How to start a Laundry and Dry Cleaning Business
By Bazal Razzaq
Chief Editor
Updated: October 06, 2023
Editorial Note: We earn a commission if you use the services recommended on this page. Commissions do not affect our opinions or recommendations.
- Plan your Laundry and Dry Cleaning Business
- Make your business a legal entity
- Register your Laundry and Dry Cleaning Business for taxes
- Open a Bank account for business and get a credit card
- Set up an accounting system for your business
- Get essential Permits and licenses for your business
- Get Laundry and Dry Cleaning Business Insurance
- Define your business brand
- Create a business website
- Set up a Business Phone System
- Frequently Asked Questions (FAQs)
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The Laundry and Dry Cleaning Business is one of the best businesses to start as there is always a growing demand for this service in residential areas and hospitals.
Some of the laundry and dry cleaners would require customers to drop off clothes at the dry cleaning centre whereas some provide home pick-up services as well. Full service in laundry and dry cleaning business charges a fee per cloth for standard dry cleaning and laundry. You don’t have to worry about taking time to drop off clothes at the laundry shop.
Let us dive into the simple and easy guidelines on ‘How to set up a laundry and dry cleaning business.’
10 steps to start the Laundry and Dry Cleaning Business
- Plan your Laundry and Dry Cleaning Business
- Make your business a legal entity.
- Register your Laundry and Dry Cleaning Business for taxes.
- Open a Bank account for business and get a credit card.
- Set up an accounting system for your business.
- Get essential Permits and licenses for your business.
- Get Laundry and Dry Cleaning Business Insurance.
- Define your business brand.
- Create a business website.
- Set up a Business Phone System.
These steps will help plan your business in a structured way, and register properly and legally.
#1 Plan your Laundry and Dry Cleaning Business
Having a clear plan is necessary for a businessman. It helps you to map out and pay attention to minor details. You should be able to answer the following-
- What will you name your business?
- How much is the startup and ongoing cost?
- Who do you wish to target?
- How much do you want to charge the customers?
Don’t worry, we have answered these questions below.
What will you name your business?
After you have made up your mind to start a Laundry and Dry Cleaning Business, you must also choose the right name for it. If you haven’t thought of a name yet, then pick a name from the Laundry and Dry Cleaning Business Name Generator.
You can register your business name by checking the following-
- State’s business record.
- Trademark record of state and federal.
- Social Media Platform.
- Availability of web domain.
You can also secure your domain name before anyone else does.
How much is the startup and ongoing cost?
You will have to pay the deposit for the lease and the first month’s rent for the laundry store. You will be charged $3 to $10 per square foot per month in a high-traffic area. You will be required to have the following-
- A signage on the front of the store to make it visible to the passerby.
- Laundry and dry cleaning equipment.
- Cash register.
- Cleaning supplies, coat hangers, and plastic bags.
- Rotating mechanical clothes rack for ready clothes.
The laundry business can start at $50,000 worth of equipment on a lease and with $2,000 in supplies. The ongoing expenditure includes- equipment lease payments, insurance, utilities, rent, supplies, and marketing costs.
Who do you wish to target?
The targeted customers will be people living in the local areas. You can offer subscription services to customers to make more profit. The regular customers build a foundation of a regular customer base.
There are many people concerned about the environmental impact of the chemicals used by the dry cleaners. Such matters should be kept in mind.
How much do you want to charge the customers?
Dry cleaners charge $1 per item for shirts, $5 for trousers, $10 for suits, and $29 for a comforter. The regular dry cleaning ranges from $0.99 to $1.99.
Running a laundry and dry cleaning business with an active customer base is profitable. The revenues exceed $200 per day, and the cost incurred is less than half.
Even a small dry cleaning store can earn $30,000 in profit per year after making all the payments.
#2 Make your business a legal entity
The sole proprietorship, partnership, limited liability company (LLC), and corporation are the common business structures.
Forming a legal business entity like an LLC or corporation will protect you from being accountable if your laundry business fails. You can easily form an LLC on your own and pay minimal state LLC costs or hire LLC service at an additional fee.
#3 Register your Laundry and Dry Cleaning Business for taxes
You will have to register for a variety of state and federal taxes before you start your own LLC. For this, you will need an EIN which can be easily obtained from the IRS website.
#4 Open a Bank account for business and get a credit card
If you want to protect your personal assets then open a separate business account and get a credit card. Mixing personal and business accounts will put you at huge risk in the event your business fails. It is called piercing your corporate veil in business law.
Open Business Bank Account:
Other than applying for business loans, you need a bank account to do the following-
- Separate your personal and company assets.
- Make Accounting and tax filing easy.
Get a Credit Card:
It helps you in doing the following,
- Separate personal and business expenses and keep all business expenses in one place.
- Make the company’s credit history.
#5 Set up an accounting system for your business
You must record your expenses and sources of income to know the performance of your business. The well-maintained accounts make tax filing much easier.
#6 Get essential Permits and licenses for your business
You must apply for necessary permits and licenses to avoid hefty fines that can be levied upon you in case of the absence of the permit. You can visit SBA’s reference to state licenses and permits to know more about license requirements in your respective state.
You must comply with Occupational Safety and Health Administration requirements. A laundry and dry cleaning business requires a Certificate of Occupancy (CO) that ensures all building codes, zoning laws and regulations of the government are fulfilled.
To lease a location:
- The landlord should obtain a Certificate of Occupancy.
- Ensure that the landlord’s CO can go with the laundry and dry cleaning business.
- After renovation, a new Certificate of Occupancy is required. If your store will be renovated before opening then mention in the agreement that lease payments will not be made unless a valid CO is issued.
To purchase or build a location:
- Obtain a CO from a local government authority.
- Analyse building codes and zoning requirements for the business location so that the laundry and dry cleaning business is in compliance and can obtain a CO.
#7 Get Laundry and Dry Cleaning Business Insurance
All businesses need Insurance to operate safely and lawfully. It is needed to protect your company’s financial well-being during losses. There are several insurance policies for different businesses. You can begin with General Liability Insurance.
Many other businesses need yet another Insurance policy such as Workers’ Compensation Insurance. If your business has employees then the state would require Workers’ Compensation Coverage.
#8 Define your business brand
Your brand is defined by what your company does and how the public takes your business. To build a strong brand, you can design a logo for the company and add a QR code with a QR Code Generator.
#9 Create a business website
After creating a logo, you must focus on creating a website for your business. Read the benefits of having a website below-
- All businesses have a website to showcase their brand.
- Social media channels like Facebook, and Instagram cannot replace the importance of a website.
- Website-building tools like the GoDaddy Website Builder have made website building very easy. There are other website-building tools like WordPress, WIX, Weebly, Squarespace, and Shopify.
#10 Set up a Business Phone System
It is always good to have a business phone to separate your personal life and business life. It provides automation, and legitimacy, and connects you with potential customers.
If you enjoy cleaning clothes and making them ready for the customers, you will excel in your business. Remember to pay close attention to the needs of your customers, welcome them nicely and don’t lose track of them. Your washing, cleaning, pressing and/or folding techniques should be excellent.
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Frequently Asked Questions (FAQs)
You can offer pick-up and delivery service to your regular customers for an additional fee. They will be ready to pay for it because of their busy schedule. Other services like clothing alterations/tailoring service, shoe repair/polishing etc. can be offered.
You can use hand-delivered flyers with a discount coupon and place them through the doors of homes and apartments.
Greet the customers nicely when they walk into your laundry store and give them a call back once their clothes are ready. It gives an extra touch of good customer service.
You can build up a business model in which retail space is used for drop-off and pick-up location while washing and cleaning is done at another location.