Laundry Business Philippines 2023: How To Start, Capital, Profit (Plus, Tips To Succeed)

Laundry Business Philippines 2023: How To Start, Capital, Profit (Plus, Tips To Succeed)

Clean clothing and good hygiene are the most basic requirements for healthy living. Because laundry is an integral part of daily life, the laundry business has proven to be resilient to external factors such as weather seasons and economic recessions. This makes it appealing to aspiring and seasoned entrepreneurs who want to invest in a more resilient business model.

In this guide, you’ll learn how to invest in a laundry business that has been integral to many busy Filipinos’ daily lives.

Table of Contents

What is a laundry business.

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As the name suggests, the laundry business is a company that offers services and facilities for washing clothes for clients. Laundry services are beneficial in densely populated areas with people who are too busy to do their laundry or do not have washing machines at home.  

How Much Does It Cost To Start My Own Laundry Business in the Philippines?

The cost to set up a laundry business can be anywhere from ₱1,000,000 to ₱2,500,000 or more, depending on factors such as your rent, franchise cost, size and scale of your store, number of machines you purchase, and much more.  

How Does a Laundry Business Make Money?

A laundry business earns by providing any of the following: 

  • A full-service laundry to their clients at a fee 
  • A facility of self-service washing machines and dryers that customers can use on their own 

Business models also provide both kinds of services to their customers.  

How Much Does a Laundry Business Make?

As a baseline, a business that washes 75kg of laundry per machine daily can expect to earn roughly ₱10,000 per month. This profit level can still vary greatly depending on your pricing strategy and potential costs, which will also vary greatly depending on your chosen location. 

For a more accurate estimate of the expected profits and capital requirements, consulting with a franchisor or one of the many available laundry business consultations and setting up companies would be best. 

What Is the Cheapest Way To Get Into the Laundry Business?

Act as the middle man between self-service laundry businesses and customers who want a full-service experience. You can collect the laundry of the customers who want full-service and do their laundry at a self-service laundry business. You then ask for a service fee from the customers you did their laundry for.  

This is a more laborious method, but it is the cheapest and fastest way to earn money through the laundry business. There is also almost no risk involved because you do not have to shell out large amounts of cash to procure machinery or rent a location. All you need is a cost-effective and efficient method of collecting clothes and a lot of hard work. 

Kinds of Laundry Businesses

1. your original laundry business from scratch (do-it-yourself).

Like any other business, you can set up shop and do everything from scratch. This gives you a great range of freedom to customize your business almost however you want. However, this also means you must figure out everything from branding to pricing strategy.

2. Franchise

On the other hand, you can also get a franchise of established laundry businesses such as Suds, Dr. Spin, and Tiny Bubbles . The franchise fee will vary depending on the company but will typically cost between ₱100,000 to ₱500,000.  

The franchisor will provide several integral support services, including staff training, location approval, etc. This reduces your need for pre-existing business knowledge, especially if it’s your first time venturing into this industry.   

Getting a franchise also streamlines a lot of the work and processes, such as procuring equipment and supplies necessary to improve your business efficiencies and chances of success.  

How To Start a Laundry Business: A Step-by-Step Guide

1. conduct research & feasibility study.

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a. Learn About Your Customers

One of the things you need to learn about your customers is whether they prefer self-service or full-service laundry. Both of them use the same kind of machines and technology. The difference lies in the added services and associated manpower cost to provide a full-service experience to customers. 

A full-service and hassle-free experience is often preferred by people who prioritize their time and don’t mind having their clothes handled and washed by others. A trip to a self-service laundry can take you more than an hour. It’s even more tedious when you consider the effort of having to bring several kilograms of dirty laundry instead of just having someone pick it up and do everything for you. 

On the other hand, a group of customers prefers to do their own laundry for privacy or personal satisfaction reasons. These are the people who are more likely to go to self-service laundromats. 

Aside from differences in their behavior, it is worth mentioning that self-service laundry solutions are cheaper, making them more attractive to college students and households with lower incomes. 

b. Study Your Competition

Understanding the competition is every bit as important as understanding your customers. It will help you stand out from the competition and identify possible gaps in the market that you can take advantage of. 

Here are a few tips on what to look for in the competition and how to act accordingly: 

  • Find out who they are and how many of them there are . The more competitors you have in an area, the harder it will be to penetrate the market. Having too many competitors fighting over a small population will also negatively affect your ability to price your services at a favorable rate. 
  • Find out what aspects of laundry service you can do better than your competition. Look for gaps in the market where you can provide your clients with a superior version of their service to make them switch to yours. Some examples could be better customer service, store ambiance, and special promotions. 
  • Learn and apply the best practices your competition employs to your business . This will go a long way in providing the best experience for your customers. 

c. Determine Your Price List

To determine your pricing strategy, you need to look at a few factors: 

  • Compute your break-even point . This is the point at which all your costs equal your revenue. This should be your baseline from which you add your markup to determine your profit.
  • Look at the competition . Consider the pricing strategy of your direct competitors within your area. Check out what kind of services they offer and if you can offer them at a competitive rate without sacrificing much of your profit.  
  • Determine how much your customers are willing to spend on your services . This is where your understanding of your customers’ wants and needs will come into play. If you can offer your customers a superior experience better than the competition, you can price your services higher than them. 

2. Determine Which Kind of Laundry Business You Want To Start

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a. Original Do-It-Yourself Laundry Business

I. who is it best for.

DIY laundry businesses are excellent for seasoned or more resourceful entrepreneurs who already know how to run a business or are willing to go the extra mile to learn things from scratch.

Laundry businesses are fairly straightforward but require a lot of planning. From how much water you use to which machines to choose, every detail must be carefully thought out to maximize potential earnings. 

Experienced entrepreneurs are also more likely to be accustomed to managing the risks of starting a business from scratch. They also have the experience to know when to call it quits in case the business starts to fail and know how to liquidate the assets to minimize losses. 

ii. Advantages

  • No franchise fees . Since you’re not getting a franchise to help you start your business, you don’t have to pay any franchise fee. Your savings from the franchise fee can be allocated to other business expenses.  
  • Flexibility and freedom . You are free to run your business however you want. Unlike franchises, you can create your original concept, which allows you to be different from the competition. 
  • Unlimited business growth potential . Your success is only limited by your own capabilities and imagination. Your brand has the potential to become its own franchise if you successfully execute your business concept. 

iii. Disadvantages

  • Fewer resources for knowledge and experience 
  • No pre-existing brand name that can help increase foot traffic into your store 
  • Less technical support for troubleshooting your equipment 

iv. Available Third-Party Support Resources

If you’re going into the laundry business for the first time, it would be best to ask for advice from people who are already much more experienced in the field.

There are a few businesses that specifically help aspiring entrepreneurs start their own laundry businesses. These companies offer equipment packages, staff training, and other support services that you would otherwise get from a franchisor. Their services may be a little more limited than what you can expect to receive from a franchisor, but these companies can give you invaluable advice and insights that will help you succeed. 

Here are a few of those companies: 

b. Franchise Laundry Business Model

Getting a franchise is an excellent choice for novice entrepreneurs looking to enter the laundry business. The support systems and services provided by the franchisor will go a long way in helping you start despite having limited knowledge and experience in the field.   

ii. Advantages:

  • Easy to start and maintain . Getting a franchise gives you access to the expertise and support services of the franchisor. This will speed up many processes to get things started, such as site review and approval, store construction, and supply and equipment sourcing. 
  • Lower risk . Experienced franchisors know the ins and outs of the laundry business. They can help reduce your risk by advising you on the best practices. 
  • Higher chance of getting a business loan . Banks are more likely to approve a business loan backed by a franchise. This improves your chances of getting capital and helps smoothen your cash flow. 

iii. Disadvantages:

  • Initial cost . Aside from your business’s capital expenses and other fixed costs, you must also pay a franchise fee. This can cost anywhere from ₱100,000 to ₱350,000. 
  • Less Control . Franchises will have their own business direction and management style, directly affecting how you can run your business. Since the brand is not yours, you will have less control over several business decisions, such as pricing, choice of equipment, and marketing. 

iv. Available Franchise Packages

For interested parties, here is a short list of franchise packages from different companies specializing in the laundry business: 

3. Choose a Good Brand Name (for DIY Laundry Businesses)

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A brand name is such an important part of your business conceptualization because it is the first interaction of your customers with your own business. With that in mind, here are a few tips on how to create your brand name:

  • Easy to remember and distinct – Create a brand name that is easy to remember and distinct enough from the competition 
  • Descriptive and meaningful – The brand name can immediately give your customers a good idea of what kind of service you’re providing.  
  • Malleable and expandable – The brand name should not limit you to a specific niche, especially if you plan to expand your operations. An example would be a brand name that suggests that you will only provide self-service laundry facilities when you may eventually have plans to offer full-service laundry options. 
  • Sounds good – Choose a brand name that sounds good when mentioned. Avoid brand names that may mean something terrible when read out loud. 
  • Simple – Don’t overcomplicate this process by spending too much time overthinking your brand’s name. Creating a brand name is important, but it is not everything. Many successful businesses have brand names that are fabricated and meaningless. There is more to business success than just the brand name. 

4. Find a Good Location for Your Business

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Choosing a good location is vital to the success of a laundry business. It will directly impact your store traffic, pricing strategy, key operational expenses, and profit. Here are some characteristics of a good location : 

a. Affordable Rent

As mentioned, rent will be one of your recurring expenses, which can quickly eat into your profit margins. You should choose a location that you know you can afford. 

b. Central Location and Accessibility

Please choose a location central to your customers and easily visible and accessible to them. Laundry service is a business of convenience. Locations near condominiums, villages, other residential areas, and universities are ideal for laundry businesses. 

Consider a parking space if you expect customers to bring their cars. You can also place your laundry shop near transportation terminals. The more you make yourself convenient to your customers, the more likely they will avail of your services. 

c. Competitors & Beneficial Businesses

Choose a location where there aren’t too many similar competitors, especially if your core services and prices are similar. 

You can also choose a location where businesses can synergize with your operations or overlap with your customers’ behavior. An example would be to place your full-service laundry business beside a cinema or grocery. Customers can drop off their laundry at your shop while they do their weekly routine groceries for a few hours, then pick up their laundry afterward.

d. Sufficient Space

Make sure to choose a location with adequate floor space for your machinery to maximize your profit margins. You should also consider the floor space dedicated to your customers, especially for self-service laundry businesses where customers will be waiting for their laundry to finish. 

e. Access to Reliable Water

Choose a location with an adequate and reliable water supply. Water is truly the lifeline of your business. Each load of a washing machine will use 40 to 140 liters of water 7 or more depending on the kind and model of your washing machine. Assuming you’ll be washing 75kg of laundry spread across nine loads, you’ll use anywhere from 360 to 1,350 liters (.36 to 1.35 cubic meters) of water daily. 

Modern commercial washing machines need between 14.5 and 116 psi 8 (pounds per square inch) of water pressure to fill the machine properly. Some machines may not work correctly without the correct water pressure. Consult with the machine vendor or your franchisor to get the specific details and requirements of the machine you’re purchasing. 

With these in mind, avoid places prone to water shortages and choose a location with sufficient water pressure to supply your needs sufficiently. Consult franchisors who can help with site planning and location approval. 

Companies such as Maytag Commercial and BigWash also provide support via seminars and training services.  

Avoid locations that are prone to robberies and theft. These locations are not only a danger to you but also to your potential customers.  

5. Do a Financial and Self-Assessment

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a. Forecast Your Financial Success, Learn About Your ROI

ROI, or return on investment, is a valuable metric used to predict the benefit you gain concerning the amount you invested into your business. In other words, it is a simplified formula to estimate a project’s financial success. 

Like all estimates, it is not intended to be a precise measurement method. It is an additional means of preparation and planning so that you can make a more informed decision before investing in a business. 

b. The ROI Formula:

Monthly ROI = (Monthly Profit / Total Monthly Expenses) x 100 

Monthly Profit = Gross Revenue – (Fixed Expenses + Variable Expenses) 

Let’s break down that formula into its parts so that you can compute your ROI. 

Fixed expenses cost the same each month regardless of your business activities. These include but are not limited to 

  • Business loans  
  • Equipment and depreciation 
  • Phone bill 
  • Employee wages 
  • Store maintenance and cleaning 
  • Other fixed expenses (Wifi internet, business permits , etc.) 

Variable expenses are expenses that fluctuate depending on the amount that you use: 

  • Detergents 
  • Electricity 
  • Other utilities, if applicable (gas, spillage, etc.) 

Gross Revenue is the total income produced from your business activities: 

  • Revenue from washers 
  • Revenue from dryers 
  • If applicable, revenue from other add-on services (delivery, service charge, etc.)  

Total Monthly Expenses are the sum of your fixed and variable expenses. 

Once you’ve accurately included everything into your list, it is time to plug everything into the ROI formula.  

c. Sample Computation

Here’s a sample computation. First, let’s compute your total fixed expenses:

Total Fixed Expenses = ₱30,000 

  • Rent = ₱15,000 
  • Employee Wages = ₱13,000 
  • Maintenance and cleaning = ₱2,000

Next, let’s compute your variable expenses. This is directly tied to how much you use your washing machines to do your service. So, the more clients you have, the more it goes up.

Variable expenses = ₱35,000 

  • Detergents = ₱10,000 
  • Water = ₱5,000 
  • Electricity = ₱20,000

Next is your revenue. You get this by computing how much each kind of laundry service you provide has earned for the month.

Gross Revenue = ₱120,000 

  • Washer Revenue = ₱60,000 
  • Dryer Revenue = ₱60,000

You can then plug the three values above into the formula to get your monthly profit:

Monthly Profit = Gross Revenue – (Fixed Expenses + Variable Expenses)  

Monthly Profit = ₱120,000 – (₱30,000 + ₱35,000) 

Monthly Profit = ₱55,000

Now that you have your monthly profit, you can start computing your monthly ROI:

ROI = (₱55,000 / ₱65,000) X 100 

ROI = .846 X 100 

ROI = 84.6%

A greater than 0% ratio means you earned a profit for that specific investment. In the example above, you would have earned an 84.6% return for that specific month. You will have to do this computation every month to get a better idea of your longer-term profitability.

This is useful if you want to know how profitable your business is monthly. Your ROI is also a metric some banks and lenders will look into to assess if they would be willing to give you a business loan.  

d. How Long Will It Take for Me To Get My Investment Back?

The breakeven period, often confused with ROI in the Philippines, is how long it will take for you to get your initial investment back.

Breakeven Period = Total Investment / Monthly Profit

Let’s say you must spend ₱2.5M to launch a laundry business. Continuing from the example above, let’s assume a monthly profit of ₱55,000.

Breakeven Period = ₱2,500,000 / ₱55,000

Breakeven Period = 46 Months

In this instance, it will take you at least 46 months or three years and ten months to earn back what you plan to invest in the laundry business. Of course, this doesn’t consider the initial months when you are not yet profitable or any fluctuations in the monthly profit. More likely than not, it will take a longer time.

6. Decision Time – Are You Ready To Invest the Money and Time Into the Business?

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Like all other businesses , there is no guarantee that yours will succeed despite doing your due diligence to study the ins and outs of the industry. Given your current financial situation, you must personally assess how much risk you can handle. Here are a few tips to help you make a proper self-assessment:

  • You’re hopeful of succeeding but ready to fail. All entrepreneurs go into businesses with high hopes of success, but it is a harsh reality that not all businesses will succeed. You must be realistic in your expectations and realize that failure is possible.  
  • You’re ready with a backup plan. Please find out how to pivot your business and transform it into a different concept. Learn how you will be able to liquidate your assets to minimize your losses. 
  • You have a unique selling proposition, or you know you can corner a specific market. This works if you have some kind of competitive leverage, such as owning a property ideal for a laundry business.  
  • You’re willing to put in the necessary time and effort . Aside from money, expect you to invest a lot of emotions, time, and effort to get things started. Reaching your break-even point can take a significant toll on you. Be prepared.

So with these tips in mind, alongside your financial estimates, it’s up to you to decide whether you want to continue doing a laundry business. Once you decide to proceed, you’ll need to spend considerable money, time, and effort.

7. Purchase Your Equipment

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Compute the number of machines you need based on your available floor space, expected business volume, and available capital funding options. You can also explore getting a business loan to help secure the capital you’ll need to purchase your machinery. 

Consult with your franchisor to discuss your equipment and machinery options. Most franchisors provide planning assistance to maximize floor space and recommend the best possible machines to improve profit margins. 

For DIY laundry businesses, consult with third-party laundry business consultation companies that can help you choose the right equipment based on your needs.

8. Register Your Business & Secure a Business Permit

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Like most other businesses, you must register your business properly with government authorities. This process includes registering your business name with the DTI or SEC, getting a registration certificate from the BIR , and securing a business permit from your local government .

Here are the business permit requirements specifically for a laundry business:

  • Barangay Business Clearance . You can obtain this from the barangay hall with jurisdiction over the location of your laundry business.
  • Occupancy Permit. This is issued by the building official as required by the National Building Code.
  • DTI Certificate with CTC (for sole proprietors and professionals) or SEC Certificate with CTC (for partnerships and corporations) 
  • CDA Accreditation (Cooperatives); 
  • Business Capitalization ( Sworn Statement) . Also known as the Sworn Statement of Capitalization, this document is where you will declare the amount of your initial capital investment.
  • Community Tax Certificate or Cedula . You can get this from the treasurer’s office at your city, municipal, or barangay hall.
  • Contract of Lease. You can obtain this from your landlord if you rent your business’s location; 
  • Proof of Ownership or Tax Declaration . Present this if you own the property where your laundry business is located (alternative to the lease contract).
  • Sketch/Vicinity Map of Business Location . The easiest way is to present a screenshot of your location from Google Maps.
  • Printed Photos of the Business Establishment . Some LGUs require pictures of your location from different angles.
  • Safety Seal (for commercial establishments) proving the business has fulfilled minimum health requirements as a precaution against COVID-19. 

9. Build Your Store

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For franchisees, you will be guided by the franchisor to conform with their design and overall quality requirements. This will make this process easy, quick, and straightforward. The downside is that you have little say in how the store will look.  

For DIY laundry businesses, you can hire your own crew of designers, architects, and construction professionals to customize your store as you see fit. Renovation expenses could cost up to ₱200,000 or more depending on your store’s size, personal design requirements, and necessary electrical wiring and plumbing systems.

If you need help designing your store, Maytag Commercial offers seminars that include shop setup, layout, and design. BigWash and LaundryPh also offer consultation services to laundry business entrepreneurs.

10. Launch Your Laundry Business

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Now that everything is in order, it’s time to open your store. Some franchisors and laundry business consultants can help you get your shop up and running in a few weeks; some even claim they can have everything done in less than a week. 

Be sure to be ready with the following before opening your doors to customers: 

  • Decide your store’s opening and closing times. This will depend on your customers’ behavior patterns and what the franchisor prescribes if you get one. Ensure adequate staff and supplies to address customers’ needs during peak hours.
  • Prioritize your customer’s comfort and convenience in your store. A happy customer is likelier to return to you for regular laundry needs. Build a good relationship with your customers and learn more about them as you do business with them. These will help you in giving them a better customer experience.
  • Continue to learn more about the industry and find ways to improve your services. Don’t be complacent. Learn more about the industry and your competition through observation and research.  

How To Manage Your Laundry Business and Deliver Added Value to Customers

A. strengthen your core selling points and manage your business.

Now that everything is running, make sure you can be consistent with what you promise your customers so that they have the same good experience every time they visit you. 

  • Keep your store clean. The upkeep and cleanliness of your store show how much you care for your business and customers. A poorly maintained store will reflect badly on you and deter customers from entering or staying at your laundry. 
  • Ensure that all of your machines are properly functioning. A malfunctioning machine is a loss of potential profit and reflects poor reliability. Ensure all your appliances are well maintained and always have an emergency backup plan. 
  • Ensure that your staff is well-trained to handle problems . In the service business, it is inevitable to encounter difficult situations, including machinery malfunctions, electrical issues, and bad customer behavior. Make sure that your staff is well-prepared to handle the worst. 

b. Tack-On Business Ideas

There are a lot of opportunities to add extra services and products, especially for self-service stores where customers will have to wait for extended periods for their clothes.  

Products and services that provide comfort and convenience are excellent add-ons to boost your laundry store’s revenue. Here are some additional services you can provide to your customers: 

  • E-load selling – you can sell e-load as an additional revenue stream amongst other over-the-counter purchases. 
  • Selling accessories and household items such as cleaners, hangers, etc.  
  • Ironing – consider offering ironing services for clothes. 
  • Vending machines – small snacks and drinks will make your customer’s stay in your laundry shop more comfortable. 
  • Dry cleaning – A few full-service laundry franchisors also offer dry cleaning as part of their services. Dry cleaning requires a different method, using only chemicals to clean laundry. It is usually used on clothes and fabrics that can be damaged by the wet cleaning process involved in traditional laundry cleaning. 

Getting a franchise that offers dry cleaning could be a great way to differentiate yourself from other laundry businesses. Survey your location to understand better your area’s supply and demand situation for dry-cleaning.

History of Laundry Businesses in the Philippines

One of the older traditions of washing clothes started with palu-pal o 9 , the washing, and beating of clothes using a wooden paddle. It was often done by the riverside for easy access to clean running water. As years went by, this form of manual washing evolved into hand washing using soap and detergents at home or by labanderas .

With the advent of washing machines, laundry was made faster and easier for people who could afford their own washing machines. Those who could not still have to do things by hand or had a labandera do it on occasion. 

Later, this changed through continuous innovations in the washing machine industry combined with businessmen’s entrepreneurial spirit. Laundry businesses now provide a time and cost-efficient method of getting your clothes washed conveniently. 

Tips & Warnings

1. market your laundry business.

This is one of the most important ways to grow your business, especially for DIY laundry services that must build their brand’s reputation from scratch. Here are a few ways of marketing your business to the community around you: 

  • Personal networks . The easiest and cheapest way of marketing yourself is to seek the help of your family and friends near your laundry store. You can advertise your services and ask them to spread the news through their networks. 
  • Social media . Advertise via Facebook ads or by creating your own Facebook page. You can even use your social media page to get orders for delivery services or customer feedback.
  • Flyers. Traditional print ads and flyers are still good advertising, especially for condominium complexes, villages, and universities. You can distribute them through the homeowners’ association or student organizations for colleges and universities. 

2. Keep a detailed record of your business expenses

Your business’ success will depend on your ability to manage your operations efficiently. A vital part of the operations is managing your business expenses. This includes close tracking of your supply inventory levels, managing the cost of labor, setting aside a repair and maintenance budget, and managing your cash flows. 

3. Build a good relationship with your business partners

Laundry businesses heavily depend on efficiencies and reliability to be profitable. Your business partners and suppliers will be a valuable resource to ensure you get the best prices for each item you need. Building a healthy relationship with them will help you get fast and efficient services when needed. 

Frequently Answered Questions

1. can you make a regular washer coin operated .

Yes, converting regular laundry machines into coin-operated ones is possible, but it is not necessarily more efficient or convenient. A few businesses in America sell conversion kits, but there are reports that some machines may experience significant problems after conversion that frustrate customers.

Your safest bet is to purchase a brand-new machine from trusted suppliers. These may be more expensive, but they will likely last you longer and give your customers a more seamless experience.

2. Which is better: top-load or front-load washing machines?

The better choice for you will boil down to your available resources, such as your water supply, store floor space, and your initial available capital.

The most glaring difference between the two options is the price of the machine and the difference in the amount of water and detergent they need to use per complete wash cycle.   A commercial top-load washing machine will typically cost around half the price of a front-load machine. On the other hand, a front-load washing machine can use up to 60% less water 10 and 25% less detergent for a complete wash cycle while also being better at removing stains than top-load washing machines.   Regarding durability, both machines for commercial laundry businesses are made to last and have an average lifespan of 10 to 14 years. One last consideration would be space efficiency. Front-load machines can be stacked, whereas top-load machines can’t. 

3. Where can I get my washing machines if I don’t get a franchise? 

Some of the most popular options for commercial laundry machines include Maytag Commercial Laundry and LG Commercial Laundry machines.  Maytag Commercial specializes in manufacturing commercial laundry machines for businesses, so their units are designed to last. They offer a range of high-efficiency washers and dryers for commercial laundry businesses. Aside from their equipment, they also provide regular laundry business seminars for aspiring entrepreneurs 11 . There is a ₱798 fee if you’re interested in attending. The fee is waived if you purchase any laundry equipment from them. Visit their website for more information. 

BigWash is the leading distributor of LG commercial Laundry. They have serviced over 4,000 customers to set up their laundry businesses. Some of their services include 3D shop design, renovations, staff training, supply of equipment, and maintenance.    On the other hand, Laundry Setup PH is a service provider and laundry machine sub-dealer that offers installation packages, site inspection, shop design, and hands-on training for aspiring entrepreneurs. In short, they provide DIY laundry businesses and equipment options to help them succeed. Laundry Setup PH is an accredited sub-dealer of LG commercial laundry. 

4. How long do commercial laundry machines & dryers last? 

Commercial laundry machines are built to last. A typical well-built commercial laundry machine from a reputable manufacturer is expected to last 14 to 15 years or approximately 5,000 cycle loads of laundry. Purchase your machinery from a reputable seller or ask your franchisor. They will have the necessary expertise and experience to help you make a well-informed decision on which brand and model to purchase.

5. What are the common reasons why laundry businesses fail? 

There is no one definitive list of reasons why some laundry businesses fail, but the common reasons include:

a. Poor location and accessibility – convenience is a significant factor in why people go to laundry businesses to wash their clothes. Locations with bad visibility, limited access, and no parking space will negatively affect your laundry business capacity. 

b. Equipment reliability and efficiency – unreliable and inefficient washers can severely impact your laundry business. They use more electricity, water, and money to keep them running, losing you money through maintenance costs and opportunity loss. Faulty machines will also damage your reputation, especially if you have a self-service laundry business where customers may experience problems using a malfunctioning machine. 

c. Water and electrical supply issues – along with your equipment, water and electrical supply are the bread and butter of your operations. Without a reliable source of water and electricity to efficiently fuel your operations, you will likely lose clients who need you to be there at their convenience. 

d. Saturated market – an overly competitive market will likely force you to lower prices which will directly eat into your profit margins. This is why it is crucial to consider the amount of competition present in your prospective business location.

e. High rent – unless you own the land where you plan to set up shop, rent is an unavoidable recurring expense that directly affects your profitability. The rent price per square meter should align with your expected revenue based on the target number of transactions per day and the number of machines that could fit in the space. 

f. Lack of funds and financial management – as with other businesses, you need to understand your capital requirements. Knowing how much you need to start up and managing your cash flows are essential to making your laundry business’s daily operations successful.

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  • Save5 Self-Service Laundromat. Retrieved 21 May 2022, from https://www.franchisemarket.ph/franchise-listing/save5-self-service-laundromat
  • What is Water Consumption per Wash?. (2020). Retrieved 21 May 2022, from https://www.samsung.com/in/support/home-appliances/what-is-water-consumption-per-wash/
  • LG. (2021). LG CWM [Video]. Retrieved from https://www.facebook.com/watch/?v=1027739161364113
  • The Evolution of Laundromats in the Philippines. (2020). Retrieved 21 May 2022, from https://lifestyle.inquirer.net/373893/the-evolution-of-laundromats-in-the-philippines/

Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated June 4, 2023 08:22 PM

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Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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How To Start A Laundry Business Philippines 2024

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Are you thinking about starting a laundry business in the Philippines? Don’t worry, we’ve got you covered! While setting up a laundry business can be a challenge, we’re here to help you navigate the process. In fact, we’ve put together an exclusive guide just for you! Our guide covers everything you need to know about starting a laundry business in the Philippines, including the best locations, costs, and extra tips – and yes, a few special hacks too!

But before we dive into all that good stuff, let’s talk about the most important thing you need to do: create a laundry business plan. Your plan will help you estimate your profits, understand the costs and risks involved, and so much more. So grab a cup of coffee, sit back, and let’s get started on building your successful laundry business in the Philippines!

If you want to set up a home-based laundry business in the Philippines, we will also explore this option.

Table of Contents

Starting A Laundry Business In The Philippines

1. your laundry business plan.

Starting a laundry business in the Philippines can be a challenging task, but with proper planning and research, it can also be incredibly rewarding.

laundromat business plan philippines

In order to ensure your success, it’s important to list the services you wish to offer in your initial business plan, including any additional services like pick-up, delivery, and wash-and-fold.

To target the right customers, laundry shop owners often focus on busy professionals, apartment residents, and students living in dormitories. But no matter who your target audience is, it’s crucial to research the demand for your laundry service in your intended market.

So, how can you make your business stand out from the competition? By offering something unique! Consider special services, a comfortable waiting area for customers, loyalty programs, or delivery options.

One of the biggest questions you may have is how much it costs to start a laundry business in the Philippines. While an overall budget of approximately 900,000 PHP is needed to cover equipment, marketing, staff, rent, and a survival budget, the actual cost will vary depending on your specific circumstances.

For instance, starting a home-based laundry business will require considerably less investment than opening a store on the high street. Regardless of your business model, it’s important to focus on key areas such as:

  • Competition,
  • Target market,
  • Financial summary,
  • Growth analysis,
  • Marketing plan,
  • Operations, and
  • Market research.

And to help you get started, we’ve put together an exclusive free business template targeted at businesses in the Philippines. Download it now and start building your successful laundry business today!

Whichever type of customer-owners choose to target, it is important to research if the laundry service demand is met for their intended market.

2. Your Laundry Business Location

Once you’ve nailed down your laundry business plan, the next step is finding the perfect location.

It’s important to keep in mind the accessibility of your chosen spot to your target market. For instance, a location near apartment complexes could be a great area to start a laundry business in the Philippines. Let’s face it, not everyone has a washing machine at home!

laundromat business plan philippines

However, it’s crucial to avoid setting up shop too close to your competitors. If the rent in your desired location is too pricey, don’t sweat it. Consider opening a pick-up station instead, especially if you’re running a home-based laundry business in the Philippines. Just make sure the area is at least 25 square meters and that the water supply is sufficient and free from any harmful minerals that could affect your laundry process.

Speaking of home-based laundry businesses, did you know that by operating from home, you could save anywhere between 20,000-80,000 PHP per month in rental costs? That’s more money for you to invest in growing your business!

3. Renovation And Equipment 

Water supply is vital in any laundry business, so it’s crucial to ensure that the right plumbing system is in place. This means having a system that can systematically produce and flush out water. In addition, proper ventilation should also be installed for safety purposes. For self-service laundry shops, providing a comfortable waiting area for customers is a must. Renovating a location to include the necessary systems and equipment could cost up to 200,000 PHP, which includes electrical wiring and unique plumbing systems.

laundromat business plan philippines

(you may also be able to sell items in a waiting area – a vending machine business could do very well here).

Investing in high-quality laundry equipment is also important, as this can save you time and electricity in the long run. Opt for washing machines that have a big capacity and a drum of decent size, and can complete a washing cycle quickly. If you choose a washing machine without a dryer, you can buy a separate dryer with a built-in sensor to help with maintenance. It’s recommended to have a machine that can operate for at least 5+ hours each day, and the price range for each washing machine used in laundry shops can range from 20,000 PHP to 50,000 PHP.

If you plan to have a self-service laundry shop, machines with a card or coin insert, or modern machines can cost around 25,000 PHP to 50,000 PHP. However, on research, you may be able to save many thousands if ordering in bulk. Equipment packages can cost 500,000+ PHP and include three sets of easily stacked washers and dryers. Laundry Setup PH offers laundry business packages, and some retailers across the Philippines also provide setting-up and renovating services.

laundromat business plan philippines

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Additional services such as steaming and ironing can be offered, and branded steamers usually cost around 3,500 PHP to 7,000 PHP, while irons cost 1,500 PHP to 6,000 PHP. However, these services aren’t included in the rate per load, and customers may be willing to pay more to save time.

If you have the budget, investing in a dry cleaning machine could be a great idea. This service is not offered by many laundry businesses in the Philippines, and could be a unique selling point for your business. Additionally, some services can be seasonal, such as dry cleaning being in high demand during prom and wedding months.

4. Business Permits And Licenses For A Laundry Business

Entrepreneurs who want to set up a laundry business in the Philippines need to deal with legal and government fees. First, owners should register their laundry business with the Department of Trade and Industry for a sole proprietorship. Otherwise, business owners will need to go to the Securities and Exchange Commission for joint ventures or corporations.

Next, they would need to head to the municipal hall to secure a business permit. The cost of a Mayor’s Permit may be more than 10,000 PHP, which could add up to around 40,000 PHP. Once the permit is secured, it needs to be submitted together with the business transaction form. After that, entrepreneurs should obtain a Certificate of Registration and Tax Identification Number from the Bureau of Internal Revenue.

In addition, if the laundry business will have five or more employees, owners need to register with PhilHealth and the Social Security System . For laundry business franchises , the franchisors are responsible for registering the business and permitting owners to use its name. Taking care of these legal and government requirements may be time-consuming and expensive, but it’s important to ensure that the laundry business is operating legally and smoothly.

5. Find Employees For A Laundry Business In The Philippines

Starting a laundry shop in the Philippines may require hiring staff to assist with the operations. Home-based laundry businesses may not require staff, but for larger laundry shops, having employees is essential to ensure the smooth flow of customer transactions. A cashier, a customer service representative, and a driver could be a good starting point for hiring.

Self-service laundry shops, on the other hand, can typically operate with just 1 to 2 employees for the first few months. However, it is essential to keep an eye on the demand and hire more staff as needed in the long run.

When it comes to employee compensation, in Metro Manila, the minimum salary of a laundry shop staff is around 12,000 PHP per month with benefits for 25 working days. As the business grows and expands, it is crucial to provide competitive compensation and benefits to retain quality employees. Remember, happy employees lead to happy customers and business success.

6. Bills And Taxes For A Business In The Philippines

When it comes to taxes for laundry shops in the Philippines, those with annual sales under 1,500,000 PHP are subject to a percentage tax, usually around 3% to 5% of their monthly income. So, if your business falls within this bracket, expect to pay a chunk of your earnings to the government.

On the other hand, if you have or plan to set up a corporation for your laundry business, be prepared to pay the standard corporate tax rate of 30% . It may seem hefty, but it’s important to follow the legal requirements of running a business.

cost to start laundry business Philippines

Of course, taxes aren’t the only expenses you need to worry about. Your monthly bills will also depend on how energy-efficient your machines are and how much power you use. If your laundry shop has five to ten machines and an air-conditioner, expect to pay around 20,000 PHP for electricity and 15,000 PHP for water each month. So, make sure you keep an eye on your utility usage to keep your bills from piling up.

7. Making Your Laundry Business Successful

The laundry business is a challenging but rewarding venture in the Philippines. While we’ve covered the essential steps to set up a laundry business, there are additional critical steps that we need to take note of, like marketing.

Marketing is a vital aspect of any business. You need to let people know about your laundry business, the services you provide, and how you differ from competitors. However, marketing doesn’t stop there. It’s not enough to inform people about your business; you need to convince them to become your regular customers. That’s the power of marketing.

Once you’ve successfully marketed your business, it’s time to move on to the start, stop, and continue stages. Starting is when you analyze your current situation and decide the most profitable course of action for your business. Stopping involves halting any business-draining activities that may be hindering your business’s growth. Continuing means strengthening what is strong and making progress.

In addition to marketing and the start, stop, and continue stages, you must consider taxes and monthly bills. For businesses with gross yearly sales under 1,500,000 million PHP, laundry shop owners must pay a percentage tax of around 3% to 5% of the monthly income, depending on the bracket the business falls in. For corporations, the standard tax rate is 30%. Monthly bills depend on the amount of energy and water the laundry shop uses. For example, a shop with five to ten machines and an air conditioner could have a monthly electric bill of around 20,000 PHP and a water bill of 15,000 PHP.

While there are many challenges to running a laundry business in the Philippines, it can be a lucrative and fulfilling venture. With hard work, dedication, and smart decision-making, your laundry business can flourish in no time.

Home Based Laundry Business In The Philippines Tips

Starting a laundry business from home in the Philippines is an excellent way to earn money without the high costs of operating a commercial laundry shop. Not only does it require fewer startup expenses, but it also offers valuable services such as delivery and other essential services to customers. To help you get started, here are some simple tips to keep in mind:

Tip 1: Choosing Where To Work

To save money on operating expenses, such as water and electricity, consider performing laundry at the client’s house. If you’re working from home, you’ll need an area of at least 25 square meters to accommodate your laundry needs.

Tip 2: Price List

Offering extra services such as ironing and dry cleaning can boost your profit margin. Consider referring to other local competitors for pricing and try to mix and match services to offer a better service for a lower rate while still making a good profit margin.

Tip 3: Record Keeping

Keeping track of your clients, payments received, and expenses is critical to the success of your business. Consider using free online tools like Google or Excel spreadsheets to manage transactions.

Tip 4: Buying In Bulk

Buying items in bulk can save you thousands of pesos. Before purchasing detergents, powders, and fabric softeners in bulk, try them out to ensure they meet your quality standards. Alibaba.com is an excellent way to save money by purchasing items directly from China, but be aware of import taxes and delivery costs.

With these tips in mind, starting a home-based laundry business in the Philippines is a great way to earn extra income while providing essential services to your community.

Is A Laundry Business Profitable In The Philippines ?

If you start a laundry business in the Philippines with an average of 50 kg to 55 kg of laundry services each day, then there is little room for profit in the early days. This is because the cost of business takes up the majority of profits. However, if you can increase the average to around 75 kg per day, you could earn around 10,000 PHP per month.

When looking at the profit potential of a laundry business in the Philippines, it’s a common question to ask if the profit is different if you own a laundry shop. The costs are different, so it is often harder to reach a profit. However, a store has many benefits above financial matters. For example, having a physical location can help establish credibility and make it easier for customers to find you. In terms of financials, a laundry shop that can service anywhere between 100 kg to 120 kg of laundry each day could earn around 30,000 PHP or more per month. And if the shop can handle 150 kg of laundry a day, it could earn 50,000 PHP or more every month.

Ultimately, the profit potential of your laundry business in the Philippines will depend on a variety of factors, including your location, pricing strategy, customer service, and marketing efforts. It may take some time to establish a customer base and build up a steady stream of income, but with dedication and hard work, it is possible to achieve success in this industry.

What Is a Day In The Life of A Laundry Business ?

Operating a laundry business in the Philippines can be challenging but rewarding. Whether you work independently or with employees, there are essential tasks that need to be completed daily. For instance, opening and closing the shop on time, cleaning the premises, securing the money, and checking the machines for maintenance. For business owners who have employees, there are additional responsibilities such as supervising them, ensuring they provide extra services like ironing or folding clothes, and checking the quality of their work.

Typically, laundry shops in the Philippines operate from 7 am to 6 pm daily, with weekends being the busiest days due to high customer traffic. Therefore, it is recommended to open on either Saturday or Sunday to capture the most customers. Depending on the market served, business owners could also consider alternate operating hours. However, opening on time is critical since customers allocate a specific time of their day to do laundry.

Overall, running a laundry business in the Philippines requires a combination of hard work, dedication, and attention to detail. With the right mindset and approach, it can be a profitable venture that provides a valuable service to the community.

Is Starting A Laundry Business A Good Idea ?

Starting a laundry business in the Philippines can be a great business opportunity, but it’s not without its risks. As with any entrepreneurial venture, financial risks need to be carefully considered. However, the potential for success is significant if entrepreneurs can carefully navigate these challenges.

Two important factors that can make or break a laundry business in the Philippines are location and service quality. Therefore, it is essential to conduct market research to identify the right location and target clientele, and to promote high-quality services that meet their needs.

Despite the challenges, a laundry business in the Philippines can be a lucrative venture with the potential for significant profits. With careful planning, research, and commitment, entrepreneurs can turn this opportunity into a successful business venture.

Summary of Expenses for Laundry Business in the Philippines

Below is a summary of the expected expenses of a laundry business in the Philippines.

Example of a business plan for a laundry business

The below is an outline of a fictional laundry service “Sparkling Clean Laundry Services”. The business plan below can be used as a starting point for your own laundry business.

Executive Summary

Business Name: Sparkling Clean Laundry Services Location: 123 Main Street, Downtown Manila, Philippines Business Model: Laundry and Dry-Cleaning Service Target Market: Working professionals, students, busy families Start-up Costs: ₱5,000,000 Expected Revenue: ₱15,000,000 in the first year Objective: To provide convenient, quick, and high-quality laundry and dry-cleaning services to the community.

Financial Plan

Start-up costs.

  • Equipment: ₱2,000,000
  • Rent and Utilities: ₱1,000,000
  • Marketing: ₱500,000
  • Staff Wages: ₱1,000,000
  • Miscellaneous: ₱500,000
  • Total: ₱5,000,000

Revenue Projections

  • First Year: ₱15,000,000
  • Second Year: ₱22,500,000
  • Third Year: ₱30,000,000

Funding Requirements

Seeking a ₱2,500,000 loan to cover half of the start-up costs, to be repaid over a five-year period.

These conversions are based on an approximate exchange rate and should be updated as per current market rates when you use this business plan. Always consult with financial advisors and experts when creating your business plan.

Future Reading & References

  • Laundry franchising Philippines https://www.franchisemarket.ph/franchise-listing/save5-self-service-laundromat
  • Business tax https://www.bir.gov.ph/index.php/tax-information.html
  • Professional laundry machines https://bigwash.ph/
  • Laundry shop tips https://huebsch.com/news/6-tips-for-managing-an-efficient-laundry-business/
  • Growing a laundry shop business https://optimoroute.com/laundry-business/

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Business Consulting Blog How to Start a Laundromat Business in the Philippines

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The laundromat industry in the Philippines has evolved into a multifaceted domain, offering a range of services from wash and fold to self-service options. Laundromats have gained immense popularity among customers due to their convenience, time-saving benefits, and potential to reduce electricity bills. In this comprehensive guide, we’ll explore how to start a successful laundromat business in the Philippines, from understanding its profitability to the step-by-step establishment process.

The Profitability of Laundromat Business in the Philippines

Starting a laundromat business in the Philippines can be highly profitable, given the increasing demand for laundry services in urban areas. The initial investment will primarily include renting a suitable building space and purchasing laundry machines. For instance, investing in around 30 commercial laundry machines could cost between PHP 1.5 million to PHP 3 million, depending on the brand and specifications.

The return on investment (ROI) timeline can vary, but with efficient operations and strategic location, it’s feasible to achieve ROI within 1 to 3 years. Profitability is often boosted by factors such as location, services offered, and customer volume.

Step-by-Step Guide to Launching Your Laundromat Business

  • Business Registration:  Before embarking on your laundromat venture, it’s vital to register your business properly . Head over to our business registration page to learn more about this process. 
  • Choosing a Suitable Space:  Finding the right location is pivotal for a successful laundromat business. The building space selected must meet specific requirements such as proper ventilation, exhaust outlets, and adequate utility provisions. Ground-floor spaces with windows are preferable to attract foot traffic and potential customers.
  • Equipment Acquisition:  Investing in commercial laundry machines is a significant aspect of your business setup. The cost of each machine can range from PHP 50,000 to PHP 150,000, depending on its type and features. Business owners can opt for coin-operated machines to facilitate convenient transactions. Additional services like ironing, steaming, and dry cleaning can further enhance your business’s appeal.
  • Employee Hiring and Management:  Depending on the scale of your laundromat, you may need to hire employees to manage operations, assist customers, and maintain cleanliness. Efficient staff can ensure smooth business operations and excellent customer service.
  • Financial Responsibilities:  Running a laundromat also involves financial responsibilities such as taxes, electricity bills, water charges, and the procurement of detergents and cleaning supplies. Proper budgeting and accounting practices are crucial to sustaining the business.

The Potential for Lucrative Expansion

Establishing a successful laundromat business can be a stepping stone to even greater profitability through expansion. Multiple locations strategically placed in densely populated or busy areas can significantly enhance your revenue. Statistics reveal that laundromats in the Philippines enjoy a robust success rate due to the country’s urbanization and the modern lifestyle’s demands.

Do You Need Assistance Setting Up a Laundromat Business?

In conclusion, starting a laundromat business in the Philippines can be profitable with the right approach. Each step contributes to the business’s overall success, from choosing the perfect location to assisting business operations and ensuring legal compliance. The services provided by Triple i Consulting can offer invaluable assistance in business registration and finding suitable locations for your laundromat venture, paving the way for a prosperous and thriving business in this ever-growing industry.

Contact us today through one of the following methods to schedule an initial consultation with one of our business registration experts:

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The Definite Business Plan for a Laundry Business [PDF]

laundromat business plan philippines

In order to have a successful business, it is crucial to have a plan, a laundromat business plan . But, what exactly is  a business plan ? What should be included? How to know if the steps are being followed? This is what this article is all about!

➡️ Download your Laundromat Business Plan for FREE!

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Step 1. The definition of a business plan is that it is a written description of the future of a business. It's a document that tells the story of what the plan is and how to make it happen.  Although every business has its own story, there are some generally accepted conventions about what a full-blown business plan should include and how it should be presented. First of all, the famous 5 W's: What, When, Who, Where, Why and How .  By answering this 5 questions in the right way, the business plan for laundry services will cover all the important matters that will contribute on making the business a success.

“Going into business without a business plan is like going on a mountain trek without a map or GPS support – you’ll eventually get lost and starve!”  - Kevin J. Donaldson

Any laundromat business plan should start with a list of the services that will be provided. Will the laundry be delivered back to the customers or will there be specialized services offered such as dry cleaning and/ or ironing? It does not matter if entrepreneur(s) will not be going for a bank loan or a venture capital, a business plan doc will give clarity about where the business is heading and it is a helpful tool to stay organized and remain on track.

A BUSINESS PLAN FOR A LAUNDROMAT BUSINESS  

business plan laundry pdf

Laundry business has had a boom in these recent years, since people have no time (nor are they are fund of) for washing, dry cleaning and ironing their clothes. This business sector is a great business opportunity to invest in due to the fact that it offers a solution to people's problems, which is why it has a very high and recurrent demand (people will never stop washing their clothes). Although laundry business has a great potential, it is crucial to understand the importance of a business plan in order to make this business work. 

Business franchises come with a large number of benefits, including the providing of everything needed to get a business up and running. As the brand  and business model are already set-up and established, entering a franchise contract can come with less risk than starting a business entirely from scratch.

KEY COMPONENTS FOR A SUCCESSFUL LAUNDRY BUSINESS PLAN

It is important that every business plan for laundry services answers the 5w's , the length does not matter, as some business are bigger than others or need a deeper explanation for its understanding. As stated before, the main objetive of a business plan is for your product(s) and/or service(s) to be understood.

The following topics are to be explained in a business plan:

laundry-business plan

  • Basic Business Concept
  • Strategy and Actions for its Implementation
  • Competitive Advantages
  • Target Market
  • Financial Needs

1. Basic Business Concept

This is an overall of the idea, where the When & How should be explained. This is where the entrepreneur(s) should explain and discuss the following:

  • The industry
  • The business structure
  • The introduction of the product or service
  • The plan for making the business

The main objective of this section is for people (such as investors) to figure out if the business is attractive or not and where the What and How  will be explained. 

2. Strategy and Actions for its Implementation

After the introduction of the product or service is made, here is where the following questions must be answered:

What are the specific goals for this business? 

When and How  will the goals be accomplished? 

This three questions are the body of the plan, this is one of the most important sections, it could be said that it is the heart of the business plan. 

3. Competitive Advantages od a laundromat business plan

laundry business plan competitive advantages

Why should people look at this laundry business plan instead of other? Why would customers want to purchase those products and/ or services and not those of the competitors? Here is where the chance to dazzle the readers with good and solid information about the laundry business is.

➡️ Download your Laundry Business Plan for FREE!

4. target market --> marketing plan.

Everything about the potential and actual customers. 

  • What profile is being looked for? 
  • What is the demographic audience? 
  • What methods will be used to capture the specific audience? 
  • How will the “attack” and retain of the customers will be done to gain more profit? 
  • What sets your business apart from the competition?

5. Financial Needs

Starting a laundry business might be more expensive than people think. When writing down a laundry business plan , it is important to jot down all the equipment and items that will be needed such as: washers, dryers, detergent, hangers, and so on. These items will need to be factored into the budget to ensure the venture is financially viable.

These statements provide a model of how the ideas about a laundry business, its markets and its strategies will play out. It is important to remember that a business plan is based on facts and not feelings. The entrepreneur(s) have to stick on the projections and numbers instead of hopes, think about realistic expectations of profit instead of focusing on dreams of wealth. This section is about facts - checkable, demonstrable facts - because here, is were the most important component of all comes out: THE CREDIBILITY

IN CONCLUSION:

A laundromat business plan is a great tool that allows founders to present their vision and plans of a project. When using any business plan format, there are standard questions (such as the 5 w’s) that force every person involved to think, analyze & create a long term vision and strategy for the idea.  It is demonstrated that writing things down on paper helps as a guide to track the progress and have better control on the status to be accountable on the future.

“Business planning is incredibly helpful for describing what you do, understanding who your competitors are, and crafting a realistic three to five year plan. Each of these activities is crucial if you are looking to launch or expand a venture, and learning to speak concisely about your company will always be crucial no matter what stage you’re in.”   - Garrett Neiman , College Spring

HOW DID THE MOST FAMOUS SPANISH LAUNDRY STARTUP MADE IT HAPPEN?

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How to Start a Laundry Business in the Philippines 

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Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting a laundry business in the Philippines can be a profitable and rewarding venture. This comprehensive guide will walk you through the process, with easy-to-understand language and practical advice.

So, let’s dive into the world of laundry entrepreneurship!

1. Why Choose a Laundry Business?

2. types of laundry businesses, 3. planning your laundry business, 4. choosing the ideal location, 5. acquiring the necessary equipment, designing your laundry shop, 7. hiring and training staff, 8. pricing strategies and services, 9. promoting your laundry business, 10. managing and growing your business.

There are several reasons why a laundry business can be an excellent investment in the Philippines :

  • Increasing urbanization: The growing number of people living in urban areas generates higher demand for laundry services.
  • Time constraints: Many individuals have hectic schedules and prefer outsourcing their laundry chores.
  • Limited living spaces: Some residences lack space for personal laundry equipment, making laundromats a popular alternative.

There are three main types of laundry businesses:

  • Self-service laundromat : Customers operate the machines themselves, with minimal staff assistance.
  • Full-service laundry : Staff members handle all aspects of laundry, including washing, drying, folding, and ironing.
  • Hybrid laundry : A combination of self-service and full-service options.

Consider the needs of your target market and your business preferences when choosing a model.

To ensure a successful launch, follow these planning steps:

  • Conduct market research : Investigate the local laundry market to understand customer preferences, competition, and opportunities for growth.
  • Identify your target market : Determine your ideal customers, such as busy professionals, students, or families.
  • Develop a unique selling proposition (USP) : Define what sets your business apart, such as exceptional customer service, eco-friendly practices, or innovative technology.
  • Prepare a budget : Estimate startup costs, including equipment, rental fees, permits, staff salaries, and marketing expenses.
  • Create a business plan : Draft a comprehensive plan that outlines your objectives, strategies, market analysis, and financial projections. Use a sample laundry business plan as a template.

An accessible and strategic location can significantly impact your business. Evaluate potential sites based on the following criteria:

  • High foot traffic
  • Proximity to residential and commercial establishments
  • Visibility and ease of access
  • Safety and Security
  • Adequate space for equipment, customers, and staff

Invest in high-quality and energy-efficient equipment to ensure reliability and minimize operational costs:

  • Washing machines: Choose between top-loading and front-loading models, based
  • on capacity, efficiency, and durability.
  • Dryers: Opt for gas or electric dryers, taking into account energy consumption and performance.
  • Ironing equipment: Purchase steam irons or ironing presses for professional finishing.
  • Carts and baskets: Provide customers with sturdy carts and baskets for easy transport of laundry.
  • Payment systems: Install coin or card-operated machines for convenient transactions.

Create a welcoming and functional space that encourages customers to return:

  • Prioritize cleanliness and organization.
  • Utilize natural and artificial lighting to create a bright and inviting atmosphere.
  • Arrange equipment for easy access and smooth customer flow.
  • Provide comfortable seating and entertainment options, such as Wi-Fi, television, or magazines.
  • Install proper ventilation and air conditioning for a pleasant environment.

If you’re operating a full-service or hybrid laundry business, hiring and training competent staff is crucial:

  • Look for candidates with excellent customer service skills and attention to detail.
  • Provide comprehensive training on equipment operation, laundry procedures, and safety protocols.
  • Foster a positive work culture to promote staff satisfaction and retention.
  • Establish clear communication channels for efficient coordination and feedback.

Develop competitive pricing and service offerings to attract customers:

  • Research local competitors’ pricing structures and adjust your rates accordingly.
  • Offer discounts and promotions for first-time customers or during off-peak hours.
  • Provide additional services, such as express washing, dry cleaning, or pick-up and delivery.
  • Implement a loyalty program to reward regular customers and encourage repeat business.

Effective marketing strategies can help increase your customer base:

  • Design eye-catching signage and storefront displays.
  • Create a social media presence and engage with your local community online.
  • Offer referral incentives for customers who recommend your business to friends and family.
  • Distribute promotional materials, like flyers and brochures, in your target area.
  • Partner with local businesses to cross-promote each other’s services.

Ensure long-term success by implementing efficient management practices and exploring growth opportunities:

  • Monitor expenses, income, and key performance indicators (KPIs) to track your business’s financial health.
  • Schedule regular equipment maintenance to prevent costly breakdowns and disruptions.
  • Continuously improve customer service based on feedback and industry trends.
  • Explore expansion opportunities, such as adding new locations or franchising your business.
  • Stay updated on industry developments and adapt your strategies as needed.

Starting a laundry business in the Philippine s requires hard work, dedication, and thorough planning. By following the steps outlined in this guide, you’ll be well-equipped to launch a successful business that caters to the needs of your community. As you grow and adapt to the ever-changing market, you’ll be one step closer to achieving your entrepreneurial dreams. Good luck on your journey, and may your laundry business thrive in the years to come!

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Philippines Laundry Business Start-Up Guide 2023

A step-by-step guide for launching your laundry business in the philippines in 2023.

LAUNDRY BUSINESS – Here’s a step-by-step guide for starting a laundry business in the Philippines in 2023.

Are you contemplating the idea of starting a laundry business in the Philippines? Don’t worry, we have your back! While setting up a laundry business may pose its challenges, we are here to assist you every step of the way. In fact, we have compiled an exclusive guide tailored just for you! Our guide encompasses all the essential information you need to kickstart a laundry business in the Philippines, encompassing ideal locations, financial considerations, and invaluable tips.

But before diving into this wealth of information, let’s address the foremost task at hand: crafting a laundry business plan. Your plan serves as the cornerstone for estimating potential profits, comprehending the associated costs and risks, and much more. So, grab a cup of coffee, sit back, and let’s embark on the journey of establishing your thriving laundry enterprise in the Philippines!

Laundry-Business

Starting A Laundry Business In The Philippines

1. Your Laundry Business Plan

Starting a laundry business in the Philippines may present its share of challenges, but through meticulous planning and diligent research, it can also yield immensely gratifying results.

To ensure your success, it’s imperative to outline the array of services you intend to offer in your initial business blueprint, including any supplementary offerings like pickup and delivery, as well as wash-and-fold services.

Typically, laundry shop proprietors aim to cater to a diverse clientele, encompassing busy professionals, residents of apartments, and students residing in dormitories. Regardless of your target audience, conducting thorough market research to gauge the demand for your laundry services in your chosen market is paramount.

So, how can you distinguish your business in a competitive landscape? By offering a distinctive value proposition! Consider introducing unique services, creating a comfortable customer waiting area, instituting loyalty programs, or providing convenient delivery options.

A burning question that often arises is the financial commitment required to launch a laundry business in the Philippines. While a rough estimate of around 900,000 PHP is typically needed to cover expenditures such as equipment, marketing, staffing, rent, and a contingency budget, the precise cost will hinge on your specific circumstances.

For instance, establishing a home-based laundry business will demand significantly less capital than opening a storefront in a prominent location. Irrespective of your chosen business model, it’s imperative to concentrate on critical areas such as:

  • Competition
  • Target market
  • Financial summary
  • Growth analysis
  • Marketing plan
  • Market research

2. Your Laundry Business Location

After finalizing your laundry business plan, the next step involves finding the ideal location. It’s essential to consider the accessibility of your chosen spot for your target market. For instance, a location near apartment complexes could be an excellent choice for starting a laundry business in the Philippines because not everyone has a washing machine at home.

However, it’s vital to avoid setting up shop too close to your competitors. If the rent in your desired location is too high, don’t worry; you can explore options like opening a pickup station, particularly if you’re running a home-based laundry business. Just ensure that the area is at least 25 square meters and has a reliable water supply free from any harmful minerals that could affect your laundry process.

By operating from home, you can save a substantial amount, ranging from 20,000 to 80,000 PHP per month in rental costs, allowing you to allocate more funds to grow your business.

3. Renovation And Equipment

Adequate water supply is crucial for any laundry business. Therefore, it’s essential to ensure you have the right plumbing system in place—one that can efficiently produce and flush out water. Additionally, proper ventilation should be installed for safety reasons.

For self-service laundry shops, providing a comfortable waiting area for customers is essential. Renovating a location to include necessary systems and equipment may cost up to 200,000 PHP, covering electrical wiring and specialized plumbing systems.

Investing in high-quality laundry equipment is equally important, as it can save you time and electricity in the long run. Opt for washing machines with large capacities and decent-sized drums that can complete washing cycles quickly. If you choose a washing machine without a dryer, consider purchasing a separate dryer with a built-in sensor for maintenance.

It’s recommended to have a machine that can operate for at least 5 hours a day. Washing machines for laundry shops can range in price from 20,000 PHP to 50,000 PHP. For self-service laundry shops, machines with card or coin inserts or modern machines may cost around 25,000 PHP to 50,000 PHP. However, bulk orders might offer significant savings.

Equipment packages, including three sets of easily stacked washers and dryers, can cost 500,000 PHP or more. Laundry Setup PH offers laundry business packages, and various retailers across the Philippines also provide setup and renovation services.

Additional services like steaming and ironing can be offered, with branded steamers typically costing around 3,500 PHP to 7,000 PHP, and irons ranging from 1,500 PHP to 6,000 PHP. These services are not typically included in the per-load rate, and customers may be willing to pay extra for them.

If you have the budget, investing in a dry cleaning machine could be an excellent idea, potentially serving as a unique selling point. Certain services, such as dry cleaning, may experience seasonal demand, especially during prom and wedding seasons.

Laundry-Business-1

4. Business Permits And Licenses For A Laundry Business

Entrepreneurs looking to establish a laundry business in the Philippines must navigate legal and government requirements. First, business owners should register their laundry business with the Department of Trade and Industry if it’s a sole proprietorship. For joint ventures or corporations, registration should be done with the Securities and Exchange Commission.

Following this, securing a business permit from the municipal hall is necessary. The cost of a Mayor’s Permit may exceed 10,000 PHP, which can sum up to approximately 40,000 PHP. Once the permit is obtained, it must be submitted alongside the business transaction form. Additionally, entrepreneurs need to acquire a Certificate of Registration and Tax Identification Number from the Bureau of Internal Revenue.

For laundry businesses with five or more employees, registration with PhilHealth and the Social Security System is mandatory. In the case of laundry business franchises, franchisors are responsible for business registration and granting permission to use their name. While handling these legal and government requirements can be time-consuming and costly, it’s crucial to ensure that your laundry business operates legally and smoothly.

5. Find Employees For A Laundry Business In The Philippines

Establishing a laundry shop in the Philippines may require hiring personnel to assist with operations. While home-based laundry businesses may not necessitate staff, larger laundry shops require employees to ensure smooth customer transactions. A cashier, a customer service representative, and a driver can be a good initial staffing arrangement.

Self-service laundry shops, on the other hand, can typically operate with just 1 to 2 employees during the initial months. However, it’s vital to monitor demand and hire more staff as needed in the long term.

Regarding employee compensation, in Metro Manila, the minimum salary for laundry shop staff is approximately 12,000 PHP per month, with benefits covering 25 working days. As your business grows, providing competitive compensation and benefits becomes crucial to retain quality employees, as happy employees contribute to satisfied customers and overall business success.

6. Bills And Taxes For A Business In The Philippines

Taxation for laundry shops in the Philippines depends on their annual sales. Businesses with yearly sales below 1,500,000 PHP are subject to a percentage tax, typically ranging from 3% to 5% of their monthly income. Therefore, if your business falls within this bracket, be prepared to allocate a portion of your earnings for government taxes.

Conversely, if you establish a corporation for your laundry business, you’ll be subject to the standard corporate tax rate of 30%. Additionally, apart from taxes, you should also consider your monthly utility bills, which depend on the energy efficiency of your machines and your power consumption. A laundry shop with five to ten machines and an air conditioner might expect to pay around 20,000 PHP for electricity and 15,000 PHP for water monthly. Monitoring your utility usage can help control these expenses.

7. Making Your Laundry Business Successful

Running a laundry business in the Philippines can be challenging yet rewarding. In addition to the steps outlined earlier, marketing plays a crucial role. It’s essential to inform people about your laundry business, the services you offer, and what sets you apart from competitors. Effective marketing goes beyond mere information; it aims to persuade potential customers to become regular patrons.

Once your business is effectively marketed, you should consider the “start, stop, and continue” stages. Starting involves analyzing your current situation and determining the most profitable course of action. Stopping entails discontinuing any activities that hinder your business’s growth. Continuing means strengthening your strengths and making progress.

In conclusion, while there are numerous challenges in operating a laundry business in the Philippines, it can prove to be a profitable and fulfilling venture. With dedication, hard work, and smart decision-making, your laundry business can thrive in no time.

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How to Start a Laundry Business in the Philippines

Starting a laundry shop is sure way to gain a profitable venture, especially now in and around Metro Manila, where the population is booming and jobs are on the fly with no time for handling small weekly chores such as cleaning your clothes.

With the expansion and rise of condominums, people live in small spaces in which they can not fit a washing machine and the same can be said true as well for apartment dwellers cramped up in a single bedroom.

As such, a laundry shop could easily provide a convenient service that handles all the miniscule task of folding and ironing laundry as well. In case you are wanting to start up your own laundry business, here are a few important tips that you should take note of so as to have a successful and profitable venture!

Laundry Laundromat Business Philippines

1. Evaluate the Site of your Laundry Shop

The first important tip you need to know is the location of your laundry shop, as this determines your failure or success depending on a variety of factors. For the convenience of your prospective customers, it should be located nearby , especially for those who live in apartments and condominiums. For an extra appeal to customers, establish it where they commonly walk around: the ground floor. This helps expose your business to people who are interested in your service.

Next, study the core social class of your clients. As much as possible, try to give a reason why they should stop by and do business with your laundry shop instead of others. For example, if most of your customers are busy bodies with no time to waste, offer free parking spaces so as to make it easier for them to access your shop for convenience.

2. Ensure you Have the Proper Equipment

There are a number of rules to follow when doing laundry at home, and they still apply for commercial use. Delicates, as the name suggests, are clothers requiring extra care which you can do by buying laundry nets. The laundry nets have varying size from big to small, so ideally you should have a set of them each so as to not have mutiple random sizes that you don’t need.

Another important equipment, the weighing scale provides how many kilograms any given bag of clothes a client has, as this can give you a set rate for a specific amount of weight. Opt for digital scales instead of old-school ones as digital ones provide an easy-to-read and accurate results.

Lastly, don’t buy 2nd-hand washing machines, more so if they are old models, as they have been phased out and you would have a hard time finding spare parts as well as risk damaging the clothes of your customers. On that note, only use commercial machines as they are specifically made for handling bigger loads of laundry every day compared to its common house variety.

3. Remember your Customer’s Standard of Quality

Each and every one of your customer has their own measure of quality, and meeting them is the bare minimum for customer satisfaction. Exceeding their expectations would require more effort but in a long-run results in increased customer loyalty.

Small things such as appropriate usage of soaps and detergents for the different materials of clothes each client has can give you a big approval. Other acts include separating their clothes from others, quickly remembering who owns which, and double-checking if they are missing any clothes can show customers you care about their own possessions. Their loyalty and trust will be gained if you follow through these simple yet powerful acts of concern.

4. Give Incentives for Customers

Sometimes, doing the laundry isn’t enough, maybe your customer is a lazy one, so why not provide door-to-door pick-up and delivery? Or how about dry cleaning as those are rarely provided by laundry shops and the demand for them are mostly from wealthy individuals who live in condominiums.

Additional services can increase convenience for your customers and the likelihood for coming back as a loyal and regular client.

5. Look out for Inefficiencies in your System

There are two types of laundry shops: self-service and the regular staff-care. If you choose to do the former, know that efficiency can help a lot in a business where there is a lot of foot traffic going around.

Placing the washing machine next to the drier would make transferring clothers quicker and reduces the amount of drips on the floor and avoiding any chances of slipping. Another tip is to know how just how much you need for a day’s inventory so as to not waste storage and spoilage past expiration due!

6. Register your Business at the Appropriate Departments

Now that you know where you set up shop, have the right equipment for the job, and have planned how your service will differentiate from others, all you need to do is to register your business! Simply put, just head on to the Bureau of Internal Revenue (BIR) for business registration as well as the Department of Trade and Industry (DTI) for your business name, trademarks, and logo!

33 responses to “How to Start a Laundry Business in the Philippines”

I am thinking of this laundry business can you please let me know how to start with this business?

May I know how much I can start ?the cost to start this laundry bussines, I want to start in small amount to become bigger in the future.

How much it cost when starting laundry business

how can i start with this kind of business. how much does it cost.

Hi i wanted to start a small laundry in my province how can i start

Is there specific place of store for the self service laundry shop and how much each washer and dyer cost? Im thinking to have a laundry shop

tell me more about this!

I’m doing a feasibility study about Laundy Business.I’m wondering what are the tips that you can share in do’s and don’ts in this field Thank you!

I do really like to put up a laundry business But I don’t have any idea where to buy the equipement and how much for start up The location is not a problem Please help me Thank you in advance

how much it cost to establish small laundry sho

I am very interested on how to start Laundry business..Is there any free seminar to start the said business?

What do I have to consider if I want to start a laundromat business like this in a small university in paranaque, lets say in a dormitory?. How many machine should be invested to ensure balance and gains and how much is the capital investment and their specifics.

I wanted to start a small laundry bussiness in my province, how much capital can start a small laundry shop?

How much the cost if I start 6 laundry machines and how to start this business. Thank you for giving me some details.

I want to start a laundry now much does it cost

how much it will cost to open a laundry shop for 5 washing machine and 5 dryer.im planning to open in laguna,how can we start ?is there any contact information to contact the business? how long is the process if you have a place to start the operation?

Just want to inquire how to franchise laundry business??

I’m planning to put up a small laundry business hoping it will become bigger in the future… Please advice me what to do…

I am planing put up this kind of business and I want to start even to machine…where can I buy this kind of commercial washing machine?

pls walk me through opening a laundry business suppliers list and great tips for starters

Hi. Im interested to start like this kind of business. Help me how. And please send me email, Im currently working as an OFW so you can reach me through email. Thank you.

Hi👋 Im planing to have a laudry Shop business can you help me how to start it please🙏

I am planning to start a home laundry business. How much money is needed to start a franchise? Thanks.

is there a way that some companies who owns industrial washing machines offers a loan to start a laundry shop business?

Hi wanted to start a small laundry shop in our province probably 6 washer and 6 dryer. Could you please help me start with my dream business dont have any idea how to start..please let me know. Thank you!

Hi how much is the start up capital to start a laundry business. Ty

Im interested hm po to franchise?

How much do I need to start a small laundry business? What is cheaper to start, self-service or staff care? Thanks

How much cost the start up capital of this franchise laundry business?

Hi, I am planning to start my own laundry shop and want to know the initial capital to start this business.

Hi, I wanted to know how much would be the start up cost for a small laundry business? Thank you!

i’m interested’ can you give me details please. how much?

I plan to start a laundry business in Pagbilao Quezon. How much does it cost for 5 washers and 5 dryers? Thanks

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HOW TO: Start your own laundromat business in PH

Photo of Janina Bautista

Doing the laundry is probably anyone’s least favorite chore. It’s a tedious task that remains necessary, unless you’re fine with wearing soiled and dirty clothes outside.

Similar to fast food chains, laundromats are starting to become prolific in the Philippines and can be found in almost every corner and neighborhood today.

If you’re looking into starting your own laundromat business in the country, check out these steps to learn how:

1 | Choose your type of laundry business

Different laundry services or shops offer different services and solutions to customers. Foremost, select the laundry business type you want to operate: dry cleaning, home-based laundry, or coin-operated laundromat. Whichever business type you choose, prepare a budget of at least P250,000 to P400,000 as capital. Few existing laundry shops are also open for franchise.

2 | Pick a strategic location

If you have an existing lot or vacant property in your neighborhood, it can be the venue for your laundry business venture. However, for those who intend to rent, ensure that you select a location near residential areas such as subdivisions, condominiums, or hotels where this type of business will most likely prosper. Allot a monthly rental fee of at least P25,000.

3 | Register your business

Before you can actually start operating your own laundromat, you will need to register your business with the Department of Trade and Industry and your local government unit first. Secure all the necessary permits and certificate before proceeding to the next steps. You can click here for the full guide to opening up your own small business in the Philippines.

RELATED ARTICLE: Simple steps to start a small business in PH

4 | Purchase laundry machines and equipment

Invest in high-quality washing machines that will last for a long period of time. Laundry equipment tend to be expensive, especially as this type of business requires high-level of automatic washers. Appliances for laundry shops may cost about P20,000 to P50,000 each. You may opt to choose coin-operated washing machines too that range from P25,000 to P40,000. Also prepare dry cleaning machines, ironing tables, and a cash register for the business.

5 | Choose detergents wisely

Some people are very particular with the brand or type of soap or detergent they use for their clothes. Different people have different skin types, and some detergents may cause allergies to clients or may be too harsh on fabrics and clothes. Invest in hypo-allergenic detergents to be safe, which may also win you loyal customers in the long run.

6 | Make your business fun

As laundry remains to be a tedious task, liven up your business space by providing comfortable benches or seats for your customers. You can also provide soothing background music or free drinks/coffee for the customers while waiting. Make them feel that doing laundry can actually be fun, too!

Photo of Janina Bautista

Janina Bautista

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Guide To Launching Profitable Laundry Business In Philippines In 2023

A step-by-step guide to launching your laundry business in the philippines in 2023.

LAUNDRY BUSINESS – Here’s your comprehensive step-by-step guide to launching a profitable laundry business in the Philippines in 2023.

Are you considering the idea of starting a laundry business in the Philippines? Rest assured, we’re here to support you every step of the way! While setting up a laundry business may present its own set of difficulties, we’re ready to guide you. In fact, we’ve assembled an exclusive, tailor-made guide just for you. Our guide encompasses all the essential information necessary to kickstart your laundry business in the Philippines, covering ideal locations, financial considerations, and invaluable tips.

But before delving into this treasure trove of information, let’s address the primary task at hand: creating a laundry business plan. Your plan serves as the foundation for estimating potential profits, understanding the associated expenses and risks, and more. So, grab a cup of coffee, relax, and let’s embark on the journey of establishing your thriving laundry enterprise in the Philippines!

Starting A Laundry Business In The Philippines

1. your laundry business plan.

Initiating a laundry business in the Philippines may come with its own set of challenges, but with careful planning and thorough research, it can also yield highly rewarding results.

To ensure your success, it is crucial to outline the range of services you intend to offer in your initial business blueprint. This should include any additional services such as pickup and delivery or wash-and-fold services.

Typically, laundry shop owners aim to cater to a diverse clientele, including busy professionals, apartment residents, and students living in dormitories. Regardless of your target audience, conducting comprehensive market research to gauge the demand for your laundry services in your chosen market is essential.

So, how can you differentiate your business in a competitive environment? By offering a unique value proposition! Consider introducing distinctive services, creating a comfortable customer waiting area, implementing loyalty programs, or providing convenient delivery options.

A common question that often arises is the financial commitment required to launch a laundry business in the Philippines. While a rough estimate of approximately 900,000 PHP is typically needed to cover expenses like equipment, marketing, staffing, rent, and a contingency budget, the exact cost will depend on your specific circumstances.

For example, establishing a home-based laundry business will require significantly less capital compared to opening a physical storefront in a prime location. Regardless of your chosen business model, it is crucial to focus on key areas such as:

  • Competition
  • Target market
  • Financial summary
  • Growth analysis
  • Marketing plan
  • Market research

2. Selecting the Perfect Location for Your Laundry Business

Following the completion of your laundry business plan, the next critical step is securing an optimal location. It’s imperative to factor in the accessibility of your chosen site for your target audience. For example, a location in close proximity to apartment complexes is an excellent choice when initiating a laundry business in the Philippines, as not everyone has access to a washing machine at home.

However, it’s crucial to avoid setting up shop too close to your competitors. If the rental costs at your desired location are prohibitive, don’t worry; alternative options like opening a pickup station, especially if you’re running a home-based laundry business, can be explored. Just ensure that the space is at least 25 square meters and has a dependable water supply free from any minerals that could harm your laundry process.

Operating from home can result in significant savings, ranging from 20,000 to 80,000 PHP per month in rental expenses, allowing you to allocate more resources to expand your business.

3. Renovation and Equipment: Setting Up Your Laundry Space

A reliable water supply is absolutely essential for any laundry business. Hence, it’s crucial to ensure you have the appropriate plumbing system in place that can efficiently deliver and drain water. Additionally, proper ventilation should be installed for safety reasons.

For self-service laundry establishments, creating a comfortable waiting area for customers is essential. Renovating a location to include necessary systems and equipment may cost up to 200,000 PHP, covering expenses such as electrical wiring and specialized plumbing systems.

Investing in high-quality laundry equipment is equally important, as it can save you time and energy in the long run. Opt for washing machines with ample capacities and adequately sized drums that can complete washing cycles swiftly. If you opt for a washing machine without an integrated dryer, consider acquiring a separate dryer with a built-in sensor for maintenance purposes.

It’s advisable to have machines that can operate for at least 5 hours daily. Washing machines for laundry shops can range in price from 20,000 PHP to 50,000 PHP. For self-service laundry outlets, machines with card or coin slots, or modern machines, may cost approximately 25,000 PHP to 50,000 PHP. Bulk orders might offer substantial cost savings.

Equipment packages, which include three sets of easily stackable washers and dryers, can cost 500,000 PHP or more. Companies like Laundry Setup PH offer comprehensive laundry business packages, and various retailers throughout the Philippines also provide setup and renovation services.

Additional services like steaming and ironing can be offered, with branded steamers typically costing around 3,500 PHP to 7,000 PHP, and irons ranging from 1,500 PHP to 6,000 PHP. These services are usually not included in the per-load rate, and customers may be willing to pay extra for them.

If your budget allows, investing in a dry cleaning machine could serve as an excellent strategy, potentially serving as a unique selling point. Certain services, such as dry cleaning, may experience seasonal demand, especially during prom and wedding seasons.

4. Business Permits And Licenses For A Laundry Business

Entrepreneurs embarking on a laundry business in the Philippines must navigate various legal and governmental requirements. Initially, business owners should register their laundry business with the Department of Trade and Industry for sole proprietorships, while joint ventures or corporations should register with the Securities and Exchange Commission.

Following this, obtaining a business permit from the municipal hall is essential. The cost of a Mayor’s Permit may exceed 10,000 PHP, which can add up to approximately 40,000 PHP. Once the permit is secured, it must be submitted alongside the business transaction form. Additionally, entrepreneurs need to obtain a Certificate of Registration and Tax Identification Number from the Bureau of Internal Revenue.

For laundry businesses with five or more employees, registration with PhilHealth and the Social Security System is mandatory. In the case of laundry business franchises, franchisors are responsible for business registration and granting permission to use their name. While managing these legal and governmental requirements may be time-consuming and costly, it’s vital to ensure that your laundry business operates legally and smoothly.

5. Find Employees For A Laundry Business In The Philippines

Establishing a laundry shop in the Philippines may necessitate hiring personnel to assist with day-to-day operations. While home-based laundry businesses may not require staff, larger laundry shops will require employees to ensure efficient customer service. An initial staffing arrangement might include a cashier, a customer service representative, and a driver.

Self-service laundry shops, on the other hand, can typically operate with just 1 to 2 employees during the initial months. However, it’s crucial to monitor demand and hire additional staff as needed in the long term.

Regarding employee compensation, in Metro Manila, the minimum salary for laundry shop staff is approximately 12,000 PHP per month, with benefits covering 25 working days. As your business expands, providing competitive compensation and benefits becomes crucial to retaining quality employees, as satisfied employees contribute to satisfied customers and overall business success.

6. Bills And Taxes For A Business In The Philippines

Taxation for laundry shops in the Philippines is contingent on their annual sales. Businesses with yearly sales below 1,500,000 PHP are subject to a percentage tax, typically ranging from 3% to 5% of their monthly income. Therefore, if your business falls within this bracket, be prepared to allocate a portion of your earnings for government taxes.

Conversely, if you establish a corporation for your laundry business, you’ll be subject to the standard corporate tax rate of 30%. In addition to taxes, you should also consider your monthly utility bills, which depend on the energy efficiency of your machines and your power consumption. A laundry shop with five to ten machines and an air conditioner might expect to pay around 20,000 PHP for electricity and 15,000 PHP for water monthly. Monitoring your utility usage can help control these expenses.

7. Making Your Laundry Business Successful

Operating a laundry business in the Philippines can be a challenging yet rewarding endeavor. In addition to the steps outlined earlier, effective marketing plays a pivotal role. It’s essential to inform people about your laundry business, the services you offer, and what sets you apart from competitors. Effective marketing goes beyond mere information; it aims to persuade potential customers to become regular patrons.

Once your business is effectively marketed, you should consider the “start, stop, and continue” stages. Starting involves analyzing your current situation and determining the most profitable course of action. Stopping entails discontinuing any activities that hinder your business’s growth. Continuing means strengthening your strengths and making progress.

In conclusion, while there are numerous challenges in operating a laundry business in the Philippines, it can prove to be a profitable and fulfilling venture. With dedication, hard work, and smart decision-making, your laundry business can thrive in no time. In a previous article, we shared seven (7) effective tips for drying clothes during the rainy season .

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Explore Exciting Opportunities

Explore the Best Laundry Shop Business Package in the Philippines

Dive into the thriving world of laundry business packages in the Philippines, where small neighborhood shops and larger chains cater to a diverse clientele.

From affordable handwashing for neighborhood clothes to managing bulk orders for hotels, it's a versatile industry. With relatively low startup costs, the laundry business in the Philippines offers an accessible opportunity for aspiring entrepreneurs.

Why a Laundry Shop is the Perfect Business Package for You

laundromat business plan philippines

Considering a laundry business in the Philippines? It's a smart entrepreneurial move! Laundry shops address a consistent demand from both residential and commercial customers. Regardless of economic conditions, people need laundry services, making this venture a reliable and lucrative choice for individuals looking to start their own business. 

Why a Laundry Shop is the Perfect Business Package for You

Effortless Convenience

Owning a laundry business in the Philippines is not just about clean clothes—it's a time-saving haven for both you and your customers. In the hustle of today's fast-paced world, where balancing work, family, and household tasks can be overwhelming, your laundry services become a source of convenience. By offering a solution that takes the load off their shoulders, you help customers reclaim precious time and alleviate daily stress.

Comprehensive Convenience

Comprehensive Convenience

Transform your laundry shop into a one-stop destination for unparalleled convenience. Numerous laundry shop business packages in the Philippines go beyond basic services, extending offerings to include dry cleaning, ironing, and alterations. Diversifying your services positions your business as a hub for all garment care needs.

Precision and Reliability

Precision and Reliability

Despite its apparent simplicity, laundry carries inherent risks of errors like shrinking, color bleeding, or fabric damage. Starting a laundry shop allows you to mitigate these risks by leveraging your expertise or hiring skilled staff knowledgeable in the nuances of garment care. Ensure precision and reliability in every wash, providing your customers with a service they can trust for impeccable results and the utmost care for their clothes.

Components of SUDS’ Laundry Shop Business Package in the Philippines

Why a Laundry Shop is the Perfect Business Package for You

From cutting-edge equipment to comprehensive training, our package is crafted for success. Explore the essential components that set our franchise apart in the lucrative world of laundry business ventures.

Suds Trademark and Logo

Suds Trademark and Logo

As a part of our business package, you gain access to the reputable SUDS trademark and logo. The SUDS brand is associated with quality and reliability, attracting customers and setting you apart from the competition.

Marketing Manual and Materials

Marketing Manual and Materials

Our franchise includes a marketing manual and materials that guide you in promoting your laundry business in the Philippines effectively. You'll have access to proven marketing strategies, advertising materials, and branding guidelines to help you attract and retain customers in your local market.

Comprehensive Training Program

Comprehensive Training Program

We at SUDS understand that the key to success lies in knowledge and expertise. That's why our business package includes a comprehensive training program. You and your staff will receive in-depth training on laundry processes, customer service, equipment operation, and more.

Continuous Support

Continuous Support

Your journey with SUDS doesn't end with the training program. Our laundry business package in the Philippines includes continuous support from the SUDS team. Whether you have questions, encounter challenges, or need guidance on expanding your laundry business, we will assist you every step of the way.

Operations Manual

Operations Manual

SUDS provides a comprehensive operations manual outlining best practices for managing your business. This manual covers everything from equipment maintenance to inventory management, ensuring that your laundry business in the Philippines runs smoothly and efficiently.

How to Get Started with SUDS’ Laundry Business Package in the Philippines

How to Get Started with SUDS’ Laundry Business Package in the Philippines

Prepare to launch your entrepreneurial journey in the lucrative laundry industry with SUDS’ laundry shop business package in the Philippines. Dive into our step-by-step guide, providing you with a clear roadmap as you take the exciting first steps toward building a successful laundry business.

Step-by-Step Guide to Launching Your Laundry Business in the Philippines

Initial Consultation

Initial Consultation

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Begin by discussing your goals and aspirations to determine if franchising aligns with your vision.

Submission of Paperwork

Submission of Paperwork

If interested, submit the required paperwork to initiate the franchising process.

Franchise Agreement Review

Franchise Agreement Review

Ensure a thorough understanding of the franchise agreement before finalizing the commitment.

Market Research and Location Selection

Market Research and Location Selection

Utilize market research to identify the optimal location for your laundry shop.

Comprehensive Training

Comprehensive Training

Receive hands-on training covering all aspects of running a successful laundry business for you and your staff.

Shop Setup Assistance

Shop Setup Assistance

Benefit from guidance in setting up your shop, and adhering to brand standards in equipment, layout, and more.

Ongoing Owner Support

Ongoing Owner Support

As the new owner, enjoy continuous support, with readily available assistance and guidance for a seamless operation.

Customer Service Excellence

Customer Service Excellence

Implement brand standards for outstanding customer service with the help of manuals and expert advice.

Continuous Growth Partnershipl

Continuous Growth Partnership

Collaborate every step of the way, aiming for the growth and success of your business through a supportive partnership.

Understanding Your Investment

In this section, we break down the costs, giving you a straightforward view of your investment. Understand where your capital goes, laying the foundation for your successful laundry business.

Franchise Fee

Franchise Fee

This covers the rights to use the SUDS brand and business model. It can range from a few hundred thousand to a million pesos.

Equipment and Setup

Equipment and Setup

The cost of laundry equipment, renovation, and shop setup can vary significantly. It may range from several hundred thousand to a few million pesos.

Operating Capital

Operating Capital

You'll need working capital to cover operational expenses like staff salaries, utilities, and initial marketing efforts. This amount can vary but should be budgeted accordingly.

Training and Licensing

Training and Licensing

Budget for training expenses, licenses, and permits required to operate a laundry business in the Philippines.

Marketing and Promotion

Marketing and Promotion

Allocate funds for marketing materials and promotional activities to launch your business successfully.

Payment Options and Financing Solutions

This section outlines our flexible payment options and financing solutions. Discover the ease and convenience of bringing your laundry business aspirations to life with tailored financial arrangements.

Upfront Payment

Upfront Payment

You can pay the franchise fee and other initial costs upfront using your savings or investment capital.

Bank Financing

Bank Financing

Explore financing options offered by banks and financial institutions in the Philippines to cover the initial investment. Many banks provide business loans specifically designed for franchise opportunities.

Personal Savings or Investment

Personal Savings or Investment

Use your savings or investment funds to finance the business.

Partnership or Investors

Partnership or Investors

You may partner with investors or seek additional funding from partners who share your vision and can contribute to the required capital.

Select Region Ilocos Region (Region I) Cagayan Valley (Region II) Central Luzon (Region III) NCR -National Capital Region Region IV-A -Calabarzon Region IV-B -MIMAROPA Region V -Bicol Region VI -Western Visayas Region VII -Central Visayas Region VIII -Eastern Visayas Region IX -Zamboanga Peninsula Region X -Northern Mindanao Region XI -Davao Region XII -SOCCSKSARGEN Region XIII -Caraga BARMM -Bangsamoro Autonomous Region in Muslim Mindanao

Inquire about  SUDS’ Laundry Shop Business Packages in the Philippines!

Begin your path to entrepreneurial success with SUDS Franchise by completing our inquiry form today. Don't let the opportunity slip away; take the first step now to turn your entrepreneurial dreams into reality!

Testimonial from Franchise Clients

laundromat business plan philippines

Learn how SUDS has enabled our franchise clients to realize their entrepreneurial dreams, offering support, technology, and a trusted brand to guide them every step of the way.

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CS Laundry

Laundromat Business Plan

Laundry business plan philippines.

Most investors might consider laundry franchise when they planned to venture into laundry business. What if there is a new option? A laundry business without required to pay royalty fee to franchisor? Introducing U-OWN-IT™ laundry business plan. 

Starting a laundromat business

No experience needed.   CS Laundry System provides a comprehensive one-stop  solution ~ U-OWN-IT™ to help you set up your coin laundry  business. We understand that every business has different needs and our knowledgeable team will work closely with you to design your very own laundry shop from advice of your location, renovation, shop design, leasing, to gas licensing, chemical suppliers and many more.

The laundromat business is 100% yours

Full control over the operations of your business. 100% profit 100% yours. CS Laundry System   with over 25  years of expertise, will drive you towards 100% profitability, and  provide you with unparalleled after-sales support.  The best thing is, no royalty fee is required to pay  CS Laundry System, because this is not a franchise.

Why Speed Queen machines?

Speed Queen’s reliable reputation is backed up by robust equipment, able to withstand harsh environments, and demanding usage along with a two-year warranty. Do you prefer a long-lasting machines or a cheap but short lifespan machines?

Talk to our specialist now. Request a DIY laundry business quotation here.

Speed Queen Vended Tumble Dryers

Speed queen extractors, speed queen tumble dryers, speed queen vended front load washers.

  • Choosing a selection results in a full page refresh.
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SELF-SERVICE LAUNDRY BUSINESS

Not franchise.

No royalty fee is required

Full Business Ownership

100% yours and 100% profit

Satisfaction Guarantees

All new machines CS Laundry System sells are 100% new, NOT REFURBISHED.

REQUEST FOR QUOTATION

Diy laundry business.

• The minimum capital required per laundry shop is PHP 1 million.

• We're not offering a franchise opportunity. No royalty fee is required.

COIN WASHER EXTRACTOR

  • Made: By Alliance Laundry System
  • Model: SCG030 (Stainless Steel Front Panel)
  • Capacity: 14kg
  • Control: Quantum Malaysia Coin
  • Finishing: Chrome door
  • Heating: No Heating
  • Voltage: 230/50/1

SPEED QUEEN 

Coin stack tumble dryer.

  • Model: SGT030 (Stainless Steel Front Panel)
  • Capacity: 14kg + 14kg
  • Control: MDC Malaysia Coin
  • Heating: LP Gas
  • Model: SGT030 Reversing Drum
  • Why Use Reversing Drum Dryers?
  • Quicker dry.
  • Prevents rolling your big items (i.e. comforter, etc.) into a sausage.
  • Minimizes tangling and wrinkling.
  • Uses less energy

QUANTUM TOUCH

  • Latest version
  • Model: Midas SSG030 & SSG 050

ONE-STOP COMMERCIAL LAUNDRY SOLUTION

The a-z know-how for you to own a new laundry business, guiding you from plan to profit, 1. get a free quote.

Submit your FREE online quote request to us and our friendly team will be in touch with you to help you customise your very own U-OWN-IT laundry business plan that best suits your needs.

2. FREE Consultation & Showroom Tour

Our dedicated team at CS Laundry System provides FREE consultation and personalised showroom tour to help you decide and choose the right premium Speed Queen equipment for your business.

3. Location & Design

We understand that every business has different needs and our knowledgeable team will work closely with you to design your very own U-OWN-IT plan from advice of your location, renovation, shop design, leasing, to gas licensing, chemical suppliers and many more.

4. Installation & Product Training

Our professional one-stop installation service guarantees a smooth start to your laundry operation. Our technical and installation teams will oversee every step of your equipment set-up.

Once your equipment has been selected, installed, and thoroughly tested, our team will provide training, ensuring you understand the practical usage of the machinery, and feel comfortable with the new equipment, maximizing ongoing performance and results.

5. Customer Care & Support Services

We make it our top priority to respond to your call and resolve the problem in the shortest possible time frame. Regardless it's a minor issue or a major problem.

Our specialist staff are only a phone call away and have the know-how to tackle any issue that arises in your business.

No Experience Needed

• Build your own coin laundry business with zero  knowledge.

• CS Laundry System provides a comprehensive one-stop  solution-U-OWN-IT to help you set up your coin laundry  business.

100% Ownership

• 100% yours and 100% profit.

• Freedom and flexibility in making all your business decisions.

• Full control over the operations of your business.

Premium Quality Equipment

• We offer the most durable equipment, designed to last on-site  for you.

• Speed Queen’s reliable reputation is backed up by robust  equipment, able to withstand harsh environments, and  demanding usage along with a two-year warranty.

Strong Business Support

• You are starting your own business with a strong foundation  behind you with U-OWN-IT.

• An experienced team from CS Laundry System with over 25  years of expertise, will drive you towards 100% profitability, and  provide you with unparalleled after-sales support.

REQUEST FOR QUOTATION NOW

*NEW STOCKS *NEW TECH

Commercial laundry machines  supplier, pony form finisher, pony utility press, sea-lion washer extractor, renzacci dry cleaning machine, jensen feeder, domus washer extractor, jensen folder, jensen towel folder, jensen flatwork ironer, lapauw flatwork ironer, our portfolio.

Many hotels and hospitals are our customers that testify the trust and confidence that are placed upon us since 1996

BUY SPEED QUEEN FROM THE OFFICIAL DISTRIBUTOR CS LAUNDRY SYSTEM

We're a public listed company in Malaysia (BCMALL 0187)

DEVELOPED > 1600+ LAUNDROMATS IN M'SIA. NOW HAPPENING IN PHILIPPINES!

Attend breakdown complaint within 48 hours, service by expert with 30 years experience, 2-year genuine parts warranty.

DID YOU KNOW?

If purchase SPEED QUEEN machines from a non-authorized seller, you're purchasing at your own risk, and those products are not valid for genuine warranty & support.

COMMERCIAL LAUNDRY PREVENTATIVE MAINTENANCE & REPAIR

On-site inspection/troubleshooting and quotation of replacement parts will be provided ASAP.

Finalize with PO & payment in order to solve the problem on time.

We'll listen to customer's requirement and propose a solution inclusive labour and transport fee. 

Shaw Blvd corner L. Gonzalez Street and 29 De Agosto Street Baranggay Hagdan Bato, 1552, Libis Mandaluyong City.

(0927) 776 7892

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Laundromat Business Plan Template

Written by Dave Lavinsky

Laundromat Business Plan

You’ve come to the right place to create your laundromat business plan.

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.

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.

laundromat business plan philippines

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 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:

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.

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:

Customer Segmentation

Jean’s Clean Laundromat will primarily target the following customer profiles:

  • Busy parents
  • 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.

Competitive Advantage

Jean’s Clean Laundromat will be able to offer the following advantages over their competition:

  • 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.

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.

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.

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.

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

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, balance sheet, cash flow statement, 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:

  • How to Start a 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.

Laundromat Business Plan Template

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Laundromat Business Plan Template

Written by Dave Lavinsky

Laundromat Business Plan Template

Over the past 20+ years, we have helped over 5,000 entrepreneurs and laundromat owners create business plans to start and grow their laundry businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a business plan template step-by-step so you can create your plan today.

Download our Ultimate Laundromat Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your laundromat business as it stands today, and lays out your business growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes research to support your business plans.

Why You Need a Business Plan

sample business plan

Source of Funding for Laundromats

With regard to funding, the main sources of funding for a laundromat are bank loans and angel investors. With regards to bank loans, banks will want to review your laundromat business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a laundromat is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a laundromat as they tend to focus on modern technology companies with quick and explosive growth potential.

Finish Your Business Plan Today!

How to write a laundromat business plan.

Your own business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your laundromat business plan, but it is normally the last section you write because it provides a summary of each key component of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of laundromat services business you are operating and the status; for example, are you a startup, do you have a laundromat that you would like to grow, or are you operating a chain of laundromats.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the laundry industry. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your laundromat marketing plan. Identify the key members of your team. And offer an overview of your financial and sales forecast.  

Company Analysis

laundry equipment

For example, you might operate a traditional laundromat in which you offer coin-operated washers and dryers. Or, you might (also) offer fluff and fold laundry services in which your staff washes and folds your customers’ laundry. This wash and fold service could also include home/office pickup and delivery. Be sure to explore all dry cleaning and laundry services that could be of benefit to your target demographic.

In addition to explaining the type of laundromat you operate, the Company Analysis section of your laundry shop business plan needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales forecasts, goals you’ve reached, new store openings, etc.
  • Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the laundry business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the laundromat industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards fluff & fold, it would be helpful to ensure your plan calls for offering such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your laundry shop business plan:

  • How big is the laundry industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s future growth over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

entrepreneurs in the laundry business

The following are examples of customer segments: college students, sports enthusiasts, soccer moms, techies, teens, baby boomers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of laundromat you operate. Clearly, baby boomers would want a different atmosphere, pricing, and product options, and would respond to different marketing promotions than teens.

Try to break out your target customer base in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most laundromats primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers. For example, middle-class households may value clean laundry above all else, while upper-class households may value convenience most of all.

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Competitive Analysis

In this section, you should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other laundromats.

Indirect competitors are other options that customers have to purchase from you that aren’t direct competitors. This includes laundry machines/dryers in consumers’ homes or living environments (e.g., in college dorms). You need to mention such competition to show you understand that not everyone who needs their clothing washed frequents a laundromat.

With regards to direct competition, you want to detail the other laundromats with which you compete. Most likely, your direct competitors will be laundromats located close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of clientele do they serve?
  • What laundry services do they offer (self-serve laundry, wash & fold, dry cleaning, etc.)?
  • What are their business hours?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to stand outside your competitors’ locations and ask customers as they leave what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior laundry services?
  • Will you provide additional services that your competitors don’t offer?
  • Will you make it easier or faster for customers to acquire the services offered?
  • Will you offer any additional amenities such as a coffee bar or free wi-fi access?
  • Will you provide better customer service?
  • Will you offer better pricing?
  • Will you offer more payment options suitable for your customer base?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

swot analysis to determine your advantage

Product : in the product section, you should reiterate the type of business that you documented in your Company Analysis. Then, detail the specific laundromat services you will be offering. For example, in addition to washing and drying machines, will you offer fluff & fold, dry cleaning, etc.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the services you offer and their prices.

Place : Place refers to the location of your laundry business. Document your strategic locations and mention how each location will impact your success. For example, is your business located next to a heavily populated office building, or gym, etc.? Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to offer fluff & fold services, detail the geographic area you will serve.

Promotions : the final part is the promotions section. Here you will document how you will create awareness and drive potential customers to your location(s). You might consider the following strategies to help promote your laundromat services:

  • Making your storefront extra appealing to attract passing customers
  • Marketing on social media platforms
  • Marketing in local papers and magazines
  • Local radio advertising
  • Banner ads at local venues

Operations Plan

While the earlier sections of your laundromat business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your business such as serving customers, procuring supplies, keeping the store clean, maintaining laundry equipment, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your X,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.  

Management Team

To demonstrate your ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a business.

Ideally, you and/or your team members have direct experience in the laundromat business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in laundromats and/or successfully running retail and small businesses.  

Financial Plan

wash and fold

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per day or 200? And will your sales strategy help you grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheet : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your new laundromat, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key startup costs:

  • Location build-out including design fees, construction, etc.
  • Start-up expenses if starting a new business
  • Cost of laundry equipment like washers and dryers
  • Cost of fixtures like folding tables, laundry carts, vending machines, counters, and lighting
  • Cost of supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Putting together a new business plan for your business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the industry, your competition, and your customers. You will have developed a marketing strategy and will really understand what it takes to launch and grow a successful laundromat.

To further help you, we have other articles on key aspects of how to start your laundromat and running it effectively. Specifically, our laundromat marketing plan will help you develop the best promotions strategy. Our laundromat startup costs post will let you know what costs to expect.

Laundromat Business Plan FAQs

What is the easiest way to complete my laundromat business plan.

Growthink's Ultimate Laundromat Business Plan Template allows you to quickly and easily complete a business plan for your laundromat.

Where Can I Download a Laundromat Business Plan PDF?

You can download our sample laundromat business plan here . This is a business plan template you can use in PDF format.

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Laundromat Business Plan

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Universal Laundromat

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

Many urban residents lack access to in-home laundry facilities, and existing laundromats may not provide a pleasant, efficient environment for customers. Additionally, environmentally conscious customers are seeking sustainable laundry options that minimize water and energy waste.

Universal Laundromat provides a clean, modern, and comfortable space equipped with energy-efficient washing machines and dryers. We strive to create a welcoming atmosphere with customer-focused amenities, while also promoting environmentally friendly practices.

It’s been shown that the best method of advertising is through word-of-mouth. No major newspaper ad campaign is planned. However, we shall run weekly specials. In addition, we shall have an incentive program for referrals. Those customers who refer someone else to the store will be rewarded with two free washes, and the referee will receive an introductory gift of a free wash. In addition, we will ensure a clean environment, reliable machines, and friendly, prompt services.

Competition

Universal Laundromat would like to set itself apart from other laundromats that may offer only one or two services. Although the focus of Universal Laundromat is a washing and drying service, we do wish to offer our clients the convenience of these other services in one location. Those services include folding and potentially pick-up/delivery service, as well as online reservation and membership for pick-up and delivery. Most importantly, it’s our convenience that sets us apart from the competition.

Universal Laundromat is a full-service coin-op laundry (washing, drying, and optional folding) service dedicated to consistently providing high customer satisfaction by rendering reliable machines and furnishing a clean, enjoyable atmosphere at a competitive price/value relationship.

Expectations

It is very important to note that the minimum monthly amount of loan payback should decrease as principal decreases. Furthermore, the profit projected in the table is after all expenses and monthly loan payback have been subtracted. All net profit will then be paid as an additional sum to greatly shorten the term of the loan.

Financial Highlights by Year

Financing needed.

Currently, Mr. Mihn Doung owns a small permanent shop in 7th Berryessa Flea Market selling power tools every weekend. That store brings in approximately $4,500/month on average in revenue. The profit averages out to approximately $2,500/month. Considering the potentiality in the coin-op laundromat industry, he’d like to take on further challenges by starting another venture.

To achieve this objective, Universal Laundromat is seeking $150,000 in additional loan financing. This loan will be paid by the cash flow from both the shop at the Flea Market and the laundry business, and will be collateralized by the assets of the business and steady income it brings along with an initial $75,000 down payment, and backed by the character, experience, and personal guarantees of the owner.

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Problem & solution, problem worth solving.

Every person needs clean clothes. Not every family can afford a washer and dryer or laundry soap. 

Our Solution

Our Mission : To provide convenient, clean, and friendly laundry service.

Our Motto : "Professional, convenient, friendly service and competitive pricing"

Target Market

Market size & segments.

Universal Laundromat’s target market is every household that needs laundromat services within the immediate area of east San Jose. There is no market segmentation strategy associated with this potential market. The Market Analysis table indicates the estimated number of potential customers and their growth rate.

Current Alternatives

Our advantages.

Universal Laundromat would like to set itself apart from other laundromats that may offer only one or two services. Although the focus of Universal Laundromat is a washing and drying service, we do wish to offer our clients the convenience of these other services in one location. Those services include folding and potentially pick-up/delivery service, as well as online reservation and membership for pick-up and delivery. Most importantly, it’s our convenience that sets us apart from the competition.

Keys to Success

The keys to success in our business are:

  • Location : the potential business is to be located in a nice small shopping center of a poor to lower-middle class, ethnically Mexican neighborhood, where it’s the closest and most convenient place to get services. In addition, there are two apartment complexes located nearby. In addition to being the sole laundromat in this neighborhood and surrounded by residences, there is no potential for a competitor.
  • Convenience : offering clients services ranging from full-service washing and drying to optional folding, and extended business hours.
  • Environment : providing an environment conducive to giving clean, friendly, and professional service.
  • Reputation : long-term reputation resulting from friendly, professional service will encourage customers to return.

Marketing & Sales

Marketing plan, locations & facilities.

The laundromat is located in San Jose, California. It will utilize 1,500 square feet. The location is strategically situated on one of the busiest streets in East San Jose. More specifically, it’s located in a small attractive shopping center next to the poor to lower-middle class homes; therefore, there is NO possible competitor (after very careful examining). In addition, there are two apartment complexes located nearby. Surrounding it, there is a Mexican neighborhood whose residents get most of their services and needed goods in this plaza where the laundromat is located.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

  • # of reviews we receive, we shall especially pay attention to the locals
  • # of people who walk in verse make a point of calling to see if we are in 
  • the cost of running the machines

Ownership & Structure

The business is managed by the owner, who has extensive leadership and management skills as well as an innovative and creative character. Unlike most laundromat businesses, Universal Laundromat will have an on-site staff person(Maintenance/Cashier) dedicated not only to store and machine maintenance but who also acts as a cashier to the retail business within the laundromat. As part of the management philosophy, this Maintenance/Cashier person will be carefully evaluated for friendliness, professionalism, efficiency, and honesty. The salaries are shown in the personnel plan table. As Mr. Mihn Duong already has a steady income from his power tool shop, his salary will be less than what would be expected if this was his sole source of income.

Management Team

Minh Duong is an ambitious, hardworking, philosophical leader and businessman. He has extensive business experience, and knowledge in various fields including retail sales, service and the Internet industry. Over the years, he has started various small businesses ranging from offline retail sales of a wide variety of products and services to online hosting services. He has extensive leadership skills as he had been elected to be President of five different clubs in High School. In college, Minh had founded two organizations at the University of California, Berkeley. In addition, he had also been elected to various leadership roles such as President and Vice-president of three different large organizations with membership over 500 members. School-wide, Minh had been fortunate to be elected by the student body of the university to be a Senator in the student government. During his term of office, he headed the Finance Committee that dealt with over $500,000 in student fund allocation. Moreover, he also headed the Student Affairs Committee as well as the Computing Facilities of the student government. Realizing his service and efficiency, fellow senators elected him to the board of directors of the Berkeley Student Foundation, the largest scholarship foundation for minority students sponsored by the Associated Students of the University of California. There, Minh dealt with the decision process of fund allocations to top high school minority students throughout the country. In the business world, Minh currently owns a permanent Flea Market Power Tools Shop at the Berryessa Flea Market in San Jose, CA. He is also the President/CEO of a small start-up Internet company providing business solutions to other businesses. He is currently working with five other colleagues at his college on that business. In academia, he is currently working with Professor Bradford Delong, a former Bill Clinton’s Foreign Policy Advisor Committee member, as a Research Assistant on  a book titled,  A Time Series of Changes Due to Globalization . Independently, he is currently working on a research paper titled, "Is Chinese Reform Sustainable? Is It Different?"

Minh is currently a fifth year Pre-med, Pre-MBA student with a triple major in Economics, Mathematics, and Statistics. He is currently 22 years old. He came to the U.S. on Nov. 7, 1990 from Viet Nam. After finishing his college education, he plans to achieve an MBA from Harvard Business School and an MD from John Hopkins Medical School.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Key Assumptions: 

  • People need and appreciate clean clothes 
  • People will be willing to pay 20 dollars to have someone help with the wash and fold 
  • Not everyone can afford a washer and dryer
  • Those who can’t afford them still need somewhere to do clothes. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We estimate $30K in startup expenses, which are mainly location fix-up, some signage, some legal. 

We estimate $40,000 in purchasing assets including the appliances, some furniture and fixtures. 

Sources of Funds

Mr. Duong will invest $80,000 of savings. He will also have $8,000 in accounts payable, left over from some assets purchased. The plan includes a 10-year SBA guaranteed loan for $75,000. 

If all goes according to plan, he will be able to pay off the SBA loan early, in the third year. However, that detail is not included in the plan. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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laundromat business plan philippines

laundromat business plan philippines

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  • 15 Laundry Promotion Ideas In The Philippines To Boost Revenue (With Tips & Examples)

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By   Yesh Quijano

November 18, 2023

The Philippines’ laundry business industry is very competitive which makes finding innovative ways to increase revenue in your laundry business crucial.

From loyalty programs to seasonal deals, the right promotional strategies can significantly enhance your bottom line.

laundry business promotion ideas for Filipinos

In this article, we’ll explore 15 creative ideas that some of the most successful laundromats have implemented and answer this burning question: How can your laundry business stand out from the rest?

Key Takeaways

Tailored loyalty programs foster repeat business and customer loyalty.

Seasonal promotions can attract new customers during peak laundry periods.

Innovative marketing tactics set your laundry services apart in a crowded market.

15 Laundry Marketing Strategies For 2024 & Beyond

Grand opening celebration.

New laundromat owner? Create a buzz and get people talking with a grand opening celebration.

While you can technically only do this once, it’s not just about the initial splash—it’s the ripple effect that keeps customers coming back long after the celebration ends.

Set the stage with vibrant decorations, local music, and maybe even a ribbon-cutting ceremony to mark the occasion. Offer discounts or free services for the first 50 customers to build immediate interest.

You can also engage with the community by involving nearby businesses, perhaps through collaborative coupons or shared promotions. Spread the word with eye-catching flyers and social media announcements.

Maintain Brand Consistency

Brand consistency is what small business owners often don’t have which prevents them from taking their laundry shop to the next level.

To create a positive impression and build trust, ensure your brand image is consistent across all platforms. This includes your website, social media accounts, and physical storefront. A strong brand identity will help your laundry business stand out in the laundry industry.

Example: If your brand colors are blue and yellow, make sure that those colors are consistent in your social media pages, signage, logos, and even laundry bags. Additionally, make sure your business description is consistent across social media platforms, fliers, and signages.

Leverage Curb Appeal

Curb appeal plays a crucial role in attracting more foot traffic to your laundromat. Invest in eye-catching exterior design elements, such as clean windows, updated signage, and well-maintained landscaping. This will create a positive impression on both potential and existing customers.

Pro Tip: Instruct your employees to keep the shop clean at all times. Including sweeping, re-arranging baskets, etc., at the end the end of the workday as part of their job responsibilities.

Reward Honest Reviews On Your Facebook Page

Encourage your loyal customers to leave honest reviews on your Facebook page. This helps build your business’s online reputation and credibility. Respond promptly to customer inquiries and show appreciation for their feedback.

Pro Tip: Incentivize your satisfied customers by implementing discounts in exchange for an honest Facebook review.

Leverage The Power Of Social Media Platforms

facebook can help market your laundry shop

Social media platforms like Instagram and TikTok are powerful marketing tools for small businesses like yours and should be given serious consideration.

Create engaging social media posts to promote your laundromat and reach more potential customers. Utilize social media contests and giveaways to encourage audience participation and increase brand visibility.

Give Freebies, Rewards, And Giveaways

Offer free laundry day or free wash periodically to attract more customers and boost foot traffic. This promotional strategy not only benefits your existing customers but also helps you welcome new clients to your laundromat.

You can also offer promotional materials like a laundry bag and customers will generally be happy about this too.

Example: “Suds and Bubbles Laundromat” hosts a quarterly event called “Fresh Suds Sunday.” On this day, every customer receives their first 2 loads of laundry washed for free. This event is heavily advertised on social media, creating a buzz and attracting a crowd.

Not only do regular customers feel valued and more likely to return, but it also entices new customers to try out the laundry shop’s services. As a result, foot traffic increases, and many first-timers become repeat customers, boosting overall revenue.

Allow Customers To Book A Pickup And Delivery Service Online

pick up and delivery by motorcycle

Expand your laundry business by becoming a laundry pickup and delivery business too. Make it easy for customers to book these services online through your website or a mobile app. This convenience can help with customer retention and loyalty.

Example : Not everyone has prepaid load these days, so allow pick-up and delivery booking to be processed through Facebook Messenger instead.

Offer Contactless Delivery And Pickup Service

Prioritize safety and convenience by offering contactless delivery and pickup services. This feature appeals to customers who prefer minimal contact and it also showcases your laundromat’s adaptability to current trends.

Offer A Loyalty Program

a loyalty program is a common laundromat marketing tactic

Implement a loyalty program to reward your regular customers. This strategy encourages repeat business and builds a strong customer base. Loyal customers are more likely to recommend your laundromat to others, contributing to word-of-mouth marketing.

Example: Introduce a “Labada Points Program” , where customers earn 1 point for every 50 pesos spent. They can use these points in exchange for free washes or dry-cleaning services after reaching certain thresholds.

Give A Discount For Referrals

Motivate your current clients to recommend your services to their friends and family by rewarding them with discounts when their referrals result in new business. This strategy not only attracts new customers but also increases the loyalty of your existing clientèle.

Example: Customers who bring a friend would receive bonus points or free multiple loads, thereby enhancing the laundromat’s word-of-mouth reputation and customer loyalty.

Have A Special Promotion Day

Schedule special promotions or discounts on specific days, such as Free Wash Wednesdays , to keep customers engaged and encourage more foot traffic. These promotions create a sense of urgency that motivates customers to visit your laundromat.

Attend Community Events

Participate in local events, such as street fairs or fundraisers, to strengthen your connection to the community. Use these opportunities to showcase your laundromat and network with other local businesses.

Partner With Other Local Businesses Or University Organizations

Collaborate with local businesses and university organizations for mutual benefit. Offer special discounts or promotions to their members and employees, and in exchange, they can promote your laundromat to their network.

Use Search Engine Optimization (SEO) To Show Up On Google Maps

laundry shop in manila search results

Invest in digital marketing strategies, such as SEO, to improve your laundromat’s online presence. By ranking higher on Google Maps, you increase visibility and attract more customers to your business.

Word Of Mouth Marketing Still Works!

Never underestimate the power of word-of-mouth marketing. Incentivize satisfied customers to relay their good experiences to their friends and family by offering discounts or freebies. This organic form of promotion remains one of the most effective drivers of new business.

Other Promotion Ideas

These are what I would call indirect promotion ideas because they are not exactly marketing activities, but they help retain patrons and add new ones.

Upgrading your commercial laundry equipment. Although expensive, investing in higher-quality laundry equipment can enhance efficiency and attract customers who value superior service.

Running paid Google ads. Utilizing Google ads can target potential customers actively searching for laundry services, though it may require a significant effort to optimize.

Improving customer experience. Enhancing the overall customer experience can foster loyalty and positive word-of-mouth referrals, often without a hefty investment.

Deploying a team or a “sales force”. Creating a dedicated sales team can actively seek out new clients and partnerships, expanding the business’s reach. However, this can be tedious to implement.

Adding special service s that other local laundromats don’t have or do poorly.

On-boarding laundry experts or consultants to improve and refine your washing processes.

Managing a laundry shop involves weighing the pros and cons of various marketing strategies to stay competitive and profitable, so before you implement any strategy, make sure that they are in line with your overall advertising plan.

Why Offer Discounts and Promotions?

Offering discounts and promotions for your laundry business can help you attract potential customers and expand your customer base. By providing special offers, you are giving new customers an incentive to try your laundry services, while also rewarding loyal patrons for their continued patronage.

Offering incentives can make your laundromat business stand out from competitors, resulting in more customers choosing your laundromat over others.

Furthermore, discounts and promotions can be an effective marketing strategy to increase service usage during slower periods or give a boost to your overall revenue.

How to Implement Laundromat Promotions To Increase Revenue?

To implement discounts and promotions for your laundromat business, consider the following steps:

Identify your goals: Determine the main objectives for offering discounts. It could be attracting new customers, increasing repeat business, or promoting specific services such as wash and fold or dry cleaning.

Choose the right type of promotion:

Percentage discount: Offer a specific percentage off on your services, for example, 10% off on wash and fold.

Fixed discount: Offer a fixed amount off on your services, like P20 off on a specific day of the week.

Buy one, get one free: Encourage more service usage by advertising promotional pricing i.e., offering two services for the price of one during a promotional period.

Select the best time for the promotion: Choose the most suitable time to offer the discount, such as weekdays during off-peak hours or specific days when your laundromat is less busy.

Set a duration for the promotion: Decide the length of the promotional period, like a week-long promotion or a month-long offer. You can also choose to offer promotions on a recurring basis, such as every first Monday of the month.

Communicate your promotion effectively: Utilize various marketing channels like social media, email newsletters, and in-store signage to inform your existing and potential customers about the promotion.

Track the results: Keep a close eye on the effectiveness of your promotions. Measure the increase in sales, customer footfall, and loyalty to adjust future promotions accordingly.

Don’t let your business blend into the background!

Embracing these laundromat marketing strategies could be the thing you need to boost your laundry services’ revenue and define its long-term success. Pick a few ideas from our list, tailor them to your brand, and watch your revenue grow.

And if you’re still in the planning stages, you can check out our comprehensive guide on how to start a laundry shop business in The Philippines .

So, are you ready to spin the wheel of success?

Author Image

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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Laundromat Business Plan Sample

APR.21, 2018

Laundromat Business Plan Sample

Do You Want to Start Laundromat Business?

Are you planning how to start laundromat business ? This is an excellent business idea considering hygiene is a key component of every individual and society. As a matter of fact, everyone has to regularly wash their clothes and other household items to maintain good standards of hygiene. However, due to the pressures of modern life, people don’t have time to do their own laundry business plan. With this realization, laundry business plan is now a lucrative venture as it promises good profits if the right strategies are put in place. You can either choose to start big or small depending on availability of funds and your target market.

Executive Summary

2.1 the business.

The laundromat business plan will be registered under the name Cleanspot and will be situated in Newport, New Jersey. The laundromat will be owned by Samantha Clever who is a Laundry Specialist by profession.

2.2 Management Team

Samantha Clever who’s the owner of the laundromat is an experienced Laundry Specialist with extensive industry in the laundry business plan. Prior to starting laundromat business plan, Samantha had a successful career that spanned over two decades working for numerous top brands across the U.S.

2.3 Customer Focus

Clean spot business plan for laundromat plans to set up base in a strategic and busy location a high population in need of professional laundry cleaning services. Customers are expected to come from various social, cultural and religious backgrounds.

2.4 Business Target

Cleanspot intends to provide different types of laundry services business plan to residents of Newport and the wider Jersey City.

Laundromat Business Plan - 3 Years Profit Forecast

Company Summary

3.1 company owner.

Samantha Clever is an experienced laundry specialist who has enjoyed a successful career. She is credited and respected for playing a major role in helping to streamline activities and enhance better service delivery.

3.2 Aim of Starting the Business

After major successes in her career, Samantha realized how people are busy and don’t have time to do their laundry business plan. With the demand for professional laundry services increasing, she considered opening a laundromat business plan to meet a demand that was increasingly growing by the day.

3.3 How the Business will be Started

Considering her vast industry experience, Samantha Clever is well versed with the technical and operational procedures associated with a laundromat business plan. She however has engaged business development experts to help her come up with a comprehensive financial analysis for the business. Often ask yourself “how much money do i need to open a laundromat”? Below is the financial analysis for Cleanspot.

Laundromat Business Plan - Startup cost

Services for Customers

Cleanspot is keen on offering a wide variety of laundry services for various types of customers; both residential and commercial. In line with the vision of starting a laundromat business plan that effectively meets customer expectations, the laundromat business plan intends to provide the following services.

  • Self-service washing services for customers
  • Dry cleaning services to cater for various items
  • Ironing and folding of clothes and various fabrics
  • Snack and coffee bar to provide refreshments for customers

Marketing Analysis of Laundromat Business

For the laundry machine for business plan to effectively penetrate the market and provide good services, a detailed market analysis was carried out. The aim of the analysis is to find out how to best implement this laundromat business plan in order to effectively reach out to potential customers.

The business has carefully studied the market, identified the opportunities and formulated a marketing strategy for driving success. More and more people are turning to professional laundry business plan providers for key services creating lucrative business opportunities.

5.1 Market Segmentation

Everybody is in need of laundry services business plan and for this reason, Cleanspot intends to serve a wide range of customers. Newport is a vibrant city with a huge population which offers a ready market for the business. Since the business is located in a busy street, there are numerous opportunities to explore. How to start a laundromat business plan has identified the following customer segments.

Laundromat Business Plan - Market Segmentation

5.1.1 Corporate Executives

Because of their busy lifestyles, the working class doesn’t have ample time do their own laundry. Alternatively, they need a well-equipped and modern laundry facility to do their laundry. Given the fact they earn an income, they’re a lucrative customer segment for Cleanspot because they are expected to generate the highest income revenue for the business. Laundromat business model intends to fully embrace technology and the highest standards of professionalism to attract working class professionals.

5.1.2 Middle Class Households

Households belonging to the middle class category regularly need professional laundry services. In this regard, a good number of customers seeking laundry services from Cleanspot will be come from many middle income households in the neighborhood. In most cases, a lot of laundry is done for households and therefore, the business intends to set up in a large, spacious and welcoming environment to boost revenue.

5.1.3 Business Owners

Just like residential customers, businesses too are in need of regular laundry cleaning services. In this laundromat business model , entrepreneurs have been identified as a lucrative customer segment with potential to generate impressive revenue for the business. In order to focus on key services, business owners opt to outsource their laundry needs to professionals.

5.1.4 Visitors

Newport and Jersey City receive several visitors both on holiday and business trips. Cleanspot hopes to tap into this market by offering quality self-laundry services to visitors looking for a good facility within the neighborhood.

5.1.5 Sport Clubs

Due to engaging in sports activities, sports gear gets dirty and therefore, needs to be cleaned. With numerous sports clubs around Newport, the business hopes to leverage on this revenue opportunity.

5.2 Business Target

Cleanspot plans to setup in superb and strategic location with access to a huge population in need of expert laundry business plan services. Using modern technology and best customer service practices, Cleanspot hopes to implement this laundromat business plan sample to achieve its goals. The business hopes to register an annual sales growth of between 15-20% in the first three years.

5.3 Product Pricing

Pricing of laundry business plan services will be done after extensive market research in order to come up with a competitive pricing structure.

Great service

Great service. Good turnaround time and quality work. Thanks!

In order to realize her goals, Samantha Clever has worked hand-in-hand with experts to formulate a sound marketing strategy for business plan that will drive business growth. The sales strategy for how to open Laundromat business  plan is explained below.

6.1 Competitive Analysis

Cleanspot plans to focus on rolling out a unique and topnotch service delivery package to ensure clients get the best value for their money. Even though there are other laundromat businesses, Cleanspot has identified areas to target in order to maximize revenue.

6.2 Sales Strategy

For Cleanspot to realize its goals, the following strategies have been identified to help the business gain market entry.

  • Organize a party to celebrate the opening of the Laundromat business plan in order to create awareness
  • Advertise Cleanspot on local media channels such as television, radio as well as local newspapers
  • Create a website for the business and maintain an active social media presence on major channels such as Facebook, Twitter and Instagram
  • Place signage and banners at strategic locations to let the public know about the business
  • Hire marketing experts to make the Laundromat a top choice for people looking for professional laundry services
  • Embrace direct mailing coupon marketing strategy
  • Maintain high standards of customer service to ensure all clients who visit the facility feel welcomed
  • Market the business using road shows around the neighborhood to create awareness about Cleanspot

6.3 Sales Forecast

In order to fully implement this laundromat business plan startup venture, a sales forecast is shown below to provide an insight into how the Cleanspot is expected to perform.

Laundromat Business Plan - Unit Sales

Personnel Plan

Cleanspot is focused on providing superb services in order to meet expectations. Before starting a business, it is important to ensure there is a good personnel plan in place. Laundromat business ideas should include conversations about staff structure and management.

7.1 Personnel Plan

The Laundromat business plan is owned by Samantha Clever who will also be the general manager of the business. The business intends to hire the following staff to work in the facility.

  • General Manager (Owner)
  • Assistant Manager
  • 2 Laundromat Assistants
  • 1 Snack Bar Attendant
  • 1 Marketing Executive
  • 1 Security Guard

Successful applicants will be trained in all aspects of the Laundromat to prepare them to serve customers.

7.2 Average Salaries

Cleanspot intends to pay its staff the following average annual salaries in the first three years of operation.

Financial Plan

Cleanspot has prepared a comprehensive financial plan that will show the financial status of a business and offer a path to success. How to start your own laundromat business plan  demands initial startup capital. In this case, Samantha Clever will use capital from her savings assisted by two investors. In addition, a bank loan for a business plan shall be secured to provide additional capital. Below is key financial data for Cleanspot Laundromat business plan.

8.1 Important Assumptions

Financial forecast for Cleanspot shall be based on the assumptions below.

8.2 Brake-even Analysis

Cleanspot Brake-even Analysis is indicated in the graph below.

Laundromat Business Plan - Brake-even Analysis

8.3 Projected Profit and Loss

Profit and Loss information for Cleanspot calculated on a monthly and annual basis is indicated below.

8.3.1 Monthly Profit

Laundromat Business Plan - PROFIT MONTHLY

8.3.2 Yearly Profit

Laundromat Business Plan - PROFIT YEARLY

8.3.3 Monthly Gross Margin

Laundromat Business Plan - GROSS MARGIN MONTHLY

8.3.4 Yearly Gross Margin

Profit and Loss Analysis for Cleanspot Laundromat business plan is shown below.

Laundromat Business Plan - GROSS MARGIN YEARLY

8.4 Projected Cash Flow

Below is a summary of pro forma cash flow, subtotal cash spent, subtotal cash spent on operations, subtotal cash from operations and subtotal cash received.

Laundromat Business Plan - Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

All tables in PDF

Cleanspot Business Ratios, Ratio Analysis and Business New Worth are indicated below.

Download Laundromat Business Plan Sample in pdf

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    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.

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    Laundromat Business Plan Template. Written by Dave Lavinsky. Over the past 20+ years, we have helped over 5,000 entrepreneurs and laundromat owners create business plans to start and grow their laundry businesses. On this page, we will first give you some background information with regards to the importance of business planning.

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    Solution Universal Laundromat provides a clean, modern, and comfortable space equipped with energy-efficient washing machines and dryers. We strive to create a welcoming atmosphere with customer-focused amenities, while also promoting environmentally friendly practices. Market

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    This will create a positive impression on both potential and existing customers. Pro Tip: Instruct your employees to keep the shop clean at all times. Including sweeping, re-arranging baskets, etc., at the end the end of the workday as part of their job responsibilities.

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    Blog Laundromat Business Plan Sample APR.21, 2018 Laundromat Business Plan Sample ( 20 votes, average: 4.70 out of 5) Article Business Plan Templates Services Business Plans Table of Content Do You Want to Start Laundromat Business? Are you planning how to start laundromat business?