Are you about starting a coin laundry company? If YES, here is a detailed sample coin laundry business plan template & FREE feasibility report.
If you are interested in starting your own coin laundry business in the United States, it will be a wise decision to take out time to conduct detailed cost analysis before investing your time and money into the business. A coin laundry business requires that you purchase or lease equipment that are needed to run the business. Beyond the skillset you will be bringing to the table; equipment is also instrumental to the starting and running this business.
If you are truly convinced that starting a coin laundry service is the right business for you to do, then you need to write your own business plan. The essence of writing a business plan before starting any business is for you to have a blueprint of how you want to setup, manage and expand your business.
Below is a sample coin laundry business plan template that will help you to successfully write yours with little or no stress.
A Sample Coin Laundry Business Plan Template
Table of Content
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
1. Industry Overview
The Laundromat in the US industry consists of Washer services, dryer services, self-service dry cleaning, commercial laundry services and others. The Laundromats industry includes companies that offer on-premises coin- or card-operated washers and dryers, in addition to companies that operate self-service laundry and dry-cleaning equipment in apartments, dormitories and similar locations.
If you are conversant with this industry, you will agree that increased disposable income has led to rising competition from both household laundry machines and drop-off and pickup laundry and dry-cleaning services. As a result, industry revenue has decreased at an annualized rate of 0.4 percent to $5.2 billion over the five years to 2019, including a decline of 0.3 percent in 2019 alone.
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.
A recent research conducted by IBISWorld shows that the Dry Cleaners industry has a medium level of capital intensity. For every dollar spent on labor in 2017, the industry will invest an estimated $0.13 in capital, slightly up from an estimated $0.11 spent on capital in 2012.
Capital intensity has increased over the five years to 2017, as improving economic conditions have encouraged operators to upgrade existing machinery or purchase new replacements. Dry cleaners typical invest capital in new dry-cleaning equipment, washers, dryers, sorting bins, dry cleaning baths and ironing presses.
Specialized dry-cleaning washers cost anywhere from $50,000 to $200,000, depending on what class of solvent they use, washing capacity and accessory features. Water conservation is becoming a concern for the population. Environmentally-responsible coin laundry services company are an attractive option.
The laundromats industry is a thriving sector of the economy of the united states and it generates over .2 billion annually from about 23,425 registered and licensed laundromats (coin laundry inclusive). The industry is responsible for the employment of over 53,706 people. Experts project the industry to depreciate at -0.4 percent annual rate between 2014 and 2019. CSC ServiceWorks Inc. is obviously the market leader in the laundromats industry.
The market for laundry services is driven by urbanization and the increase in consumer spending – in essence, as the general economy of a country grows, more people will become busier hence the need to patronize the services of laundry companies on a regular basis.
The trend in the laundry services industry is that most companies in a bid to survive the recent global economic meltdown included additional services to their core service offerings. Coin laundry businesses in the United States and all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market.
2. Executive Summary
Billy Jones® Coin Laundry Services, LLC is a standard coin laundry services that will be located in the heart of Sterling Heights but hopes to establish outlets in key cities all across the United States. We are strategically positioned in one of the cities with a large number of middle and upper class plus busy corporate executives; we are set to service the whole of the community as well as visitors and travelers.
Billy Jones® Coin Laundry Services, LLC will be providing to our esteemed customers on-premises coin- or card-operated washers and dryers, in addition to operating self-service laundry and dry-cleaning equipment in apartments, dormitories and similar locations.
We are quite optimistic that our values and quality of service offering will help us drive our coin laundry business to enviable heights and also help us attract the number of clients that will make the business highly profitable. We are open to the use of latest technology in the laundry industry. Our excellent customer service and the range of services we offer will position us to always welcome repeated customers.
Billy Jones® Coin Laundry Services, LLC is owned by Billy Jones and his immediate family members. Billy Jones is a business man per excellence and he has the required business acumen to help build Billy Jones® Coin Laundry Services, LLC to favorable compete with leading coin laundry companies and franchise in Sterling Heights and the whole of the United States of America.
3. Our Products and Services
Billy Jones® Coin Laundry Services, LLC is a complete coin laundry service that offers a wide range of services that revolves around coin laundry and other complementary services. These are the services and amenities that will be made available to our customers;
- Automatic laundries, coin-operated
- Coin-operated dry cleaners
4. Our Mission and Vision Statement
- Our Vision is to become the ‘go to coin laundry services company’ in the whole of Sterling Heights and every location where we intend opening our outlet.
- Our mission is to develop a highly successful all-round coin laundry services business which provides easy to operate and efficient laundry equipment and quality services in our community and to become a standard for an ideal coin laundry services company in Sterling Heights.
Our Business Structure
Coin laundry business is seen to be a medium-scale business venture, but that does not stop Billy Jones® Coin Laundry Services, LLC to put standard structures in place that will help us achieve all our business goals and objectives.
We are set to build a coin laundry business that will be a standard for the laundry services industry in Sterling Heights and in The United States of America as a whole. We want to build a business of dedicated workforce who will ensure that our customers are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot.
With the wide range of our service offerings and the plan to open our coin laundry outlets all across key cities in The United States of America, we are only expected to employ more than is required to run a conventional coin laundry business.
Billy Jones® Coin Laundry Services, LLC will employ professionals and skilled people to occupy the following position;
- Manager (Owner)
- Accountant / Cashier
- Laundry Supervisor
- Laundry Attendant
5. Job Roles and Responsibilities
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals and payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the organization
- Ensure that the office facility is in tip top shape and conducive enough to welcome customers
- Carrying out induction for new team members
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Responsible for training, evaluation and assessment of employees
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
- Manage overall daily operations of the Laundry Department
- Ensure quality controls are in place for all laundry processes
- Maintain cleanliness of the laundry area
- Train, develop, and appraise the laundry team
- Ensure supplies are ordered
- Take receipt of stock and ensure safe storage
- Manage customer service issues quickly and effectively
- Ensure team members adhere to all Health and Safety Regulations
- Represent the company in strategic meetings
- Help increase growth for the company
- Keeping an updated inventory of laundry detergents
- Tracking maintenance and repairs on laundering equipment.
- Ensuring that the facility remains clean at all times.
- Anticipating and responding to customers’ queries, concerns, and complaints.
- Keeping sufficient tokens or change for the washing and drying machines, if required.
6. SWOT Analysis
Coin laundry services is one of the businesses that can easily generate sales with little stress as long as they are well positioned. We are building a standard coin laundry business with variety of services which is why we have decided to subject our business idea to SWOT Analysis.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
We hired the services of a business consultant with bias in startups to help us conduct SWOT analysis for our company and he did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Billy Jones® Coin Laundry Services, LLC;
Billy Jones® Coin Laundry Services, LLC is centrally located in a densely populated area in Sterling Heights; our location is in fact one of our major strengths. We are also one of the very few coin laundry companies in the whole of Sterling Heights.
Another strength that counts for us is the power of our team; our workforce and management. We have a team that are considered experts in the laundry services industry, a team of hardworking and dedicated individuals.
Billy Jones® Coin Laundry Services, LLC is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business. So also, we might not have the support structure that is made available to established coin laundry operators.
Colleges and universities account for a prominent share of demand for industry services. This is because the industry provides colleges and universities with coin- or card-operated washers and dryers. Therefore, when enrollment increases, more students purchase laundry services.
The number of college students is expected to increase in 2019, representing a potential opportunity for the industry. We are centrally located in one of the busiest areas in Sterling Heights with loads of middle and upper – class households and we are open to all the available opportunities that the city has to offer. Our business concept also positioned us to be a one stop shop in the laundry services industry.
The truth is that there are no coin operated laundry facilities within the area where our laundry services is going to be located; the closest facility to our proposed location is about 2 kilometers away. In a nutshell, we do not have any direct competition within our target market area.
Per capita disposable income is inversely related to demand for laundromats. As per capita disposable income increases, more expensive laundry alternatives become available to consumers. With growing incomes, consumers can afford to purchase laundry machines and pay for drop-off laundry services, reducing demand for laundromats. Per capita disposable income is forecast to grow in 2019, posing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
Declining demand for professional laundry services, unfavorable shifts in consumer preferences and increasing competition from coin-operated laundromats and household washing machines have led to this industry’s decline in the past decade.
This is so because coin laundry businesses respond to the increase in household spending and also increase of busy business people in a particular area or city. The trend of the market can be predicted without stress.
Another obvious trend in the laundry services industry is that most laundry companies in the bid to survive the recent global economic meltdown included additional services to their core service offerings. Some companies include washing of rugs, selling of laundry machines and similar laundry equipment within the same premises if they have enough space.
8. Our Target Market
Before choosing a location for our coin laundry business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Those who will benefit from our service offerings are college students and business people, and they cut across different sectors of the economy. These are the category of people that we intend marketing to;
- Corporate Executives
- Business People
- College students
- Sport clubs
The fact that a coin laundry business is an easy to set up business means that anybody can set up a coin laundry business if they have the required startup capital. It means that the possibility of coin laundry businesses springing up in our location is high. We aware of this which is why we decided to come up with a business concept that will position us to become the leader in Sterling Heights – Michigan.
We can confidently say that the location of our coin laundry business will definitely count as a positive for us in the industry. For the time being, Billy Jones® Coin Laundry Services, LLC has no real competitors that can match the quality service we offer and our business offerings. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
The marketing strategy for Billy Jones® Coin Laundry Services, LLC is going to be driven by easy to operate laundry machines, excellent customer service and quality service delivery. We want to drive sales via the output of our jobs and via referral from our satisfied customers.
In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales and loyalty from them;
- Open our coin laundry services business with a party so as to attract residents who are our first target market.
- Introduce our coin laundry services business by sending introductory letters alongside our brochure to corporate organizations, college students, households, sports clubs and key stake holders in and around Sterling Heights – Michigan.
- Advertise our coin laundry business in community newsletters, local TV and radio stations
- Promote our business online via our official website and all available social media platforms
- Hire the services of experts to make our brand the first choice for residents of Sterling Heights – The United States of America
- Making our first impression count positively
- Make use of attractive hand bills to create awareness and also to give direction to our laundry facility
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places
- Create a loyalty plan that will enable us reward our regular customers
- Enter into business partnership with sports clubs to handle all their laundry services
Sources of Income
Billy Jones® Coin Laundry Services, LLC is established with the aim of maximizing profits in the laundry services industry and we are going to go ensure that we do all it takes to attract both clients on a regular basis. Billy Jones® Coin Laundry Services, LLC will generate income from the following service offerings;
- Automatic laundries, coin-operated
- Coin-operated dry cleaners and laundries
- Self-service dry cleaners and laundries
10. Sales Forecast
The profits you can expect to generate from a coin operated laundromat vary depending on the size, efficiency and popularity of each business. According to the Coin Laundry Association, the cash flow of laundromats is typically in the range of $15,000 and $300,000 per year. To maximize your business’s profitability, carefully consider the aspects above and create a smart Business model. With hard work and prudent planning, you’re sure to find success.
We are well positioned to take on the available market in Sterling Heights and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow our coin laundry services business and our clientele base.
We have been able to examine the laundry services industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Billy Jones® Coin Laundry Services, LLC, it is based on the location of our business and of course the wide range of related coin operated laundry and dry cleaning services that we will be offering;
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $480,000
- Third Fiscal Year (FY3): $850,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
Billy Jones® Coin Laundry Services, LLC is set to create a standard coin laundry services company in Sterling Heights which is why we will adopt and apply best practices to promote our business. Good enough there is no hard and fast rule on how to advertise or promote a coin laundry business.
Here are the platforms we intend leveraging on to promote and advertise Billy Jones® Coin Laundry Services, LLC;
- Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our coin laundry services business in relevant magazines, local newspaper, local TV and radio stations
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our brand
- Install our Billboards in strategic locations all across Sterling Heights
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas
- Ensure that all our staff members wear our customized clothes, and all our official cars and trucks are customized and well branded.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than our competitors are offering in Sterling Heights – Michigan. Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
- Payment Options
The payment policy adopted by Billy Jones® Coin Laundry Services, LLC is what is obtainable in the industry and it is strictly coin. But in some cases, we may allow card payments.
13. Startup Expenditure (Budget)
Approximation shows that top-load washing machines cost from $500 to $700 each, while front-loaders run between $3,500 and $20,000 each, depending on size. Stacked dryers generally cost between $5,000 and $6,000. For an average laundry, it may cost you between $150,000 and $400,000 to fully stock it with machines.
We have been able to pull cash that will be enough for us to successfully launch a standard coin laundry service in Sterling Heights – Michigan. These are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Cost for leasing facility for the coin operated laundry – $70,000.
- Cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000)
- Phone and utility deposits – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of pressure washing and industrial dry cleaning equipment (a seventy foot fully automatic tunnel; 3 high pressure wand self-service bays; and 5 vacuum stations complete with fragrance and carpet shampoo dispensing machines, Insulator washers with a pump pressure of about 1000 psi and a nozzle pressure between 500 and 750 psi, centrifugal water pump, stainless steel water storage tank, high-pressure water hose, high-pressure dead-man type water wash gun and Electrical grounds for the wash gun and washing system and Flexible pipes for water delivery et al) – $250,000
- The cost of the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, , tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- Miscellaneous: $10,000
We would need an estimate of four hundred and fifty thousand dollars ($450,000) to successfully set up our coin laundry service in Sterling Heights – Michigan.
Generating Funds/Startup Capital for Billy Jones® Coin Laundry Services, LLC
Billy Jones® Coin Laundry Services, LLC is solely owned and financed by Billy Jones and his immediate family members. They do not intend to welcome any external business partners which is why the decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $180,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Billy Jones® Coin Laundry Services, LLC is to ensure that we continue to make available easy to operate and efficient coin operated laundry machines, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in diversifying our services; expand our product and service offerings once the need arises.
Billy Jones® Coin Laundry Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of laundry services facility and remodeling the facility: In Progress
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the need laundry services supplies, tools and equipment: In progress
- Purchase of van: Completed
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with laundry equipment manufacturers, suppliers of washing chemicals and other key stakeholders within and outside of Sterling Heights: In Progress