Laundromat Business Plan
Whether you’re looking to start a new laundry business or expand your current laundromat, a detailed business plan is crucial to the success of your business venture.
A business plan serves as a roadmap for a successful laundromat business, outlining your business model, marketing strategies, and financial projections. This clarity helps make informed decisions and stay focused on business goals.
If you are seeking funding from investors, a bank, or the Small Business Administration, a laundry business plan is essential as it demonstrates the viability of your business idea and its profitability.
Sample Laundromat Business Plan
Conduct a local market analysis and use the example business plan below to structure the essential sections for writing a solid laundromat business plan to build a profitable laundry business.
I. Executive Summary
Business Overview
[Laundromat Name] is a new self-service laundromat catering to individuals and businesses in [location]. It features 50 top-of-the-line washing and drying machines to accommodate a large number of customers at a time.
Additional services include drop-off wash-and-fold laundry services and pickup and delivery services for our busy customers.
[Laundromat Name] will be open 24 hours a day and offer complimentary Wi-Fi, coffee, televisions, and vending machines.
The laundromat will also have an attendant on duty to help with laundry issues.
Products Served
The following are the services that [Laundromat Name] will be able to provide to its clients:
- Self-service, coin-operated wash and dry
- Drop-off wash, dry, and fold
- Laundry pickup and delivery service
Customer Focus
[Laundromat Name] will primarily serve the residents who live within the city. The demographics of these target customers are as follows:
- 310,431 residents
- 96,025 workers
- Average income of $52,000
- 42.6% married
- 39% in Management/Professional occupations
- Median age: 35 years
Management Team
[Laundromat Name] is headed by its founder, [Founder’s Name], a business consultant. She graduated from [University] with a degree in Business Administration. Her experience with small businesses ensures that she can handle the laundromat successfully, and her local connections help her build a solid client base.
Her partner is an experienced operations director who will help manage [Laundromat Name].
Success Factors
[Laundromat Name] is uniquely qualified to succeed for the following reasons:
- [Laundromat Name] will fill a specific market niche in the growing community we are entering.
- In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to make use of our services when they are launched.
- Laundromat businesses are a proven, successful business in the United States.
- The management team has a track record of success in service-related businesses.
Financial Highlights
[Laundromat Name] is seeking a total funding of $250,000 of debt capital to open its laundromat business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Laundromat design/build: $90,000
- Working capital: $160,000 to pay for marketing, salaries, and lease costs until [Laundromat Name] reaches break-even
Top-line projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 |
| Total Expenses | $176,390 | $230,030 | $250,431 | $261,901 | $273,920 |
| EBITDA | $23,610 | $69,970 | $149,569 | $238,099 | $326,080 |
| Depreciation | $0 | $0 | $0 | $0 | $0 |
| EBIT | $23,610 | $69,970 | $149,569 | $238,099 | $326,080 |
| Interest | $0 | $0 | $0 | $0 | $0 |
| Pre-Tax Income | $23,610 | $69,970 | $149,569 | $238,099 | $326,080 |
| Income Tax Expense | $13,344 | $19,409 | $52,349 | $83,334 | $114,128 |
| Net Income/Surplus | $10,266 | $50,561 | $97,220 | $154,764 | $211,952 |
II. Company Overview
Who is [Laundromat Name]?
[Laundromat Name] is a new laundromat that caters to individuals and businesses in [location]. It features 50 top-of-the-line washing machines and dryers, so it can accommodate a large number of customers at a time.
In addition to self-service laundromat services, [Laundromat Name] also offers drop-off services where we will wash, dry, and fold your laundry for you.
[Laundromat Name] will be open 24 hours a day and offer complimentary Wi-Fi, coffee, televisions, and vending machines.
The laundromat will also have an attendant on duty to help with any laundry issues.
[Laundromat Name]’s History
In [year], [Laundromat Name] was founded by business consultant [Founder’s Name]. After years of spending her days off doing laundry and not having enough quality time with her family, she decided to start a business that would address her needs. She later realized that other working moms without helpers are juggling their time with work and chores. A laundromat that handles loads of laundry for a reasonable cost is a huge help to busy moms, college students, and young professionals.
[Laundromat Name] has achieved the following milestones:
- Found space and signed a Letter of Intent to lease it
- Developed the laundromat’s name, logo, and website located at [website]
- Established the legal structure of [Laundromat Name] as a Limited Liability Company
- Applied for business licenses and a sales tax permit
- Opened a business bank account and purchased business insurance
- Hired contractors for the buildout of the laundromat and installation of the laundry machines
- Purchased additional equipment and supplies as needed
- Hired key employees to open for business
[Laundromat Name]’s Products/Services
The following are the services that [Laundromat Name] will be able to provide to its clients:
- DIY, coin-operated wash and dry
- Drop-off wash, dry, and fold service
- Laundry pickup and delivery services
III. Industry Analysis
According to market research, the laundromat industry has grown over the past five years. Rentals represent a core target market for the industry, and many consumers have opted to rent apartments rather than purchase homes over the past five years. Due to a combination of urban population growth, increased multifamily housing construction, and rising urbanization, rental vacancy rates are anticipated to decline at an annualized rate of 0.8%. Low rental vacancy rates lead to an increase in demand for the laundromat industry. Consumers who rent or purchase a home are more likely to use an existing washer and dryer or purchase their own rather than go to a laundromat.
The laundromat industry is highly competitive because there is little differentiation between laundry businesses in terms of quality of service and price. As a result, a laundromat owner’s success is largely dependent on location. Establishments operating in regions with high consumer volume can benefit from decreased competition. In turn, laundromat businesses predominantly operate in populous urban areas throughout the country.
Over the next five years, industry trends in revenue are expected to increase as more consumers rent vs. buy homes. Additionally, rising disposable income and falling unemployment will spur rising demand for industry services. Colleges and universities that provide coin- and card-operated washers and dryers for students represent a significant market within the laundry industry. Rising disposable incomes will make college education more affordable, causing an increase in the number of college students.
IV. Customer Analysis
Demographic Profile of Target Market
[Laundromat Name] will serve the residents within [location] and the immediately surrounding areas.
The precise demographics of the town in which our location resides are as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
Our target customers can be segmented into three main groups:
- Working moms: [Location] currently has a growing population of working moms who need more time with their families and can afford the cost of laundromats.
- Young professionals: These are individuals who are residing on their own and are working full-time jobs with the disposable income to pay for laundromat services.
- Hotels, restaurants, and other businesses: These are local establishments that use a variety of linens in their daily operations and thus need a reliable commercial laundry service provider that can deliver their needs on time and do it efficiently.
V. Competitive Analysis
Direct & Indirect Competitors
Cascade Laundromat
Cascade Laundromat is a coin laundry business providing coin-operated washing machines and dryers, as well as wash-and-fold service. The facility houses 66 washing machines and dryers, with large-capacity machines (60 lb. washing machines and 45 lb. dryers). Amenities include free parking, free wi-fi, flat panel TVs, folding stations, and a laundry attendant.
All American Laundry Business
All American Laundry Business is a coin-operated laundry business that also provides dry cleaning and wash-and-fold services. Main clientele includes multifamily housing, colleges and universities, and hotels with three locations in the area.
Super Laundromat
Super Laundromat boasts a variety of amenities, including ample seating, snacks, drinks, and gaming machines, alongside lottery machines. They offer large-capacity washing machines with options of 80, 100, and 125 lb capacities and provide free drying services. Additionally, Super Laundromat offers additional laundry services, including wash-and-fold and professional dry cleaning. The facility is well-equipped with plenty of laundry carts and tables, and it stocks a wide range of laundry soaps, bags, softeners, and more.
Competitive Advantage
[Laundromat Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Laundromat Name]’s business is surrounded by apartments and condominiums and is near the center of the city, where many local businesses are located.
- Convenient Offerings: [Laundromat Name] will be the only laundry business in [location] that offers drop-off and pick-up laundry services
- Management: [Founder’s Name] has been extremely successful working as a business consultant and will be able to use her previous experience to provide the best sales and customer service experience. Her qualifications will serve customers in a much more sophisticated manner than [Laundromat Name]’s competitors.
- Relationships: [Founder’s Name] knows many of the local leaders and business owners within [location]. With her [x] years of experience and good relationships with business leaders in the area, she will be able to develop an initial client base.
VI. Marketing Plan
The [Laundromat Name] Brand
The [Laundromat Name] brand will focus on the laundromat’s unique value proposition:
- Our unique service offerings that are not offered elsewhere will give us an advantage over the competition
- Well-trained staff that prioritizes customer satisfaction
- Service built on long-term relationships
- High-quality, well-maintained laundry equipment
- Thorough knowledge of the industry
Promotions Strategy
[Laundromat Name] will use the following marketing strategies to attract local customers:
Local Publications
[Laundromat name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets.
Community Events/Organizations
Laundromat name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, or sporting events.
Commuter Advertising
We will drive attention to [Laundromat name] by hiring workers to hand out flyers alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.
Loyalty Program
[Laundromat name] will create a client loyalty program that rewards customers for repeat business.
Direct Mail
[Laundromat Name] will blanket businesses and homes within the city with direct mail pieces. These pieces will provide general information on [Laundromat Name], offer discounts, and/or provide other inducements for people to use our services.
Online Marketing
[Laundromat Name] will maintain social media platforms and publish updates on ongoing promotions and discounts. Additionally, it will use highly-focused, specific keywords to draw traffic to its website through search engine optimization, where potential customers will find a content-rich site that presents [Laundromat Name] as the trustworthy, well-qualified laundry business in [location].
Pricing Strategy
The pricing strategy for [Laundromat Name] focuses on competitive and value-based pricing to attract a broad customer base. Services are priced to balance affordability with quality, ensuring customer satisfaction and repeat business. The strategy includes:
- Self-service laundry: Competitive pricing per load
- Drop-off wash, dry, and fold service: Value pricing for convenience
- Pickup and delivery services: Premium pricing for added convenience
VII. Operations Plan
Functional Roles
[Founder] will initially manage the business and eventually employ an assistant manager to oversee the day-to-day business operations.
In addition, we intend to hire [x] admin staff, [x] washing staff, [x] delivery personnel, and [x] maintenance staff.
To execute [Laundromat Name]’s business model, the laundromat’s employees include the following roles:
Service Functions
- Assistant Manager
- Laundry staff
- Delivery personnel
- Maintenance personnel
Administrative Functions
- General & administrative functions, including implementation of marketing strategies, bookkeeping, etc.
- Delivery scheduling
Milestones
[Laundromat name]’s long-term goal is to become the most reliable and affordable laundry service provider in [location]. It seeks to be the standard by which other providers are judged.
The following are a series of steps that lead to our vision of long-term success. [Laundromat Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Laundromat Name] is headed by its founder, [Founder’s Name], who is a business consultant. She graduated from [University] with a degree in Business Administration. Her experience with small businesses ensures that she is able to handle the laundry business successfully, and her local connections help her build a solid client base.
Her partner is an experienced operations director who will help manage [Laundromat Name].
Hiring Plan
[Founder] will serve as the Manager of [Laundromat Name]. To launch, it needs to hire the following personnel:
- Assistant Manager: 1 full-time employee to manage the day-to-day business operations
- Laundry staff: 3 full-time employees who will divide the 24-hour shifts
- Delivery personnel: 2 full-time employees to handle all pick-ups and deliveries
IX. Financial Plan
Revenue and Cost Drivers
[Laundromat Name]’s revenues will come primarily from laundry services.
The lease of the business space, maintenance costs, supplies, and operating expenses are the key cost drivers of [Laundromat Name]. The major cost drivers for the laundromat’s operation will consist of:
- Salaries
- Laundry supplies
- Lease on business location
Ongoing marketing expenditures are also notable cost drivers for [Laundromat Name].
Capital Requirements and Use of Funds
[Laundromat Name] is seeking a total funding of $250,000 of debt capital to open its laundromat business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Laundromat design/build: $90,000
- Working capital: $160,000 to pay for marketing, salaries, and lease costs until [Laundromat Name] reaches break-even
Key Assumptions & Financial Statements
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| Year 1 | 15 |
| Year 2 | 20 |
| Year 3 | 25 |
| Year 4 | 30 |
| Year 5 | 35 |
| Average transaction | $35 |
| Annual Lease (per location) | $50,000 |
Financial Projections
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
In addition to the free sample laundromat business plan template above, click here to download our laundromat business plan sample PDF.
