Laundromat Business Plan
If you want to start a new laundromat or expand your current laundry business, you need a business plan.
The following laundromat business plan template gives you the key elements to include in a solid laundromat business plan for a startup or to grow your existing laundry business. In addition to this template, conducting market research on the laundromat industry will help you better understand the business, complete your customer analysis and help you craft your mission statement, marketing plan and strong financial projections.
Laundromat Business Plan Example
The sample laundry business plan below provides an outline of the key sections to include in your plan.
I. Executive Summary
Business Overview
[Company Name] is a local laundromat that caters to individuals and businesses in [location]. It features 50 top-of-the-line washing and drying machines, so it can accommodate a large number of customers at a time.
In addition to do-it-yourself laundry services, [Company Name] also offers drop-off services where we will wash, dry and fold your laundry for you.
[Company 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.
Products Served
The following are the services that [Company Name] will be able to provide to its clients:
- DIY, coin-operated wash and dry
- Drop-off wash, dry and fold
- Laundry delivery and pick-up
Customer Focus
[Company 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 Mgt./Professional occupations
- Median age: 35 years
Management Team
[Company 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 laundromat successfully and her local connections help her build a solid client base.
Her partner is an experienced operations director who will help manage [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.
- 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.
- 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
[Company 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 [Company Name] reaches break-even
Topline 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 |
| PreTax 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 [Company Name]?
[Company Name] is a local 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, [Company Name] also offers drop-off services where we will wash, dry and fold your laundry for you.
[Company 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.
[Company Name]’s History
In [year], [Company 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 found out that other working moms without helpers are struggling with juggling their time with work and chores. Having a laundromat handle loads of laundry for a reasonable cost is a huge help not just to busy moms, but also to college students and young professionals.
[Company Name]’s Products/Services
The following are the services that [Company 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
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 industry demand. Consumers who rent residential homes or purchase homes are more likely to use an existing washer and dryer or purchase their own, rather than go to a laundromat.
The laundry industry is highly competitive because there is little differentiation between laundry businesses in terms of quality of service and price. As a result, industry operator 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 revenue is expected to continue 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 offer coin- and card-operated washers and dryers for students are another prominent market for 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
[Company Name] will serve the residents within [location] and the immediately surrounding areas.
The precise demographics of the town in which our location resides is 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 family 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 provides coin operated machines, as well as wash and fold service, laundry service, and free drying with wash. The facility houses 66 washers and dryers, with large capacity machines (60 lb washers and 45 lb dryers). Amenities include: Free Parking, Free Wi-Fi, Flat Panel TVs, Folding Stations and laundry attendant.
All American Laundry Business
All American Laundry Business offers coin-operated laundry services. Its 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 Laundromat
Super Laundromat’s amenities include plenty of seating; snack, drink, and game machines, as well as lotto machines. Super Laundromat offers large capacity washers – including 80, 100, and 125 lb capacity machines – and free drying. In addition, it provides Wash & Fold service, and professional dry cleaning. It maintains an ample supply of laundry carts and tables, and stocks a large selection of laundry soaps, bags, softeners, etc.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s business is surrounded by apartments and condominiums and near the center of the city where many local businesses are located.
- Convenient Offerings: [Company 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 [Company 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 [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Our unique service offering that are not offered elsewhere, will give us 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
[The Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company 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
[Company 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 [Company 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
[Company name] will create a client loyalty program that rewards customers for repeat business.
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/or provide other inducements for people to use our services.
Online Marketing
Online Marketing
[Company Name] will maintain social media accounts and publish updates on on-going 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 [Company Name] as the trustworthy, well-qualified laundry business in [location].
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, the Company intends to hire [x] admin staff, [x] washing staff, [x] delivery personnel and [x] maintenance staff.
In order to execute on [Company Name]’s business model, the Company’s employees include the following roles:
Service Functions
- Assistant Manager
- Laundry staff
- Delivery personnel
- Maintenance personnel
Administrative Functions
- General & administrative functions including marketing, bookkeeping, etc.
- Delivery scheduling
Milestones
[Company 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. [Company 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
[Company 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 [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 full-time employee to manage the day-to-day business operations
- Laundry staff: 3 full-time employees who will divide the 24-hr shifts
- Delivery personnel: 2 full-time employees to handle all pick-ups and deliveries
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from laundry services.
The lease of the business space, maintenance of the machines, supplies and operating expenses are the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:
- Salaries
- Laundry supplies
- Lease on business location
Ongoing marketing expenditures are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company 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 [Company 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 |
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 | |
| 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 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 above, you can also click here to get our laundromat business plan sample pdf.
