Dry Cleaning Business Plan Template [Updated 2024]

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Dry Cleaning Business Plan Template

If you want to start a successful dry cleaning business or expand your current dry cleaning service, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of dry cleaning business plans.

The following dry cleaning business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
 

Example Business Plan For Dry Cleaning Businesses

I. Executive Summary

Business Overview

[Company Name] is a new dry cleaner located in the heart of [Location]. Our mission is to provide high-quality dry cleaning services that are environmentally friendly. Unlike our competitors, we don’t use any toxic chemicals in any of our services. We use environmentally friendly solvents to keep our customers’ clothes in perfect condition without harming the environment. We aim to be one of the finest dry cleaning businesses in the area and guarantee that every garment will be in better condition than when the customer dropped it off.

Services

We are a local dry cleaner business that provides dry cleaning services for individuals living in or near [Location]. We can clean any garment that requires dry cleaning, including suits, gowns, other professional wear, and household fabrics (such as table linens and sheets).

Our services are priced on a case-by-case basis, depending on the quantity and type of fabric that needs to be cleaned. Customers can call our business or check out our website to get a quote.

Customer Focus

[Company Name] will primarily serve the residents who live near [Location]. The demographics of these customers are as follows:

  • 205,000 residents
  • 86,018 workers
  • Average income of $60,000
  • 44.1% married
  • 39% in Mgt./Professional occupations
  • Median age: 35 years

Management Team

[Company Name] is headed by its founder, [Founder’s Name]. She has worked at a local dry cleaner for [X] years as an Assistant Manager. Her experience at this job has given her extensive knowledge of the industry, dry cleaning techniques, and customer service. As a manager, she also gained in-depth knowledge and experience in the operations and management aspects of running a business.

In addition to her experience, she recently graduated from [University] with a degree in Business Administration. So, despite never running a business herself, [Founder’s Name]’s experience and education have given her the skills needed to succeed with [Company Name].

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

  • [Company Name] will fill a specific market niche in the growing community we are entering. We are the only dry cleaner in town that is committed to providing environmentally friendly services.
  • 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 launched.
  • Dry cleaners are a proven, successful business in the United States.
  • The management team has a track record of success in the industry.

Financial Highlights

[Company Name] is currently seeking $250,000 to launch. 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:

  • Store design/build: $150,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Who is [Company Name]?

[Company Name] is a new dry cleaner located in the heart of [Location]. Our mission is to provide high-quality dry cleaning services that are environmentally friendly. Unlike our competitors, we don’t use any toxic chemicals in any of our services. We use environmentally friendly solvents to keep our customers’ clothes in perfect condition without harming the environment. We aim to be one of the finest dry cleaning businesses in the area and guarantee that every garment will be in better condition than when the customer dropped it off.

[Company Name]’s History

After graduating from [University], [Founder’s Name] immediately began researching the local market and planning out her ideas for a dry cleaner business. [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation]. The business is currently being run out of [Founder’s Name] private office, but once the build-out on [Company Name]’s retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

  • Found a location and signed a Letter of Intent to lease it
  • Developed the company’s name, logo, and website located at [website]
  • Determined equipment and inventory requirements
  • Began recruiting key employees

[Company Name]’s Products/Services

We are a local dry cleaner business that provides dry cleaning services for individuals living in or near [Location]. We can clean any garment that requires dry cleaning, including suits, gowns, other professional wear, and household fabrics (such as table linens and sheets).

Our services are priced on a case-by-case basis, depending on the quantity and type of fabric that needs to be cleaned. Customers can call our business or check out our website to get a quote.

 

III. Industry Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

The dry cleaner industry has been an essential industry for several decades. Many professionals and individuals need to wear high-quality fabrics that cannot be cleaned easily through traditional means. Dry cleaning cleans these delicate fabrics to perfection without causing any damage, wear, or tear.

The dry cleaner industry is thriving and is expected to continue its success throughout the next few years. The industry is expected to grow at a compound annual growth rate (CAGR) of 3.4% over the next five years. As people continue to live their busy lives, they will continue to depend on dry cleaners and other laundry services to keep their clothes clean and in perfect condition. Therefore, we expect the industry to continue to grow for the foreseeable future.

 

IV. Customer Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Demographic Profile of Target Market

[Company Name] will serve the residents within [Location] and the immediately surrounding areas.

A demographic profile of the area is as follows:

WilmetteWinnetka
Total Population26,09710,725
Square Miles6.893.96
Population Density3,789.202,710.80
Population Male48.04%48.84%
Population Female51.96%51.16%
Target Population by Age Group
Age 18-243.68%3.52%
Age 25-345.22%4.50%
Age 35-4413.80%13.91%
Age 45-5418.09%18.22%
Target Population by Income
Income $50,000 to $74,99911.16%6.00%
Income $75,000 to $99,99910.91%4.41%
Income $100,000 to $124,9999.07%6.40%
Income $125,000 to $149,9999.95%8.02%
Income $150,000 to $199,99912.20%11.11%
Income $200,000 and Over32.48%54.99%

Customer Segmentation

We will primarily target the following customer segments:

  • Families: [Location] currently has a growing population of families. Families have complex laundry needs and often have many garments and household fabrics that can only be dry cleaned.
  • Professionals: These are individuals who are residing on their own and are working full-time jobs with disposable income to pay for dry cleaning services.
  • Upper-class individuals: Individuals with higher incomes typically have jobs that require them to wear suits or other garments that can only be dry cleaned. [Location] has a large population of individuals who are considered upper class.

 

V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following establishments are located within a ten-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Cascade Dry Cleaners
Cascade Dry Cleaners is a local small dry cleaner that offers affordable services for the residents of [Location]. They can clean anything that requires dry cleaning, including ball gowns, suits, and linens. They also offer tailoring and alterations for an additional fee. The business is open nearly 24/7 so anyone who is interested in their services can drop off their garments any time.

All American Laundromat
All American Laundromat offers a variety of laundry services. Their services include: Coin-operated washers & dryers, dry cleaning, and wash and fold services. Their main clientele includes multifamily housing, colleges and universities, and hotels. They have three locations in the area.

Super Dry Cleaning
Super Dry Cleaning offers affordable dry cleaning services to anyone living or working near downtown [Location]. They can clean any garment that comes into their store and guarantee speedy service. Customers can choose to pick up their clothes when they are ready or get them delivered for an additional charge.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Location: [Company Name]’s location is near the center of town, giving us access to commuters, local office workers, and nearby residents.
  • Management: Our management team has years of business and industry experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
  • Environmentally-friendly services: [Company Name] is committed to providing dry cleaning services that are nontoxic and environmentally friendly. We are the only dry cleaner in the area that is committed to providing these services.

 

VI. Marketing Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the company’s unique value proposition:

  • Commitment to environmentally friendly services
  • Well-trained staff that prioritizes customer satisfaction
  • Service built on long-term relationships
  • Thorough knowledge of the industry

Promotions Strategy

[Company Name]’s promotions strategy to reach these individuals includes:

Direct Mail
[Company Name] will blanket businesses and homes within the city with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and provide other inducements for people to use our services.

Billboard Advertising
We will drive attention toward [Company Name] by leasing a billboard alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of individuals who are in need of dry cleaning to our opening.

Customer Loyalty Programs
[Company Name] will create a winning customer loyalty program to keep our best clients coming back again and again. In addition, we will send periodic, regular emails and text messages to customers. These communications will (a) ensure that customers are satisfied with our services and (b) remind customers after a certain period of time has passed that they may need to utilize our services again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Website/SEO
[Company Name] will develop a professional website that displays pictures of our locations and lists the services we provide. We will also invest in SEO so that the company’s website will appear at the top of search engine results. [Company Name] will also publish frequent newsletters and blogs to educate our customers on promotions and discounts.

Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.

Pre-Opening Events
Before opening the shop, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Pricing Strategy

[Company Name]’s pricing will be competitive so customers feel they receive great value when utilizing our dry cleaning services. Customers can expect to receive personalized attention when visiting our location.

 

VII. Operations Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Functional Roles

In order to execute [Company Name]’s business model, the company needs to perform many functions including the following:

Administrative Functions

  • Bookkeeping
  • Marketing
  • General administrative functions
  • Hiring and training staff

Service Functions

  • Providing excellent customer service
  • Billing for services
  • Dry cleaning clothing and garments

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

DateMilestone
[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

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team Members

[Company Name] is headed by its founder, [Founder’s Name]. She has worked at a local dry cleaner for [X] years as an Assistant Manager. Her experience at this job has given her extensive knowledge of the industry, dry cleaning techniques, and customer service. As a manager, she also gained in-depth knowledge and experience in the operations and management aspects of running a business.

In addition to her experience, she recently graduated from [University] with a degree in Business Administration. So, despite never running a business herself, [Founder’s Name]’s experience and education have given her the skills needed to succeed with [Company Name].

Hiring Plan

[Founder] will serve as the Manager of [Company Name]. In order to launch, it needs to hire the following personnel:

  • Assistant Manager (1 to start)
  • Staff (3 to start)

 

IX. Financial Plan

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from providing dry cleaning services.

The lease of the business space, supplies, and labor expenses are the key cost drivers of [Company Name]. Ongoing marketing expenditures will also be a notable cost driver for [Company Name], especially in the first few years as the business gets established in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $250,000 to launch. 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:

  • Store design/build: $150,000
  • Working capital: $100,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of customers per dayPer location
FY 1100
FY 2120
FY 3140
FY 4165
FY 5190
Annual Lease ( per location)$60,000
Yearly Lease Increase %2.50%

 
5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 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
PRETAX 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 1Year 2Year 3Year 4Year 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 1Year 2Year 3Year 4Year 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

 

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.