Business Plan for Laundry or Dry Cleaning

Modern hectic life and increasingly scarce time create a high demand for services that can be very well served by a laundry business.

In addition, it is estimated that in Latin America, less than 20% of homes have an automatic clothes washing machine and that is probably one of the main reasons that make it a very attractive and constantly growing business.

If you are interested in venturing into this interesting business, today I share the business plan for laundry or dry cleaning.

Business Description
The role of the business consists of providing the service of washing and drying cloth garments, either on request or by self-washing, as well as some other complementary services. It can be focused on different markets such as family, executive, or industrial.

Motivation and Vision
Describe why personal reasons you want to start a laundry business and what qualities represent advantages that guarantee its success. Likewise, describe what you would like to achieve with this business and answer the question “how would you see yourself in 5 years”. (Write it on paper)

Legal feasibility
You must clearly define:

  • Business Name
  • Type of business: individual or partnership
  • Business owner (s).
  • Tax regime
  • Processing of legal requirements: Commercial Registry, Social Security, Ministry of the Environment, etc. You should find out about the specific requirements for your city.

Target market

The laundry services They can be directed to different target markets, among which you should choose the most convenient one according to the location of your premises and size of your business.

  • Family: intended for washing family clothing items as well as household items such as: tablecloths, sheets, bedspreads, etc.
  • Executive: mainly intended for the washing of clothing for people in corporate or business areas.
  • Industrial: ideal for handling high volumes of items, for example from hotels, hospitals, event organizing companies, etc. These consist of: table linen, bedroom clothes, curtains, etc.

You must estimate how much is the population (numerically speaking) that you estimate to reach with the services of your dry cleaning business in the zone.

Competition Analysis
You must carry out a visual inspection in the surroundings near the place where you plan to locate your premises, trying locate businesses with similar characteristics or that they provide the same type of services that your plan contemplates.

An average range of about 2 to 3 km around is recommended. If possible, enter their stores, request prices, find out about their service catalog and tries to measure the level of care they provide since this should be a parameter to establish competitive advantages.

Market study
Always using the visual observation technique, you should collect the following information from your competitors:

  • What level of human trafficking they have during the day (amount)
  • In what hours and days do you have the greatest demand for services
  • What kind of people (socio-economically speaking) attend the business
  • What are their opening hours to the public

In addition, you must prepare a survey of 10 questions that you can randomly ask different people in the sector, who have the profile of your target market to be able to measure the acceptance possibilities of your laundry and your main needs in this regard. Between 50 and 100 surveys will reveal important information that will help you make decisions.

Business Location
Define if the premises you will use is your own or rented.
Also, define according to your budget:

  • The rent to pay
  • Contract costs and deposits
  • The costs of adaptation of the premises
  • Measurement of the premises: A minimum of 54m2 is recommended. Although the minimum measures must be defined according to the number of washing machines you need to install.

The business It will be located at the following address __________________________.

Recommended Equipment

  • 1 Industrial washing machine
  • 3 Commercial washing machines
  • 1 Industrial dryer
  • 2 Commercial dryers
  • 1 Extinguisher (for emergencies)
  • Water cistern

Equipment Features

When acquiring your equipment make sure that they at least meet these requirements.
Washing machines:

  • Drive by coin system
  • 76-liter minimum capacity
  • 110V or 220V electrical specifications
  • “Maintenance-free” bearings


  • Propane gas
  • 1/3 HP
  • Weight 545 and 140 Lbs.

Business Management and Operation

It basically requires that the business is attended and operated primarily by the owner and assisted by one or two managers for reception and customer service shifts. Remember that there are several types of laundry services, for this example we are assuming a combination of car wash business combined with a garment reception and delivery business.

Additionally, the owner will function as administrator having to take care of important aspects such as: purchases of supplies (inventory), budget control, tax payments and billing (assisted by a public accountant), premises payments, salaries, etc.

Price range
The prices must be established in balance with your particular costs and the demand that you can meet, but the following are estimated on average:

Self-service: us $ 1.50 to $ 2.50 per washing machine
On request: us $ 1.50 to $ 3.00 per garment
With home delivery: us $ 3.00 to $ 5 per garment

Possible risks
Main risks to which the business and its operation could be exposed son:

  • Little clientele: if the location of the same is not chosen properly or if the conditions of access to the premises are not adequate.
  • Unsafety: also depending on the location of the business and the opening hours.
  • Low sales: if service standards are not handled or the client will not find what they are looking for.
  • Financial risks: if the finances of the business were not properly managed. For this, it is essential to have a budget and to respect it.

Origin of initial investment funds:

Initial Investment (prices in US dollars)

  • Local rent contracts: $ 1500
  • Initial investment in supplies: $ 250
  • Room accommodation: $ 1000
  • Furniture and equipment: $ 5000 – $ 7000
  • Working Capital: $ 1500
  • Facilities: $ 500
  • Insurance: $ 500
  • Others: $ 500
  • Approximate initial investment: $ 12,750

Monthly Operating Expenses Budget:

  • Services (water, electricity, gas): $ 550
  • Local rent: $ 350
  • Supplies $ 200
  • Promotion and Marketing $ 150
  • Administrative expenses: $ 100
  • Bank Credit Payment: $ 300
  • Maintenance $ 100
  • Depreciation $ 100
  • Wages $ 700
  • Others: $ 100

Total: $2650

Financing Plan (Credit)
For the initial capitalization of the business, a bank loan of US $ 7000 is considered, which will be paid in 36 months with an estimated interest rate of 15% with amortizations of about $ 300 per month.

Approximate Business Profit:
Total monthly sales: $ 4200.00
Total operating jacks: $ 2650.00
Profit: $ 1550.00

Marketing plan
You must establish the weaknesses of your competition and ensure that you supply them in the best way to turn it into your competitive advantage.
You must invest a monthly amount (5% is recommended) in promotion and publicity Through flyers, banners, participation in promotions with other businesses, advertising magazines in the area, etc.
You must implement a compensation system for referrals that rewards your clients if they recommend you and make others come customers to your business.

Optional services

This business plan is a reference document offered to the readers of 1000 Business Ideas as such, of course, as in any business there are many specific factors for each case and for each proposal that must be evaluated, analyzed and raised in detail. and it is finally the entrepreneur who has the power to decide how, when and in what way to intelligently invest his capital. If it is useful to you or you want to provide some additional useful detail, I would love you to share a comment.


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