laundry shop business plan pdf philippines

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  • Laundry Business Plan Philippines (Sample + PDF Template)

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By   Yesh Quijano

November 22, 2023

woman holding a business plan for laundry

Starting a laundry business can be a profitable venture, allowing you to become a successful entrepreneur in a recession-proof industry. Planning, preparation, and a strong business plan are essential to achieving success in this venture.

Key takeaways

A comprehensive laundry shop business plan in the Philippines must include a detailed market analysis, customer segmentation, and a clear competitive strategy.

Financial projections, funding requirements, and operational milestones are crucial for attracting investors and/or securing a business loan.

Your laundry business plan should offer a unique value proposition and a robust marketing strategy to stand out in the Philippine market.

Parts of A Business Plan For Laundry Shops

Executive summary.

executive summary

Whether you are considering a sole proprietorship or another form of business structure, this executive summary will provide you with a clear overview of the key components needed to create a solid foundation for your laundry business.

Here are some parts of a detailed executive summary:

First and foremost, it’s essential to identify your main objective. Are you planning to offer convenient, high-quality services, targeting busy professionals and families? Are you aiming to provide low-cost, efficient services to a diverse clientele? Or are you simply aiming to be the best service provider in your area?

Whatever your focus may be, understanding your target market and their needs will help you tailor your offerings and increase the likelihood of success.

Get a full business plan for your laundry shop for only PHP199 Buy Now

Your facility’s location will play a significant role in attracting your target customers, so choose a site with high foot traffic and easy access to public transportation. Additionally, it’s crucial to invest in durable, energy-efficient equipment to reduce utility expenses and extend the life of your machines.

Pricing Strategy

In a successful laundry business, having a well-thought-out pricing strategy is critical. Assess your target market and the level of competition in your area, then determine a pricing structure that strikes the right balance between affordability and profitability. Offering special promotions and loyalty programs can also help set you apart from the competition.

Marketing Plan

Marketing your business effectively is another crucial aspect of success. Utilize both digital and traditional marketing channels, including social media, local print and radio advertisements, and community events to raise awareness of your brand and services.

Consistently engaging your audience and fostering relationships with target customers will help establish your business as a trusted, go-to laundry service provider.

Standards of Hygiene & Customer Service

Lastly, keep in mind that it’s essential to maintain high standards of cleanliness and customer service. Your staff should be well-trained, friendly, and attentive to your customers’ needs. By providing a pleasant, efficient, and convenient experience, you can foster customer loyalty and build a strong reputation within your community.

Company Overview

company overview

Your laundry shop business plan should cover a general description of your brand, its history, and a summary of services. Below is a sample Company Overview:

Who is Labada Luxe’s Clean Laundry Shop?

Labada Luxe’s Clean Laundry Shop is a premier laundry business offering top-notch services to cater to your laundry needs. By choosing to start your own laundry business with Labada Luxe, you’re investing in a proven system and a brand that represents quality and customer satisfaction.

With an unwavering dedication to cleanliness and customer service, you can trust Labada Luxe to provide a reliable, efficient, and professional solution for your laundry requirements.

Labada Luxe Laundry Shop History

The journey of Labada Luxe began with a simple mission: to provide a convenient, affordable, and quality laundry experience. Over the years, the business has expanded and fine-tuned its operations, perfecting the art of managing a successful laundry business.

Today, Labada Luxe Laundry Shop stands as a proud symbol of innovation and customer satisfaction in the laundry industry. Your choice to venture into the world of laundry with Labada Luxe is a decision backed by extensive experience, strong support, and a loyal customer base.

Labada Luxe Laundry Services

laundry shop services

Labada Luxe offers a range of laundry services to cater to various customer preferences. The services include:

Wash and Fold: A standard service for everyday laundry needs, ensuring your clothes are clean, fresh, and neatly folded.

Dry Cleaning Services: Treating delicate and specialty garments with extra care to maintain their condition and appearance.

Commercial Laundry: Catering to the needs of businesses and large-scale customers, such as hotels and restaurants, by providing professional-grade laundry services.

With Labada Luxe’s Clean Laundry Shop, your laundry business is backed by a comprehensive range of services, a solid reputation, and a history of success. Embrace the opportunity to be part of an exceptional brand with a bright future.

Industry Analysis

In the laundry shop business, understanding the industry is crucial for creating a successful business plan. As a service provider, you must be knowledgeable about the market, competition, and customer preferences.

Growth Factors

The laundry industry’s growth is driven by various factors, including increased urbanization, busy lifestyles, and the need for convenience. These factors contribute to a higher demand for efficient and professional laundry services.

Technology advancements also play a role in shaping the industry, with new equipment and software solutions emerging to streamline the laundry process.

Services & Service Provider Types

To excel in the laundry business, focus on offering high-quality services that cater to a wide range of clients, such as busy professionals, families, and students. Keep track of industry trends, consumer preferences, and potential opportunities to stay ahead of the competition.

Be aware of the different types of laundry service providers in the market. Some may specialize in particular niches such as eco-friendly cleaning, while others focus on a specific kind of clientele or offer additional services like ironing and folding. Identifying your target audience and tailoring your services will give you a competitive edge.

laundry shop equipment

When it comes to choosing the right equipment for your laundry shop, efficiency and durability are essential factors to consider. Investing in high-quality, energy-efficient washers and dryers, or self-service machines will not only save you money in the long run but also appeal to environmentally conscious customers.

Customer Analysis

Demographic profile of target market.

In developing your laundry business plan, it’s crucial to analyze your target market’s demographic profile. Focus on working professionals, as they typically have a higher disposable income and are more likely to require laundry services due to their busy schedules.

Consider factors such as age, income, and household size in determining your target demographic. For example, younger professionals in their 20s and 30s may have different laundry necessities than those in their 40s and 50s. Additionally, the number of people in a household may affect the volume of laundry generated.

Customer Segmentation

Once you’ve identified your target demographic, segment your customer base to better tailor your services. Here are two groups to consider:

Working Professionals : These individuals have demanding jobs and minimal time to spend on chores like laundry. Offer services that cater to their needs, such as pick-up and delivery options, quick turnaround times, and convenient payment methods.

Families : Although not everyone falls into this category, households with multiple members might require larger capacities for laundry services. Offer family packages, discounts, or promotions to attract this customer segment.

Competitive Analysis

When starting your laundry business, understanding your direct and indirect competitors is essential for success. Analyzing the market will give you insights to shape your own business strategy and differentiate yourself from your competitors.

laundry shop analysis

Direct Competitors

Direct competitors are other laundromats in your area. Begin by researching their services, prices, and unique selling points. Visit their facilities to get a feel for the cleanliness, wait times, and customer interactions, which will help you determine your advantages.

Look for unmet needs in the market that your laundry can address, such as extended opening hours or eco-friendly washers and dryers. To keep track of your competitors, consider creating a table with the following information:

Competitor Services Prices Unique Selling Points Example

Indirect Competitors

Indirect competitors include washing and folding services, dry cleaners, and even charitable organizations that offer laundry services for low-income or homeless individuals. Assess the services they provide and think of ways your business can complement or outshine them.

For example, offer pickup and delivery services for a fee or collaborate with a nearby dry cleaner to provide a one-stop shop for customers.

Building strong competitive advantages over your rivals is of utmost importance. You could differentiate your laundry business by investing in state-of-the-art equipment and technology, such as mobile apps for booking, monitoring machine usage, and making payments.

Additionally, consider offering loyalty programs that reward your customers for choosing your services, or special discounts during off-peak hours to make your business stand out.

Brand & Value Proposition

In starting your laundry business, it’s essential to have a clear brand and a strong value proposition. Your brand should be easily recognizable and reflect the quality of service you provide. A well-defined value proposition sets you apart from competitors and attracts customers.

One effective marketing strategy to establish your brand is to create a logo and use it consistently across various platforms, such as signage, promotional materials, and social media. Additionally, investing in professional photography can greatly enhance the visual appeal of your promotional content.

laundry shop logo

Focus on promoting your unique selling points, such as competitive pricing, fast turnaround times, eco-friendly practices, delivery, or superior customer service. This will ensure that your target audience appreciates the distinct benefits of choosing your laundry business.

Promotions Strategy

To expand your reach and attract customers, consider implementing various marketing strategies. A combination of online and offline promotions can maximize the impact of your efforts.

Here are a few marketing strategy ideas to consider:

Develop a user-friendly website to showcase your services and facilitate easy booking for patrons.

Utilize social media platforms, such as Facebook and Instagram, to reach your target audience and share updates and special offers.

Offer incentives like discounts and referral programs to encourage customer loyalty and word-of-mouth advertising.

In addition to online marketing , don’t forget traditional offline methods. Running a major newspaper ad campaign, for example, is a powerful way to reach a local audience. Depending on your target market, you might also consider:

Distributing flyers and brochures in high-traffic areas.

Partnering with local businesses and residential complexes to offer special deals and increase your visibility.

Sponsoring community events to strengthen your brand’s presence and connect with potential customers.

Operations Plan

Operation functions.

Your laundry business’s success will be based on a well-defined Operations Plan . As you create your plan, focus on the business model you’ll be following. Laundromats require less manpower but may need frequent maintenance checks.

laundry attendants

To effectively run a self-service laundromat, prioritize these operations functions:

Location selection: Find an ideal place near residential areas or places with high foot traffic. Ensure the location provides an enjoyable atmosphere.

Equipment and maintenance: Invest in high-quality machines and ensure they operate smoothly.

Hygiene and safety: Regularly clean the premises and establish health and safety protocols.

Workforce: Hire competent and laundry attendants.

Set achievable milestones to help your laundry business grow:

Research phase: Understand the market, competition, and potential customers.

Business setup: Create your business plan, secure funding, and select the location.

Procurement and installation: Buy and install the laundry equipment.

Promotion and opening: Plan a grand opening event and promote your business through various channels.

Financial Plan

As you start your laundry business, it’s important to have a solid financial plan. This will not only set you up for success but also help you make informed decisions as you navigate the journey of entrepreneurship.

woman planning finances

Key Revenue & Costs

Your main source of revenue will be from your laundry services. This can be broken down into various categories, such as:

Washing and drying : Charging customers for the use of your machines.

Pick-up and delivery : Offering convenient options for busy customers.

Additional services : Ironing, folding, and dry-cleaning.

Your business expenses can be categorized as follows:

Startup costs : These include licensing, permits, and equipment purchases.

Operational costs : Rent, utilities, and payroll for employees.

Maintenance and repair : Keeping your machines in top condition is crucial to the success of your business.

Consider conducting market research to determine the best pricing strategy for your services, keeping in mind your competition and target market.

Budget Requirements and Use of Funds

When starting your laundry business, it’s vital to determine how much funding you’ll need. Break down your use of funds into categories like equipment, renovations, and working capital. This will help you determine how much of your own capital you require, and whether a business loan or investment might be necessary.

Financial Projections

Create a detailed financial forecast for the first few years of your business. This should include monthly projections for revenue, expenses, and profits. Your financial projections will serve as a roadmap for reaching your goals and can be adjusted as your business evolves.

Income Statement

Prepare an income statement outlining your expected revenues, cost of goods sold (COGS), gross profit, and operating expenses. This will allow you to track the profitability of your business and make informed decisions regarding expansion or cost control.

Balance Sheet

A balance sheet is essential for tracking the assets, liabilities, and owner’s equity of your business. By regularly updating your balance sheet, you’ll have a clear understanding of your business’s financial position and can make necessary adjustments as needed.

Cash Flow Statement

Your cash flow statement will detail all cash inflows and outflows, helping you monitor your business’s liquidity. This is crucial for ensuring you have enough funds to cover operating expenses and any unexpected costs.

Laundry Business Plan FAQs

What is a laundry business plan.

A laundromat business plan is a comprehensive document that outlines your goals, strategies, financial projections, and action plans for starting and operating a successful laundry service. This document serves as a roadmap, guiding you through each decision and providing a clear understanding of your enterprise model.

Crafting a well-thought-out plan helps you identify potential challenges and opportunities, ensuring a more efficient use of resources and a higher likelihood of success.

What are the Main Types of Laundry Businesses?

There are several types of laundry businesses that you can consider for your venture:

Self-service laundromats: Customers use coin-operated machines to wash and dry their own laundry.

Full-service laundries: You offer washing, drying, and folding services on behalf of your customers, often charging per pound or load.

Dry cleaners: These businesses focus on cleaning delicate fabrics and garments using specialized cleaning methods and chemicals.

Mobile laundry services: Customers schedule pickups and deliveries through an online platform or phone, and you provide convenient services by collecting, washing, and returning their laundry.

How Do You Get Funding for Your Laundry Business Plan?

To secure funding for your laundry business, you will need to present a solid business plan that demonstrates the viability and potential profitability of your venture. Potential funding sources include:

Personal savings: Using your own money can be the fastest and easiest option.

Bank loans: Apply for a loan from a bank or credit union. Be prepared to provide detailed financial statements and a strong credit history.

Investors: Seek out individuals or firms that may be interested in investing in your business in exchange for equity or debt.

What are the Steps To Start a Laundry Business?

We have a full guide here on how to start your own laundry service. Or you can visit our laundry shop category for more information.

Where can I get a Laundry Business Plan PDF Template?

Want to have your own business plan? We offer affordable business plan templates for laundry services! Check out this link to get your own laundromat business plan template for only PHP199.

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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Laundry Business Philippines 2024: How To Start, Capital, Profit (Plus, Tips To Succeed)

Laundry Business Philippines 2024: 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.

laundry business philippines 1

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.

laundry business philippines 2

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

laundry business philippines 3

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)

laundry business philippines 4

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

laundry business philippines 5

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

laundry business philippines 6

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?

laundry business philippines 7

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

laundry business philippines 8

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

laundry business philippines 9

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

laundry business philippines 10

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

laundry business philippines 11

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.

  • LG. (2021). Optimize Water and Energy Usage in Laundry Machines. Retrieved 21 May 2022, from https://danamark.com/resources/improving-water-footprint-laundry-machines/
  • Laundry Business Seminar. Retrieved 21 May 2022, from https://www.maytagcommercial.com.ph/whirlpool-laundry-seminar
  • Suds Laundry & Dryclean. Retrieved 21 May 2022, from http://philippinefranchise.com/suds-laundry-dryclean/
  • Dr. Spin Launderette Lounge. Retrieved 21 May 2022, from http://philippinefranchise.com/dr-spin-launderette-lounge/
  • Tiny Bubbles Self Service Laundry. Retrieved 21 May 2022, from http://philippinefranchise.com/tiny-bubbles-self-service-laundry/
  • 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 May 3, 2024 11:35 AM

laundry shop business plan pdf philippines

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

Cebuano

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.

laundry shop business plan pdf 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!

laundry shop business plan pdf 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.

laundry shop business plan pdf 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.

laundry shop business plan pdf philippines

Join 17,829 Others & Get Secret Tips

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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The Definite Business Plan for a Laundry Business [PDF]

laundry shop business plan pdf 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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Starting A Laundry Business Plan (PDF)

Laundry Business Plan

Setting up a laundry services business is a very profitable venture. Most people work long hours and do not have time to do certain chores such as laundry thus, setting up this kind of business is lucrative. As the middle class grows together with their disposable income, the demand for dry cleaning services and laundry services will continue increasing in the coming years. As many countries continue to develop with the urban population increasing, the demand for convenient services such as dry cleaners and laundromats will continue to rise. Nowadays, both spouses work and there are a few stay at homes parents and many people pay someone to do their home chores such as laundry or make use of laundromats. This article will outline how to set up a laundry services business as well as the laundry services business plan – PDF, Word and Excel.

If you want to set up a successful laundry business there are some important factors you need to consider. First you need to decide on the type of laundry services you need to offer, your target market and your location. The type of laundromat you set up will be based on the amount of capital you are willing to invest in the business.  It is also crucial to research the market as well as the industry before you set up your business and have a good business plan for laundry services.

Location & Premises

The location and premises of your laundry business is essential because the success or failure of your business depends on it. Therefore, when choosing a location for your laundry services business consider where your target market is, the amount of road and foot traffic, as well as how accessible your facilities will be. Consider setting up your laundry services at a popular shopping centre, a mall, or somewhere close to your target market. It is also important to consider how the surrounding area will affect your business. You do not want to set up your business in a saturated place where there are a lot of similar services. Also consider the size of your premises and make sure that they are large enough for your machines, dryers and can accommodate your customers without them crowding. Parking space is also essential when considering your premises. Your customers should not have hard time when it comes to parking space if they are to come to your laundromat. Your laundromat business plan should include the costs of purchasing or leasing the premises.

Permits/Licenses, Insurance & Business Bank Account

Permits or licenses.

Normally, a laundry business must have an operating or shop license. This is usually given by your respective local municipal authorities. In some cases this might not be necessary, especially if you are operating say, from your home. Business or company registration is necessary, especially if you want to be taken seriously. Proper registration will also make it easier to get bigger clients and to source funding if need be.

Insurance & Business Bank Account

Under normal circumstances you will be dealing with machinery. This implies that anything can go wrong any time. To prepare yourself for such scenarios you must insure your laundry business. After all, you will be dealing with people’s clothes. Insurance helps you to not bleed financially if unfortunate incidents occur. Open a business bank account to take note of, trace, and generally manage your laundry business finances. You would not want to be personally liable when things go south.

Machinery & Equipment For Laundry Services Business

For any business to run successfully it needs the right machinery & equipment. It is important to invest in quality washing machines, and dryers for example. If you are the kind of laundry service company that will travel to pick up and drop off laundry you will need to purchase a vehicle as well. Ensure that your business plan has a list of all the machines, equipment, detergents needed by your laundromat business. The kind of services you choose to provide will determine the kind of equipment and detergents you will need. The costs of purchasing the machines & equipment should be included in your laundry business plan.

Products And Services

You should have a clear picture of the kind of products and services you plan on offering. These products and services will be depend on your target market. Some of the popular services offered by other laundry service companies include washing,  drying, and dry cleaning of regular clothes , beddings, blankets, carpets and curtains to name a few. There are other laundromats that have complimentary services such as shoe repairs in addition to their laundry services plus there are others that also offer garment mending. It may be profitable to offer other complimentary services in addition to the regular laundry services. However, make sure that your services are profitable and are required by your target market. You can pick up and deliver laundry, provide a self-service laundromat, or offer dry cleaning services. Whatever services you decide to provide, your laundry services business plan should clearly outline them.

Competitive Analysis

Do market research to figure out where the market gaps are. This is because it would be ideal to find a location that is underserved or not served at all. If your intended target market has other laundry businesses close by then study them. The quest is to find out how you can differentiate your laundry business. Differentiators start off with choice of location, types of services, prices, and add-ons, amongst others. Learn from the competitor laundry businesses and capitalize on their shortcomings.

Staff & Management

Your staff members have a direct effect on how successful your laundromat business will be. As such, it is important to hire people that are experienced in this kind of business and who also love doing their jobs. You will need to hire cleaners, laundry attendants, and finance & operations staff who will assist you in running your business. The number of people you hire will depend on the size of your operations as well as the services you intend on offering. Make sure that your workers know how to safely use detergents, cleaning chemicals, laundry machinery and handle delicate materials. Laundry equipment and cleaning chemicals can be dangerous thus it is important to hire experienced staff.

It is important to set up procedures and processes to make your operations efficient and simple. Ensure that your laundry attendants know how different fabrics are treated, washed, and dried. Handling people’s clothes and other belongings needs special care if you want to run a successful laundry services business. Also adhering to industry safety regulations is crucial if you want your  business to be successful. Your laundromat business plan should have a clear description on who you will hire, your operational procedures as well as the salaries and  operational costs of your business.

Some of the day to day activities of a laundry services business include;

  • Washing and drying of clothes using washing machines, dryers and handwashing
  • Serving customers, taking and delivering orders,
  • Advertising and marketing
  • Cleaning the facilities

The market for laundry services is very large. With an increasing population and more people entering the workforce very few people have time to do their laundry. Students, working parents and other professionals have very busy lifestyles with limited time on their hands. As such, the demand for laundry services is very high. The demand for laundry services in institutions such as prisons, schools, universities, and hospitals is high. Many of these organisations would rather outsource their laundry needs than buy expensive washing machines and dryers. Not everyone can afford a washing machine so setting up a laundromat close to apartments or flats to serve individuals can also be profitable.

Given the increase in the number of working professionals, the need for laundry services is likely going to go up in the coming years thus, setting up a laundry services business is profitable. Before you venture in any kind of business developing a business plan is essential. That way you can determine whether your business idea is feasible or not. With a a good laundry business plan, you can outline the risks associated with your business, ways to minimise them, your operational and financial plan.

Keys To Profitability

Strive to score regular and bulk clients.

The laundry business is a game of numbers. The more clothing items you push, the more the revenue. The best way to easily achieve that is by getting regular and bulk clients. These are clients who normally need laundry done almost daily and in large quantities. Examples of such clients are health facilities, academic facilities, or hospitality facilities. Common examples of such are hospitals, schools, and hotels. Retainer arrangements with them would be great.

Provide Unbeatable Convenience

There are many ways you can do this. A good example is to offer cheap (or even free) pick-up and deliveries. The driving element in people wanting to get their laundry done is convenience. Often time clients have to walk in and drop their laundry. Then they come back later to get their clothes. Most people honestly do not enjoy or have time for that. You can step in to offer convenience by offering to do pick-ups and deliveries later on. You can charge a small almost negligible fee or you can offer these as free services. This is a good example of how you can score more clients. Ensuring the shortest possible turnaround is another way to provide convenience. This also means you must even strive to have a service where clients walk-in and wait for their clothes.

Quality Services Are The Master Key

People expect their clothes to be properly cleaned or washed. A sure way of retaining your customers is by making sure you produce quality every time. Your laundry business must be synonymous with guaranteed quality. Customers might not even be bothered if you are pricey. So long you insist on and ensure consistent quality, customer experiences will be top notch. Not only does that build customer loyalty but it generates word of mouth marketing. A quality-oriented laundry business promotes customer loyalty and drives customer acquisitions.

The laundry business wields vast business prospects in many areas around the world. There are still many places where laundry businesses are non-existent or sparsely available. Those are good indicators of why you should start the laundry business.

Pre-Written Laundry Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the laundry services business, we encourage you to purchase our well-researched and comprehensive laundry services business plan. We introduced the business plans after discovering that many were venturing into the laundry business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global laundry business plan will make it easier for you to launch and run your laundry services business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a laundry business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the laundry business.

Uses of the Laundry Business Plan (PDF, Word And Excel)

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

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

Contents of the Laundry Services Business Plan (PDF, Word And Excel)

The business plan for laundry includes, but not limited to:

  • Marketing Strategy
  • Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
  • Industry Analysis
  • Market Analysis
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some people in the laundry business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your laundry business

The laundry services business plan package consists of 4 files

  • Laundry Business Plan – PDF file (Comprehensive Version – 81 Pages)
  • Laundry Business Plan – Editable Word File (Comprehensive Version – 81 Pages)
  • Laundry Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 41 pages)
  • Laundry Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Laundry Services Business Plan (PDF)

laundry business plan pdf

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

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Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Get the Laundry Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

laundry services business proposal

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

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

We wish you the best in your laundry services business! Check out our collection of business plans  , and more business ideas .

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Starting a Laundry and Dry Cleaning Business in Philippines: A Comprehensive Guide

Aug 25, 2023 | Laundry Business

laundry shop business plan pdf philippines

In a tropical country where the weather can swing from sunny to rainy in a heartbeat, the demand for reliable laundry services is not just a luxury, but a necessity .

If you’ve ever contemplated diving into this lucrative venture, you’re in the right place. Starting a laundry and dry cleaning business in the Philippines is more than just washers and detergents.

It’s about understanding the heartbeat of the Filipino consumer, navigating the unique market dynamics, and setting up a venture that’s not only profitable but also resonates with the local community .

But where do you begin? How do you ensure that your laundry shop doesn’t just become another storefront but stands out as a beacon of quality and trustworthiness?

Whether you’re a budding entrepreneur or a seasoned business owner looking to expand, this guide is tailored to provide you with a comprehensive roadmap to success in the laundry industry of the Philippines.

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Understanding the Laundry Landscape in the Philippines

With its bustling streets, vibrant culture, and a population that values cleanliness and presentation, the Philippines has seen a steady rise in the demand for laundry and dry cleaning services.

Cities like Manila, Cebu, Davao, and Quezon City , with their dense populations and fast-paced lifestyles, have become hotspots for this industry.

In the heart of Manila, where corporate professionals rush to their offices and students hustle through their daily routines, the need for quick and eco-friendly laundry services is palpable.

Similarly, in cities like Cebu and Davao, with their mix of urban and coastal lifestyles, the demand varies but remains consistent.

Whether it’s the daily wear and tear, the aftermath of a beach outing, or the need to maintain traditional Filipino attire, the call for reliable laundry services echoes throughout.

However, diving into this industry requires more than just an understanding of how to remove stains. It’s about grasping the local market dynamics .

The Philippines, with its diverse regions and varied consumer preferences, offers a unique challenge to laundry business aspirants. Recognizing the preferences of a young professional in Manila might differ from those of a retiree in Davao is crucial.

It’s this intricate dance of local nuances and broader industry trends that can make or break a laundry venture in the archipelago.

So, if you’re considering stepping into this realm, it’s essential to not only be equipped with the right tools, Laundry Management Software and knowledge but also to have a deep understanding of the Philippine market pulse .

This guide aims to provide you with both, ensuring your laundry business doesn’t just operate but thrives in the Philippine setting.

Initial Research: Laying the Groundwork

Understanding the filipino consumer.

The Filipino consumer is a blend of tradition and modernity. In cities like Manila, Cebu, and Makati , there’s a growing middle class with increasing disposable income.

They value convenience, often opting for services that fit into their busy lifestyles. However, cultural considerations play a pivotal role.

Filipinos take pride in their appearance, and clean, well-maintained clothes are a reflection of personal pride and respect for others.

Understanding these nuances, from spending habits to the importance of family gatherings and festivals where traditional attire is paramount, is crucial for any laundry business.

Market Analysis

While the demand for laundry services is consistent, the market is not without its competitors. Major cities like Quezon City, Davao, and Pasig have seen a surge in both local laundromats and franchise operations.

Conducting a thorough target market analysis helps in identifying areas with fewer service providers or niches that are yet to be explored.

For instance, while many offer quick laundry services, there might be a gap in specialized care for traditional Filipino garments or eco-friendly cleaning services. Finding and Reach Your Target Audience

Legal Considerations

Starting a business in the Philippines requires navigating the legal landscape diligently. For a laundry venture, specific permits and licenses are mandatory.

Firstly, one needs to register the business with the Department of Trade and Industry (DTI) for sole proprietorships or the Securities and Exchange Commission (SEC) for corporations.

Local government units (LGUs) in cities like Manila, Taguig, or Cebu will have their own set of requirements, including business permits and sanitary permits.

Ensuring compliance not only keeps your operations smooth but also builds trust with your clientele, reinforcing the notion that they’re entrusting their garments to a legitimate and reliable service provider.

Embarking on this journey with a solid foundation of research ensures that your venture is not just another business but a solution tailored to the unique needs and preferences of the Filipino market.

Investment and Profitability: Crunching the Numbers

Estimating initial capital requirements.

Starting a laundry business in bustling cities like Manila, Cebu, or Davao requires a significant initial investment. The cost can vary based on choosing the location , size, and the type of services offered. Renting a space in prime areas of Manila might be pricier than in the outskirts of Cebu.

Additionally, the initial setup involves purchasing equipment, from high-efficiency commercial washers and dryers to ironing setups. Add to this the costs of utilities, initial inventory of detergents and fabric softeners, and interior setup to ensure a welcoming environment for customers.

As a ballpark figure, one might need to set aside anywhere from ₱500,000 to ₱2 million, depending on the scale and location of the venture.

Projected Revenue Streams and Break-even Analysis

Revenue in the laundry business comes primarily from regular washing and drying services. However, cities like Makati or Pasig , with a higher concentration of professionals, might see a demand for express services or specialized garment care, adding to the revenue streams. Complete Guide on Is the Laundry Business Profitable in Philippines ?

To determine the break-even point, one needs to consider monthly expenses, including rent, salaries, utilities, and supplies, against the projected income.

For a medium-sized laundromat in a city like Quezon City, breaking even might require serving 50-70 customers daily, depending on the pricing structure.

Understanding Profit Margins and Potential ROI

The profit margins in the laundry industry can be promising, especially when operations are streamlined and overhead costs are kept in check.

On average, the profit margin can range between 20% to 40%. With the right marketing strategies and customer retention efforts, especially in competitive areas like Manila or Taguig , the return on investment (ROI) can be realized within a year or two.

It’s essential to continuously monitor and adjust pricing, offer loyalty programs, and explore additional services to maximize profitability .

While the numbers are crucial, success in the laundry business, especially in the diverse landscape of the Philippines, also hinges on understanding local preferences, offering unparalleled service quality, and building lasting relationships with customers.

How to Start Laundry Business in Philippines?

Drafting a Laundry Business Plan: Charting the Path to Success

Defining your business model.

The Philippines, with its diverse urban landscapes from Manila’s bustling streets to Cebu’s laid-back vibes, offers varied opportunities for laundry business models .

You could opt for a self-service laundromat , where customers handle their own washing and drying, a popular choice among the younger, independent crowd in cities like Makati and Quezon City .

Alternatively, a full-service laundry caters to those seeking convenience, where they drop off their laundry and pick it up clean, dried, and folded.

For those looking to capture a broader audience, a hybrid model combines the best of both worlds, offering both self-service machines and full-service options. Guide on Boost Your Laundry Service with Streamlined Pick-Up & Delivery

Financial Projections

Once the business model is clear, it’s time to delve into the numbers. Start with estimating the monthly operational costs, including rent (which can be higher in prime locations like Manila or Davao ), salaries, utilities, and supplies.

Factor in the initial setup costs, especially if opting for high-end, energy-efficient machines. Projected revenue will depend on the chosen right laundry business model , pricing strategy, and customer volume.

For instance, a full-service laundry in Taguig might charge higher rates than a self-service laundromat in Pasig , but the latter might see more daily customers.

Risk Assessment

Every business venture comes with its set of Laundry Business Challenges . In the laundry industry, potential risks include machine breakdowns, inconsistent service quality, or even fluctuating customer demand during rainy seasons.

Cities like Manila and Cebu , with their unpredictable weather patterns, can see a surge in demand during monsoon months.

It’s essential to have mitigation strategies in place, such as regular equipment maintenance, staff training, and promotional offers during off-peak seasons to ensure consistent revenue flow.

A well-drafted laundry business plan doesn’t just serve as an operational guide but also as a roadmap to navigate the unique challenges and opportunities presented by the Philippine market.

With a clear vision, financial prudence, and a keen understanding of local dynamics, your laundry business is set to make a mark.

Equipment and Setup: Building the Backbone of Your Laundry Business

Choosing the right machinery.

In the heart of Manila , where time is often a luxury, or in the bustling lanes of Cebu and Davao , the efficiency of your machinery can set you apart. The choice of High-Efficiency Washing Machines is crucial. Front-loading machines, while pricier, are often more efficient and gentler on clothes.

Dryers, especially in the humid climate of cities like Taguig or Pasig , need to be top-notch, ensuring quick drying without fabric damage.

And for those offering full-service options, a professional ironing setup is indispensable, ensuring crisp clothes that resonate with the Filipino emphasis on neat presentation.

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Layout Considerations

The layout of your laundry shop, especially in space-constrained cities like Manila or Quezon City , can significantly impact workflow efficiency.

Ensure there’s a clear demarcation between the washing, drying, and ironing areas. For self-service laundromats, easy access to machines, with clear instructions, is crucial.

A well-thought-out layout not only maximizes space utilization but also enhances the customer experience, ensuring they navigate the shop with ease and leave with a positive impression.

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Crafting a Marketing Plan: Making Your Laundry Business Shine

Branding: creating a memorable brand identity.

In the bustling streets of Manila or the vibrant neighborhoods of Cebu , standing out is crucial. Your brand is more than just a logo or a catchy name; it’s the promise you make to your customers.

Whether it’s the assurance of eco-friendly washing in Davao or express services in Makati , your brand identity should resonate with the local audience’s needs and aspirations.

Colors, design, and even the tone of communication play a pivotal role in making your laundry business memorable and relatable.

Digital Marketing Strategies

The digital landscape in the Philippines is vibrant. With a significant portion of the population active on platforms like Facebook, Instagram, and Twitter, especially in metro cities like Quezon City and Taguig , social media marketing is indispensable.

Regular posts, customer testimonials , and even laundry tips can engage the audience and drive footfall. Additionally, optimizing your business for search engines (SEO) ensures that when someone in Pasig searches for “best laundry service near me,” your business pops up.

Don’t forget local online directories, a go-to for many Filipinos seeking services in their vicinity.

Let’s delve into the various digital marketing methods and explore how they can be implemented to elevate your laundry business:

Laundry App Development: Invest in developing a user-friendly mobile app that allows customers to schedule pickups, track orders, and make payments seamlessly. A well-designed app enhances customer convenience and fosters loyalty.

SEO for Laundry Keywords: Implement effective SEO strategies to increase your website’s visibility in search engine results pages (SERPs).

Target laundry-related keywords with high search volume to ensure your business appears at the top of search results when potential customers are looking for laundry services online. Find 14 Must-Know SEO Ranking Strategies

Google Ads Pay-Per-Click (PPC) Advertising: Supplement your organic search efforts with paid advertising campaigns on search engines like Google.

With Google Ad PPC advertising, you can target specific demographics, geographic locations, and search queries to reach potential customers at the right moment. Hire Certified Google ads PPC Specialist

Social Media Marketing for Laundry Businesses : Leverage popular social media platforms such as Facebook, Instagram, and Twitter to engage with your audience, share valuable content, and showcase your brand’s personality. Social media marketing humanizes your brand and fosters meaningful connections with customers.

Content Marketing : Create informative and engaging content such as blog posts, articles, and videos that address common laundry-related questions and pain points.

Content marketing establishes your authority in the industry, builds trust with your audience, and drives organic traffic to your website.

Email Marketing : Build and nurture relationships with your audience through targeted email marketing campaigns. Send personalized offers, promotions, and updates to subscribers to keep them engaged and encourage repeat business.

By implementing these digital marketing methods effectively, you can enhance your online presence, attract more customers, and drive sustainable growth for your laundry business.

Stay tuned as we explore additional digital marketing strategies for reaching your business goals in the digital age.

Traditional Marketing

While the digital realm offers vast opportunities, traditional marketing still holds sway, especially in local neighborhoods. Flyers, distributed in right locations like apartment complexes in Manila or commercial hubs in Cebu , can attract immediate attention.

Local partnerships, like collaborating with nearby cafes or gyms, can offer mutual promotional opportunities. Engaging with the community, sponsoring local events, or even hosting laundry workshops can position your business as a local stalwart, deeply embedded in the community’s fabric.

Choosing the Right Location: The Cornerstone of Your Laundry Business

Factors to consider.

Location can make or break your laundry business, especially in bustling cities like Manila, Cebu, or Davao . Key factors to consider include:

  • Foot Traffic: Areas with high pedestrian activity, such as near universities in Quezon City or business hubs in Makati , can guarantee a steady flow of potential customers.
  • Accessibility: Is the location easily reachable by public transport? In cities like Manila , where traffic can be intense, proximity to major roads or transport hubs can be a boon.
  • Competition: While being in a popular area like Taguig might seem appealing, it’s essential to gauge the competition. Too many laundry shops in close proximity might split the customer base.
  • Rent Costs: Prime locations come with a price. Balancing rent costs with potential revenue is crucial. Sometimes, a slightly offbeat location with lower rent but good marketing can yield better profits.

Visibility and Convenience for Customers

While the interior of your laundry shop matters, its exterior visibility plays a pivotal role in attracting walk-ins. A clear signboard, well-lit exteriors, and even an inviting storefront can make a difference.

Moreover, offering conveniences like parking, especially in crowded areas of Cebu or Davao , can enhance the customer experience.

Remember, for many Filipinos, especially in the metro cities, time is of the essence. Choosing a right location for Your Laundry Business that offers easy in-and-out access can be a significant draw. Research, Analyze, and Prepare Your Target Audience

Evaluating Potential Locations

Before finalizing a spot, it’s wise to spend time evaluating multiple locations. For instance, a location in Manila’s business district might offer excellent foot traffic but come with high rent and competition.

In contrast, a residential area in Pasig might have lower foot traffic but offer a loyal customer base with minimal competition. Weighing the pros and cons, considering future growth, and even seeking feedback from locals can offer invaluable insights.

In the dynamic landscape of the Philippines, where every city and neighborhood offers its unique flavor, choosing the right location requires a blend of research, intuition, and a deep understanding of the local pulse.

Laundry Industry Trends and Future Outlook: Navigating the Waves of Change

Emerging technologies and their impact.

Technology is reshaping industries worldwide, and the laundry sector in the Philippines is no exception. In bustling cities like Manila and Cebu , the rise of smart laundromats equipped with IoT-enabled machines allows customers to monitor their laundry remotely.

Mobile apps that offer laundry pick-up and delivery services are gaining traction, especially among the tech-savvy youth in places like Makati and Quezon City .

These digital integrations not only enhance customer experience but also streamline operations, paving the way for a more efficient and connected laundry industry.

Sustainability Trends: Eco-friendly Practices and Their Appeal

With growing global awareness about sustainability, eco-friendly laundry services are becoming more than just a trend in cities like Davao and Taguig .

The use of biodegradable detergents, water-saving machines, and solar-powered setups resonate with the environmentally-conscious Filipino consumer.

Offering such green services not only reduces the environmental footprint but also serves as a unique selling proposition, setting businesses apart in a competitive market.

The Evolving Preferences of Filipino Consumers

The Filipino consumer is evolving, driven by exposure to global trends and a rising middle class, especially in metro cities. While convenience remains paramount, there’s a growing emphasis on personalized services.

Tailored laundry packages, specialized care for different fabrics, and even fragrance customization are becoming popular. Moreover, with the rise of online reviews and social media, transparency and customer engagement are more crucial than ever.

A laundry business in the Philippines that listens to its customers, adapts to their changing preferences, and consistently delivers quality will undoubtedly thrive in the years to come.

As the waves of change sweep the laundry industry in the Philippines, staying abreast of trends, embracing innovation, and maintaining a keen ear to the ground will ensure that businesses not only survive but flourish in this dynamic landscape.

Running a Successful Laundry Business in the Philippines: Beyond the Spin Cycle

Operational best practices and efficiency tips.

In cities like Manila and Cebu , where the pace of life is rapid, operational efficiency is paramount. Implementing a digital booking system can reduce wait times and enhance customer experience.

Regular maintenance checks, especially in humid cities like Davao , can prevent machine breakdowns and ensure consistent service quality.

It’s also essential to stay updated with local water quality, adjusting detergents and cleaning agents accordingly. This not only ensures optimal cleaning but also prolongs the life of your machines.

Hiring and Training: The Human Touch

While machines do the cleaning, it’s the human touch that defines the customer experience. Hiring staff with a service mindset is crucial, especially in hospitality-driven cities like Taguig or Makati .

Once onboarded, regular training sessions on machine operations, customer interactions, and even understanding fabric types can make a significant difference.

Remember, a well-trained staff not only ensures smooth operations but also becomes the face of your brand, building trust and loyalty among customers.

Inventory Management: The Backbone of Operations

Running out of detergent on a busy day can be a nightmare for any laundry business, especially in bustling areas of Quezon City or Pasig .

Implementing an efficient inventory management system, possibly digital, can offer real-time insights into stock levels, usage patterns, and even predict when you might run out of essentials.

Regularly reviewing this data can also offer insights into customer preferences, allowing for better service customization.

Opinion: In my experience, running a successful laundry business in the Philippines goes beyond machines and detergents. It’s about understanding the local pulse, adapting to the laundry business challenges of each city, and consistently delivering quality.

Whether it’s the fast-paced life of Manila or the relaxed vibes of Cebu , the essence remains the same: offering impeccable service with a touch of Filipino warmth and hospitality.

In this industry, it’s the small details, the extra mile, and the genuine smiles that transform a one-time customer into a loyal patron.

Expanding Your Services

In the ever-evolving urban landscapes of cities like Manila , Cebu , and Davao , diversifying services can be the key to staying ahead. Here’s how:

Introducing Add-on Services

While washing and drying are the core, add-on services can significantly enhance revenue and customer loyalty. Offering professional ironing services, especially in business hubs like Makati , can cater to the professionals always on the move.

Specialized stain removal, given the diverse Filipino cuisine that can sometimes leave its mark on clothing, can be a game-changer. Additionally, fabric care services, such as delicate washing for silks or woollens, can cater to the discerning clientele in upscale areas like Taguig .

Collaborating with Local Businesses

Strategic collaborations can open doors to a broader customer base. Partnering with hotels in tourist-heavy cities like Cebu or Boracay can ensure a steady flow of laundry, especially during peak seasons.

Gyms, especially in health-conscious areas of Quezon City , can offer opportunities for handling sportswear laundry. Even tie-ups with local cafes, where customers can enjoy a cuppa while waiting for their laundry, can enhance the overall service experience.

Opinion: In my years of observing the laundry landscape in the Philippines, I’ve realized that success isn’t just about cleaning clothes; it’s about understanding the pulse of the Filipino consumer.

In cities like Manila or Davao , where life is a blend of tradition and modernity, a laundry business that offers a mix of conventional and contemporary services stands out. It’s about recognizing the local nuances, the unique needs of each city, and crafting services that resonate.

Whether it’s the fast-paced life of a professional in Makati or the laid-back vibes of a beachgoer in Boracay , tailoring services to fit these diverse lifestyles can transform a laundry shop into a community staple.

Conclusion: Charting the Path to Laundry Success in the Philippines

In the dynamic world of the laundry business in the Philippines, success hinges on adaptability and a keen understanding of industry trends. From the bustling streets of Manila to the serene shores of Cebu , the Filipino consumer’s needs are ever-evolving.

Whether it’s leveraging the latest technologies, adopting eco-friendly practices, or expanding service offerings, staying updated is paramount.

But beyond machinery and marketing, it’s the feedback from the heart of the community that truly matters. Embracing feedback, both positive and constructive, paves the way for continuous improvement and growth.

As we’ve journeyed through the intricacies of setting up and running a successful laundry business in the Philippines, one thing stands clear: it’s a blend of operational excellence, strategic marketing, and deep-rooted community engagement that crafts a successful venture.

Frequently Asked Questions

Why is location crucial for a laundry business in the philippines.

Location impacts foot traffic, accessibility, and competition. In bustling cities like Manila or Cebu, a strategic location ensures visibility, convenience, and a steady flow of customers.

How can technology benefit my laundry business?

Emerging technologies, especially in cities like Makati, offer digital booking, IoT-enabled machines, and mobile apps for pick-up and delivery, enhancing efficiency and customer experience.

What are the benefits of eco-friendly laundry practices?

Eco-friendly practices appeal to environmentally-conscious Filipinos, reduce environmental impact, and can serve as a unique selling proposition, especially in cities like Davao.

How can I diversify my laundry services?

Introduce add-ons like ironing or stain removal. Collaborate with local businesses like hotels or gyms, especially in tourist-heavy cities like Cebu.

Why is branding important for my laundry shop?

Branding resonates with local audiences, creates a memorable identity, and sets you apart in competitive areas like Taguig or Quezon City.

How can I ensure operational efficiency?

Implement digital systems, conduct regular maintenance checks, and adjust detergents based on local water quality, especially in areas with unique conditions like Manila.

What’s the significance of hiring and training in the laundry business?

Well-trained staff ensure smooth operations, enhance customer experience, and become brand ambassadors, especially in service-driven cities like Makati.

How can inventory management benefit my business?

Efficient inventory management prevents stock-outs, offers insights into customer preferences, and ensures consistent service, especially in busy areas of Quezon City.

Why should I stay updated with laundry industry trends?

Staying updated ensures adaptability, meets evolving customer needs, and offers a competitive edge, especially in dynamic cities like Cebu or Davao.

How can feedback enhance my laundry business?

Feedback, especially in community-centric cities like Pasig, offers insights for improvement, builds trust, and fosters a loyal customer base.

How to start a laundry shop business in Philippines?

Starting involves market research, crafting a business plan, securing permits, choosing a strategic location, investing in quality equipment, and implementing a marketing strategy, especially tailored for cities like Manila or Cebu.

How do I find customers for my laundry?

Effective branding, leveraging digital marketing, collaborating with local businesses, and offering specialized services can attract customers, especially in bustling areas like Makati or Davao.

How do I make my laundry successful?

Ensure operational efficiency, stay updated with industry trends, diversify services, gather feedback, and continuously improve. Adaptability and understanding local nuances, especially in cities like Taguig, are key.

How do I manage my laundry business?

Implement efficient inventory management, use digital systems for bookings, regularly train staff, and maintain equipment. Regularly review feedback, especially in service-driven cities like Quezon City.

Is there profit in laundry business?

Absolutely. By offering diverse services, efficient operations, and effective marketing, especially in cities like Davao or Makati, the laundry business can be highly profitable.

What is the key to success in laundry business?

Adaptability, understanding local market dynamics, offering diverse services, and building a strong brand identity are keys to success, especially in dynamic regions like the Philippines.

What is the smart way to do laundry?

Using eco-friendly detergents, optimizing water usage, offering specialized fabric care, and leveraging technology for efficient operations, especially in tech-savvy areas like Manila.

Which location is best for laundry business?

Locations with high foot traffic, accessibility, and minimal competition are ideal. Areas near universities in Quezon City or business hubs in Cebu can be lucrative.

Who are the target market of laundry business?

The target market includes busy professionals, students, tourists in areas like Boracay, and urban residents seeking convenience and quality service, especially in cities like Taguig.

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laundry shop business plan pdf philippines

vernielcutar

How to start a profitable laundry business in the philippines.

laundry shop business plan pdf philippines

  • June 29, 2023

In the bustling landscape of the Philippines, the laundry industry is experiencing remarkable growth. With an increasing demand for convenient and professional laundry services, entrepreneurs have an exciting opportunity to dive into this flourishing market.

Starting a laundry business brings with it the potential for profitability, flexibility, and the satisfaction of meeting customers’ laundry needs.

Researching and Planning Your Laundry Business in the Philippines

Research and planning are vital steps when embarking on the journey of starting a laundry business in the Philippines.

The first task is conducting thorough market research to identify the target market and understand the competition. This includes analyzing customer preferences, demographics, and their laundry service expectations.

Next, it’s crucial to determine the type of laundry business to establish. Options range from self-service laundromats, where customers use the provided facilities themselves, to drop-off services and convenient pickup and delivery options.

Each model has its own advantages and considerations, such as initial investment costs, staffing requirements, and customer convenience. Selecting the right type requires careful evaluation of factors like location, target market, and available resources.

Alongside these decisions, it’s essential to define clear business goals and objectives. These could include revenue targets, customer satisfaction metrics, or expansion plans. Setting these benchmarks helps maintain focus and provides a framework for measuring success.

It’s also important to consider long-term sustainability, incorporating factors like environmental responsibility and community engagement into the business objectives.

Legal and Financial Considerations for Starting A Laundry Business

When starting a laundry business in the Philippines, it is crucial to address the legal and financial considerations to ensure a smooth and compliant operation.

Firstly, entrepreneurs must register their business with the appropriate government agencies, such as the Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC). This step establishes the business as a legal entity and enables it to operate within the regulatory framework.

laundry shop business plan pdf philippines

Obtaining the necessary permits and licenses is equally important. This includes securing permits for zoning, sanitation, and environmental compliance. By fulfilling these requirements, entrepreneurs can maintain a professional and trustworthy image while ensuring the safety and health standards of their operation.

Setting up a dedicated business bank account is essential for managing financial transactions and separating personal and business finances. It enables accurate bookkeeping and simplifies tax reporting.

Securing sufficient funding is another critical aspect. Entrepreneurs can explore various funding options, such as personal savings, bank loans, or investors, to cover startup costs, equipment purchases, and working capital requirements.

Creating a comprehensive business plan with detailed financial projections is vital for the success of the laundry business. This plan should outline the business goals, target market, marketing strategies, operational processes, and financial forecasts. It serves as a roadmap and helps secure funding from potential investors or financial institutions.

Choosing A Location and Buying Equipment for your Laundry Business

Choosing a strategic location involves considering factors such as proximity to target customers, accessibility, and visibility.

Assessing space requirements and designing an efficient layout for the laundry facility ensures smooth operations and optimal use of the available space.

Investing in high-quality laundry equipment is essential for delivering top-notch service and maintaining customer satisfaction. Whether purchasing or leasing the equipment, it is important to select reliable machines that can handle the expected laundry volume and meet industry standards.

To maximize equipment lifespan and minimize downtime, proper maintenance and regular servicing are necessary. Implementing a maintenance schedule, performing routine inspections, and addressing repairs promptly contribute to the longevity and efficiency of the equipment.

How To Price Your Laundry Business Services

When starting a laundry business in the Philippines, it is important to carefully determine the laundry services to offer, such as wash and fold, dry cleaning, and ironing, based on customer preferences and market demand. Establishing competitive pricing is essential and requires conducting thorough market research and considering operating costs to set prices that attract customers while ensuring profitability.

laundry shop business plan pdf philippines

To stand out from competitors and attract more customers, entrepreneurs should consider offering additional services such as alterations or shoe repair. These value-added services can help broaden the customer base and provide convenience, leading to increased customer satisfaction and loyalty.

By thoughtfully selecting laundry services, establishing competitive pricing, and offering additional services, entrepreneurs can create a compelling value proposition for their laundry business, gaining a competitive edge and driving growth in the Philippine market.

Hiring and Training The Right Staff for Your Philippines Laundry Business

Determining the staffing needs is essential to ensure smooth operations. Recruiting reliable and skilled employees who are knowledgeable about laundry techniques, customer service, and equipment handling is very very important.

Additionally, providing proper training to the staff is necessary to maintain consistent quality, efficient workflow, and exceptional customer service.

Investing in training programs that cover all aspects of the laundry business equips the team with the necessary skills and knowledge to deliver exceptional results and foster customer satisfaction.

How To Market Your Laundry Business in the Philippines

To effectively market your laundry business in the Philippines, start by creating a strong brand identity that resonates with your target market. Here are some marketing ideas:

  • Develop a user-friendly website and utilize social media platforms to reach and engage with potential customers.
  • Implement marketing strategies like offering discounts, loyalty programs, and referral incentives to attract and retain customers.
  • Collaborate with local businesses and community organizations for cross-promotion opportunities.
  • Utilize online and offline advertising channels, such as local newspapers and online directories, to increase visibility.
  • Lastly, prioritize exceptional customer service and encourage satisfied customers to leave positive reviews and testimonials, further boosting your business’s reputation.

Managing The Day to Day Operations of Your Laundry Business in the Philippines

Efficient operations and excellent customer service are key to the success of a laundry business in the Philippines. Establishing streamlined processes for receiving, sorting, and tracking laundry items ensures organized and efficient workflow.

laundry shop business plan pdf philippines

Prove prompt and reliable delivery or pickup services, as it enhances customer convenience and satisfaction. Implementing quality control measures, such as thorough inspections and adherence to high laundry standards, ensures consistent and satisfactory results.

Actively seeking customer feedback enables the business to address any concerns and continuously improve its operations. By prioritizing operational efficiency and delivering exceptional customer service, a laundry business can establish a strong reputation and foster long-term customer loyalty in the Philippines.

Can You Get Rich With A Laundry Business in the Philippines?

The potential for financial success with a laundry business in the Philippines exists, but it depends on various factors. Factors such as location, target market, competition, pricing, operational efficiency, and marketing efforts all play a role in determining the profitability of a laundry business.

By providing quality services, attracting a loyal customer base, managing costs effectively, and implementing sound business strategies, it is possible to generate substantial income. However, it is important to note that success and wealth are not guaranteed, and it requires dedication, hard work, and adaptability to market conditions.

Conducting thorough market research, creating a solid business plan, and continuously improving operations can increase the likelihood of financial success in the laundry industry.

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Laundromat Business Plan PDF Example

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  • February 29, 2024
  • Business Plan

the business plan template for a laundromat

Creating a comprehensive business plan is crucial for launching and running a successful laundromat business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your laundromat business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a laundromat business plan but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your laundromat business concept into reality. Let’s dive in!

Our laundromat business plan is meticulously crafted to encompass all vital elements essential for a holistic and strategic framework. It delineates the laundromat’s operational processes, marketing approaches, market dynamics, competitive landscape, management structure, and financial outlook.

  • Executive Summary : Offers a concise overview of the laundromat business concept, including the market analysis , the expertise of the management team, and strategic financial planning.
  • Facility & Location: Describes the laundromat’s infrastructure, including size, layout, and the strategic advantages of its location for customer accessibility and business visibility.
  • Services & Pricing: Lists the laundromat services, such as self-service laundry, wash and fold services, and specialized care for delicate items, along with a transparent pricing model.
  • Key Stats: Shares insights on the size of the laundry service market, growth trends, and industry-specific statistics.
  • Key Trends: Highlights recent trends impacting the laundromat and laundry service industry, such as technological advancements and consumer preferences.
  • Key Competitors : Evaluates the main competitors in the vicinity, outlining how the laundromat differentiates itself in terms of services, technology, and customer experience.
  • SWOT Analysis : A comprehensive analysis of strengths, weaknesses, opportunities, and threats to navigate the market effectively.
  • Marketing Plan : Details the marketing strategies and channels to promote the laundromat services, enhance brand visibility, and engage with the target audience .
  • Timeline : Establishes key milestones, from the initial setup phase to operational benchmarks within the first year and beyond.
  • Management : Provides information on the laundromat’s management team, highlighting their backgrounds, roles, and contributions to the business’s success.
  • Financial Plan: Projects the laundromat’s financial trajectory over the next five years, including revenue streams, profit margins, and key financial metrics to ensure sustainability and growth.

the business plan template for a laundromat

Laundromat Business Plan

laundry shop business plan pdf philippines

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your laundromat’s business plan, offering a concise overview of your laundromat and its services. It should detail your market positioning, the range of laundry services you provide, its location, size, and an outline of day-to-day operations. 

This section should also explore how your laundromat will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your laundromat’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the laundromat’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your laundromat’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Laundromat Business Plan executive summary1

Dive deeper into Executive Summary

Business Overview

For a Laundromat, the Business Overview section can be effectively divided into 2 main slides:

Facility & Location

Briefly describe the laundromat’s physical setup, focusing on its functionality, equipment quality, and the comfortable environment it provides for customers.

Mention the laundromat’s location, emphasizing its accessibility and the convenience it offers to clients, such as proximity to residential areas or ease of parking. Highlight why this location is beneficial in attracting your target clientele, considering factors like high-density living areas without in-unit laundry facilities.

Services & Pricing

Detail the range of laundry services offered, from self-service washing and drying to additional services such as dry cleaning, ironing, folding, and possibly pickup and delivery options.

Outline your pricing strategy , ensuring it is competitive yet reflective of the service quality and convenience you provide. Highlight any special offerings, such as discounted rates during off-peak hours, loyalty programs, or monthly memberships that offer unlimited usage or discounts, encouraging repeat business and customer loyalty.

Make sure to cover here _ Facility & Location _Services & Pricing

laundry shop business plan pdf philippines

Market Overview

Industry size & growth.

In the Market Overview of your laundromat business plan, begin by assessing the size of the laundry services industry and its growth potential. This analysis is fundamental for grasping the market’s breadth and identifying opportunities for expansion.

Consider factors such as the number of households without access to in-home laundry facilities and the growing trend of urban living, which could influence demand for laundromat services.

Key market trends

Move on to discuss recent market trends , such as the increasing customer preference for convenience in laundry services, including the adoption of app-based services for scheduling and payment, eco-friendly washing technologies, and the addition of value-added services like dry cleaning, ironing, and folding.

Highlight the shift towards more hygienic and sanitized laundry practices, especially in the context of health and safety concerns. These trends indicate a shift in consumer expectations and the evolving dynamics of the laundry service market.

Key competitors

Next, analyze the competitive landscape, which may range from traditional coin-operated laundromats to full-service laundry businesses offering a variety of ancillary services. Consider how at-home laundry appliances and subscription-based laundry services impact the market.

Highlight what sets your laundromat apart, be it through superior technology, exceptional customer service, or unique offerings like lounge areas, Wi-Fi, and coffee services.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Laundromat Business Plan market overview

Dive deeper into Key competitors

First, conduct a SWOT analysis for the laundromat, identifying Strengths (such as modern and efficient machines, convenient location, and additional services like folding or dry cleaning), Weaknesses (including potential downtimes due to machine maintenance or strong competition in the area), Opportunities (for instance, a growing demand for laundry services among urban dwellers without home laundry facilities), and Threats (such as economic downturns that might reduce the frequency of laundry service usage).

Marketing Plan

Next, formulate a marketing strategy that details the methods to attract and retain customers through targeted advertising, promotional offers (like ‘first wash free’ for new customers or discounted rates during off-peak hours), an engaging online presence with useful laundry tips and community involvement (perhaps by sponsoring local sports teams or participating in community events).

Finally, establish a comprehensive timeline that outlines key milestones for the laundromat’s launch, marketing initiatives, customer base development, and potential expansion goals, ensuring the business progresses with clear direction and intent. This might include dates for the initial opening, the rollout of new services, community event participation, and periodic evaluations of customer feedback and service offerings.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Laundromat Business Plan strategy

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the laundromat business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the laundromat business toward its financial and operational goals.

For your laundromat business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Laundromat Business Plan management

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your laundromat business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your laundromat business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Laundromat Business Plan

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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.

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

Pro Tip:

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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