A laundry business is a profitable business to start in South Africa. As the average income increases steadily with a lot of people working long hours, there has been an increase in the demand for laundry services. This increase in dry cleaning and laundry services  in recent years is due to the growing middle class where few people can afford time to do house chores. An increasing number of South Africans live in the city and their busy lifestyle results in a rising demand for convenient services like dry cleaning and laundry. It is evident that this is a business that you can explore. Growth in the laundry industry is estimated to be between 5% and 10% per annum. As such the demand for laundry services is likely going to continue to increase. This article will outline how to start a laundry services business in South Africa, and the laundry business plan – PDF, Word, and Excel.

A laundromat is a lucrative business but there are some essential factors you need to consider before you venture into this business. You need to decide on the type of laundry services you intend to provide, the size of your laundromat and your location. These factors will be affected by the amount of capital you have thus, you should carry out a feasibility study, market research and have a good laundry services business plan before you venture into this business.

BUSINESS MODEL

There are different kinds of business models that you can consider when setting up a laundromat. One of them is the onsite business model. This model is one of the best when it comes to running a laundry business. With this model, clothes are picked up from the client’s home for washing and drying, and when done, the clothes are delivered back to the client. This type of laundry business can be profitable because it offers flexibility to the customer and allows them to schedule pick-up and delivery. It’s easier to attract new customers with this kind of model, and you can offer online payment. The opposite of this kind of business model is an in-house landromat. With an on-site laundromat, clients visit your premises instead. This is the business model where walk-in customers can leave their clothes and collect them when done. Customers can pay you when they pick up the clothes, or you can accept payments online. For either business model, you can provide dry-fold laundry services, dry cleaning, and garment mending in order to become competitive. Another laundry business model that can be profitable is a self service laundromat. These laundromats have become popular. All you do is provide your potential clients with washing machines and dryers, and they pay you a certain fee to make use of your equipment. The model you choose will depend on the amount of capital you have and on your market research.

MARKET RESEARCH

As you prepare to open your laundromat, conducting market research should be at the top of your priority list. Market research allows you to gain insight about your potential customers. This way, you can better understand which services are in high demand and how your laundry business can compete. Market research allows you to get a leg up on your competition by spotting upcoming problems in the industry and identifying sales opportunities. By conducting market research, you will learn about your target market’s demographics, the target population of your area, where they live, their marital status, and if they have children. There is other information you need to know, such as how close your potential customers are to your laundromat and if they would be willing to spend on laundry services. Market research will also help you determine the number of people you need in order to make a profit. In addition, you will learn about your competition, including their locations, pricing strategies, and other services. You also need to gauge the general traffic at your potential location to make sure that there will be a healthy flow of potential customers passing by your store. If your store is near other shops, you may benefit from their traffic too.

LOCATION & PREMISES

Deciding on the location of your laundry business is an important decision to make before you start. It is important that you locate your laundromat close to your target market. Consider the amount of road and foot traffic, find an easily accessible location where people can stop and make use of your services. There are several possible locations, including shopping centres, malls, and the CBD. Opening a laundry business close to places that typically have potential for traffic  could be ideal depending on your target market. It is important to be strategic about your neighbouring businesses as well because you are more than likely going to feed into each other instead of competing. If you open a laundromat in an overly saturated area the likelihood that your business will succeed will be low. Your premises should be large enough to accomodate all your machines, staff and space for customers. Your laundromat business plan should cater for the costs of buying or leasing the premises.

EQUIPMENT FOR LAUNDRY SERVICES BUSINESS

Depending on the laundry services you provide, you will need equipment and the right machinery for your business. The major equipment that you need include washing machines. You will also require dryers, and pressing machines to name a few machines. You may need to purchase vehicles if your services include pick up and drop off. Your laundry business plan should cater for such costs including the equipment you will need for your laundromat. The detergents and chemicals you use are just as important as the equipment you will make use of. Ensure that you invest in quality equipment as well as quality chemicals and laundry detergents.

PRODUCTS AND SERVICES

Laundry products and services differ with each type of laundry business. Your target niche will also determine the type of products and services you need to sell. The most popular services offered by regular laundry businesses include washing, drying, and pressing of clothes, blankets, and beddings, among other things. Some even offer complimentary services such as garment and shoe repairs. It will be advantageous to have all these various complimentary services for your laundry services. If you choose to provide a self-service laundromat adding some entertainment and amenities like Wi-Fi or a television can be beneficial for your business. Such complimentary services will go a long way in attracting customers. Another essential factor in running a laundry services business is selecting the right suppliers’ for detergents and chemicals for your operations. Consider suppliers who can provide affordable and quality chemicals consistently. Your laundry services business plan should clearly outline the various products and services you will provide.

COMPETITIVE ANALYSIS

All businesses, including laundromats, are forced to compete with other businesses where they operate. As such, you must evaluate your competition, which can help you understand your own shortcomings and win over more customers. To be a successful laundromat in your industry, you must keep track of your competition. Remember, there are only a limited number of potential clients in your area. These are people who lack a personal washer and dryer and may be in need of your services. You do not want to lose these people to your competition. In order for you to maintain and grow your customer base, you must stand out from your competition. The more you know them, the better. A competitive analysis helps you identify your competitors’ strengths, plus you can figure out how you can capitalize on their weaknesses. When conducting a competitive analysis, consider your competitors’ location, hours of operation, customer service, quality of equipment, layout of equipment, ambience, and the facility’s atmosphere. Check to see if they have additional amenities such as WiFi, TV, or games. Visit your competitor’s locations and use their facilities for some of your laundry to get to know them better. Ask coworkers, friends, or family members to get more feedback. Also, look them up on social media in order to analyze their web presence and search for customer reviews.

STAFF & MANAGEMENT

As a customer-centric laundry services business, it’s important that you hire employees that are friendly and efficient. Your employees should be passionate about their jobs. If you want to hit the ground running it’s better to hire a team of people who have experience in this business. Your cleaners, maids and general staff should know how to clean different fabrics especially delicate ones. Also, your staff members should know how to attend to customers efficiently on a regular basis.  Inexperienced staff members need to get extensive training before they can be given any important tasks or be allowed to use any laundry chemicals and equipment. Laundry chemicals, equipment and machinery can be dangerous if not used properly thus, anyone operating a laundry services business should know how to use them and take the necessary precautions. Depending on the size of your shop, the actual number of your staff will vary however, you will need, cleaners, launderers, security as well as management. Your laundry services business plan should cater for the salaries of your employees and the day to day operational expenses of running a laundry services business.

Some of the day-to-day operations of this type of business include:

  • Operating washing machines, dryers, and pressers
  • Liaising with customers and taking orders
  • Liaising with /suppliers
  • Managing Staff
  • Marketing and advertising

When you are running a laundry services facility it is important to pay attention to how the processes take place, such as how all the materials are washed or dry cleaned. It is also crucial to adhere to all industry related health and safety regulations. These safety measures cover the cleanliness of your environment; how your staff members are supposed operate the laundry facility plus how and where the laundry is treated and cleaned. Laundry and cleaning businesses can be risky for your staff members and customers that is why adhering to health and safety regulations is important.

MARKETING AND SALES STRATEGIES

As you set up your laundromat, you must develop a solid marketing strategy. You need to decide who your target market is and find ways to reach them. Some marketing strategies to take advantage of include print ads, online ads, direct mail, and word-of-mouth. You need to determine which method or combination of methods to use in order to reach your market. You will also need to invest the time and money necessary to make this happen. Consider getting involved in your community, sponsoring local events, partnering with other businesses, and hosting charity fundraisers to help raise awareness. Involving yourself in the community will not only help you market your brand; it will also make you more recognizable. You should have a Google profile for your business. Setting up a Google Business Profile is one of the best ways to establish a connection with your potential customers. When they search for laundromats, you can appear as a potential candidate. With your business profile, you’ll be able to share pictures of your laundry business, your address and phone number, hours of operation, and also offer promotional offerings. You can also use social media to connect with potential and current customers and promote your business. Register with platforms such as Facebook, Twitter, and Instagram to share photos and information about specials, new services, and upcoming events. You can also use social media to respond to customer inquiries or complaints. It is important to note that your sales and marketing strategies are an ongoing process, and not a one-time event.

MARKET

As more women enter the workforce there has been an increase in the demand for laundry and dry-cleaning services in addition to the need for helpers in other house chores. There are a lot of students, single parents, working professionals as well large institutions that make use of laundry services. There are also large institutions such as prisons, hospitals, companies and educational facilities that prefer outsourcing their laundry needs or hire on premise laundry service providers. Also, there is still an opportunity in opening a self-service laundromat for a large number of people that cannot afford to purchase washing machines and dryers but would prefer paying for self service laundry services.

Given that the South African market is one of the leading emerging economies on the African continent there is potential for high growth. There is still a large number of households that would prefer doing their laundry at a laundromat than purchasing an expensive washing machine. Whether you are a young entrepreneur, a professional seeking to start your own business or someone who needs a retirement plan, investing in a laundromat/laundry services business is something worth considering. One thing that can set you apart before investing in any venture is developing a business plan. A well thought out laundry services business plan will help you in both the short term and long term. Also, there are various risks associated with running a laundry services business like any other venture, your laundry business plan should clearly outline these risks as well as the different measures you will take to minimise them.

KEYS TO PROFITABILITY

For your laundromat business to become profitable, you must take advantage of social media marketing. You can do this by encouraging your clients to post pictures of their laundry and use a specific hashtag on social media. Consider giving your clients discounts, especially if they refer a friend or family member to your laundromat. This way, you can easily grow your business in the community. Lastly, consider offering other amenities, such as free wifi, so that your customers are not bored, especially if your laundry business is a self-service.

PRE-WRITTEN LAUNDRY BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the laundry services business in South Africa, purchase our laundry business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the laundromat business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a laundry business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the laundromat business plan will lay out all the costs involved in setting up and running the laundry business. The business plan is designed specifically for the South African market.

USES OF THE LAUNDRY SERVICES BUSINESS PLAN (PDF, WORD AND EXCEL)

The laundry business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your laundry business
  • As a laundry business project proposal
  • Assessing profitability of the laundry business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE LAUNDRY BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the laundry business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your laundry business in South Africa

The Laundry Business Plan package consist of 4 files

  1. Laundry Business Plan – PDF file (Comprehensive – 89 pages)
  2. Laundry Business Plan – Editable Word File (Comprehensive – 89 pages)
  3. Laundry Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 46 pages)
  4. Laundry Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

GET THE LAUNDRY BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

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Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Visa Card/MasterCard then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

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Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Instant EFT then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

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