The Key Elements of a Laundromat Business Plan
“If you fail to plan, you’re planning to fail.” – Benjamin Franklin
About 30 years ago when I was considering starting my first business, I met with my wife’s boss, who was a business owner, to get some advice.
The first thing he told me was that I needed a business plan. And then he pulled out a thick binder from his drawer and told me that his plan had cost $50,000 to prepare.
I think this is why many, if not most, budding laundry entrepreneurs don’t bother with a true business plan. They think it’s an expensive, dense document that only “big businesses” require. Fortunately, for aspiring laundromat owners, you don’t need a hefty, 50-page plan or expensive consultants to write it for you. Today, there is relatively inexpensive software that will guide you through the process.
In general, here is a brief summary of what your business plan should include:
Executive Summary
- A brief overview of your business – Are you self-service only, or do you provide a drop-off service, a pickup-and-delivery service, or a combination of those offerings?
- Mission statement and goals – What exactly do you want your laundromat to be, and who do you want your business to serve?
- Summary of financial projections and funding requirements – You might not require funding; however, you’ll definitely want to include your monthly and yearly P&L statements, balance sheet, and cash flow report – as well as your future financial goals for the laundry business.
Market Analysis
- Who is your target audience? What are their demographics, habits, and needs?
- Who are your competitors? What is the competition like in your proposed marketplace? What are your competitors’ strengths and weaknesses? Are there any market gaps? This is the section where you definitely will want to present a SWOT analysis – including strengths, weaknesses, opportunities, and threats.
Services Offered
- What are your core services? Self-service laundry, wash-dry-fold, pickup and delivery, or a combination of these services?
- Can you (and should you) add a service? For example, if you only offer your customers self-service laundry, would it make sense for you to add wash-dry-fold and possibly pickup-and-delivery services to your menu of offerings? And list exactly would be required to do so – such as additional space, additional supplies, more employees, more extensive training, and so on.
- List an ancillary profit centers you plan to provide at your laundromat – including vending machines, Wi-Fi access, drycleaning, eco-friendly options, video games, massage chairs, a children’s reading and play area, etc.
- Provide a rundown of your proposed pricing strategies. What are your vend prices? With regard to wash-dry-fold services, will you charge by pound, by the bag, or offer a subscription service? Of course, having your P&L statement from the executive summary and your competitor analysis from your market analysis will make it much easier to gauge what your price structure should be.
Operational Plan
- Provide an overview of the business’ daily operations, including staffing, store hours, maintenance schedules, etc.
- List and describe your laundromat’s current equipment and facilities, including condition and capacity.
- Share any planned upgrades or expansions to the business and/or facility. Of course, if you plan on upgrading or expanding, you’ll need the numbers from your executive summary.
- Offer a description of the business’ management team and each individual’s role at the company.
Marketing and Sales Strategy
- What are your promotional methods? Will you be getting out the word about your new laundry business through online ads, social media, partnerships with local businesses, customer loyalty programs, signage, flyers, your website, chamber of commerce involvement, community events, and/or other sales and marketing methods?
- What is your marketing budget?
The marketing plan may be the most overlooked section of the business plan and, therefore, of the business overall – especially by many laundromat owners. However, think of it this way: if you run a great laundromat but no one knows it, your business won’t grow and may not survive.
Putting It on Paper
Right now, I know that some of you might be saying, “I already have all of this in my head. There’s no need for a formal plan.”
OK, but if you’re plan on applying for any type of funding for your new business, you will need to provide all of this information to the lender. And even if the business plan is just for your own purposes, it definitely makes it more “real,” if you actually put pen to paper (or fingers to keyboard).
For example, it’s easy to theorize in your head that you’d like to grow your business by 20 percent in 2025. However, this goal can look quite different you actually put the numbers down on paper and see exactly what would need to be accomplished in order to achieve that type of growth rate. At this point, you can more accurately determine whether your projections are the stuff of solid business planning… or merely wishful thinking.
“Our plans miscarry because they have no aim,” wrote Roman stoic philosopher Seneca. “When a man does not know what harbor he is making for, no wind is the right wind.”
Put the wind at your back by devoting some quality time to a thorough and accurate business plan before jumping too deeply into your new laundromat venture.
[The information provided in this article is for general informational purposes only and should not be considered as professional advice. Readers are encouraged to consult with qualified financial advisors, legal professionals, or other business experts before moving forward with any business decisions.]
