How to Start Laundry Business

how to start laundry business

What is a laundry business and how to start a laundry business? It is a company which provides laundry services for its customers. There are many types of laundry services and rates vary depending upon the type of service required.

Laundry service business is popular in those areas where people are very busy. Husband and wife, both, do the job or business. The laundry business is a very profitable business if rightly located and properly marketed.

In classical laundry business, laundry is picked up from the customer’s house and delivered it back to him after doing the needful. Now-a-days laundries also provide other services like dry cleaning, stain removing and ironing. Laundry services can be charged according to weight or per piece basis. Services can also be bifurcated into regular and urgent service. A significantly high rate can be charged for urgent services.

Laundry service can be attractive to many travelers, businesses and families. Here is how to start laundry business from home.

The very first thing is to find the market. It is relatively easy to find a market and build your customer base in the laundry business. Location of your business does not matter if you are providing pick and delivery services at the doorstep of your customers. You can focus on the areas where normally travelers stay and the areas where most of the family members are busy in their jobs or business. Restaurant or catering service providers also need laundry services to keep their staff uniform clean.

It is a business where you require more machinery than labor. So you should be careful about the cost, you must be cost effective to compete. If you are starting a laundry service business from your home, you must have ideas of laundry expenses separately, like electrical charges, water, cleaning, delivery van expenses etc. This information will help you to set reasonable rate for your services.

Critical success factors for laundry business are quality and timing. You must select the right time to pick up the laundry and best time for delivery. The customers life should not be disturbed because of your services. You should also be careful about your turnaround time because the too quick delivery may affect the quality and too slow may annoy the customer.

The next important thing is your presentation. Customers may be impressed from the way you deliver the package after service. You can use transparent plastic bags of low quality; it will not cost you much and will look presentable. If you are providing an ironing service also make sure to fold the clothes properly and pack them carefully.

Before you start your laundry business you should assess yourself whether you can handle it or not. Ask a few questions to yourself, why do you want to start a laundry business? Is it because you know the business very well, or is it your passion or any of your friends has recommended this business or you think it is easy to set up and start.

What are the factors that can make laundry business profitable? Do you already have an idle space in your home; you have lots of free time or have manpower who can handle it easily. Think about your competitive advantages. If you have no competitive edge then ignore it and think about other businesses like salon, car wash or food cart. If you have close link with a supplier of consumables or a provider of pick and delivery of laundry, then it can be a good point to start a laundry business.

Where should be your business location? It depends on which market you would like to focus on. Do you want to target travelers or college students of big families? If you are starting your laundry business from home then make sure that your idle space can accommodate 2-5 washing machines, 2-3 dryers, some cabinets and a good place to dry the clothes.

How much competitive the market is? Do some research to find out who your competitors are and what markets they are focusing on? Do it for 2-5 competitors and try to find out their strength and weaknesses. Build your marketing and business strategy based on your results and you will be well ahead of your competitors.

Answer of all the above questions will help you a lot on how to start a laundry business. Try to make connections with suppliers of consumables as well as laundry providers like hotel, restaurants, van service etc.

To start a laundry business you will need some investment. You have three options, buy new equipment, get equipment on lease or buy a used one. You can also buy a running business. It is better to buy a poorly marketed running business than starting a new business. To find out the best deals of equipment, you can google it. Many banks nowadays are providing loan facilities for this business.

You must have a maintenance contract with some company as it is quite important that your equipment remain in working condition all the time.

Besides the equipment, you should have good deals of consumables e.g. fabric conditioner, washing powder, liquid detergent etc. If you can get a cheap deal it will be your competitive advantage.

You can also start a coin laundry chain or can buy a laundry business that is not making much and sell it after making it profitable. If you are an expert in your field then you can also work as a consultant and can charge for your services.

In the end I would like to conclude that starting a laundry business can be very profitable if marketed properly and either started on right place and accompanied by pick and delivery service to facilitate the customers.

Laundry Business


Be careful about the consumables and don’t use cheap detergents. It may destroy your business.