Are you passionate about providing convenient laundry services and ready to help people manage their endless piles of dirty clothes more efficiently?
If so, consider starting your own laundromat business.
It’s a wise decision, especially with the growth in the market by 3.14% annually CAGR (2024-2029).
But before you begin, it's important to invest time in careful planning and develop a strong business plan. Because it will be your strategic guide that will help your laundromat's success and it will attract potential investors.
In this article, we've explained a practical laundromat business plan example that you can use to create a personalized plan for your own business.
Ready to start? Let’s get into it.
Laundromat Business Plan Sample
Starting and expanding a laundromat calls for a carefully developed business plan. It's an essential part of setting your business on the right path.
Let's start with the FreshWave Laundromat business plan and gather useful tips for crafting each section of your plan.
Executive summary
FreshWave Laundromat is a modern, eco-friendly laundromat in Portland. We offer self-service, drop-off, pickup and delivery, and commercial laundry solutions. Our mission is to deliver a clean, comfortable, and efficient laundry experience while promoting environmental sustainability with high-efficiency machines and eco-friendly detergents.
Mission statement
To provide a modern, eco-friendly laundry experience that combines convenience, quality, and sustainability, ensuring a clean and comfortable environment for our customers while promoting environmental responsibility.
Vision statement
To become the leading eco-friendly laundromat in our community, known for innovation, superior customer service, and commitment to sustainability.
Products and services
- Self-service laundry: High-efficiency machines available for customers to use at their convenience.
- Drop-off laundry service: Customers can drop off laundry for wash, dry, and fold services.
- Pickup and delivery laundry service: Convenient pickup and delivery for residential and commercial customers.
- Commercial laundry service: Specialized laundry services for local businesses such as salons, spas, and restaurants.
- Wash and fold service: Comprehensive wash, dry, and fold service for customers looking for convenience.
Market analysis
Our primary target market includes residents, college students, busy professionals, and small businesses. FreshWave Laundromat will stand out from local competitors like Spin Laundry Lounge, The Laundry Room, and Laundry Land by offering superior customer service, modern facilities, and eco-friendly operations. With a focus on sustainability and convenience, FreshWave is well-positioned to capture a significant share of the local market.
Organization and management
FreshWave Laundromat is a Limited Liability Company (LLC) owned and managed by Maren Ellsworth. The skilled management team includes:
- Tessa Graham – Customer Service Manager
- Reed Whitby – Marketing Director
- Brynn Oakes – Logistics Coordinator
- Finley Monroe – Maintenance Supervisor
Marketing and sales strategy
Our marketing strategy focuses on building brand awareness through local advertising, digital marketing, and community engagement. FreshWave will offer competitive pricing, loyalty programs, referral discounts, and promotions to attract and retain customers. Sales strategies include service bundling, promotional offers, and leveraging technology through a mobile app to enhance customer experience and convenience.
Financial projections
Over the next five years, FreshWave Laundromat is expected to achieve steady revenue growth, increasing from $225,000 in Year 1 to $329,423 in Year 5. The business will be profitable in Year 1, with net profit after tax rising from $33,600 to $82,560 by Year 5. Positive cash flow is projected throughout, with a strong financial position and growing equity base.
FreshWave Laundromat is seeking $125,000 in funding to cover startup costs, including equipment purchase, lease and renovations, marketing and advertising, technology integration, and working capital.
Company Overview
Company name: FreshWave Laundromat
Location: 1234 Clean Street, Portland, OR, 97201
Business structure: Limited Liability Company (LLC)
Owner: Maren Ellsworth
Business concept
Our laundromat is equipped with state-of-the-art, high-efficiency washing and drying machines that are designed to save both time and energy. By offering a clean, comfortable, and inviting environment, FreshWave Laundromat stands out as a preferred choice for customers seeking a superior laundry experience.
Core values
- Sustainability: Committed to environmentally friendly practices by using energy-efficient machines and eco-friendly detergents to reduce our environmental footprint.
- Quality: Dedicated to providing top-quality laundry services that exceed customer expectations, ensuring every garment is treated with care.
- Convenience: Offering a range of services, including self-service, drop-off, pickup, and delivery, to meet the diverse needs of our customers.
- Customer satisfaction: Striving to create a welcoming and comfortable environment where customers feel valued and receive exceptional service.
- Community engagement: Actively participating in community events and initiatives, building strong relationships, and giving back to the community we serve.
Unique selling proposition (USP)
FreshWave Laundromat differentiates itself from competitors through its focus on sustainability, convenience, and customer comfort. By offering a variety of laundry services tailored to different customer needs and maintaining a clean, modern, and eco-friendly environment, FreshWave is positioned as a leader in the local laundry market.
Industry Analysis
The laundry service industry in the United States is a mature market, comprising various services such as self-service laundromats, wash-and-fold services, pickup and delivery laundry services, and commercial laundry services. The industry is characterized by steady demand, driven by the continuous need for clean clothing and linens among households, students, businesses, and institutions.
Market Trends
Several key trends are shaping the laundry service industry:
Rise of eco-friendly practices
Consumers are increasingly favoring businesses that prioritize sustainability and environmentally friendly practices. This trend has led many laundromats to adopt energy-efficient machines, use eco-friendly detergents, and implement water-saving practices, aligning with consumer preferences for greener operations.
Demand for convenience
The growing demand for convenience among busy professionals, students, and young families has led to an increase in pickup and delivery laundry services. Customers are willing to pay a premium for services that save time and reduce hassle, making pickup and delivery an attractive service offering.
Technological integration
The integration of technology, such as mobile apps for service booking, cashless payments, and automated notifications, is becoming a standard in the industry. These technologies enhance customer experience by making services more accessible and convenient.
Growth of multi-service offerings
There is a trend toward expanding services beyond traditional self-service laundry, including wash-and-fold, dry cleaning, and specialty cleaning. This diversification attracts a broader customer base and boosts revenue streams.
The laundromat industry is fragmented, with independent operators and small chains competing based on location, service quality, pricing, and amenities. FreshWave Laundromat will compete with established players like Spin Laundry Lounge, The Laundry Room, and Laundry Land.
Competitive factors
- Location and accessibility
- Service quality and customer experience
- Pricing and value
- Innovation and technology
Customer Analysis
FreshWave Laundromat’s target market consists of several key customer segments, each with distinct needs and preferences:
Local Residents
Primarily middle to lower-income families and individuals, including both renters and homeowners without in-home laundry facilities.
- Needs: Access to affordable and convenient laundry services. A clean and welcoming environment where they can do laundry efficiently.
- Preferences: Self-service options with the availability of large-capacity machines, and potentially additional services like wash-and-fold for convenience.
College Students
Young adults (18-24 years old) living in dormitories or off-campus housing with limited laundry facilities.
- Needs: Affordable laundry services that fit within a student budget, located near campuses or student housing.
- Preferences: Quick and easy access, affordability, and options for both self-service and drop-off services. The availability of free Wi-Fi and comfortable waiting areas is a plus.
Busy Professionals
Working professionals (25-45 years old), often with demanding jobs and limited time for household chores.
- Needs: Time-saving laundry solutions such as drop-off and pickup/delivery services.
- Preferences: Convenience and efficiency, with flexible service hours that accommodate busy schedules. They value quality and reliability over cost.
Small Businesses
Local businesses such as salons, spas, gyms, restaurants, and healthcare facilities.
- Needs: Regular, reliable laundry services for linens, towels, uniforms, and other textiles.
- Preferences: Consistent quality, reliability, and timely turnaround. Businesses are often looking for bulk service pricing and ongoing service agreements.
Customer Needs and Preferences
Let’s understand it through the buyer persona of our customer.
Competitive Analysis
FreshWave Laundromat faces competition from several local laundromats and laundry service providers. Key competitors include:
1) Spin Laundry Lounge
Strengths: Modern facilities with a unique lounge experience combining laundry services with social spaces or cafes. Likely attracts younger, urban customers.
Weaknesses: Higher operational costs due to added amenities; may not appeal to customers looking for a basic, no-frills laundry service.
2) The Laundry Room
Strengths: Traditional, reliable laundromat with established customer loyalty. Offers standard self-service and drop-off services.
Weaknesses: Potentially outdated facilities and limited service offerings; lacks differentiation beyond basic laundry services.
3) Laundry Land
Strengths: Broad service range at competitive pricing, catering to a diverse customer base. Established a presence in the community with a stable customer base.
Weaknesses: Limited innovation and customer engagement strategies; may struggle to compete on customer experience and modern amenities.
SWOT Analysis for Fresh Wave Laundromat
Marketing Plan
Marketing Objectives
- Increase brand awareness: Establish FreshWave Laundromat as a leading eco-friendly laundromat in the local community.
- Attract new customers: Grow the customer base by 15% within the first year of operation through targeted marketing efforts.
- Enhance customer retention: Achieve a customer retention rate of 70% by offering loyalty programs and exceptional customer service.
- Boost revenue: Increase service utilization rates across all service offerings, aiming for a 10% revenue increase each quarter.
Marketing Strategies
1. Digital Marketing
- Website optimization
- Social media marketing
- Email marketing
- Google my business
2. Promotions and Incentives
- Introductory Offers
- Loyalty Programs
- Referral Programs
- Seasonal Promotions
3. Sales Strategy
- Service bundling
Offer bundled packages that combine multiple services, such as wash-and-fold with pickup/delivery, to increase average transaction value and provide greater value to customers.
- Upselling and cross-selling
Train staff to upsell additional services (e.g., stain removal, garment repair) and cross-sell to customers already using one service.
- Customer service excellence
Ensure that all staff are trained to provide friendly, efficient, and knowledgeable service, enhancing customer satisfaction and encouraging repeat business.
Operations plan
1. Location and facilities
- Location: FreshWave Laundromat is located in a high-visibility, high-traffic area of 1234 Clean Street, Portland, OR, 97201, easily accessible to local residents, college students, and nearby businesses. The location features ample parking and is designed to facilitate easy pickup and delivery logistics.
- Facilities: The laundromat is equipped with modern, high-efficiency washing machines and dryers of various capacities to accommodate different laundry needs. The interior is clean and well-maintained, offering comfortable seating, free Wi-Fi, and a vending area for snacks and drinks.
2. Operating hours
- Hours of operation: FreshWave Laundromat is open from 7:00 AM to 10:00 PM, seven days a week, to accommodate the varying schedules of its diverse customer base, including late hours for busy professionals.
3. Supplier and inventory management
- Suppliers: FreshWave will source eco-friendly detergents and cleaning supplies from reputable suppliers who align with its sustainability goals. Equipment and parts will be sourced from trusted manufacturers with a focus on high efficiency and durability.
- Inventory management: Regular inventory checks and management practices will ensure adequate stock levels of supplies and parts, minimizing the risk of shortages or service interruptions.
4. Technology and systems
- Point of sale (POS) systems: Cashless POS systems for self-service machines and over-the-counter transactions to streamline payments and reduce cash handling.
- Mobile app: An app for customers to schedule pickups, make payments, and receive updates on their orders.
- Customer relationship management (CRM) software: To track customer preferences, manage bookings, and implement loyalty programs.
Management Team
Legal structure
FreshWave Laundromat is a Limited Liability Company (LLC). This structure provides flexibility in management and protects the owners' personal assets from business liabilities. The business is owned by Maren Ellsworth, who also serves as the Manager.
Key management team members
1. Maren Ellsworth (Owner/Manager)
Role: Oversees all aspects of the business operations, from day-to-day management to long-term strategic planning.
Experience: Brings significant expertise in business management and operations, ensuring efficient and smooth running of the laundromat.
2. Tessa Graham (Customer Service Manager)
Role: Manages customer interactions, ensuring high levels of satisfaction and addressing any customer service issues.
Experience: Skilled in customer relations, with a background in hospitality and retail management.
3. Reed Whitby (Marketing Director)
Role: Develops and implements marketing strategies to attract and retain customers, including digital marketing, promotions, and community engagement.
Experience: Experienced in marketing and branding, with a strong understanding of local market dynamics and customer engagement.
4. Brynn Oakes (Logistics Coordinator)
Role: Coordinates all logistics related to pickup and delivery services, ensuring timely and efficient operations.
Experience: Expertise in logistics and supply chain management, ensuring smooth coordination and efficiency in service delivery.
5. Finley Monroe (Maintenance Supervisor)
Role: Responsible for maintaining the laundromat’s equipment and facilities, ensuring they are always in good working condition.
Experience: Extensive experience in maintenance and repair, with a strong background in handling high-efficiency laundry equipment.
Financial Plan
Income Statement (Profit and Loss Statement)
This statement shows projected revenues, expenses, and profits for FreshWave Laundromat over a period (typically 3-5 years).
| Income Statement | Year 1 ($) | Year 2 ($) | Year 3 ($) | Year 4 ($) | Year 5 ($) |
|---|---|---|---|---|---|
| Revenue | |||||
| Self-Service Laundry | 75,000 | 82,500 | 90,750 | 99,825 | 109,808 |
| Drop-Off Laundry Service | 40,000 | 44,000 | 48,400 | 53,240 | 58,564 |
| Pickup and Delivery Laundry Service | 60,000 | 66,000 | 72,600 | 79,860 | 87,846 |
| Commercial Laundry Service | 50,000 | 55,000 | 60,500 | 66,550 | 73,205 |
| Total Revenue | 225,000 | 247,500 | 272,250 | 299,475 | 329,423 |
| Cost of Goods Sold (COGS) | |||||
| Supplies (Detergents, etc.) | 15,000 | 16,500 | 18,150 | 19,965 | 21,961 |
| Utilities (Water, Electricity, Gas) | 30,000 | 31,500 | 33,075 | 34,729 | 36,465 |
| Equipment Maintenance | 10,000 | 10,500 | 11,025 | 11,576 | 12,155 |
| Total COGS | 55,000 | 58,500 | 62,250 | 66,270 | 70,581 |
| Gross Profit | 170,000 | 189,000 | 210,000 | 233,205 | 258,842 |
| Operating Expenses | |||||
| Salaries and Wages | 60,000 | 63,000 | 66,150 | 69,458 | 72,931 |
| Rent and Lease | 24,000 | 24,720 | 25,462 | 26,226 | 27,013 |
| Marketing and Advertising | 10,000 | 10,500 | 11,025 | 11,576 | 12,155 |
| Insurance | 5,000 | 5,250 | 5,513 | 5,788 | 6,077 |
| General and Administrative Expenses | 8,000 | 8,400 | 8,820 | 9,261 | 9,724 |
| Depreciation | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
| Total Operating Expenses | 117,000 | 121,870 | 126,970 | 132,309 | 137,900 |
| Operating Profit (EBIT) | 53,000 | 67,130 | 83,030 | 100,896 | 120,942 |
| Interest Expense | 5,000 | 4,500 | 4,000 | 3,500 | 3,000 |
| Net Profit Before Tax | 48,000 | 62,630 | 79,030 | 97,396 | 117,942 |
| Taxes (30%) | 14,400 | 18,789 | 23,709 | 29,219 | 35,382 |
| Net Profit After Tax | 33,600 | 43,841 | 55,321 | 68,177 | 82,560 |
Cash Flow Statement
The Cash Flow Statement shows the projected cash inflows and outflows, ensuring that FreshWave Laundromat has enough cash to cover its expenses.
| Cash Flow Statement | Year 1 ($) | Year 2 ($) | Year 3 ($) | Year 4 ($) | Year 5 ($) |
|---|---|---|---|---|---|
| Cash Flows from Operating Activities | |||||
| Net Profit After Tax | 33,600 | 43,841 | 55,321 | 68,177 | 82,560 |
| Depreciation | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
| Decrease/(Increase) in Receivables | (5,000) | (3,000) | (2,000) | (1,500) | (1,000) |
| Increase/(Decrease) in Payables | 4,000 | 3,000 | 2,500 | 2,000 | 1,500 |
| Net Cash from Operating Activities | 42,600 | 53,841 | 65,821 | 78,677 | 93,060 |
| Cash Flows from Investing Activities | |||||
| Purchase of Equipment | (50,000) | (5,000) | (5,000) | (5,000) | (5,000) |
| Net Cash from Investing Activities | (50,000) | (5,000) | (5,000) | (5,000) | (5,000) |
| Cash Flows from Financing Activities | |||||
| Loan Received | 60,000 | 0 | 0 | 0 | 0 |
| Loan Repayment | (12,000) | (12,000) | (12,000) | (12,000) | (12,000) |
| Interest Paid | (5,000) | (4,500) | (4,000) | (3,500) | (3,000) |
| Net Cash from Financing Activities | 43,000 | (16,500) | (16,000) | (15,500) | (15,000) |
| Net Increase in Cash | 35,600 | 32,341 | 44,821 | 58,177 | 73,060 |
| Opening Cash Balance | 0 | 35,600 | 67,941 | 112,762 | 170,939 |
| Closing Cash Balance | 35,600 | 67,941 | 112,762 | 170,939 | 244,000 |
Balance Sheet
The Balance Sheet provides a snapshot of FreshWave Laundromat's financial position, including assets, liabilities, and equity at the end of each year.
| Balance Sheet | Year 1 ($) | Year 2 ($) | Year 3 ($) | Year 4 ($) | Year 5 ($) |
|---|---|---|---|---|---|
| Assets | |||||
| Cash | 35,600 | 67,941 | 112,762 | 170,939 | 244,000 |
| Accounts Receivable | 5,000 | 8,000 | 10,000 | 11,500 | 12,500 |
| Equipment (Net of Depreciation) | 90,000 | 85,000 | 80,000 | 75,000 | 70,000 |
| Total Assets | 130,600 | 160,941 | 202,762 | 257,439 | 326,500 |
| Liabilities | |||||
| Accounts Payable | 4,000 | 7,000 | 9,500 | 11,500 | 13,000 |
| Loan Payable | 48,000 | 36,000 | 24,000 | 12,000 | 0 |
| Total Liabilities | 52,000 | 43,000 | 33,500 | 23,500 | 13,000 |
| Equity | |||||
| Owner's Equity | 78,600 | 117,941 | 169,262 | 233,939 | 313,500 |
| Total Equity | 78,600 | 117,941 | 169,262 | 233,939 | 313,500 |
| Total Liabilities and Equity | 130,600 | 160,941 | 202,762 | 257,439 | 326,500 |
Download the laundromat business plan template
Ready to create your laundromat business plan and need a little guidance? Look no further—download our free laundromat business plan template PDF and start creating today.
This up-to-date template provides step-by-step instructions and examples to help you build a strong laundromat business plan with ease. Plus, it's fully customizable to suit your specific needs.
Conclusion
Now, you’ve learned how to craft a professional business plan for your laundromat.
However, creating an investor-ready business plan can be challenging, especially with all the factors you need to consider. This is more true when you're just starting out. But don’t worry—consider using Bizplanr, an AI-powered business plan generator, to streamline the process.
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Frequently Asked Questions
What should be included in a laundromat business plan?
A laundromat business plan should include the following elements:
- Executive summary
- Business description
- Market analysis
- Marketing strategy
- Operations plan
- Financial plan
- Appendix
How do you get funding for your laundromat business plan?
To secure funding for your laundromat, consider the following options:
- Personal savings
- Bank loans
- Investors
- Grants
- Crowdfunding
Where can I get a laundromat business plan PDF?
Many online platforms offer downloadable business plan templates specifically designed for laundromats. Websites dedicated to business planning, such as Upmetrics or Bizplanr, provide customizable templates that can be adapted to your needs.
How do I create financial projections for my laundromat business?
To create financial projections for your laundromat:
- Start with revenue estimates: Forecast income based on the number of customers, average spend, and operational days.
- Estimate expenses: Include costs such as rent, utilities, equipment, supplies, and wages.
- Develop cash flow statements: Project monthly cash inflows and outflows to ensure you maintain liquidity.
- Create profit and loss statements: Estimate your potential profit or loss based on your revenue and expenses.
- Build a break-even analysis: Determine how much revenue is needed to cover your fixed and variable costs.
- Use financial software: Tools like Excel or specialized business planning software can help in creating accurate projections.
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