Want to Try the Laundry Business? Read this article first!

When talking about business opportunities and potential, one thing that is the limit is only the imagination you have. If you have enough references and creativity, there are opportunities that can be taken advantage of. One business that is still quite promising today is the laundry business.

But why is this business still promising? Isn't it in various big cities and areas that laundry businesses have mushroomed and have their own loyal customers? 

This is where the point you should pay attention to. When the type of business mushrooms, it means that there is an attractive market potential that is seen by other businesspeople. With the same type of business, you can create an attractive unique selling point for customers.

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4 Types of Laundry Business

Before discussing further about the laundry business, it’s a good idea to know in advance the types of laundry businesses that can be offered to customers such as:

1.  Kilo Laundry Business

As the name suggests, this first type will serve washing clothes with kilo sizes. This business will have a small to medium scale, with a capital of about two to three washing machines.  Quite interesting to try, right?

Because the scale tends to be small, you can try this business to be placed in residential areas, villages, campuses, or close to rented areas and boarding houses.  Of course, you must do price research before executing it.

2.  Coin Laundry Business

Because it uses a washing machine in quite a lot of units, the capital will also tend to be larger. In addition to providing laundry services, you can also sell various supporting products, such as detergents, fragrances, washing bags, and so on.

The concept applied is self-service, so customers will come with dirty clothes, and weigh and adjust to the available machine capacity. Since everything is done by customers, not much staff is needed apart from technical staff for washing machine maintenance.

3.  Retail Laundry Business

In this third type, the business has run with a better and more complex system. There are a series of standards that must be met in   the services provided, in accordance with the SOP of the brand you take.

Offering more complete features but with a fairly larger investment cost, you will actually get convenience because the business system has been provided by the brand owner.

4.  Industrial Laundry Business

Laundry is carried out in large parties and targets nearby businesses. That is, customers are no longer individuals, but tend to other business entities and become B2B models. The main target is an industry that does not provide in-house laundry and needs a special partner in this field.

Service standards and rates posted will be discussed with the clients you have.

Steps to Start a Laundry Business

If you want to really start a laundry business from scratch, then the following simple steps can be the right reference.

  • Choose a name and create a logo, to make it easy to remember, you must choose an attractive name and a simple logo. This way, customers and markets will more easily recognize your business.
  • Create a business plan.  Business planning is an important thing that cannot be ignored, so that you have a clear framework of how the   business is run and how long-term prospects it has.
  • Choose a strategic location. As discussed earlier, the laundry business will depend a lot on site selection. Position determines achievement, as well as the business you want to open.
  • Make the selection of equipment and staff that suits the market segment or type of business you choose, so that there is no waste in the business capital used.
  • Don't forget to register a business so that the business you run has clear legal legality.   This problem is a staple in business, so that in the future there will be no problems related to commercial law.
  • Start marketing your business and the services you offer with the right strategy.

Pretty simple, isn't it?

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Advantages of Laundry Business

There are several advantages that can be obtained when you manage and have a laundry business. Some of them are as follows.

  • Return on investment in a relatively short time due to high demand
  • No need for a large warehouse to store the stock of products you have, because basically what is sold is a service
  • There is no need to follow trends in business matters, because laundry targets the daily needs of the surrounding community who are customers
  • Strong in the face of a possible recession, because the ease of washing clothes is primary for the market
  • Can open branches in several different places when you already have a wider market
  • Laundry entrepreneurs’ association that offers benefits to its members

Challenges in the Laundry Business

In addition to the benefits offered, there are also several challenges that you must realize and address wisely.

  • Flexibility is lacking, because what is sold is the service of cleaning clothes in a clear period of time.  Customers are reluctant to compromise on this, so when you promise work within a certain time you must keep it for the credibility of the business.
  • Careful equipment maintenance. By relying on skilled technicians, you must carry out careful maintenance every certain period. Damage to the appliance will disrupt business capacity, and potentially disappoint customers.
  • Quite dense competition. Well, it is undeniable that this 'wet’ business has quite a lot of actors, so you must be smart in developing the right strategy.
  • About customers, because each customer has their own preferences for clothing.  Just make sure you don’t make any washing mistakes on special materials, and that no clothes are lost or swapped.

Tips for Running a Laundry Business

Although the strategy presented will sound very classic, but you can make it the basis and enter the value of the business you have.  In short, here are some strategies that you can apply and modify to distinguish your business from competitors in the market.

  • Determine a strategic location, make sure the chosen place has promising market potential, so you don't have to bother looking for customers from other areas
  • Provide shuttle services, either on a regular, paid, or promo basis combined with loyalty programs
  • About the price, make sure it is competitive. For businesses of the same scale, you must know the prices given by competitors. Consider well, and offer competitive prices according to the quality you provide
  • Special promos from marketing strategies. Periodically, provide attractive promos that have a clear purpose. For example, promos to add new customers, promos for loyal customers, or other promos according to the momentum that is happening
  • Make sure everything is on time and the quality is maintained. Punctuality will be the most powerful weapon you can give, as well as a guarantee of the accuracy of the process and how to wash.  Remember, these clothes will be worn by customers, so they must be finished in perfect condition
  • Remember the maintenance schedule   and do not miss it to avoid equipment damage that can cause losses

Also Read: 5  Small Capital Business Ideas with  Promising Profits

Good planning, research with solid data, and consistent execution, will lead you to success. However, you should always be aware that business has no small risk. Therefore, you must have a safety net to anticipate risks that may occur in the future for one reason or another.

Business insurance products from AXA Insurance can be a solution for this matter. Helping your  laundry  business with risk protection and control, SmartBusiness will give you  what you need. For complete information, you can click the related link above, and understand the details of this flagship product.  Plan your business well and make strategic moves for various possibilities that exist in the future!

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