How to Start a Laundry Business: Ultimate Guide

Have you ever thought about starting your own laundry business? It can be a great way to become your own boss and earn extra income. But how do you get started?

No doubt, laundry is a significant part of most people’s everyday life, and this is because it is a necessity.

Most people do not have the money to buy washers and dryers or even the time to do their laundry, making starting a laundry business a very profitable idea. 

As good as it sounds, you should know that this industry has a lot of competition.

Not to worry, though! We are here to help you get started on the right foot with our ultimate guide on starting a laundry business.

You probably clicked on this post looking for some guidelines, so enough talking, and let’s get right into it!

What is a Laundry Business?

A laundry business offers laundry and dry-cleaning services to individuals and businesses.

Laundry businesses can either be brick-and-mortar stores or mobile services that come to the customer’s location.

There are many different types of laundry businesses, such as dry cleaners, laundromats, and home-based laundry services.

Dry cleaners use chemicals to clean clothes and usually require special equipment.

Laundromats are self-service businesses that provide washers and dryers for customers to use and allow customers to do their laundry using coin-operated washing machines.

Home-based laundry services are businesses that offer to wash, dry, and fold clothes for customers.

These businesses usually pick up and drop off the clothes from the customer’s home.

Now that you know what a laundry business is, let’s move on to how you can start your own laundry business.

How to Start a Laundry Business

There are a few things you need to do to start your laundry business.

We have compiled a list of things you need to do to get started:

1) Decide what type of laundry business you want to start

Before starting a laundry business, you need to decide what type of laundry business you would like to start. 

The three main types of laundry businesses are coin-operated laundromats, dry cleaners, and drop-off/pick-up services.

You could also do the washing and folding where customers can drop off their laundry and come by later for pick up when you’re done. It is also a great idea to offer pick-up and delivery services.

There is also the option of joining a laundry franchise rather than building from the ground up. This has both pros and cons, but if this is your first attempt at starting a laundry business, it is a good idea to start with this format. 

Regardless of what option you choose, it is important to do your research before making a decision.

2) Write a business plan

Next, you need to write a business plan to give you a better understanding of the market you are about to serve. 

Your business plan should include details of your goals, products or services, and finances. This summary is what you would present to investors or if you plan on obtaining a loan from the bank or other loan providers. 

It is important to make it easy to read and understand by being as precise as possible. Do not beat around the bush – your investors probably won’t read through everything if the length is overwhelming.

3) Gain adequate experience

Doing laundry is more than just throwing clothes into a washer. Before opening a laundry business, you should know how to launder different types of clothing. 

You should also be familiar with how different fabrics react to certain cleaning agents and how to properly care for them. Different stains require different treatments, and you need to know how to remove them without damaging the fabric. 

If you do not have experience with laundry, it is a good idea to get a job at a laundromat or laundry service. This will give you first-hand experience and allow you to learn the ropes before starting your own business.

4) Choose a Business Name and Entity 

Choosing a name for your business shouldn’t be a difficult task. If anything, it should be the most interesting part of the whole experience of starting the business.

Your business name is how customers will remember you, so make sure it is catchy, easy to spell and pronounce, and relevant to what you do. 

You will also need to register your business name with the government. Once you have chosen your business name, you can move on to selecting a business entity

The most common business entities for small businesses are sole proprietorships, limited liability companies (LLCs), and corporations. 

5) Get the Necessary Licenses and Permits

After you have chosen your business name and entity, you will need to obtain the necessary licenses and permits to operate your laundry business.  

The licenses and permits you need will vary depending on your business location, type of business, and the services you offer. 

Some common licenses and permits you might need include a business license, a resale permit, a health permit, and a zoning permit. 

6) Carry out Market Research and Determine your Target Market 

When carrying out market research for your laundry business, it is important to ask questions about the demographics of the area. This will help you to determine if the area is a good location for your business and who your target market will be.

You should ask questions such as whether the neighbourhood is dominated by working-class people who wear suits, how many personal washers are in the area, and whether there are any university students or elderly people living nearby.

This information will help you to determine what type of laundry business would be most successful in the area.

7) Pick a Prime Location

Picking the prime location (perfect location) can only be possible after you have done adequate market research because the research would help you determine where this business would thrive more.

You could already have a location in mind, it could even be your garage, but it is important to consider how accessible your location is to potential customers.

The closer your business is to a high foot-traffic area, the better. If you are located in a residential area, make sure there is enough parking available for your customers.

8) Purchase the right equipment

The type of equipment you need for your laundry business will depend on the type of business you want to start.

If you are starting a small laundry service, you will need a washer, dryer, iron, and ironing board.

Some equipment you might need if you are starting a self-service laundromat include:

  • Washing machines 
  • Automatic coin-operated washers 
  • Clothes dryer 
  • Drying rack 
  • Pressing machines 
  • Steamers 
  • Steam boilers

9) Distinguish your Laundry Business from Competitors

Make sure your laundry business stands out from the competition. One way to do this is by offering a loyalty program for your regular customers.

You could also offer pick-up and delivery services for an additional fee or start a loyalty program where customers can earn rewards for referring new customers to your business.

Another way to make your business unique is to offer a wide range of services such as dry cleaning, alterations, and ironing.

Better packaging of washed and folded clothes should be taken into consideration. People should be able to recognize your laundromat from the outside. This is how you make a killing in this business.


Getting your own business off the ground could be very overwhelming, to say the least. The planning could stretch for days, weeks or even months. But that doesn’t mean you should stop.

You might find excitement at some point, and when you do, don’t let go. Remember your “why”. Keep it at the back of your mind every day as you wake up and get working on making your dreams a reality.

Procrastination would only push you further away from your daily goals and dreams, so avoid it!

Now that you know how to start a laundry business, it’s time to take action and get your business up and running!