7 Steps to Start a Laundry and Dry Cleaning Business

7 Steps to Start a Laundry and Dry Cleaning Business-feature image
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The Laundry and dry cleaning business is one of the safest businesses to start because there will always be a demand for this service in the residential and hospitality sectors.

There are several ways to get into the laundry and dry-cleaning business in India. You can open your own store or can start from home with doorstep services.

You can also start as a dry-cleaning franchise of a reputed brand. With the right planning and execution, starting a laundry and dry cleaning business in India can be a very successful venture. If you are searching for how to start a laundry business, then these steps might help you out.

7 Steps to Start Laundry and Dry Cleaning Business

A dry cleaning business can become profitable in the long run because it is a booming industry. However, to get the most out of it, you need to follow the proper steps. Here are the top seven steps you need to follow to successfully start your dry-cleaning business in India:

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1. Research on Your Target Market

Go deep into the business. Don’t just consider the whats, also concentrate on the whys and hows of the business. That is how you can learn about a particular domain. Check census data to analyze the population of the area you selected.

Ask the people in the neighborhood about their laundry and dry cleaning practices. Learn about various dry cleaning equipment. That is how you are going to learn more about your customers and their expectations.

Use the internet to know about your competitors and what they are doing differently to grow their businesses.

Learn about how much it costs to dry clean. It is going to be a long and time-consuming process. Thorough market research will set the building block of your laundry business.

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2. Learn the Required Skills

Before opening your own laundry and dry cleaning business, make sure you have worked within a system that deals with the same. It is extremely crucial to know about the insides of a business. And what’s a better way to know about business than working in it?

With this, you can learn the required skills like the in and out of dry cleaning equipment, the most cost-effective procedure to dry clean, the best ways to deal with customers, and much more.

3. Make a Business Plan

Creating a dry cleaning business plan is an extremely essential step that you should follow. Setting up goals for your business will not only encourage you to achieve them but also help you in the funding process if you need one.

Make a detailed plan about how you will go about your business and compete with other laundry and dry cleaning businesses. You have to plan out the location of your business, take care of rental costs, and buy the necessary equipment as well.

You also need to search for your USPs (Unique Selling Points) which would differentiate you from your competitors like being a ‘green’ laundry (dry cleaning business that uses chemicals that are environment friendly.)

4. Check Your Finances

Before you make any decision, know the ins and outs of your finances. Depending on your financial strength, you can go for a loan or opt for funding. Angel investment is a good option for laundry and dry cleaning businesses.

You can also go for equity capital investment by having business partners. Work out your numbers before executing your laundry and dry cleaning business plan.

You can consult with an accountant or financial advisor to get in-depth knowledge about how much money you need to start and run the laundry and dry-cleaning business.

5. Get Required Permits and Licenses

Getting the necessary permits and licenses hugely depends on the area in which you are considering setting up your business. You have to check the labor law of your state and check for insurance availability, especially for laundry and dry cleaning businesses.

It is advisable to talk to a business consultant. You should do the necessary paperwork and get your licenses before starting the operation of your laundry and dry cleaning business.

6. Get the Support Team Ready

Since this is a labor-intensive sector, you have to hire for a variety of roles like people for washing, store management, delivery, and accounting processes.

With the right team taking care of day-to-day processes at your store, you can focus on connecting and networking with your customers and ensuring that they are satisfied with your services.

You can hire enthusiastic people in the industry and train them to work efficiently as per your guidelines.

Related Categories: Hospitality Management Software | Hotel Management Software | Banquet Management System | Channel Management Software | Salon Software

7. Promote Your Business

So you have established a laundry and dry cleaning business but does anybody know about it yet? Promoting your laundry and dry cleaning business is important for the increased productivity of your business. This is the ultimate way to bring in new customers.

You can promote your business both online and offline. Also, you can approach the local newspaper to place an ad or use social media to spread awareness about your laundry and dry cleaning brand and its existence.

You can also use delivery bags and tags with your brand logo printed on them as promotional tools for promoting your laundry business.

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Since people are getting busier by the day, there are great chances of excelling in the laundry and dry cleaning business. With the advancement in technology, you can also use laundry management software to have greater control over each and every business activity.

You also have to ensure that you are providing exceptional service to your customers so that they come to you the next time. Just make note of these seven steps if you are still wondering how to start a laundry business. We are sure you are going to reach new heights.

What is the Cost to Start a Dry Cleaning Business? 

The initial dry clean business startup cost is around INR 66,0468 which is inclusive of cleaning equipment and cleaning products supplies. In case you decide to employ full-time staff, dry cleaning business investment will rise and include salaries and other expenses. 

However, with the expected higher profit margins in the dry cleaning business, you can flourish your small business in the long run. As you can see now, you do not need to spend a fortune to start your dry-cleaning business. 

Pros and Cons of Starting a Dry Cleaning Business 

Every business comes with its own set of pros and cons, and the dry cleaning setup is not an exception. Here are some pros and cons associated with this business: 

Pros

  • Seasonal breaks and holiday-time fluctuations will not affect your business
  • Minimal inventory items are required to manage your business
  • Dry cleaning is a prominent industry, and you can build your clientele quickly
  • Dry cleaning machines can be used easily without any complications

Cons

  • You need to learn how to properly wash different types of fabrics that require expertise and training.
  • Dry cleaning machines are costly and require regular maintenance
  • You need to deal with a few chemicals that can be dangerous if not handled properly.

How Laundry Management System Can Give You a Profitable Dry Clean Business?

The main purpose of laundry management is to overcome the laundry firms’ challenges by automating all its operations with laundry management software. This might include taking orders, maintaining laundry records, scheduling delivery and pickup, and managing payments.  

Some other reasons to use this software include managing customers’ data, checking washed clothes quality, and managing stores with multiple branches.  

Overall, the laundry management software helps boost operational efficiency, reduces costs, enhances productivity, and efficiently manages the data throughout the system. 

Why Is Turns Laundry Management Software Ideal for Your Business?

Turns laundry management software is an all-in-one system for dry cleaners and laundromats. This next-gen laundry management system enables you to run marketing campaigns and attract new customers, expand to new locations, and manage your workforce and payroll.

Many small and big-scale dry cleaning and laundry businesses across the globe are using Turns including Laundry Craft, Dry Pure, Brand Wash, Steam X-Press, and more. Turns software has empowered laundry businesses with features such as:

  • Offers personalized discounts with a virtual loyalty campaign
  • Provides laundry app to your customers for easy access
  • Offers contactless pick-up, delivery, and payment options
  • Ensures faster pickup and delivery at zero cost
  • Helps manage point-of-sales operations
  • Helps create a customized website and promote services through localized marketing
  • Provides reports about the performance of every store.

Conclusion 

If you are planning to start a dry cleaning business in India, then you should follow above mentioned tips to run its operations profitably. However, managing all the operations on your own might be a difficult task. Therefore, you can leverage laundry management software to streamline operations and maximize profits. 

FAQs Related to Laundry and Dry Cleaning Business

  1. How to Calculate ROI Of a Franchise Business?

    To calculate the ROI of a franchise business, you need to use this formula 
    (Benefits – Cost) / Initial Investment × 100. This will help you calculate ROI accurately. 

  2. Why should I choose the laundry industry?

    One of the major reasons why you should open a laundry business is because of the constant demand for tidy clothes. Most people want to look good and presentable in their daily lives with clean and ironed clothes but don’t have time to manage laundry at home.

  3. What are some skills and experiences that will help you build a successful laundry and dry cleaning business?

    To build a successful laundry business, you must know the ins and outs of this industry and create specialized roles for your dry cleaners. Moreover, you should also learn how to dry clean different types of fabrics.  

  4. What is the growth potential for a laundry and dry cleaning business?

    The global market for laundry and dry cleaning services was estimated at USD 67.3 Billion in 2022. The market is expected to grow at the rate of USD 94 Billion by the end of 2030, it is growing at the CAGR of 4.3% during the 2022-2030 analysis period. 

  5. Is the dry-cleaning business profitable in India?

    Yes, dry cleaning business is profitable in India and has great profit margins. On average, the gross profit in this business is close to almost 35-50 percent.

  6. How much capital is needed to start a dry cleaning business?

    You need around Rs 10 Lacs as the initial investment for the dry cleaning business. This cost comprises cleaning equipment, cleaning products, and the employee's salary.

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