Laundromat Business Plan
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We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their laundromats.
Below is a template to help you create each section of your Laundromat business plan.
Executive Summary
Business Overview
Jean’s Clean Laundromat is a startup laundromat located in Manhattan, New York. The company is founded by Jean Smith, an experienced business manager with a master’s degree in Business Administration. With over ten years of experience as the General Manager for a boutique retail chain, Jean has garnered a positive reputation as a dedicated leader. She is confident that her ability to effectively manage people, finances, and operations will allow her to start her own profitable laundromat. Jean plans on managing the day-to-day operations of the laundromat herself and hiring highly qualified staff for essential positions of laundry attendants, security guards, an accountant, and a sales and marketing professional.
Jean’s Clean Laundromat will provide general card-operated washing machines and dryers for customers to use on their own as well as a wash and fold service station for customers who want to drop their clothes off to be cleaned by Jean’s staff and picked up later. Jean’s Clean Laundromat will be a comfortable and convenient stop for busy people in the Manhattan area.
Product Offering
The following are the products and services that Jean’s Clean Laundromat will provide:
- Self-service card-operated washing machines and dryers
- Laundry supplies (detergent, dryer sheets, laundry bags, etc.)
- Dry cleaning service
- Wash and fold service
- Laundry pickup and delivery service
Customer Focus
Jean’s Clean Laundromat will target all individuals in the Manhattan area that need laundry service. Specifically, it will target men and women living in the area, busy parents, and people who do not have the time or facilities to do their laundry at home. The laundromat will also target tourists or business professionals in the city who need a quick laundry service. No matter the customer, Jean’s Clean Laundromat will deliver the best service, security, and convenience.
Management Team
Jean’s Clean Laundromat will be owned and operated by Jean Smith. She has recruited fellow New York University graduate, Elizabeth Clark, who has a bachelor’s degree in finance to come on board as her accountant and bookkeeper.
Jean Smith is a graduate of New York University with a master’s degree in Business Administration. She has been working as the General Manager for a boutique retail chain for over a decade. Jean’s organizational and leadership skills have allowed her to establish and grow a large network of business professionals that are supportive of her new venture, Jean’s Clean Laundromat.
Elizabeth Clark has worked as an accountant and bookkeeper at a local bakery for over five years and has established herself as a detail-oriented and methodical financial expert. Jean relies strongly on Elizabeth’s diligence, attention to detail, and focus when it comes to keeping the laundromat’s finances in order.
Success Factors
Jean’s Clean Laundromat will be able to achieve success by offering the following competitive advantages:
- Friendly, efficient laundry attendants that strive to go above and beyond for each customer.
- All laundry products and services are delivered with the customers’ comfort and convenience in mind.
- Jean’s Clean Laundromat offers its customers quick pickup and delivery seven days per week.
Download the laundromat business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Jean’s Clean Laundromat is seeking $300,000 in debt financing to launch its laundromat business. The funding will be dedicated towards securing the laundromat storefront and purchasing the card-operated machines, and the card system. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:
- Washers and dryers: $80,000
- Card system: $40,000
- Water heating system: $5,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $15,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Jean’s Clean Laundromat.
Company Overview
Who is Jean’s Clean Laundromat?
Jean’s Clean Laundromat is a new laundromat located in Manhattan, New York. The company is founded by Jean Smith, an experienced business manager with a master’s degree in Business Administration. With over ten years of experience as the General Manager for a boutique retail chain, Jean has garnered a positive reputation as a dedicated leader. She is confident that her ability to manage people, finances effectively, and operations will allow her to start her own profitable laundromat. Jean plans on overseeing the daily operations of the laundromat herself and hiring highly qualified staff for essential positions of laundry attendants, security guards, an accountant, and a sales and marketing professional.
Jean’s Clean Laundromat will provide general card-operated washing machines and dryers for customers to use on their own as well as a wash and fold service station for customers who want to drop their clothes off to be cleaned by Jean’s staff and picked up later. Jean’s Clean Laundromat will be a comfortable and convenient stop for busy people in the Manhattan area.
Jean’s Clean Laundromat History
Jean’s Clean Laundromat will be owned and operated by Jean Smith. Jean Smith is a graduate of New York University with a master’s degree in Business Administration. She has been working as the General Manager for a boutique retail chain for over a decade. Jean’s organizational and leadership skills have allowed her to establish and grow a large network of business professionals that are supportive of her new venture, Jean’s Clean Laundromat.
Since incorporation, Jean’s Clean Laundromat has achieved the following milestones:
- Registered Jean’s Clean Laundromat, LLC to transact business in the state of New York.
- Has a contract in place for a one year lease on the laundromat storefront which is approximately 2,000 square feet.
- Hired a marketing professional to begin strategizing a pre-launch marketing campaign.
- Began recruiting a staff of an accountant, marketing and sales manager, security guards, and laundry attendants to work at Jean’s Clean Laundromat.
Jean’s Clean Laundromat Services
The following will be the services Jean’s Clean Laundromat will provide:
- Self-service card-operated washing machines and dryers
- Dry cleaning service
- Wash and fold service
- Laundry pickup and delivery service
Industry Analysis
The laundromat industry is a $5.4BN market in the United States with over 30,000 laundromats across the country. Laundromats are a good investment for entrepreneurs with many of them seeing an astonishing 95% success rate for the first five years in business. For many people, laundromats are essential aspects of their regular routine.
Although running a laundromat can be a profitable venture, it takes some work to maintain profitability. It’s important for industry operators to manage their laundromats proactively, pay attention to what competitors are doing, and focus on continuous improvement in both service and technology. Industry operators who fail to take these actions may not be able to achieve their desired outcomes.
A trend in the laundromat industry is the replacement of coin-operated machines with card-operated models. Card-operated machines can bring in greater profits for the laundromat owner because these machines can be set to change prices according to the time of day or be used for single use vending product purchases. Additionally, laundromats are using newer, more eco-efficient machines and technologies that bring in more profits in addition to being better for the environment. Finally, laundromat operators are finding ways to stand out from competitors with unique services in addition to the standard self-serve washers and dryers. Some of these value add services may include wash and fold, pickup and delivery, free wifi, vending machine products, etc.
Download the laundromat business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Jean’s Clean Laundromat will target men and women in the Manhattan area that need laundry service. Specifically, the laundromat will target busy parents and people who do not have the time or facilities to do their laundry at home. The laundromat will also target tourists or business professionals in the city who need a quick laundry service.
The precise demographics for Manhattan, New York are:
| Total population | 2,693,959 | 2,693,959 |
|---|---|---|
| Male | 1,311,431 | 48.70% |
| Female | 1,382,528 | 51.30% |
| Under 5 years | 162,797 | 6.00% |
| 5 to 9 years | 146,182 | 5.40% |
| 10 to 14 years | 157,202 | 5.80% |
| 15 to 19 years | 153,067 | 5.70% |
| 20 to 24 years | 184,093 | 6.80% |
| 25 to 34 years | 533,707 | 19.80% |
| 35 to 44 years | 390,594 | 14.50% |
| 45 to 54 years | 313,980 | 11.70% |
| 55 to 59 years | 144,973 | 5.40% |
| 60 to 64 years | 144,735 | 5.40% |
| 65 to 74 years | 207,445 | 7.70% |
| 75 to 84 years | 107,925 | 4.00% |
| 85 years and over | 47,259 | 1.80% |
Customer Segmentation
Jean’s Clean Laundromat will primarily target the following customer profiles:
- Busy parents
- Tourists
- Business Professionals
- People who do not have laundry facilities in their homes
Competitive Analysis
Direct and Indirect Competitors
Jean’s Clean Laundromat will face competition from other companies with similar business profiles. A description of each competitor company is below.
BMI Laundry Service, Inc.
BMI Laundry Service, Inc. provides wash and fold, dry cleaning, and pickup and delivery services with two locations, in Chelsea and Manhattan. BMI’s promise is to deliver fast service for people on the go. BMI Laundry Service, Inc. has coin-operated machines, vending machines, and free wifi. The self-service laundromat is available seven days a week from 6:00AM-6:00PM, while the laundry service is available by appointment only. Customers can schedule their laundry service using the company’s appointment app.
Wash It, Dry It, LLC
Wash It, Dry It, LLC is a Manhattan-based laundry business that provides self-service card-operated washers and dryers as well as wash and fold services for its customers. Wash It, Dry It, LLC sells its own branded laundry products including detergent, laundry bags, soaps, fabric softeners, and dry cleaning products. The laundromat is open 24/7. Wash and Fold service is available Monday through Friday from 7:00AM-8:00PM.
MC Laundromat
MC Laundromat is a trusted New York laundry business that provides superior service to customers in Manhattan and the surrounding areas. They are able to provide a one-stop shop for anyone in need of laundry services. MC Laundromat is able to provide dry cleaning, spot treatments, wash and fold, and delivery services. MC Laundromat has oversized machines for large laundry loads.
Download the laundromat business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Jean’s Clean Laundromat will be able to offer the following advantages over their competition:
- Friendly, efficient laundry attendants that strive to go above and beyond for each customer.
- All laundry products and services are delivered with the customers’ comfort and convenience in mind.
- Jean’s Clean Laundromat offers its customers same day pickup and delivery service seven days per week. Laundry attendants are available 24 hours per day to accommodate more customers’ schedules.
Marketing Plan
Brand & Value Proposition
Jean’s Clean Laundromat will offer the unique value proposition to its customers:
- Friendly, efficient laundry attendants available 24/7 that strive to go above and beyond for each customer.
- Jean’s Clean Laundromat offers its customers same day pickup and delivery service seven days per week.
Promotions Strategy
The promotions strategy for Jean’s Clean Laundromat is as follows:
Word of Mouth/Referrals
Jean Smith has built up an extensive list of contacts over the years by providing exceptional service and expertise to her customers. Her network of contacts has committed to spreading the word about her new laundromat to their friends and families.
Print Advertising
Jean’s Clean Laundromat will invest in professionally designed print ads to display in newspapers, magazines, and direct mail circulars.
Website
Jean’s Clean Laundromat’s in-house marketing manager will design and maintain the company’s website. The website will be well organized, informative, and list all their services that Jean’s Clean Laundromat is able to provide. Additionally, the website will include a blog that will provide customers with helpful laundry tips.
Search Engine Optimization (SEO)
The marketing manager will also manage Jean’s Clean Laundromat’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “New York laundry service” or “laundromat near me”, Jean’s Clean Laundromat will be listed at the top of the search results.
Social Media
Jean’s Clean Laundromat will maintain an active presence on various social media platforms including Facebook, Instagram, Twitter, LinkedIn, TikTok, and YouTube, with the marketing manager updating these accounts regularly.
Pricing
The pricing of Jean’s Clean Laundromat will be moderate and on par with competitors so customers feel they receive value when purchasing their services.
Operations Plan
The following will be the operations plan for Jean’s Clean Laundromat.
Operation Functions:
- Jean Smith will be the Owner and Manager of the company. She will oversee all staff and manage daily operations. Jean has spent the past year recruiting the following staff:
- Elizabeth Clark – Accountant/Bookkeeper will provide all laundromat accounting, tax payments, and monthly financial reporting.
- Steve Miller – Head of Security will oversee a small team of rotating security guards to ensure the safety of the customers and employees on the premises at all times.
- Anna Rodriguez – Marketing Manager will provide all marketing and advertising campaigns for Jean’s Clean Laundromat.
- Robert Wills – Lead Laundry Attendant will supervise the team of laundry attendants and manage the staff schedule.
Download the laundromat business plan template (including a customizable financial model) to your computer here <–
Milestones:
Jean’s Clean Laundromat will have the following milestones complete in the next six months.
7/1/2022 – Finalize contract to lease laundromat storefront.
7/15/2022 – Finalize personnel and staff employment contracts for attendants and security guards.
8/1/2022 – Purchase card-operated washing machines and dryers, vending machines, and supplies.
8/15/2022 – Begin word of mouth and online marketing campaigns.
8/22/2022 – Begin moving into Jean’s Clean Laundromat.
9/1/2022 – Jean’s Clean Laundromat opens for business.
Management Team
Jean’s Clean Laundromat will be owned and operated by Jean Smith. She has recruited fellow New York University graduate, Elizabeth Clark, who has a bachelor’s degree in finance to come on board as her accountant and bookkeeper.
Jean Smith is a graduate of New York University with a master’s degree in Business Administration. She has been working as the General Manager for a boutique retail chain for over a decade. Jean’s organizational and leadership skills have allowed her to establish and grow a large network of business professionals that are supportive of her new venture, Jean’s Clean Laundromat.
Elizabeth Clark has worked as an accountant and bookkeeper at a local bakery for over five years and has established herself as a detail-oriented and methodical financial expert. Jean relies strongly on Elizabeth’s diligence, attention to detail, and focus when it comes to keeping the laundromat’s finances in order.
Financial Plan
Key Revenue & Costs
The revenue drivers for Jean’s Clean Laundromat are the laundromat fees charged to customers for use of the self-service machines and the fees for the additional laundry services the company will offer. The average price to wash a load of laundry in laundromats across the country ranges from $2.00-$4.00. Jean’s Clean Laundromat will charge $3.00 per load, which is comparable to other laundromats in the area.
The cost drivers will be the overhead costs required in order to staff the laundromat. The expenses will be the payroll cost, rent, utilities, supplies, and marketing materials.
Funding Requirements and Use of Funds
Jean’s Clean Laundromat is seeking $300,000 in debt financing to launch its laundromat business. The funding will be dedicated towards securing the laundromat storefront and purchasing the card-operated machines, and the card system. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:
- Washers and dryers: $80,000
- Card system: $40,000
- Water heating system: $5,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $15,000
- Working capital: $10,000
Download the laundromat business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of transactions per machine/month: 150
- Average revenue generated per month: $16,000
- Laundromat lease per month: $9,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Laundromat Business Plan FAQs
What Is a Laundromat Business Plan?
A laundromat business plan is a plan to start and/or grow your laundromat business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your laundromat business plan using our Laundromat Business Plan Template here.
What are the Main Types of Laundromat Businesses?
There are a number of different kinds of laundromat businesses, some examples include: Self-service, Drop-off, and Card/coin-operated laundromat.
How Do You Get Funding for Your Laundromat Business Plan?
Laundromat businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. Having a laundry business plan will show investors you are well- prepared and qualified to start your business.
What are the Steps To Start a Laundromat Business?
Starting a laundromat business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Laundromat Business Plan – The first step in starting a business is to create a detailed laundry business plan that outlines all aspects of the venture. A business plan for a laundromat should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your laundromat business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your laundromat business is in compliance with local laws.
3. Register Your Laundromat Business – Once you have chosen a legal structure, the next step is to register your laundromat business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options – It’s likely that you’ll need some capital to start your laundromat business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Laundromat Equipment & Supplies – In order to start your laundromat business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your laundromat business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful laundromat business:
Where can I get a Laundromat Business Plan PDF?
You can download our free example laundromat business plan PDF here. This is a business plan template you can use in PDF format.
