Setting Up Your Own Laundry Service

Turnkey Business Opportunities Service Industry Business Ideas 10.08.2017  0 24 0
Setting Up Your Own Laundry Service

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unning a Laundromat is a challenging yet profitable venture. One major advantage is the lack of serious competition in the market. However, the flip side is the limited spending power of the population, resulting in relatively low demand. Consequently, not many entrepreneurs are willing to invest in such a business. Nevertheless, there is still a stable demand that, with proper organization, can generate a consistent high income. Let's delve into the key aspects to consider before starting this venture.

Choosing a Location

ccording to established health regulations, a Laundromat must be situated on the ground floor, with separate entrances for receiving and dispensing laundry. The walls should be resistant to high humidity and steam. Naturally, the facility must have all essential utilities - sewage, water supply, electricity, and ventilation.

Regarding space, it depends on the scale of the Laundromat. For a small operation (up to 10 kg of laundry per hour), about 20 m2 is sufficient. However, as the volume of laundry increases, the space requirement also grows. For instance, for a load of 30 kg/hour, an optimal space would be around 150 m2.

Equipment and Project

he exact cost of equipment depends on the planned laundry load. For a medium-sized facility, purchasing equipment might total around $40,000, with an additional $2,000 - $3,000 for delivery and installation.

Equipment distributors typically offer not only warranty services but also assist in creating a technical project for the Laundromat. The cost of this project is usually 5-10% of the equipment price.

Afterward, this technical project must be approved by government regulatory bodies - fire departments, sanitary inspection, architectural and utility services. The approval process can take several months, on average around six months. A wise approach would be to use this time to attract potential clients.

Clients

xperience shows that it's unlikely to earn significantly by solely servicing individual customers. The primary clients should be sought in the corporate sector, particularly in the HoReCa segment. Ideal locations for a Laundromat include hotel complexes, service stations, countryside entertainment centers with numerous dining and accommodation facilities, as well as areas with many beauty salons, fitness centers, and the like.

Staff

The staff size also depends on the Laundromat's scale. For a facility with a 30 kg per hour load, you would need one laundry receiver/sorter and 4-6 other general workers. If you haven't purchased a clothes press, you'll need to hire an ironer. Additionally, a driver is required for laundry delivery. Employing an electrician full-time is likely unnecessary; it's more practical to hire as needed. Despite the relatively large staff, labor costs might not be excessive as the work is considered low-skilled.

You could also consider opening a self-service Laundromat. This would involve installing token-operated machines at the entrance and equipping the washing machines with token acceptors.

Organizational Phases

  • Evaluating the project's economic feasibility, preliminary equipment selection.
  • Searching for a location, consulting with specialists to ensure suitability.
  • Developing a business plan.
  • Creating a technical project, outlining the renovation plan, equipment placement, material requirements, etc.
  • Approving the technical project with government authorities.
  • Interior renovations within the Laundromat.
  • Equipment delivery and installation.
  • Trademark registration.
  • Hiring and training staff.
  • Business promotion (although client acquisition should be pursued post-technical project completion).

Major post-opening expenses for a Laundromat will include energy sources and laundry detergent. In addition to detergent, you will need fragrances, softeners, and other supplies. The calculation for required detergent amount is based on a ratio of 40g of detergent per 1kg of laundry. As for energy savings, aim to utilize energy sources like hot water, gas, and steam to their maximum potential, as electricity can be costly.

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10.08.2017  0 24 0
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