Laundromat Business Plan

START YOUR OWN BUSINESS PLAN

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Executive Summary

Universal Laundromat is a full-service coin-op laundry (washing, drying, and optional folding) service dedicated to consistently providing high customer satisfaction by rendering reliable machines and furnishing a clean, enjoyable atmosphere at a competitive price/value relationship.

Our Mission: To provide convenient, clean, and friendly laundry service.

Our Motto: "Professional, convenient, friendly service and competitive pricing"

The timing is right for starting this new venture. After patiently searching for two months for the perfect location, one was finally found. The demand of laundry service, the ambitions of the owner to one day start his own laundry business, and knowledge to support the venture, has made it a business opportunity with great potential.

Currently, Mr. Mihn Doung owns a small permanent shop in 7th Berryessa Flea Market selling power tools every weekend. That store brings in approximately $4,500/month on average in revenue. The profit averages out to approximately $2,500/month. Considering the potentiality in the coin-op laundromat industry, he'd like to take on further challenges by starting another venture.

To achieve this objective, Universal Laundromat is seeking $150,000 in additional loan financing. This loan will be paid by the cash flow from both the shop at the Flea Market and the laundry business, and will be collateralized by the assets of the business and steady income it brings along with an initial $75,000 down payment, and backed by the character, experience, and personal guarantees of the owner.

1.1 Yearly Profit Potential

It is very important to note that the minimum monthly amount of loan payback should decrease as principal decreases. Furthermore, the profit projected in the table is after all expenses and monthly loan payback have been subtracted. All net profit will then be paid as an additional sum to greatly shorten the term of the loan.

1.2 Keys to Success

The keys to success in our business are:

  • Location: the potential business is to be located in a nice small shopping center of a poor to lower-middle class, ethnically Mexican neighborhood, where it's the closest and most convenient place to get services. In addition, there are two apartment complexes located nearby. In addition to being the sole laundromat in this neighborhood and surrounded by residences, there is no potential for a competitor.
  • Convenience: offering clients services ranging from full-service washing and drying to optional folding, and extended business hours.
  • Environment: providing an environment conducive to giving clean, friendly, and professional service.
  • Reputation: long-term reputation resulting from friendly, professional service will encourage customers to return.