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How to Run a Laundry and Dry Cleaning Business

How to Run a Laundry and Dry Cleaning Business

Learning how to start a laundry and dry cleaning business includes legal considerations, start-up costs, growth potential, typical target market, and day to day activities to consider. The company takes some responsibility from customers who have busy schedules. Those who succeed in this business enjoy doing laundry and making clothes nice for others.

They are detail-oriented, keep track of customer items, and ensure the things return to the customer excellently washed, cleaned, pressed and/or folded. The business requires working with many chemicals. Some of them are toxic. Laundry and dry cleaner owners are comfortable handling dirty laundry. Some of it is disgusting and smelly.

Day to Day Activities

The scheduling is a significant factor in the management of the business. Activities that occur daily include opening the store, keeping employees and public areas clean, and ensuring orders are ready on time. When a store processes dry cleaning or laundry on site, the owners need to make sure equipment operates correctly and to load dry cleaning and washers with extra clothes in need of cleaning to make progress for all customer orders.

Typical Target Market

Retail businesses rely on repeat customers from the local area. Offering subscription services is a suggestion that has the potential of increased profits. Anticipating possible allergic reactions by customers requires taking steps to prevent the occurrence.

There are concerns today about the traditional chemicals dry cleaners use. Some consumers express concern about the environmental impact of a full-service launderer. Using organic cleaning methods and compounds that are less harsh reduce the carbon footprint and have the potential of creating a preferred eco-laundry company.

How to Make Money

Charge for dry cleaned items by the piece and regular laundry by the pound. Additional charges apply for making repairs such as replacing missing buttons or fixing tears and removing stains. The competition in metropolitan areas is often intense. Many dry cleaning services attract customers by charging a dollar per piece for blouses and shirts. Charge premium prices for same-day delivery.

Growth Potential

One business model to learn is, how to start a laundry business from home. Use a retail space for drop-offs and pickups. Do all the cleaning and washing in your home. Having multiple locations supported by services performed at home is possible. The industry also has franchise opportunities. Start with one site and expand to add more.

Skills and Experience Needed to Build a Successful Business

Walk-in customers want friendly people who are careful with their items. Pay attention to detail. Look for damage or stains on the clothing and point them out to customers at the time of drop off. To have everything ready on time a tight schedule is necessary. Customers get cranky when the clothes are not ready and available when promised. The most vital skill is to be able to remove stains.

Costs Involved

Unless the operation is a laundry business from home, you need money for a lease deposit and first month’s rent. The going rate in high-traffic areas ranges from three to ten dollars per foot per month. Signage for the storefront makes the business visible to customers and comes at a cost.

Dry cleaning equipment, commercial washing machines, and a cash register are on the list of necessities. Plastic bags, coat hangers, and cleaning supplies are must-have items. A rotating, mechanical clothes rack that keeps clothing in order and ready for pickup is standard equipment for starting a laundry service. All of the equipment has a value of approximately $50,000.  Many business owners lease the equipment. Supplies run about $2000. To save more money, consider buying the washers with large capacity and low energy consumption such as this Electrolux Washer W5180H.

Miscellaneous Other Considerations

Nearly all businesses need a website to promote a business and attract customers. There are possible licenses and permits to purchase when operating the dry cleaning and laundry business. OSHA has a set of regulations to meet that are specific to laundry businesses. Insurance and structuring a business as an LLC (Limited Liability Company) protect you and your assets of the business is subject to a lawsuit.

Caroline is a writer with years of experience in business administration, who is passionate about startup business. She enjoys meeting new people and reading more books to get inspired for her own book. Her twitter, @BCarolinebird12.

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