Laundry businesses consistently rank among the most profitable businesses. And for good reason, they can be started with relatively little capital, yet yield lucrative profits. If you don’t believe me, check out the full review in this article!
Reasons Why Laundry Businesses Are Always Sought After
These days, it’s easy to find laundry businesses everywhere, from home laundry services to laundry by the kilo to coin-operated laundries.
The mushrooming of this business is not without reason, the reason being busy working, studying, or taking care of the family means that many people do not have much time to wash and iron their own clothes.
In fact, if you do the math, laundry costs can be more economical in terms of electricity and energy. Here are at least three reasons why laundry businesses are always busy:
- First, more and more people are choosing to use their time for quality time or simply resting rather than wasting energy washing and ironing clothes.
- Second, laundry services offer practical solutions so you can do other, more productive activities.
- Third, your clothes are taken care of directly by “experts”, they know the tricks of washing and ironing clothes so they are clean, fragrant, and well-maintained.
Read also: 20 Franchise Business Ideas Under 5 Million, Ranging from Food to Logistics
Opportunities and Challenges of the Laundry Business
Of course, the above considerations are starting to intrigue those with an entrepreneurial spirit. However, before diving into soap and detergent, let’s first examine the opportunities and challenges of the laundry business.
Here are some laundry business opportunities that are a shame to miss:
- Not a seasonal business, demand is high, and there is a lot of demand, especially in urban areas.
- It can be started with relatively low capital but provides a tempting profit margin.
- It doesn’t require any special skills and the business model is easy enough to learn even for beginners.
- You can start from home with existing equipment.
- Technological developments have made washing and ironing activities easier.
However, besides the above advantages, this business also has some specific challenges, such as:
- The level of competition is quite tight so you have to have a bit of a “price war”.
- Weather is one of the obstacles you can’t control.
- Manajemen yang tidak efisien bisa menimbulkan kekacauan, seperti pakaian yang tertukar, pesanan tidak selesai tepat waktu, dan disertai dengan keluhan pelanggan.
Laundry Business Capital
The capital required for a laundry business can vary greatly, depending on the business model and strategy you employ. However, as an illustration, Labamu will provide the minimum capital you need to start this business on a small scale:
| Need | Quantity | Unit price | Amount |
| Washing machine and dryer | 2 unit | 5.000.000 | 10.000.000 |
| drying rack | 2 unit | 500.000 | 1.000.000 |
| Hanger | 100 pcs | 3.000 | 300.000 |
| Iron | 2 unit | 350.000 | 700.000 |
| Ironing board | 2 unit | 100.000 | 200.000 |
| Scales | 1 unit | 200.000 | 200.000 |
| Keranjang pakaian | 5 pcs | 50.000 | 250.000 |
| Detergent and fragrance | 10 liters for 100 kg of clothes | 350.000 | 350.000 |
| Water and electricity | estimate for 100 kg of clothes | 200.000 | 200.000 |
| Employee salary | 1 person | 1.500.000 | 1.500.000 |
| Promotion | Banners and brochures | 300.000 | 300.000 |
| Total | Rp 15.000.000,00 |
While it can be said that a laundry business can be started with relatively little capital, this again depends on the scale and business strategy you implement.
Misalnya kalau kamu harus membeli lebih banyak mesin atau membayar sewa gedung. Tentu modal untuk memulainya bakal lebih besar.
Tips for Successfully Opening a Laundry Business
So, after estimating the capital needed, now is the time for you to learn the tips for successfully running a laundry business.
1. Choose a Strategic Location
Opening a laundry business requires a location close to a residential area, such as a housing complex, apartment, or boarding house. You can certainly start this business anywhere, but ensure the location is strategic and representative.
2. Build Your Brand Seriously
Even if it’s “just” a home business, it’s still a good idea to take branding seriously. For example, create a unique and memorable name, include a business identity and a number that customers can easily contact.
3. Calculate and Prepare Laundry Business Capital
We’ve already done this step. Essentially, align your procurement with your available capital. Most importantly, just get started. Hopefully, your laundry business can scale as your loyal customers grow.
4. Recruit Employees Who Are Serious About Their Work
After all, laundry is a service business. Therefore, you must be prepared to provide excellent and satisfactory service. To achieve this, hire employees who are willing to learn together and work diligently, who are not careless with other people’s belongings, and who are trustworthy.
5. Find Suppliers Who Offer the Best Deals
To maintain quality service, ensure you have all your necessary supplies in stock, from detergents and fragrances to plastic packaging. Therefore, find a supplier you can rely on and offer the best deals to increase your profit margins.
6. Determine a Competitive Price
Because competition in this business is quite fierce, make sure you set competitive prices. Competitive pricing doesn’t necessarily mean lower prices, but rather ensuring customers get value for their money—even if it’s higher than competitors’ prices.
7. Implement Effective Procedures
To maintain standards and consistency, you can train employees by implementing effective procedures. For example, they’ll explain the business process or flow, how to operate machinery, and even tips for packing neatly packed clothes to prevent wrinkles.
8. Do Promotion
You should occasionally run promotions, especially when opening. Common promotions include discounts or free services with a certain amount of purchases.
Also read: Characteristics of a Good Business Opportunity and How to Recognize Them
9. Offer Pick-up and Delivery Services
Want to stand out from the competition? You might consider offering additional services like pick-up and delivery for specific distances. This is especially helpful for busy customers.
10. Service Diversification
Besides clothes, you can expand your laundry business opportunities by providing other laundry services, such as for dolls, carpets, shoes, bags, and many others.
So, that’s an example of calculating laundry business capital and tips for running it successfully. Last but not least, ensure all customer transaction data is neatly recorded in the Labamu app.
There are many features you can take advantage of, proven to help over 84,000 MSMEs in Indonesia. Download the app now on Google Play or the App Store!
