Guarantee your success by preparing a sound laundry business plan
Preparing a sound laundry business plan is a crucial step towards a successful laundromat business. Learn how.
At the highest level of laundromat business opportunities are SpeedQueen Licensed Stores. This is a higher level of investment than traditional stores but offers a host of industry leading tools. Not least of which is a fully integrated laundry payment, management, operation and reporting app.
Through its brand Speed Queen ®, the global leader in vended laundry, Alliance offers cutting-edge technology to the laundromat business by offering a powerful laundry management system and a customer app. Access all of your business data—financial, operational, customer, service, machine and maintenance— in a single 360-degree view, enabling you to make informed business decisions and grow beyond what you previously thought possible. Etc….
Preparing a business plan is a crucial step towards a successful laundromat business. Lack of planning remains a principal cause of business stagnation. Here are some further insights as to which elements should be taken into account when preparing your business plan.
Start-up costs vs operational costs
Starting up a laundromat will obviously require some start-up costs, such as:
• equipment cost
• installation of equipment and store set up
• location purchase price (if not rented)
• marketing & promotion
Once your laundromat is ready, here is a brief list of what you may face in terms of operational costs:
• energy (water, electricity or gas)
• location rent (if not owned)
• (yearly) maintenance
• staff (if you go for an unattended store)
• marketing and promotion
Revenue & turnover
The turnover of a laundromat depends mainly on the number of wash/ dry cycles ‘consumed’ and the price of each cycle. Here are some insights on how to calculate your potential revenue & turnover:
• Determine the cost per standard wash & dry cycle (for end user) – larger equipment means higher prices,
• Estimate the number of cycles per day & how many days a week your laundromat will be open, we try and aim to use each machine more than 4 times per day and generally stores run at least 12 hours a day for 6 days although several self service stores remain open 24/7.
• additional vending machines (snacks, drinks, detergent)
Additional revenue can be generated as well from services such as:
• Sales of detergents
• Optional drinks and snacks
• Additional services (such as stain removal or moth repellent treatments)
To increase your turnover, you can adjust sales volume and price, as well as the number of products or services on offer. Sales volume, the primary driver of growth, will increase in line with the reputation of your laundromat. Advertising helps, but the quality of Speed Queen services is what guarantees customer satisfaction and consolidates the customer relationship in the long term.