Any business needs a drawn-up business plan highlighting essentials like location, purpose, a mission statement, and what service type they provide to the public. This is no different for a laundromat. A laundromat needs to know this essential information—especially the location, purpose, and mission statement—to lead it to success. So you need a guide to writing a laundromat business plan to make your company successful.
Why Do You Need To Write a Business Plan for a Laundromat?
In general, a business plan defines the fundamental parts of your business. Writing a business plan for your laundromat helps you determine certain plans, from raising funds for equipment to choosing the best location.
Identify the Location of Your Laundromat
An essential part of your business plan is determining where your business will be. Will it be inside a commercial building on the main street of a highly-populated city, or is the location difficult to find?
A visible location is essential, as it makes it easier for customers to find you. If your location is hard to find, no customers show up to use your service, especially if you don’t use advertising and signage. Research your area well and ensure that your location is near or on a main street with a thriving business hub.
Once you’ve found the right place with high visibility, ensure that the appliances are working and there are no infrastructure issues. Having a building inspector check the entire building before leasing it is a good idea.
Research Your Competition
Searching for a prime location is essential, but you also need to monitor your competition and ensure that you’re in proximity to your target market. Before picking a location, scope the area via Google Maps or walk the general area. This way, you can see how much competition you have around you.
Then, visit other nearby laundromats and see what makes them stand out. If nearby laundromats offer similar services to your business, try offering different amenities, such as a wash and fold service. A wash-and-fold service provides customers the satisfaction of having workers take care of their laundry—an extremely appealing service for busy people.
Give Your Business a SWOT Analysis
A SWOT analysis breaks down your business’s strengths, weaknesses, opportunities, and threats. Analyzing where and how your business can improve and what it succeeds at most can uncover what makes your laundromat different from the competition. Use this analysis every quarter in your business plan to continue building a better brand for yourself and the community.
Seek Out Funding for Your Laundromat
Funding is the most important part of ensuring everything stays running. A laundromat business owner can seek funding from banks or angel investors—a sole capital provider who, in exchange for funding, receives ownership equity or convertible debt.
If you plan on seeking funding from a bank, a loan officer needs a copy of your business plan to determine if you can repay the loans and interest. Avoid sending it as a draft—a completed professional business plan shows the bank that you have what it takes to run a business.
What Do You Need To Secure a Business Loan?
Generally, you need good credit—most banks require a credit score of 690 or better, but you might receive higher interest rates if your score is lower. Still, you can get a business loan with a bad credit score by showing proof that you have been in business for at least six months and have more than 30,000 dollars in annual revenue.
Here is a list of other things you need to secure a business loan:
- Your business’s recent bank statements and tax returns.
- A timeline of how long you have been in business.
- A personal guarantee that you can pay even if the business hits a rough patch.
Consider the Times of Operation and if You’ll Hire Staff
One of the critical factors in running a business is establishing hours of operation and hiring employees. Say you plan to run the laundromat from eight a.m. to seven p.m. or later; you should have a pre-written plan of responsibilities throughout the day for workers to do. If you don’t plan on hiring staff, providing customers with a key card to access the laundromat during set hours would be the best way to go.
Before hiring staff, you should plan a hiring strategy. For every role you hire for, from the back office to the front of the business, list job tasks/responsibilities, a compensation plan, employee performance reviews, and what training staff must do before starting.
Find Success in Creating a Mission Statement
Creating a mission statement is a great way to inform your customers of why you decided to start a laundry business. Maybe you opened it because your community needed a reliable place to go to for their laundry needs. Be sure to include that information in your mission statement.
Your mission statement should also define your success factors. For example, let customers know that your priority is providing friendly customer service and that everyone goes above and beyond for each other. Additionally, make it a point to state your business goals—being eco-friendly and offering sustainable detergents and dryer sheets, for example.
Learn About the Services Consumers Want Most
There’s a long list of things that laundry customers want most from their local laundromat—and one of those things isn’t just a washing machine. Consider going online or around town and asking residents what they want most out of a visit to the laundromat.
You can provide a plethora of laundering options to customers, such as cashless laundry systems that let customers use an app to pay for their load. An app makes the whole washing process easy and efficient; it also means a greener environment.
It’s helpful to provide a list of services that consumers want most while writing a laundromat business plan. The best way to a successful laundromat is by putting your heart into the business and making it a great place for staff and customers. You can develop a successful business plan for your laundromat by doing a few essential steps, such as location scouting and learning the services laundry customers want the most.