Do you want to start a dry cleaning business and need to write a plan? If YES, here is a sample home delivery dry cleaning business plan template & feasibility report.
If you are interested in starting your own dry cleaning home delivery business in the United States, it will be a wise decision to first and foremost conduct detailed cost analysis before investing your time and money into the business. Starting a dry cleaning home delivery business requires that you purchase or lease equipment that are needed to run the business.
Beyond the skill set you will be bringing to the table; equipment is also instrumental to the starting and running this business.
So, part of what you need to know before starting your dry cleaning home delivery business is the equipment that are used in a standard dry cleaning shop. Below is a sample dry cleaning home delivery business plan template that will help you write yours with little or no stress.
A Dry Cleaning Home Delivery Business Plan Template
1. Industry Overview
Dry cleaning home delivery business is part of the Dry Cleaners industry and players in this industry provide dry cleaning and laundering services. They cater to household consumers and commercial clients such as hotels and restaurants.
Operators may also provide drop-off and pick-up sites for customers. In addition, establishments may also offer specialty cleaning services for garments and textiles such as fur, leather, suede, wedding gowns, draperies and pillows. Please note that the Dry Cleaners industry does not include coin-operated laundromats, nor does it include companies that generate most of their revenue from linen and uniform rentals.
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.
A recent research conducted by IBISWorld shows that the Dry Cleaners industry has a medium level of capital intensity.
Declining demand for professional dry cleaning services, unfavorable shifts in consumer preferences and increasing competition from coin-operated laundromats, household washing machines and other substitute products have led to the industry’s decline over the past decade.
Consequently, industry revenue is expected to decrease at an annualized rate of 1.0 percent to $9.1 billion over the five years to 2019, including a projected decline of 1.8 percent in 2019 alone. The Dry Cleaners industry is a thriving sector of the economy of the united states and it generates over billion annually from about 35,253 registered and licensed dry cleaning services.
The industry is responsible for the employment of over 138,957 people. Experts project the industry to depreciate at -1.0 percent annual rate between 2014 and 2019. No company can boast of having the lion share of the available market in the industry in the United States of America.
The market for dry cleaning services is driven by urbanization and increase in consumer spending – in essence, as the general economy of a country grows, more people will become busier hence the need to patronize dry cleaning home delivery companies on a regular basis.
Dry cleaning home delivery 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 (the middle and upper class of the society, busy corporate executives and business people).
2. Executive Summary
Sam Edwards® Dry Cleaners Services, LLC is standard dry cleaning home delivery services company that will be located in the heart of Mount Pleasant, South Carolina but hopes to establish our 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 and business people.
Sam Edwards® Dry Cleaners Services, LLC will provide dry cleaning and laundering services and of course we will also provide drop-off and pick-up for customers. In addition, we will offer specialty cleaning services for garments and textiles such as fur, leather, suede, wedding gowns, draperies and pillows.
Although our intention of starting a dry cleaning home delivery services business in Mount Pleasant – South Carolina is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality services. We are open to the use of latest technology in the dry cleaners services industry. No doubt our excellent customer service and the range of services we offer will position us to always welcome repeated customers.
Sam Edwards® Dry Cleaners Services, LLC is owned by Sam Edwards and his immediate family members. Sam Edwards is a business man par excellence and he has the required business acumen to help build Sam Edwards® Dry Cleaners Services, LLC to favorable compete with leading dry cleaning companies and franchises in Mount Pleasant.
3. Our Products and Services
Sam Edwards® Dry Cleaners Services, LLC is a complete dry cleaning home delivery company that offers a wide range of services that revolves around dry cleaning home delivery services. We intend giving our customers reasons to always come back which is why we have customized our services.
These are the services that will be made available to our customers;
- Commercial full-service laundry
- Retail dry cleaning and laundry services
- Commercial dry cleaning services
- Drop off and pick up services
4. Our Mission and Vision Statement
- Our Vision is to become the ‘go to dry cleaning home delivery services in the whole of Mount Pleasant and every location where we intend opening our outlet.
- Our mission is to develop a highly successful, profitable and all-round dry cleaning home delivery business which provides quality services and timely pickups and drop offs in our community and to become a standard for an ideal dry cleaning home delivery company in Mount Pleasant.
Our Business Structure
Dry cleaning home delivery services business generally is seen to be a small – scale business venture, but that does not stop us from putting standard structures in place that will help us achieve all our business goals and objectives. We know that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our dry cleaning home delivery services company on the right business foundation.
As a matter of fact, we are set to build a dry cleaning home delivery business that will be a standard in the industry in Mount Pleasant. 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 we will be putting structures and processes in place that will help us deliver excellent services.
With the wide range of our service offerings and the plan to open our dry cleaning outlets all across key cities in The United States of America and to sell franchise, we are only expected to employ more than it is required to run a conventional dry cleaning home delivery service business.
Sam Edwards® Dry Cleaners Services, LLC will employ professionals and skilled people to occupy the following position;
- Manager (Owner)
- Laundry Supervisor
- Dry Cleaners
- Delivery Officers/Van Drivers
- Customer Services Officer/Front Desk Officer
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
- 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.
- Oversee the smooth running of the daily activities of organization.
- Collect payment for services rendered served and balance all receipts.
- 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.
- Manages overall daily operations of the laundry department
- Ensure quality controls are in place for all laundry processes, rejecting any exceptions
- Maintain cleanliness of the laundry area
- Train, develop, and appraise the laundry team
- Ensure linen and supplies are ordered and controlled in line with business requirements
- Carry out stock takes
- Ensure par stocks are maintained
- Take receipt of stock and ensure safe storage
- Manage customer service issues quickly and effectively
- Oversee the issuing of linen via a requisition system
- Ensure that all workers adhere to all Health and Safety Regulations
- Sorting, washing, drying, pressing, and folding clothing and other textile items.
- Removing stains from items using the appropriate procedures.
- Tracking which items belong to whom.
- 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.
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ services, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries.
Distribution Truck Drivers
- Assists in loading and unloading of clothes meant for delivery and for pickups
- Maintains a logbook of their driving activities to ensure compliance with federal regulations
- Keeps a record of vehicle inspections and make sure the van is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a pickups and delivery schedule.
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Reports defects, accidents or violations
6. SWOT Analysis
A dry cleaning home delivery services business can easily generate sales with little stress as long as they are well positioned. We are building a standard dry cleaning home delivery services business with variety of services which is why we have decided to subject our business idea to SWOT Analysis.
Ordinarily we can successfully run a normal dry cleaning home delivery business without going through the required protocol of setting up a new business, but because of the nature of business we want to establish, we don’t have any option other than to follow due process.
We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strengths, 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 Sam Edwards® Dry Cleaners Services, LLC;
Sam Edwards® Dry Cleaners Services, LLC is centrally located in a densely populated area in Mount Pleasant; our location is in fact one of our major strengths. We are also one of the very few dry cleaning companies in the whole of Mount Pleasant, South Carolina that is well equipped to carry out a wide range of services.
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 dry cleaners services industry, a team of hardworking and dedicated individuals.
Sam Edwards® Dry Cleaners Services, LLC is a new business which is owned by an individual, 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 dry cleaning franchise operators.
When per capita disposable income falls, consumers react by decreasing their household expenditures, including spending on discretionary services such as dry cleaning. Instead, consumers opt for less expensive substitutes, such as home washing or coin-operated laundromats.
The opposite holds true when per capita disposable income rises. Per capita disposable income is expected to increase in the coming years, presenting a potential opportunity for the industry. We are centrally located in one of the busiest areas in Mount Pleasant, South Carolina with loads of middle and upper – class households and we are open to all the available opportunities that the city has to offer.
Dry cleaners compete with self-serve or coin-operated laundromats, which offer laundry services that are generally less expensive than those offered by dry cleaners. During the past decade, persistent competition from laundromats has considerably reduced demand for dry cleaning services, thereby hurting industry revenue.
External competition is expected to increase in 2019, posing a threat for the industry. Per capita disposable income is inversely related to demand for dry cleaning services.
As per capita disposable income increases, more expensive laundry alternatives become available to consumers. With growing incomes, consumers can afford to purchase laundry machines. Per capita disposable income is forecast to grow going forward, 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.
Another obvious trend in the dry cleaners services industry is that most dry cleaning companies in the bid to survive the recent global economic meltdown included additional services to their core service offerings.
Some dry cleaning services companies include washing of rugs, selling of laundry machines and similar laundry equipment within the same premises if they have enough space. It is much easier for dry cleaning service companies to increase their revenues by diversifying as against increasing the scope of their market.
8. Our Target Market
Before choosing a location for our dry cleaning home delivery services business, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically, those who will benefit from our service offering are college students, corporate executives and business people and they cut across different sectors of the economy.
Our target customers can be classified into three major groups (household, business owners/corporate clients and sports club). These are the category of people that we intend marketing our services to;
- Corporate Executives
- Business People
- College students
- Household (Middle and Upper Class)
- Sport clubs
- Churches and organizations that make use of robes
- Costume, wedding gowns, tuxedo and cloths rental businesses
Our Competitive Advantage
The fact that dry cleaning home delivery business is easy to set up and does not require formal training to achieve means that anybody can set up the business if they have the required startup capital. It means that the possibility of a competitive business springing up in our chosen 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 Mount Pleasant – South Carolina. Our competitive advantage is our ability to quickly adopt new technology, ability to accommodate environmental requirements, robust pickup and distribution network and of course proximity to key markets.
We can confidently say that the location of our dry cleaning facility will count as a positive for us amongst any competitor that might start this business in same location where ours is located. For the time being, Sam Edwards® Dry Cleaners Services, LLC has no real competitors that can compete with the quality of services we offer. Our customer service will be customized to meet the needs of 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 Sam Edwards® Dry Cleaners Services, LLC is going to be driven by easy to operate laundry machines, excellent customers’ service and quality service delivery (including timely and efficient pickups and drop offs).
We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially dry cleaning home delivery services.
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;
- Introduce our dry cleaning home delivery services business by sending introductory letters alongside our brochure to corporate organizations, college students, households, sports clubs and key stake holders in and around Mount Pleasant – South Carolina.
- Advertise our dry cleaning home delivery services business on community newsletters, local TV and radio stations
- Promote our business online via our official website and all available social media platforms
- Continuously Improving the performance of our brand
- Hire the services of experts to make our brand the first choice for residents of Mount Pleasant – South Carolina
- Making our first impression count positively
- Make use of attractive hand bills to create awareness and also to give direction to our laundry services 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 and related businesses or organizations to handle all their laundry services
Sources of Income
Sam Edwards® Dry Cleaners Services, LLC is established with the aim of maximizing profits in the dry cleaners services industry and we are going to ensure that we do all it takes to attract both clients on a regular basis. Sam Edwards® Dry Cleaners Services, LLC will generate income from the following service offerings;
- Commercial full-service laundry
- Retail dry cleaning and laundry services
- Commercial dry cleaning services
- Drop off and pick up services
10. Sales Forecast
One thing is certain, there would always be corporate organization, households and individual clients who would need the services of a dry cleaning delivery business.
We are well positioned to take on the available market in Mount Pleasant, South Carolina and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our business and our clientele base.
We have been able to examine the dry cleaners services industry, and 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 Sam Edwards® Dry Cleaners Services, LLC, it is based on the location of our business and of course the wide range of 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 residential cleaning 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
Sam Edwards® Dry Cleaners Services, LLC is set to create a standard dry cleaning home delivery company in Mount Pleasant and throughout South Carolina 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 dry cleaning home delivery business. Here are the platforms we intend leveraging on to promote Sam Edwards® Dry Cleaners Services, LLC;
- Encourage our loyal customers to help us use Word of Mouth advertisement (referrals)
- Advertise our dry cleaning home delivery 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 Bill Boards on strategic locations all across Mount Pleasant
- 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 Mount Pleasant – South Carolina. 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 Sam Edwards® Dry Cleaners Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Sam Edwards® Dry Cleaners Services, LLC will make available to her clients;
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payments for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
If is a fact that it is possible to start a dry cleaning business for under $2,000, but it also important to point out that there are some high-end, industry-specific equipment that can cost as much as $40,000 or more. As a matter of fact, some start-up dry cleaning businesses require as much as $500,000 in capital just to get the business off the ground.
We have been able to pull cash that will be enough for us to successfully launch a standard dry cleaning home delivery company in Mount Pleasant – South Carolina. These are the key areas where we will spend our startup capital on;
- The total fee for registering the business in Mount Pleasant – South Carolina – $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.
- The cost for hiring Business Consultant – $2,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing facility for the laundry – $70,000.
- The cost for facility remodeling – $10,000.
- Other start-up expenses including stationery, Phone and utility deposits – $15,000
- The cost for start-up inventory (cleaning chemical supplies, starch, detergents and soaps) – ($3,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of laundry machines and equipment (Industrial Washing Machine, Industrial blower or dryer, Hand dryer, industrial pressing iron, pressing table, Cloth racks and hangers, Laundry sterilizing machine, Water heater, Laundry basket, store room, and large containers) – $25,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
- The cost for the purchase of delivery vans: $25,000
- The cost of launching our official website: $600
- Miscellaneous: $5,000
We would need an estimate of two hundred and fifty thousand dollars ($250,000) to successfully set up our dry cleaning home delivery company in Mount Pleasant – South Carolina.
Generating Funds/Startup Capital for Sam Edwards® Dry Cleaners Services, LLC
Sam Edwards® Dry Cleaners Services, LLC is owned and financed by Sam Edwards and his immediate family members. They do not intend to welcome any external business partners which is why he 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 $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 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 Sam Edwards® Dry Cleaners Services, LLC is to ensure that we continue to make available 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.
From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Sam Edwards® Dry Cleaners Services, LLC will adopt the use of payment machines and accounting software to run the business.
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 service offerings once the need arises.
Sam Edwards® Dry Cleaners 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 Packaging and 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
- Purchase of delivery vans: Completed
- Establishing business relationship with laundry equipment manufacturers, suppliers of washing chemicals and other key stakeholders within and outside of Mount Pleasant – South Carolina: In Progress