Laundromat Business Plan
Urban residents often lack access to in-home laundry facilities, and existing laundromats may not provide a pleasant, efficient environment for customers. Additionally, environmentally conscious customers seek sustainable laundry options that minimize water and energy waste.
Solution
Universal Laundromat offers a clean, modern, and comfortable space equipped with energy-efficient washing machines and dryers. We strive to create a welcoming atmosphere with customer-focused amenities, while promoting environmentally friendly practices.
Market
Word-of-mouth is our best method of advertising. No major newspaper ad campaign is planned. However, we will run weekly specials and have an incentive program for referrals. Customers who refer someone else to the store will receive two free washes, and the referee will get a free wash. We will also ensure a clean environment, reliable machines, and friendly, prompt service.
Competition
Universal Laundromat aims to set itself apart by offering a range of services in one location. In addition to washing and drying, we plan to offer folding, pick-up/delivery service, online reservation, and membership options. Our convenience is what sets us apart.
Why Us?
Universal Laundromat is a full-service coin-op laundry that is committed to providing reliable machines and a clean, enjoyable atmosphere at a competitive price. We focus on delivering high customer satisfaction.
Expectations
Forecast
Note that the minimum monthly loan payback should decrease as the principal decreases. The profit projected in the table is after subtracting all expenses and monthly loan payback. All net profit will be used to greatly shorten the term of the loan.
Financial Highlights by Year
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Financing Needed
Mr. Mihn Doung currently owns a small permanent shop in 7th Berryessa Flea Market selling power tools every weekend. The shop brings in approximately $4,500/month on average in revenue, with an average profit of $2,500/month. Considering the potential in the coin-op laundromat industry, he wants to start another venture.
To achieve this, 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. It will be collateralized by the business’s assets and steady income, along with an initial $75,000 down payment. The loan is backed by the owner’s character, experience, and personal guarantees.
Opportunity
Problem & Solution
Problem Worth Solving
Everyone needs clean clothes, but not every family can afford a washer, dryer, or laundry soap.
Our Solution
Universal Laundromat is a full-service coin-op laundry that is dedicated to consistently providing high customer satisfaction. We offer reliable machines and 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."
Target Market
Market Size & Segments
Universal Laundromat’s target market is every household that needs laundromat services in the immediate area of east San Jose. There is no market segmentation strategy associated with this potential market. The Market Analysis table indicates the estimated number of potential customers and their growth rate.
Competition
Current Alternatives
Word-of-mouth is our best method of advertising. No major newspaper ad campaign is planned. However, we will run weekly specials and have an incentive program for referrals. Customers who refer someone else to the store will receive two free washes, and the referee will get a free wash. We will also ensure a clean environment, reliable machines, and friendly, prompt service.
Our Advantages
Universal Laundromat aims to set itself apart by offering a range of services in one location. In addition to washing and drying, we plan to offer folding, pick-up/delivery service, online reservation, and membership options. Our convenience is what sets us apart.
Keys to Success
Keys to Success
The keys to success in our business are:
- Location: We will be located in a nice small shopping center in a poor to lower-middle class, ethnically Mexican neighborhood. It will be the closest and most convenient place for residents to get services. There are also two apartment complexes nearby, and there is no potential competition.
- Convenience: We offer a range of services from washing and drying to optional folding, and we have extended business hours.
- Environment: We provide an environment that is clean, friendly, and conducive to providing professional service.
- Reputation: We aim to build a long-term reputation for friendly and professional service that encourages customers to return.
Execution
Marketing & Sales
Marketing Plan
Word-of-mouth is our best method of advertising. No major newspaper ad campaign is planned. However, we will run weekly specials and have an incentive program for referrals. Customers who refer someone else to the store will receive two free washes, and the referee will get a free wash. We will also ensure a clean environment, reliable machines, and friendly, prompt service.
Operations
Locations & Facilities
The laundromat is located in San Jose, California, in a small attractive shopping center next to poor to lower-middle class homes. There is no possible competition in this neighborhood. There are also two apartment complexes nearby. The surrounding area is a Mexican neighborhood where residents get most of their services and needed goods in this plaza.
Milestones & Metrics
Milestones Table
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Key Metrics
Our key metrics are:
- # of reviews we receive, with special attention to locals
- # of people who walk in versus those who call to see if we are available
- the cost of running the machines
Company
Overview
Ownership & Structure
The business is managed by the owner, who has extensive leadership and management skills, as well as an innovative and creative character. Unlike most laundromat businesses, Universal Laundromat will have an on-site staff person (Maintenance/Cashier) dedicated to store and machine maintenance, as well as cashier duties for the retail business within the laundromat. This Maintenance/Cashier person will be carefully evaluated for friendliness, professionalism, efficiency, and honesty. The salaries are shown in the personnel plan table. As Mr. Mihn Duong already has a steady income from his power tool shop, his salary will be less than expected if this was his sole source of income.
Team
Management Team
Minh Duong is an ambitious, hardworking, philosophical leader and businessman with extensive business experience and knowledge in various fields. He currently owns a permanent Flea Market Power Tools Shop and is the President/CEO of a small start-up Internet company. He has also held various leadership positions in both academic and business organizations. Minh is a fifth year Pre-med, Pre-MBA student with a triple major in Economics, Mathematics, and Statistics. He has ambitious future plans to achieve an MBA from Harvard Business School and an MD from John Hopkins Medical School.
Personnel Table
| Owner | $60,000 | $61,200 | $62,424 |
| Cashier | $42,000 | $42,840 | $43,697 |
| Totals | $102,000 | $104,040 | $106,121 |
Use LivePlan to easily create financials for your business plan.
Use LivePlan to easily create financials for your business plan.
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