{"id":17706,"date":"2024-02-14T10:00:08","date_gmt":"2024-02-14T16:00:08","guid":{"rendered":"https:\/\/www.partstown.com\/about-us\/?p=17706"},"modified":"2024-02-14T10:19:21","modified_gmt":"2024-02-14T16:19:21","slug":"how-to-start-a-commercial-laundry-business","status":"publish","type":"post","link":"https:\/\/www.partstown.com\/about-us\/how-to-start-a-commercial-laundry-business","title":{"rendered":"How to Start a Commercial Laundry Business in 11 Steps"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">With a 95% success rate and an ROI of 20-35%, <\/span><a href=\"https:\/\/speedqueencommercial.com\/en-us\/why-invest-in-laundromats\/\"><span style=\"font-weight: 400;\">laundromats are great investments<\/span><\/a><span style=\"font-weight: 400;\"> because they\u2019re so profitable. While metrics for related businesses like dry cleaners may differ, as a whole the laundry sector is known for its money-making potential. If you\u2019re an entrepreneur who wants to enter the industry, this guide on how to start a commercial laundry business in 11 steps outlines the research and preparation needed to launch a successful operation.<\/span><\/p>\n<h2><strong>Choose a Business Type<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The first step in learning how to start a commercial laundry business is determining what you want to offer. Common types of clothing and other fabric cleaning businesses include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Self-Service Laundromats &#8211;<\/strong> <span style=\"font-weight: 400;\">Known for their coin-operated machines, laundromats are what come to mind when most people think of opening a commercial laundry business.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Full-Service Laundries &#8211;<\/strong><span style=\"font-weight: 400;\"> According to TideCleaners.com, full-service laundries, sometimes known as \u201c<\/span><a href=\"https:\/\/tidecleaners.com\/en-us\/blog\/Wash-and-Fold-Services-A-Quick-Tutorial\"><span style=\"font-weight: 400;\">Wash and Folds<\/span><\/a><span style=\"font-weight: 400;\">,\u201d offer customers more convenience by washing, drying and folding their clothes and linens. In fact, some even offer pickup and delivery.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Commercial Laundry Services &#8211;<\/strong><span style=\"font-weight: 400;\"> Instead of targeting individuals or households, commercial laundry services wash, dry and package fabrics for schools, hospitals or gyms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Dry Cleaners &#8211;<\/strong> <span style=\"font-weight: 400;\">These establishments provide chemical-based cleaning for delicate fabrics like formal wear, suits and silks. With a median <\/span><a href=\"https:\/\/www.bizbuysell.com\/learning-center\/industries\/article\/strategies-for-owning-a-successful-dry-cleaning-business\/\"><span style=\"font-weight: 400;\">cash flow revenue of $130,000<\/span><\/a><span style=\"font-weight: 400;\">, dry cleaning businesses can be good money-makers.<\/span><\/li>\n<\/ul>\n<h2><strong>Go Independent or Franchise\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Next, you need to decide between opening an <\/span><em><span style=\"font-weight: 400;\">independent business<\/span><\/em><span style=\"font-weight: 400;\"> that you build from nothing or a <\/span><em><span style=\"font-weight: 400;\">franchise<\/span><\/em><span style=\"font-weight: 400;\">, a business that uses an existing brand. When deciding between an <\/span><a href=\"https:\/\/www.flexwasher.com\/laundry-business-vs-laundry-franchise\/\"><span style=\"font-weight: 400;\">independent vs franchise laundry business<\/span><\/a><span style=\"font-weight: 400;\">, it\u2019s important to consider issues like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Costs &#8211;<\/strong><span style=\"font-weight: 400;\"> Both have significant startup and ongoing costs, but franchise owners must pay a recurring royalty fee for the right to use the brand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Brand Recognition &#8211;<\/strong><span style=\"font-weight: 400;\"> If you go independent, you\u2019ll have to work hard to build a good reputation. On the other hand, existing brands have an established reputation that people already know and trust, making it easier to attract your first customers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Freedom &amp; Flexibility &#8211;<\/strong><span style=\"font-weight: 400;\"> Building your own brand gives you the flexibility to experiment with different services, prices and policies while franchises are locked into a set business model.<\/span><\/li>\n<\/ul>\n<h2><strong>Find a Location<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">As with any business, choosing a location is one of the most important steps in starting a commercial laundry business. If you\u2019re not sure how to identify a good location, here are a few things to look for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Apartment Complexes &#8211;<\/strong> <span style=\"font-weight: 400;\">Multifamily housing doesn\u2019t always have in-unit washers and dryers, especially near universities or in up-and-coming neighborhoods.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>High-Traffic, Low-Speed Streets &#8211;<\/strong><span style=\"font-weight: 400;\"> As explained in a LaundryLux.com article, a busy street with a low speed limit is one of the <\/span><a href=\"https:\/\/laundrylux.com\/blog\/choosing-a-laundromat-location\/\"><span style=\"font-weight: 400;\">best locations for a laundromat<\/span><\/a><span style=\"font-weight: 400;\"> because people will be going by slow enough to notice your business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Complementary Businesses &#8211;<\/strong> <span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/www.partstown.com\/about-us\/how-to-start-a-linen-rental-business-in-10-steps\"><span style=\"font-weight: 400;\">linen rental business<\/span><\/a><span style=\"font-weight: 400;\"> might need help cleaning bedding, towels and other items quickly and efficiently, so locating nearby can make working together easy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Office Parks &#8211;<\/strong> <span style=\"font-weight: 400;\">Office workers need suits, pants and dresses cleaned professionally, so opening a dry cleaner near an office park is a good move.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Large Businesses &amp; Institutions &#8211;<\/strong> <a href=\"https:\/\/www.love2laundry.com\/blog\/top-10-industries-that-need-commercial-laundry-solutions\/\"><span style=\"font-weight: 400;\">Commercial laundry service clients<\/span><\/a><span style=\"font-weight: 400;\"> include schools, universities, animal clinics and even salons, so choosing a location near these organizations can give you an edge.<\/span><\/li>\n<\/ul>\n<h2><strong>Write a Business Plan<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">According to the Small Business Administration, <\/span><a href=\"https:\/\/www.sba.gov\/business-guide\/plan-your-business\/write-your-business-plan\"><span style=\"font-weight: 400;\">writing a business plan<\/span><\/a><span style=\"font-weight: 400;\"> helps you identify your goals and develop a plan for achieving them. While there\u2019s no set way to write a business plan, almost all types include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Executive Summary &#8211;<\/strong> <span style=\"font-weight: 400;\">A brief overview of the proposed business\u2019 leadership and location, along with its mission statement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Products or Services &#8211;<\/strong><span style=\"font-weight: 400;\"> What will your laundry business provide and what makes your product or service unique? It\u2019s also a good idea to include information on pricing in this section.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Market Analysis &#8211;<\/strong> <span style=\"font-weight: 400;\">An overview of the commercial laundry market in the area. Who are your competitors? Why are they successful? What can you do better?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Marketing Strategy &#8211;<\/strong><span style=\"font-weight: 400;\"> Your plan for promoting your new business to attract and retain customers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Financial Projections &#8211;<\/strong><span style=\"font-weight: 400;\"> Include income estimates and targets, as well as funding requests.<\/span><\/li>\n<\/ul>\n<h2><strong>Form a Legal Entity<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you have a plan, it\u2019s time to form a legal entity that\u2019s recognized by the government so you can pay taxes and protect yourself from liability. Common business structures for commercial laundry businesses include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Sole Proprietorship &#8211;<\/strong><span style=\"font-weight: 400;\"> A <\/span><a href=\"https:\/\/www.forbes.com\/advisor\/business\/how-to-start-a-sole-proprietorship\/\"><span style=\"font-weight: 400;\">sole proprietorship<\/span><\/a><span style=\"font-weight: 400;\"> is the simplest business entity because no paperwork is required. However, if you want to use a name other than your legal name, you need to file a Doing Business As (DBA) name.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Partnership &#8211;<\/strong> <span style=\"font-weight: 400;\">A partnership, such as a general or limited liability partnership (LLP), will allow you to go into business with other people without much paperwork.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>LLC &#8211;<\/strong> <span style=\"font-weight: 400;\">If you want to protect your personal assets and avoid double taxation, a limited liability company (LLC) is likely the best <\/span><a href=\"https:\/\/bizee.com\/start-a-business\/laundromat-business\"><span style=\"font-weight: 400;\">legal structure for a laundromat<\/span><\/a><span style=\"font-weight: 400;\">, dry cleaner or other commercial laundry business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Corporation &#8211;<\/strong> <span style=\"font-weight: 400;\">Corporations offer even more protection, along with the ability to raise capital by selling shares, but require more paperwork and recordkeeping than LLCs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>S Corporation &#8211;<\/strong> <span style=\"font-weight: 400;\">Although not all states recognize <\/span><a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/s-corporations\"><span style=\"font-weight: 400;\">S Corporations (S Corps)<\/span><\/a><span style=\"font-weight: 400;\">, they allow business owners to avoid some of the taxes that a corporation would normally pay by passing profits through to the owner\u2019s personal income.<\/span><\/li>\n<\/ul>\n<h2><strong>Obtain an EIN Number\u00a0<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Once you form a legal business entity, it\u2019s time to apply for an <\/span><a href=\"https:\/\/www.sba.gov\/business-guide\/launch-your-business\/get-federal-state-tax-id-numbers\"><span style=\"font-weight: 400;\">employer identification number (EIN number)<\/span><\/a><span style=\"font-weight: 400;\">, a business identification number used for tax purposes. While not all businesses need an EIN number, getting a business identification number can help you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Hire Employees &#8211;<\/strong> <span style=\"font-weight: 400;\">A large commercial laundry business will need employees, and an EIN number is necessary for organizing a payroll system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Prevent Identity Theft &#8211;<\/strong><span style=\"font-weight: 400;\"> Using your social security number too frequently puts you at risk for identity theft, so it\u2019s better to use your EIN number when possible.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Applying for Licenses &#8211;<\/strong><span style=\"font-weight: 400;\"> In most cases, an EIN number is required when applying for business licenses and permits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Open a Bank Account &#8211;<\/strong><span style=\"font-weight: 400;\"> Even if you\u2019re a sole proprietor, getting an EIN number so you can open a bank account will make managing your finances much easier.<\/span><\/li>\n<\/ul>\n<h2><strong>Open a Bank Account<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most important steps in learning how to start a commercial laundry business is <\/span><a href=\"https:\/\/www.chase.com\/business\/knowledge-center\/start\/why-bank-account\"><span style=\"font-weight: 400;\">opening a business bank account<\/span><\/a><span style=\"font-weight: 400;\">. By separating your personal and business finances, you can:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Meet Legal Obligations &#8211;<\/strong> <span style=\"font-weight: 400;\">If you have an LLC, corporation or other pass-through entity, you\u2019re legally required to have a business bank account.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Simplify Tax Preparation &#8211;<\/strong> <span style=\"font-weight: 400;\">Being able to see all your revenue and expenses in one account makes paying taxes a lot more straightforward.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Build Business Credit &#8211;<\/strong><span style=\"font-weight: 400;\"> Will you need a loan to purchase a space or buy equipment? If so, having a bank account will help you build a relationship with a bank.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Minimize Personal Liability &#8211;<\/strong><span style=\"font-weight: 400;\"> Separating your business and personal finances protects you from liability in the event that you get sued or owe money.<\/span><\/li>\n<\/ul>\n<h2><strong>Get Permits &amp; Licenses<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Before opening to the general public, you\u2019re going to need several <\/span><a href=\"https:\/\/www.starterstory.com\/laundry-business-legal-requirements\"><span style=\"font-weight: 400;\">laundry business licenses<\/span><\/a><span style=\"font-weight: 400;\">. While the number of permits varies by location, many cities and states require the following:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>General Business License &#8211;<\/strong><span style=\"font-weight: 400;\"> Some states require that all businesses, including laundromats, dry cleaners and full-service laundries, have a <\/span><a href=\"https:\/\/www.zenbusiness.com\/general-business-license\/\"><span style=\"font-weight: 400;\">general business license<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Zoning Permit &#8211;<\/strong><span style=\"font-weight: 400;\"> If you\u2019re making significant changes to the building you\u2019re buying or leasing, you\u2019ll need a permit to make sure you\u2019re following local land use laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Fire Safety Inspection Permit &#8211;<\/strong><span style=\"font-weight: 400;\"> The local fire department needs to inspect your laundry business to make sure you have a sprinkler system and fire extinguishers, among other things.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Seller\u2019s Permit &#8211;<\/strong> <span style=\"font-weight: 400;\">Where applicable, dry cleaners and wash-and-folds need seller\u2019s permits so they can charge state sales tax on their services.<\/span><\/li>\n<\/ul>\n<h2><strong>Purchase or Lease Equipment<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Just like how a restaurant needs refrigerators and ovens, a laundry business needs equipment in order to fulfill its main purpose. Whether you buy equipment outright or lease it over time, your business will need:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Washers &#8211;<\/strong><span style=\"font-weight: 400;\"> Front-load, top-load or stacked, you\u2019ll need washing machines to clean clothes and other fabrics.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Dryers &#8211;<\/strong> <span style=\"font-weight: 400;\">From tumble and conveyor to stack and specialty, you\u2019ll need plenty of dryers, too.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Steamers &#8211;<\/strong> <span style=\"font-weight: 400;\">Steamers help keep wrinkles out of clothes, especially those made of fine fabrics like silk that are difficult to iron.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Laundry Carts &#8211;<\/strong> <span style=\"font-weight: 400;\">Wheeled carts make it easy to transfer clothes from the washer to the dryer quickly and efficiently.<\/span><\/li>\n<\/ul>\n<h2><strong>Consider Hiring Employees<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">While most businesses rely on employees, staff members may not be needed for a commercial laundry business. In fact, there are three levels of staffing you can consider:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Unstaffed &#8211;<\/strong> <span style=\"font-weight: 400;\">Some self-service laundry with coin-operated machines don\u2019t have any employees, eliminating labor costs for the owner.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Partially-Staffed &#8211;<\/strong><span style=\"font-weight: 400;\"> Even though adding one or two employees will increase costs, people will feel safer knowing there\u2019s staff in the facility, increasing the likelihood they\u2019ll choose you over competitors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Fully-Staffed &#8211;<\/strong><span style=\"font-weight: 400;\"> On the other hand, dry cleaners, full-service laundries, and most commercial laundry services need employees to do the work. While labor costs will increase, profits probably will, too.<\/span><\/li>\n<\/ul>\n<h2><strong>Market Your Laundry Business<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Even if you offer competitive prices and great service, a new laundry business won\u2019t be successful if potential customers don\u2019t know about it. In order to get the word out, remember to leverage:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Website SEO &#8211;<\/strong><span style=\"font-weight: 400;\"> After making a website for your wash and fold, laundromat, dry cleaner or other laundry business, <\/span><a href=\"https:\/\/www.linkedin.com\/pulse\/mastering-seo-laundry-dry-cleaners-step-by-step-guide-rkrishna-g\"><span style=\"font-weight: 400;\">optimizing your laundry business\u2019 website<\/span><\/a><span style=\"font-weight: 400;\"> so it appears at the top of Google will bring in a lot of customers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Google Ads &#8211;<\/strong><span style=\"font-weight: 400;\"> Not getting as many clicks to your website as you\u2019d like? Try some paid ads to put your site near the top of Google.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Social Media Ads &#8211;<\/strong><span style=\"font-weight: 400;\"> If people see an ad about your new laundry business while scrolling through Facebook or Instagram, they might stop by to check it out.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Traditional Marketing &#8211;<\/strong> <span style=\"font-weight: 400;\">Mail fliers, newspaper ads and radio spots are an option, too.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>With a 95% success rate and an ROI of 20-35%, laundromats are great investments because they\u2019re so profitable. While metrics for related businesses like dry cleaners may differ, as a whole the laundry sector is known for its money-making potential. If you\u2019re an entrepreneur who wants to enter the industry, this guide on how to [&hellip;]<\/p>\n","protected":false},"author":558,"featured_media":17709,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1767],"tags":[1342,1768],"class_list":["post-17706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-laundry","tag-entrepreneurship","tag-laundry","wpautop"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Start a Commercial Laundry Business in 11 Steps - Parts Town<\/title>\n<meta name=\"description\" content=\"This guide on how to start a commercial laundry business outlines how to open a laundromat, dry cleaner or related venture.\" \/>\n<meta name=\"robots\" content=\"index, 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