Laundry is something that cannot be ignored, meaning it is a business that will be in demand as long as clean clothes are in demand. In the USA, every person does not have a washer and dryer, because either they cannot afford it or they do not have time to wash their clothes. One more reason is that this is the least favorable household chore for many people. As we have discussed it is a nice business to earn but what are the steps to launch this business and how to start it?
Here, in this article we are discussing how to start a laundry business. We will discuss all the necessary steps to get your laundry business started and through proper channels to ensure a successful start. There are various steps to start a laundry business in USA :
1. Decide the kind of laundry business you want to start
Now, you will think what kind of variety in laundry I am talking about? There are two options available from which you can choose, which one you will prefer. You may choose to open a laundry business that allows customers to come in and do their laundry using your machines or you can also offer wash and fold services, where customers can drop off their laundry, and then pick it up once it’s done. Both options have their pros and cons.
Before deciding exactly what kind you want to open, explore the area where you have decided to start the business. For that you need to see what other types of laundry businesses are in the area, conduct a survey of local people, or see what type of demand there is for your possible business. You also have the option of buying into a laundromat franchise, rather than building a new business from the ground up.
2. Choose your business name, business entity and explore the market
This is the funniest and most important part of starting the business. Because names must be very catchy, memorable and easy to pronounce. You must very cleverly name it. After deciding the name of your business, also explore that name on the internet to be sure that the same name is not available in your city. The best and easiest way for checking it is the secretary of state website, though some states have a different agency handling this business process, such as the chamber of commerce department. If the name is not available, it is very good but still you need to register your business to ensure no other business takes your name. But if it is available do the same process again as you have already done.
Another decision about your laundry business that you will have to make early on is which business entity you are going to choose to legally structure your business. Choosing the right business entity is crucial because it will affect how you pay taxes, how much risk you will be exposed to, how you will organize your business, and many other things.
3. Write a business plan
Now you have your business entity, business name and business idea in mind, now you need to get down to writing your business plan. Your business plan will be of 30 to 50 pages, and it will provide a comprehensive overview and actionable plan to ensure a profitable laundry business. You can either write your business plan on your own or you can use a business plan template to help note down the process. Whatever way you choose there must be some key information to include in the plan.
Your business plan should include a summary and information about the type of business you want to start, including your structure and any other key employees. It should also include a market analysis, financial information, detail where you are getting your start-up capital, any extra funding, and projections with new laundry business.
4. Register the laundry business and get an EIN
It is not needed that all businesses have to register with the state. It is not required in sole proprietorships and general partnerships. But most will need to take this step-in order to legally operate. Some states allow businesses to register online, typically through the secretary of state or chamber of commerce website. But other states require businesses to register in person with paper documents. It is always wise to consult a business lawyer who can help you keep track of the documents and registrations your business needs to file. Get the proper permit and license.
5. List the items you will need and figure out your financial plan
Starting a laundry business might be more expensive than you think, but you will realize it when you note it down. When writing your business plan, jot down all the equipment and items you will need. The following items are fairly universal, no matter what the specialty is: Commercial washing machines and dryers Lounge furniture (for waiting area), Laundry carts, Desks (one for reception and one for office, if needed), Computers, POS system, Wi-Fi, Laundry products, Sanitizing chemicals, Trash and recycling bins, Face masks and gloves.
You will need to keep track of several things including; clients, payments received, expenses, and mileage. For that you do not need an expensive accounting software, Google Spreadsheet does a fine job of keeping track of everything and the price. It is easy to learn and use.
- Open a business bank account and also insure your laundry business
- Obtain a health permit, water control permit and sales tax permit.
- Hire employees for your business if necessary
- Spread about your laundry business through the internet, your knowns, pamphlets etc.
Though experience is not mandatory to start a laundry service business, I think it will be useful to you. You can work in a laundry for some time to gain knowledge about this trade. Also, there are lots of training videos available on the internet. You can do a basic course to identify different textiles, and know about the washing techniques. Good luck for your business!