlans: Dry Cleaning Home Delivery Business Plan
- The Art of Manliness: A Man’s Guide to Dry Cleaning
Nancy Wagner is a marketing strategist and speaker who started writing in 1998. She writes business plans for startups and established companies and teaches marketing and promotional tactics at local workshops. Wagner's business and marketing articles have appeared in "Home Business Journal," "Nation’s Business," "Emerging Business" and "The Mortgage Press," among others. She holds a B.S. from Eastern Illinois University.
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- Business Plans , Startup Ideas
- December 7, 2020
Your Business Plan Guide to Open a Laundry & Dry Cleaning Business
The cleaning business is a hot market and always will be. Starting a drycleaning or laundry business is profitable in almost any city worldwide, where people are sometimes too busy to do their own laundry. If you are opening a laundry service or dry cleaning business and running it successfully, a must is a detailed business plan .
Your Business Plan Guide to Open a Laundry & Dry Cleaning Business
If you are looking for details like start-up costs, target markets, and how to open your laundry shop or dry cleaning business, check out our detailed overview of Pick & Delivery Dry Cleaning Business .
Once you know the basic details about starting a dry cleaning or laundry business, you must develop a proper business plan . This article will help you if you are looking for:
A sample laundry business plan
Dry cleaning business plan
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Laundry business plan conclusion
Mobile dry cleaning business plan
Pickup & Delivery laundry service business plan
Writing a business plan for your dry cleaning services or laundry shop will be simple and easy if discussed as chapters. So here it goes:
Chapter 1: Business Service Introduction
Although the executive summary can be the first to present, we’ll discuss it last as it’s written at the end.
Now coming to the introduction, it’s all about how the business/service focuses on customer satisfaction , i.e., by rendering excellent service, on-time delivery, timely pickup, using quality products, and all other stuff that make it appealing.
The sub-sections of the chapter should include:
- Mission statement, Motto, or a Tagline.
- Growth potential.
- Keys to success, i.e., range of services, clientele, reputation, etc.
In all, for the first chapter you’ll really want to pack a punch, but be informative. Make sure that once the reader of your plan is done with the Introduction, they’ll know exactly what your business is all about. At least include the basics so that you can go more into detail later on about each section.
Chapter 2: Startup Details
This is to discuss the details like where the service/business will be located, area, the strategic importance of the location, etc., along with the numbers and statistics. Details to be included here are:
- The start-up capital (equipment, installations, etc.).
- Distribution of the owner’s investment and borrowings.
Do use the tables and graphs effectively; they don’t just look good but also make it easier for the reader to understand more in less time. Don’t overdo it, though, potential investors will be able to tell if you’ve skimped on the actual content of your business plan. Use them in moderation, but never underestimate the power of good data visualization.
Chapter 3- Products and Services
In this section, you’re going to detail every single thing that your business is selling. Make sure to include the key features of each product (really make it look attractive) and their price points. If you’re a laundry service, really focus on the different tiers of your services and how much they fluctuate in value. Make sure the margins make sense!
Depending on the area you are operating this business, it could be better to create a rate card. Once the rate card is ready, you can present it smartly in the business plan. Doing so will save you time, and your rate card will also be ready with the business plan.
Chapter 4- Market & the Competitors
Here you will write down the strategy and implementation summary, i.e., what’s so special about the business that makes it stand out in the market, what type of customer service you will provide, and how you will work on client satisfaction.
Studying your competitors closely helps you add up all the points missing in their business; by offering the best rates, advance packages, more flexible hours, weekend services, ease of access, and so on.
Doing a SWOT analysis of your business will better help writing this section.
Chapter 5- Marketing Action Plan:
Without proper marketing, you cannot do any business. It’s the key to acquire more customers and keep the business running. From local promotion via pamphlet distribution to catching prospects online via Google Ads, Facebook & Twitter, you need a plan to do everything rightly.
Follow these detailed guides and develop a marketing plan for your laundry and dry cleaning services business.
- 25 Free Marketing Options Every Startup Must Use
- 15 Ideas to Get Huge PR in $100 or Less
- 29 Essentials to Boost Sales & Revenues
Knowing the common and specific marketing strategies above, you should identify what to include in the plan and whatnot. Once you have a filtered list of marketing mediums to be used, you should grab a Marketing plan template and edit it according to your needs. Use a marketing plan template that has the capacity to work as a marketing action plan.
Chapter 6- The Financial Plan
Grab a financial plan template and add up your details to make your life easier. Remember that mostly financial plan templates come with detailed documents that you might not need. So, only take account of the documents that you need at this stage, i.e., balance sheet, income statement, cash flow statement, and so on. Do not go into too many details of the stuff that you are not familiar with.
Chapter 7- Forecasts & Milestones
Expected revenues in one year, distributed into 4 quarters, make a good forecast. Using graphs and tables makes it more attractive and easier to understand. This is one of the most important sections because if one of your readers decides to invest, they’ll want to know what to look for as your business progresses. This will give them comfort in their investment and the ability to hold you accountable! Make realistic goals and concrete plans to achieve them.
Remember that milestones are just the smaller parts of bigger goals ; if you plan 100k revenue in one year, you must know that in the first quarter, you may not hit 25k, so set realistic milestones.
Chapter 8- Human Resources
It’s a must for any business plan to have details of the people behind it. Ideally, add the details about the owner(s)/management first and then the experts you have. If you have not hired people at the moment, write in detail about the job profiles you plan to hire.
Time for Review & Rechecking
As proofreading is a must for any business document, a recheck of facts, figures, information, and the structure for your laundry/dry cleaning business plan is required. Make sure that the business plan covers everything mentioned above and is ready in the same order.
The Final Word:
As I mentioned at the beginning of chapter 1, the “Executive Summary” is the first and foremost part of a business plan. It is presented on the first page of the document, but while developing the business plan, it is the last part to be written as it summarizes steps 1 to 8 in one or two pages.
Once you are done writing all the details mentioned above, now it is the time to organize your laundry service/dry cleaning business plan in the proper table of contents and add the appendix if required. Here is the format that you should present your report in, for a more visual example:
- Executive Summary
- Business Introduction
- Startup Details
- Products & Services
- Market & Competition
- Marketing Plan
- Financial Plan
- Forecasts & Milestones
- Human Resources
There, now you should be able to picture a complete business plan for Laundry & Dry Cleaning services.
You can use samples for ideas, while templates can be used where replacing content works great, like in the Marketing and Financial plans. However, you cannot rely on a whole business plan sample or template. A business plan represents the soul of your business, and it must be as unique as your business.
So, we hope this article has helped you get a better idea of how to write your business plan. Starting a laundry service is a great idea, and we wish you the best of luck! If you have any further questions on where to go from here, let us know in the comments. We’ll get back to you as soon as possible!
Thanks for reading, and we’ll see you back here next week.
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Dry Cleaners Business Plan
If you are creating are creating a dry cleaning business, there are several things that you will need for consider. Pro Business Plans has worked with many dry cleaning companies to prepare professional plans for investment and strategy. This article provides information on what is included in a dry cleaner business plan and how it is typically structured.
TThere are many unique factors to consider when starting a dry cleaning business. For instance, the location and full suite of services are very important. Some dry cleaners offer pick-up, whereas others are located in strategic drop off locations. Other dry cleaning companies may also offer additional services such as tailoring or bespoke clothing. Investors will want to understand the unique aspects of your dry cleaning business and how it compares relative to its regional competitors. The subsequent section breaks down each category to help you understand each component in more detail.
Business Model
The business model of a dry cleaning business is relatively straightforward at its most elementary level. However, there are several other things to consider including the location, hours of operation, and full services provided. Some dry cleaners offer a variety of additional services that will weigh into the financial performance of the company. The location is also a key determinant into the success of the business, as it must balance a premium location with affordable rent.
- Marketing Plan
The marketing section of a drycleaner business is often divided into two sections including the initial market-entry and the follow-up promotional plan. The initial market entry strategy focuses on the first four to eight weeks of operations. This includes submission into online directories, public relations for media attention, and offering some initial discount for first time customers. The follow-up marketing strategy consists of forward looking projections over the next three years of how the company will acquire customers for the long-term. This may include direct mail flyers in white collar residential areas, solicitation to regional businesses, and search engine optimization.
Financial Projections
If you are seeking investment for your dry cleaner business plan, most financiers will request some form of financial projections. In most circumstances, a three to five-year financial forecasting period is accceptible. The projections often include an income statement , cash flow statement, balance sheet, and risk modeling. A well-structured financial model can also help your company to more effectively perform budgeting analysis and determine the appropriate pricing for its services.
What is Included in Our Custom Dry Cleaners Business Plan?
- SWOT Analysis
- Competitive Analysis
- Profitability Analysis
- Personnel Plan
- Organizational Chart
- Company Valuation
- Executive Summary
- Company Description
- Keys to Success
- Three Year Objectives
- Product or Service Description
- Market Research
- Fundraising Support
- 12 Month & 3 Year Profit & Loss
- 3 Year Balance Sheet
- 12 Month & 3 Year Sales Forecast
- 12 Month & 3 Year Cash Flows
- Break-Even Analysis
- Financial Ratio Analysis
- Management Team
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Back to All Business Ideas
How to Start a Dry Cleaning Business
Written by: Esther Strauss
Edited by: David Lepeska
Updated on March 6, 2023
Investment range
$9,000 - $52,000
Revenue potential
$84,000 - $500,000 p.a.
Time to build
Profit potential
$67,000 - $250,000 p.a.
Industry trend
- 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
- Start Making Money!
After a sharp pandemic-driven downturn in 2020, the dry cleaning industry saw a return to healthy growth in 2021, pointing toward real opportunity for the smart entrepreneur.
We all have special garments in our wardrobe that need extra care, which is why dry cleaning sees such steady demand. It’s also relatively easy to scale up by opening new branches.
Of course, starting a business is rarely easy; it requires hard work and useful information. Thankfully, you’ve come to the right place, as this step-by-step guide lays out all you need to know to develop and launch your successful dry cleaning business.
Looking to form an LLC? Check out the Best LLC Formation Services .
Step 1: Decide if the Business Is Right for You
Before you launch a business, you should ensure it’s a good fit for you and your lifestyle. For instance, dry cleaning businesses offer a steady flow of income, but leave little scope for creativity.
Let’s take a look at some of the pros and cons of starting your own dry cleaning business:
Pros and cons
- Low start-up costs
- Easy to manage and scale
- Consistent and predictable income
- Easy to build customer loyalty with repeat business
- No innovation or creativity; can be tedious work
- Responsible for clients’ often expensive clothes
- Cleaning chemicals could mean high insurance costs
Dry cleaning industry trends
Due to the sharp increase in working at home and the sharp decrease in going out, Covid-19 hit dry cleaning hard, forcing many businesses to close their doors. But now it’s begun to bounce back as consumers are likely to re-embrace dry cleaning services.
Industry size and growth
- Industry size and past growth – Research firm IBISWorld values the US dry cleaners market at more than $6 billion.(( https://www.ibisworld.com/industry-statistics/market-size/dry-cleaners-united-states/ ))
- Growth forecast – IBISWorld expects the industry to grow modestly at 1% in 2022.
- Number of businesses – The US is home to more than 14,000 dry cleaners.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/dry-cleaners-united-states/ ))
- Number of people employed – The industry employs almost 94,000 people.(( https://www.ibisworld.com/industry-statistics/employment/dry-cleaners-united-states/ ))
Trends and challenges
Trends shaping the dry cleaning industry include:
- Increasing use of self-serve washers and dryers
- Use of mobile apps for scheduling and delivery
- Preference for organic and environment-friendly cleaning solutions
Challenges in the dry cleaning industry include:
- Delayed B2B payments
- High attrition rate
- High level of competition
What kind of people work in dry cleaning?
- Gender – 61% of all dry cleaners are female, while 39% are male.(( https://www.zippia.com/dry-cleaner-jobs/demographics/#gender-statistics ))
- Average level of education – 48% are high school graduates while 20% hold a bachelor’s degree.(( https://www.zippia.com/dry-cleaner-jobs/education/ ))
- Average age – The average age of an employed dry cleaner is 49 years old.(( https://www.zippia.com/dry-cleaner-jobs/demographics/#age-statistics ))
How much does it cost to start a dry cleaning business?
If you start out as a solopreneur, run your business from home, and use your personal vehicle for deliveries, it’s possible to start a dry cleaning business for as little as $8,000. At the other end of the scale, starting a full-service dry cleaning storefront could cost $50,000 or more. On average, it costs $30,500 to start a dry cleaning business.
You’ll need a handful of items to successfully launch your dry cleaning business. Here’s a list to get you started:
- Dry cleaning machine/s
- Presses and sorting bins
- Hangers and garment coverings
- Racks and tags
- Furniture and fixtures
- Point-of-sale (POS) technology
- Chemical solvents and stain removers
The major costs are procuring dry cleaning equipment, a delivery van, and marketing and advertising.
How much can you earn from a dry cleaning business?
The average annual revenue for a US dry cleaner is about $250,000, but those starting out on their own should probably expect to bring in about a third of that total. With $84,000 in annual revenue and an 80% profit margin while operating from home, you can expect a profit of around $67,000.
A medium-sized dry cleaning shop with a good location can expect to hit the industry average of $250,000 in annual revenue. But with higher operating costs, particularly rent, your margin will fall to 60%. Still, that leaves a healthy profit of more than $150,000.
One of the benefits of the dry cleaning industry is that it lends itself to scaling up. Once your flagship store is established, you might look to open branches in other prime locations. Within a few years, you could have five branches bringing in a total of more than $500,000. Assuming a 50% margin due to increased operating expenses, your pre-tax profit would be a cool quarter of a million dollars.
What barriers to entry are there?
The dry cleaning industry has few barriers to entry.
As a business dependent upon expendable income, the dry cleaning market shrinks when times are tough. Also, entrenched dry cleaning franchises like Martinizing.com tend to enjoy high client loyalty, so establishing your own reputation and drawing customers can be a significant hurdle.
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Step 2: hone your 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
To give your new dry cleaning business the best possible chance of success, before you launch you should conduct in-depth market research in your area.
Identify all competitors within a five-mile radius and examine their service offerings, price points, and online customer reviews. Which services sell well in your area, and what might this market be missing? Consider how you might capitalize on your competitors’ weaknesses or beat them on their strengths.
One trend you might take advantage of is that customers are increasingly preferring “green” dry cleaners that embrace eco-friendly methods instead of harmful chemicals. The Eco Laundry Company is one example of a company that has successfully made this a selling point.
Eco-friendly dry cleaning may offer a potential opportunity to new market entrants.
Once you’ve compiled your research on competitors and customers, look for the best way to position your company in the local market.
What? Determine your products or services
The main service offered by a dry cleaner is, as the name suggests, washing clothes without water. Instead, water-free chemical fluids are used to strip away the dirt without harming delicate fabrics. But you could also offer supplementary services to boost revenue, such as alterations, steaming and ironing, and storage.
How much should you charge for dry cleaning?
Prices vary based on fabrics and location, but a reasonable average is $5 for a shirt up to $30 for a comforter. Blouses, pants, skirts, sweaters, blazers and jackets are often $10 each, while dresses and suits cost $20. Overall, dry cleaning should average about $10 per item.
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
For most dry cleaning businesses, your main customers will be locals who regularly wear high-end clothes for work and events. Take the time to understand the demographics of your area, and how many customers you might have. You could also boost revenue by working with area businesses, such as hotels, restaurants, hospitals, and fast food outlets.
Where? Choose your business premises
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storefront. 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
Step 3: Brainstorm a Business Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
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
- The name should be relevant to your product or service offerings
- Ask around — family, friends, colleagues, social media — for suggestions
- Including keywords, such as “dry cleaning” or “cleaners”, boosts SEO
- Choose a name that allows for expansion: “Jim’s Bakery” over “Jim’s Cookies”
- Avoid location-based names that might hinder future expansion
- Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.
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.
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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 sets 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
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
- Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
- Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
- Product and Services: Describe your offerings in detail.
- Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis .
- Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
- Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
- Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
- Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
- Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
- Appendix: Include any additional financial or business-related documents.
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 dry cleaning.
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 dry cleaning business 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 need 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.
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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.
- Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
- 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 dry cleaning business. You might also try crowdfunding if you have an innovative concept.
Step 8: Apply for Licenses/Permits
Starting a dry cleaning 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 dry cleaning 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 any 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 could use dry cleaning management software, such as CleanCloud , SMRT Systems , Geelus , and Enlite POS , to streamline your operations and bookkeeping.
- 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.
Some of your business will come from the casual passerby or online visitors, but you should still invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.
Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:
- Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area.
- Instagram: Same benefits as Facebook but with different target audiences.
- Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Visit Us Now”. This can sharply increase the number of customers.
- Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.
Kickstart Marketing
Take advantage of your website, social media presence, and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:
- Competitions and giveaways – Generate interest by offering prizes for customers who complete a certain action, such as your first item cleaned is free.
- Signage – Put up eye-catching signage at your store and website.
- Flyering – Distribute flyers in your neighborhood and at industry events.
- In-Person Sales – Offer your products/services at local markets, trade shows.
- Post a video – Post a video about your dry cleaning service. Use humor and maybe it will go viral! Seek out referrals – Offer incentives to generate customer referrals to new clients.
- Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
- Testimonials – Share customer testimonials about how your service helped them.
- Create infographics – Post infographics and include them in your content.
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. 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.
You can create your own website using services like WordPress , Wi x , or Squarespace . 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.
Focus on USPs
Unique selling propositions, or USPs, are the characteristics of a product or service that sets 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 dry cleaning service 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.” Signature USPs for your dry cleaning business could be:
- We use only eco-friendly cleaning solvents and renewable energy!
- Pick-up, cleaning, and return delivery in 24 hours guaranteed
- Emergency cleaning service, on call 24/7
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 dry cleaning business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in dry cleaning 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 dry cleaning. 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
If you’re starting out small from home, you may not need any employees right away. But as your business grows, you will likely need workers to fill various roles. Potential positions for a dry cleaner include:
- Cleaning Staff
- Marketing Lead
- General Manager
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 , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Start Making Money!
So, you’re entering into a highly competitive industry. You can still succeed and capture a share of the market. You can do this by serving a particular niche or offering something new. It could be a service backed by the latest technology, or a solution in response to the increasing demand for organic and environment-friendly cleaning products.
Whatever is more convenient for the consumers is sure to get the market’s attention. For example, you can introduce a mobile app that will make it more convenient to contract your services. With proper research, you should be able to make money in no time!
Dry Cleaning Business FAQs
Dry cleaning business can be an extremely profitable business venture. Small company’s profit before corporate taxes may begin from $67,500 per annum and grow to $500,000 or beyond with additional branches and investment.
Yes. The advantages of starting a dry cleaning business outweighs its cons, hence making it a suitable business to launch.
Dry cleaning is similar to laundering with the main difference being the use of water. Laundry uses water and other detergents while dry cleaning does not use water and removes stains and dirts through chemical solvents.
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