LAUNDRY BUSINESS
A Guideline for Starting, Growing and Scaling Up your Business
By PVGuide Team
TABLE OF CONTENTS
1. Introduction: What is Laundry Business?
2. How to start a Laundry Business with capital
3. How to start a Laundry Business with limited to no capital
4. How to grow and scale up the business.
5. Conclusion.
WHAT IS A LAUNDRY BUSINESS?
This is the business of cleaning clothes, curtains, bedding, carpets among other personal items, not to mention cleaning services for bedding and other pieces of clothes used in establishments such as hospital wards, lodgings and hotels. Laundry services include other auxiliary services such as pressing clothes and disinfecting hospital bedding.
Often, offered at a laundermart, the service targets urban customers whether they are individuals, households, hotels, lodgings or other small and midsized corporate customers.
HOW TO START A LAUNDRY BUSINESS WITH CAPITAL
As with most entrepreneurial endeavours, availability of capital during the start of a laundry business will make the process clear and a lot easier to undertake. With capital, you can make the necessary arrangements and plan on how to enter the market and set up shop. Here are the main things to know when it comes to running a laundry business:
1. Carry out Market Research
In order to know the market, understand customers and the intricacies of the business, one has to be well versed in each and every aspect of the business. In this case, a market research should yield as much information as possible on various aspects of the business.
Your market research should help you determine the following:
- The layout of the market, specifically the competition in the form of existing Dry Cleaning and Laundry companies.
- A needs analysis – do people need your cleaning services?
- Growth opportunities within the market that you can explore along the way.
- Market limitations and how you can overcome them.
- The perfect location to set up your business.
Reach out to professionals such as the company below to carry out market research for you at fee.
Consumer Options – 0724255543
2. Write a Laundry Business Plan
A good Business Plan provides the details of how you intend to start, fund, run and expand your business. In this case, your business plan should include: The size of your business, desired location, a customer analysis, an analysis of pricing and market dynamics.
To add to this, you need to include the plan of how you intend to enter the market, an outline of set-up costs, operational costs and revenue projection for the business. Once this is clearly presented, your business plan can look into expansion models and growth projections.
Here is why you need a business plan:
- A good business plan defines your business, outlining your mission, vision, values, objectives, services and/ or products.
- A good business plan provides a guideline on how to achieve key business milestones (with timeliness like to set-up, when production begins, first output, when to scale up etc.).
- A good business plan helps you assess the possibility of success.
- A good business plan outlines exactly how your business will make money.
- A good business plan is a referral for direction in times of doubt.
Reach out to professionals like the company below for assistance in writing a competent business plan at a fee.
Professional writers Kenya - 0701709837
3. Obtain the Required Permits and Licenses
Single Business Permit: This license is issued by the county government. The cost depends on the county, size of the premise, and sometimes location within the county.
Signboard / Branding Fee: A yearly fee issued by the county government if you have signboard advertising your business you will have to pay the county government a fee (which we recommend). The amount depends on the size of the signboard and the type of branding.
Fire Inspectorate License: This is a yearly license. It shows that your establishment has the right firefighting equipment like an extinguisher.
Kenya Revenue Authority: This is for tax purposes. You're likely to pay VAT (Value Added Tax), Excise Tax, Corporation Tax or Turnover Tax.
Note: Requirements from various regulations authorities change from time to time. Visit their offices or check their websites for updates on the requirements.
4. Identify a Market for Your Business
You market research and business plan ought to outline who your customers are and where they will be found. This is necessary; however, it is better to conduct a thorough customer survey.
A proper customer survey should;
• Present potential locations for the business (upscale urban centers, down-town, low class estates, high class estate etc.)
• Segment your market and customer base (institutions such as hospitals and hotels, residential customer base etc.)
• Outline how to reach the customers
5. What do you Need? Identify the Essentials (in terms of products and equipment in the laundry business)
Your laundry business will need quite a number of different stakeholders. Make sure the stakeholders (water suppliers, detergent merchants etc.) understand your needs, help you identify the right equipment, trains and gives you support after installation.
When sourcing for suppliers for your laundry business, you can reach out to water storage solutions companies, detergent sellers/ retailers and laundry equipment companies among others.
Here are some key elements in you should pay attention to in the laundry business:
• Washer - They are used in cleaning clothes. Get one that holds many garments
• Dryer - It is used to remove moisture from clothes
• Pressing machine- Used for pressing clothing materials
• Steamers- Used in a commercial laundry to remove wrinkles from garments
• Acquire other equipment like foam/froth finishers, conveyors, shirt finishers and laundry hot leads
• Get a business insurance (for fire or theft)
• Rent a spacious work place so that you can have a cleaning room, storage room (for chemicals, clothes etc.), sorting room and reception (It is advisable that you set up in an urban center, preferably a busy town- near corporate offices, establishments like a hospital or clinic, hotel etc.)
• Arrange for space to hang the already cleaned clothes
• Set up an independent water storage facility (like tanks)
• Arrange for utilities like electricity, water reliable water supply
• Marketing - after setting up your Dry Cleaning and Laundry business, it is time to inform potential customers of the existence of your business. You can do this using business cards, flyers, word of mouth referrals, as well as social media sponsored ads.
• Design your premise layout
• Set up your equipment within the premise
• Know the volume of water you require
• Hire a team of workers
• Obtain your licenses
Reach out to some of the suppliers listed below to help you in accessing equipment and sourcing for other items needed;
Gearnet Kenya: 0797 038 200/ 0717 156 712
Sheffield Facility Solutions Africa: +254 713 777 111
Jimtec Services: +254 713 063917/+254 732 625131
Neru Kenya (Detergents): 0724 931 940
6. Find Capital and Identify the Right Team
Access to capital is a key factor in the success of any business venture. The amount of capital you need for laundry business will depend on the equipment you chose, location, and marketing strategy among other factors.
Once you have made up your mind to set up your business, you will need to assemble a competent and skilled team to handle various aspects of the business.
You will need qualified salespeople, people to do the washing, marketing personnel, reliable suppliers and different categories of individuals who directly affect your laundry business.
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