How to Write a Winning Laundromat Business Plan: Step-by-Step Guide

Rome wasn’t built in a day and nor will your laundromat business be! While the road is long, you can minimize bumps by going into your venture with a well thought out, detailed business plan that does justice to your vision but is still realistic and achievable. It doesn’t matter if you’re brand new to entrepreneurship or a seasoned laundromat mogul, you can’t bet on a solid foundation for your new venture unless you have a detailed business plan to set the tone. 

This guide will walk you through each component of a winning laundromat business plan. We’ll go over service options, choosing the right location, financial projections, and more, so you can launch a successful laundromat.

Find the appropriate employee to help you run your business! Check out our free guide that will provide well rounded job descriptions for your attendants.

1. Define your services

Think about what kind of laundromat you want to open. Do you imagine it will be a serf-service, coin-based business, a luxury pickup and delivery service, or maybe a primarily commercial customer-focused business model? Perhaps some combination of the three? Here are the most common options:

• Self-service laundry: The tried and true laundry format, where customers use your equipment independently. This model hits the sweet spot between minimal staffing requirements and good cash flow, ideal for high-traffic areas.

• Wash-and-fold service: An increasingly popular service that answers the call for modern conveniences. This luxury service can significantly increase revenue as customers pay to outsource the dreaded chore. This model, however, requires trained staff and dedicated space for processing orders.

• Pickup and delivery: Offering a pickup and delivery option can help you reach customers who might otherwise go elsewhere. This requires investment in logistics, from delivery vehicles to route planning software, but it can also open up a whole new revenue stream.

• Dry cleaning drop-off/pickup: Partnering with a local dry cleaner to offer a drop-off/pickup service can be another way to boost traffic without the need for in-house dry cleaning equipment. This service works particularly well if you’re in an area with a lot of working professionals.

2. Location analysis

Like with any piece of commercial real estate, choosing your location is a critical decision. On your search, consider things like visibility, convenience, parking availability, and proximity to your target market. Here’s a checklist of location considerations:

• Main road visibility: High visibility from a main road can make way for more walk-in customers.

• Accessibility: A location near residential areas, especially apartments, increases potential customers. Easy access and good parking can also help keep them coming back.

• Safety: Good lighting, security cameras, and visibility from the street create a safe environment that customers will appreciate, especially for a business open late or 24/7.

• Infrastructure: Make sure the location has the necessary utilities (power, plumbing) to support commercial washers and dryers.

3. Equipment and technology

Equipment is one of the biggest investments in the laundromat business, and there are an overwhelming number of options to choose from. Modern machines offer features that boost efficiency and customer satisfaction. Here are a few key types and considerations:

• Coin-operated vs. card-only machines: Traditional coin-operated machines still have their place, but card-only or hybrid machines have become more popular for the ease of use and remote monitoring capabilities.

• Energy-efficient equipment: Choosing energy-efficient machines can help you save on utilities and attract eco-conscious customers.

• Technology for pickup and delivery: If you offer pickup and delivery, consider a POS system that integrates with a route-planning or scheduling app. This streamlines operations and improves customer satisfaction.

4. Operational plan

Imagine how you want your laundromat to run. A well-structured operational plan will streamline your day-to-day operations, regardless of your service offerings. Plan out the specifics for each service:

• Staffing needs: Self-service laundromats can often run with minimal staffing, whereas the luxury services require more hands and detailed processes. For pickup and delivery, you’ll need drivers—either in-house or hired through a gig service.

• Workflow optimization: Efficient workflows save time and increase customer satisfaction. Arrange machines, folding stations, and service counters in a way that minimizes back-and-forth.

• Hours of operation: Decide whether you’ll run 24/7 or have set hours. 24/7 operations may require additional security and remote access systems but can attract night-shift workers and other off-hours customers.

• Logistics for pickup and delivery: Efficient scheduling and route planning are key for offering pickup and delivery. Some laundromats use apps to streamline logistics, optimize routes, and communicate with customers.

• Inventory management: If you offer dry cleaning or pickup/delivery, inventory management becomes essential. Track supplies, manage laundry items, and ensure that customer orders don’t get lost in the shuffle.

5. Market analysis and competition

Understanding your market is essential for a sustainable laundromat. Start with a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to understand where your business fits into the local landscape. Then, study your competition:

• Competitor services: Check out of what nearby laundromats offer. If most only offer self-service, there might be an opportunity for wash-and-fold or delivery services.

• Target market: Figure out the type of customers you want to attract. Are they busy professionals, students, or families? Align your services and pricing with the needs of your target market.

• Market needs: If your area has many working professionals, pickup and delivery might be in demand, while a location near college campuses may find self-service is sufficient.

6. Financial projections

Detailed financial projections are essential for getting funding and forming an idea about revenue potential. Include:

• Startup costs: Itemize equipment purchases, remodeling, permits, and other one-time expenses. This helps in planning your initial capital needs.

• Ongoing costs: These include utilities, rent, payroll, and loan payments. Accurate forecasting helps maintain a balanced budget.

• Sales forecasting: Predict revenue for each service type over the first three years. This helps in understanding which services to prioritize and guides cash flow projections.

• Revenue and expense projections: Regularly compare expected revenues against ongoing expenses to maintain profitability. This is especially important if you plan on adding services over time.

• Funding sources: Research potential funding sources. Traditional bank loans, SBA loans, or even partnerships are common ways to finance a laundromat startup.

7. Pricing Strategy

Developing a pricing strategy is about balancing customer expectations with profitability. Consider factors such as:

• Competitor pricing: Check local competitors to avoid over- or under-pricing.

• Dynamic pricing: For self-service models, consider dynamic pricing, where off-peak times are discounted. This can help keep machines occupied at all hours.

• Premium services: For WDF or delivery services, customers are often willing to pay a premium. Pricing can reflect the convenience offered.

8. Marketing

A strong marketing plan will bring customers in and keep them coming back. In 2024, online presence is essential:

• Local SEO: Optimize your online listings, especially Google My Business, to rank for local search terms.

• Social media: Regular updates on Facebook, Instagram, and even TikTok can attract a local following.

• Creative marketing ideas: Try loyalty programs, partnerships with nearby businesses, and seasonal promotions. App-based marketing can also help promote your delivery services.

9. Milestones

Setting and tracking milestones can keep your business on course. Break your journey into manageable goals:

• Example milestones: These might include securing a location, purchasing and installing equipment, hiring staff, and officially opening.

• Step-by-step implementation: Implementing one service at a time, like starting with self-service and adding WDF later, allows you to build experience and gradually expand.

Conclusion

A laundromat business plan is the very foundation for your entire operation. With clear service offerings, thoughtful location selection, smart equipment choices, efficient operations, and targeted marketing, your laundromat has every chance to become a community staple in 2024!

Find the appropriate employee to help you run your business! Check out our free guide that will provide well rounded job descriptions for your attendants.